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2021 (9) TMI 49 - HC - Income TaxValidity of Settlement Commission order u/s 245D(4) - provisions relating to settlement of cases - Proof of true and full disclosure of income - whether petitioner is estopped to challenge the decision of the Settlement Commission after having made the requisite payments in 15 installments? - HELD THAT:- This Court finds that the petitioner himself submitted an application stating therein true and full disclosure of his income which was found to be incorrect. A person, who himself has not come out with clean hands, cannot take the benefit of the law for his own purposes - Settlement Commission, after having taken note of the report of the Commissioner of Income Tax, proceeded to assess the total income of the petitioner and has thereafter settled the income. On an application moved by the petitioner, installments were also increased from 6 to 15. The payments have already been made accordingly. In Brij Lal & ors.[2010 (10) TMI 8 - SUPREME COURT] the Settlement Commission passes the order which is a complete code in itself. It is a quasi-judicial authority and there is no provision for the Settlement Commission to remand the matter back to the AO - contention of the petitioner solely based on the observations made in different context by the Supreme Court and the High Court of Madras and Bombay that the Settlement Commission should have rejected his application cannot be sustained once the Settlement Commission has reached to the conclusion that there is no full and true disclosure of income. The stage is no more available for the petitioner. Once the Settlement Commission has ceased with the matter and has proceeded to take on record the reports and has reached to the conclusion that additional income is required to be added to the income as purportedly submitted to be the full and true undisclosed income, the option is not available for the applicant-petitioner, who has approached the Settlement Commission, to withdraw his application and ask for assessment to be done by the regular AO. This Court finds that the Settlement Commission had, in-fact, directed for getting the FSL report relating to the documents, which were made a basis for adding of income to the disclosed income as submitted by the petitioner, without waiting for the result of the FSL report and without giving an opportunity to the petitioner to contest the report submitted by the Commissioner of Income Tax regarding full and true disclosure and the Settlement Commission has proceeded further with the matter and passed the impugned order. The petitioner was also not given opportunity of hearing. The principles of Audi-alteram-partem, which are imbibed and inherent in the entire procedure relating to Settlement Commission which is akin to arbitration proceedings, have been violated. This Court is not convinced with the submission of learned counsel for the Revenue that the petitioner is estopped to challenge the decision of the Settlement Commission after having made the requisite payments in 15 installments. There is no estoppel against the law. The Settlement Commission, which is a quasi-judicial body, is required to adhere to the principles of law in stricto sensu. The contention of Revenue that the petition deserves to be dismissed on the ground of acquiescence is noticed for rejection. In cases relating to Revenue, the law of acquiescence would have no application because the orders are of mandatory nature where a person is bound to comply with the orders of the AO/Settlement Commission. If the assessee has deposited the revenue as assessed, he cannot be said to have acquiesced to the findings arrived at for computing the amount. A person would always be entitled for seeking a judicial review to such assessment. Neither the Revenue Department nor the assessee can be estopped from challenging the orders of assessment which may be passed by the AO/Commissioner or the Settlement Commission. While this Court does not accept the contention of the petitioner regarding the Settlement Commission not being empowered to make assessment, it accepts the second submission of learned counsel for the petitioner that the Settlement Commission ought to have examined the matter after giving opportunity of hearing to the petitioner with regard to the true and correct disclosure and the assessment ought to have been done by giving fair opportunity to the petitioner. In this regard, the FSL report also should have been taken into consideration. Matter restored back.
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