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Principal Commissioner of Income Tax, (Central-4) Versus Income Tax Settlement Commissioner (ITSC) & Another

2016 (5) TMI 291 - BOMBAY HIGH COURT

Settlement Commission - non consideration of petitioner's objections - Held that:- Bearing in mind that the application for Settlement would abate if the same is not decided by the Settlement Commission before September, 2016, relegating the Respondent-Applicant to the adjudication proceedings under the Act it may result in Respondent-Applicant's application for settlement becoming fatal. This is particularly so as the application for settlement is ready for final hearing under Section 245D(4) o .....

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(2C) of the Act. Almost eleven months out of the eighteen months were lost in the Petitioner not moving this Court i.e. from May, 2015 to April, 2016. This coupled with the fact that before the Settlement Commission, the Revenue has after the impugned order proceeded with filing of its report under Section 245D(3) of the Act. Therefore, we are not inclined to consider the challenge in this Petition in detail in view of the peculiar facts and circumstances of this case. In these facts, it would m .....

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In the above view, in the peculiar facts of this case, we are not disturbing the impugned order dated 21st May, 2015 of the Settlement Commission. However, we direct the Settlement Commission to consider the petitioner's objections as recorded in the Commissioner's report under 245D(2B) of the Act at the time of passing an order under Section 245D(4) of the Act. - Writ Petition No. 26 of 2016 - Dated:- 28-4-2016 - M. S. Sanklecha And A. K. Menon, JJ. For the Petitioner : Mr. N. C. Mohanty For th .....

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the petitioner is not invalid at the stage of Section 245D(2C) of the Act and is allowed to be proceeded with under Chapter XIXA of the Act. Brief facts:- 2. On 27th March, 2015 the Respondent No.2Applicant had filed an application for settlement under Section 245C(1) of the Act with the Settlement Commission. This with a view to settle cases for Assessment Years 2007-08 to 2014-15 which were all pending before the Assessing Officer. 3. On 8th April, 2015, the Settlement Commission passed an ord .....

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Commissioner in his report dated 15th May, 2015 under Section 245D(2B) of the Act raised various objections and sought to declare the petitioner's application for Settlement of case for Assessment Years 2007-08 to 2014-15 as invalid. This on the ground that the applicant has not made true and full disclosure of its income which had not been declared before the Assessing Officer by the Respondent-Applicant for the concerned Assessment Years. 5. On 21st May, 2015, the Settlement Commission aft .....

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pugned order dated 21st May, 2015 by filing this petition on 12th October, 2015 in the Registry of this Court. Thereafter, the petitioners did not have the office objections removed for long. Consequently, it was only on removal of objections that the petition was allotted its regular number in January, 2016. The petition thereafter came up for hearing for the first time on 3rd February, 2016. On that date, it was adjourned at the request of the Respondent-Applicant. On 10th February, 2016, the .....

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ached hearing on 13th April, 2016, the same was adjourned at the instance of the Respondent-Applicant to 27th April, 2016. The petition was heard for some time - yesterday and today. Submissions:- 7. The grievance of the petitioner is that the issues raised by it in its report dated 15th May, 2015 under Section 245D(2B) of the Act were not dealt within the impugned order of the Settlement Commission dated 21st May, 2015. The principal grievance is that during the course of search, a document had .....

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not even record the aforesaid objection much less deal with it. Besides, it is contended that other issues raised in the objection were also not satisfactorily dealt with. In the above view, Mr. Mohanty, learned Counsel appearing on behalf of the Petitioner submits that the impugned order is a nonspeaking order as it is passed without considering the important objection as particularized above and urged in the Commissioner's report under Section 245D (2B) of the Act. Therefore, it is prayed .....

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plication for Settlement at the stage of Section 245D(2C) of the Act cannot be done on the basis of mere inferences. The rejection of an application requires a detailed hearing and consideration which would in any case happen at the stage of Section 245D(4) of the Act. Moreover, it is submitted that the order at stage of Section 245D(2C) of the Act was merely a prima facie view and the entire issue including the questions raised in the objections would still be subject to examination at stage of .....

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erate. This is so as even after filing of the present Petition in October, 2015, the objections were not removed for long time and the adjournment sought without having at any time seeking an adinterim stay. Therefore, this Court should not entertain the Petition only on the ground of laches. 9. We find some merit in the submissions made on behalf of the Revenue that the impugned order dated 21st May, 2015 does not record much less deal with the contention urged by the Revenue in its report unde .....

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have taken view that the application as filed is not invalid and it should be allowed to be proceeded further. However, we must not lose sight of the fact that the Commission had while passing the impugned order dated 21st May, 2015 heard the parties i.e. the Commission and the Respondent-Applicant. Therefore, if this point was urged by the Commissioner at the hearing or the Settlement Commission had pointed it to Respondent-Applicant on its own reading of the Commissioner's report, it is po .....

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may result in Respondent-Applicant's application for settlement becoming fatal. This is particularly so as the application for settlement is ready for final hearing under Section 245D(4) of the Act and listed on to 11th May, 2016 before the Settlement Commission. Therefore, if on hearing the parties completely, we come to a view that the impugned order needs to be set aside and restored to the Settlement Commission, it would take up much time, resulting in abatement of the settlement applic .....

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245D(3) of the Act. Therefore, we are not inclined to consider the challenge in this Petition in detail in view of the peculiar facts and circumstances of this case. In these facts, it would meet the interest of justice if the Settlement Commission will deal with all the issues of full and true disclosure of income in its order under Section 245D(4) of the Act being raised by the Revenue not only in the Commissioner's Report under Section 245D(2B) of the Act but also under Section 245D(3) o .....

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