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TMI Blog2009 (7) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... J. - This original petition is filed by the Revenue challenging exhibit P-1 order issued by the Settlement Commission settling the block assessment of the assessee for the assessment years 1986-87 to 1996-97. A search was made in the residential and business premises of the assessee on February 1, 1996. Pursuant to search, the assessee filed a return and revised return. However, pending assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement Commission allowed both the above items claimed by the assessee in the computation of long-term capital gains. It is against this order of the Settlement Commission, the Department has filed this original petition. I have heard standing counsel for the petitioner and Sri P. Balakrishnan, appearing for the respondent-assessee. 3. The counsel appearing for the respondent submitted that the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act. Though the Settlement Commission enjoys wide discretion in settlement of income-tax cases taken by it, it is bound by the statutory provisions and once there is an express bar, the Settlement Commission cannot get over it. In fact, the Settlement Commission itself has computed the profit on sale of long-term capital asset and further deductions from that could be granted only in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m capital gains, the Settlement Commission could reduce it in the total income computed as if it is found that the assessee has really incurred so much of the expenditure on borrowals. In this view of the matter, I uphold the order of the Settlement Commission on this issue. The original petition is, therefore, allowed in part directing the Assessing Officer to treat the Settlement Commission's or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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