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2014 (5) TMI 147 - DELHI HIGH COURTValidity of notice issued u/s 153A after search and seizure where - petitioner objected to assessment/ reassessment of income for assessment years 2004-05 to 2006-07 under the said provision since the assessments had already been concluded by the order of the Settlement Commission dated 17.03.2008. - Justification on the position of order passed u/s 245C – Held that:- Following M/s OMAXE LTD. THROUGH JAI BHAGWAN GOEL Versus ASSTT. COMMISSIONER OF INCOME TAX AND ANR [2012 (7) TMI 529 - DELHI HIGH COURT] - the applicability of any other provision of law including Section 148 had been ruled out once an order is made by the Settlement Commission - the order of settlement is conclusive as expressly stated in Section 245I – u/s 245F(1), the Income Tax Settlement Commission, in addition to the powers conferred on it under Chapter XIX-A, shall have all the powers which are vested in an income-tax authority under the Act - the finality attaches itself to Settlement Commission’s order is in respect of the matters referred to it – the orders of Settlement Commission are final and conclusive as to matters stated therein - The “matters” necessarily could comprehend disputed questions, items or heads of income, disallowance, etc. or variants of it, but always with reference to a particular assessment year - the Commission exercises power in respect of income which was not disclosed before the authorities in any proceeding, but are disclosed in the petition u/s 245C. It is not that any amount of undisclosed income can be brought to the notice of the Commission in the petition - the requirement is that there must be an income disclosed in a return furnished and undisclosed income disclosed to the Commission by a petition u/s 245C - It cannot be said that there has been a true and fair declaration of income which is the pre- requisite for settlement by the Commission - If an order is obtained by fraud or misrepresentation of facts, it cannot be said that there was true and fair disclosure - The declaration contemplated in Section 245C is in the nature of voluntary disclosure of concealed income, it must be true and fair disclosure - Voluntary disclosure and making a full and true disclosure of the income are necessary preconditions for invoking the Commission's jurisdiction – thus, the notice issued to the petitioner u/s 153C cannot be sustained - the notice and all further proceedings are hereby quashed – Decided in favour of Assessee.
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