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2022 (9) TMI 56 - HC - Income TaxScheme of settlement commission - Order granting partial immunity to the petitioner from penalty u/s 245H(1) - petitioner Income Tax Authorities have challenged the impugned order of the settlement commission granting partial immunity to the petitioner u/s 245H(1) by way of imposing lesser amount of penalty - HELD THAT:- Settlement Commission itself has recorded that attitude of the assessee respondent was not acceptable to it and that it runs contrary to the settlement scheme and in its order settlement commission also recorded and came to the finding that the assessee’s professional receipts were much higher than the requisite monetary limit and he was statutorily obliged to maintain proper record and books of accounts as per Section 44AA yet the respondent assessee had continued with the default of not maintaining books of accounts of the four relevant assessment years and that such conduct of the assessee respondent was deliberate and intentional. It is strange that in spite of such finding of the learned Settlement Commission how it has granted partial immunity from penalty to the petitioner u/s 245H(1) of the Act which is contrary to the spirit of the settlement scheme. Impugned order of the Settlement Commission to the extent of granting partial immunity to the petitioner from penalty under Section 245H(1) inspite of specifically recording that it was evident to the Settlement Commission that the respondent assessee had not come forward with full and true disclosure before it and that the attitude of the assessee respondent was not acceptable and runs contrary to the spirit of the Settlement Commission and by also recording that default in non maintenance of books of accounts u/s 44AA was deliberate and intentional on the part of the petitioner, the impugned order of settlement commission is bad, illegal and not sustainable in law and is contrary to the aims and objects of the settlement commission under Chapter XIXA of the Income Tax Act and accordingly the impugned order of the settlement commission is quashed to the extent it has granted partial immunity from penalty to the assessee respondent and in view of quashing of the impugned order.
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