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TMI Blog2017 (1) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... at pursuant to search and seizure proceedings (which took place on 11.10.2006), a notice was issued under Section 153A/143(3) of the Act and the assessment was completed. This included inter alia assessment for pending AY 2007-08. Before the assessments could be completed, the petitioner approached the Income Tax Settlement Commission (ITSC); after considering the submissions of charges, the application was admitted. Thereafter the ITSC called for a report under Rule 9A of the ITSC Rules, which was furnished to it by the respondent/ revenue. Based upon the submissions made and its appreciation, of other materials found during the cause of search (including the returns filed and its supporting documents), the ITSC made its final order on 8th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.06.2006 to 21.08.2006 falling in F.Y. 2006-07 (A.Y. 2007-08). These amounts have been received from M/s. Thar Steels Pvt. Ltd. M/s. Bhawani Portfolio Pvt. Ltd., M/s. Mahanivesh India Ltd. And M/s. Taurus Iron & Steel Co. Pvt. Ltd. All these companies are fictitious companies providing accommodation entries. These companies were controlled by Shri Tarun Goyal who was searched by the Income Tax Department. Assessments in Tarun Goyal Group have been completed. In some cases appeals have also been decided. Copy of the appellate order in the case of Mahanivesh India Ltd. issued by the CIT(A)-XXXIII, New Delhi, is enclosed by CIT which according to him clearly indicated that these companies are bogus and fictitious and only providing accommoda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, given by Taurus Iron & Steel Co. Pvt. Ltd. (Rs. 30,00,000/-) & Tejasvi Investment Pvt. Ltd. (Rs. 20,00,000/-) unearthed in the case of entry operator called as Tarun Goyal. This point has not been considered in the order of settlement commission. From the above facts I have reason to believe that income to the tune of Rs. 50,00,000/- has escaped assessment in the case of the assessee M/s Rishi Promoters Pvt. Ltd for the A.Y. 2007-08, by reason of the failure on the part of the assessee to disclose fully and truly all material facts for his assessment and the same needs to be assessed/reassessed as per the provisions of sub-clause(i) of clause(c) to Explanation 2 to Section 147(b) of Income Tax Act, 1961in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of notice under section 147/148 of the Act in respect of returns of M/s. Rishi Promoters. He points out that ITSC's final order does not contain any discussion with respect to the declaration or disclosures made by M/s. Rishi Promoters which can be said to have become final. It was urged in the circumstances that the notice should not be interfered with. The observation in Omaxe Limited (supra) with regard to the finality that attaches itself in respect of that are discussed, is as follows: "18. xxx xxx ...... We hold that since the exclusive jurisdiction to exercise the powers and perform the functions of an income tax authority in relation to the case vests with the ITSC after an order is passed under Section 245D(1) till the final s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated by a different income-tax authority. An assessment order passed by an Assessing Officer can be rectified or amended under Section 154 or Section 155 or reopened under Section 148 only by him, and by no other income-tax authority. Similarly, an assessment by way of settlement of a case, which is made by the ITSC, can be reopened only by the ITSC and that too only in certain circumstances. Applying this general principle that runs through the Act, an assessment by way of settlement order passed by the ITSC cannot be reopened by a different authority, viz. The Assessing Officer. The fact that the ITSC has not been designated as an "income-tax authority" under Section 116 of the Act makes the position 'a fortiori'. Section 147 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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