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M/s. Vision Millennium Exports P. Ltd. Versus Deputy Commissioner of Income Tax & Ors.

2017 (4) TMI 770 - BOMBAY HIGH COURT

Application under Section 245C for settlement - Held that:- Either all the Assessment Years mentioned in the application are to be settled or none at all. It cannot be split so as to settle the dispute for some of the Assessment Years and reject the others. In view of the above, the impugned order of the Commission to the extent it has rejected / not entertained, the petitioner's application for settlement for the Assessment Years 2007-08 to 2013-14 for not disclosing additional income in its ap .....

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itioner had declared in its application for settlement an amount of ₹ 4.99 cores as being the additional income sought to be settled. The amount of tax payable on the assessment of ₹ 4.99 crores has already been paid. The impugned order has enhanced the settlement by further amount of ₹ 1.28 crores. According to the petitioner, the impugned order suffers from non-consideration of the submissions made and, therefore, the decision making process has not been properly followed. .....

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direct the petitioner to pay the amount of ₹ 42 lakhs to the Revenue on or before 31st March, 2017. - This payment would be without prejudice to its rights and contentions in this petition. On the petitioner depositing the amount of ₹ 42 lakhs, there shall be a stay of the impugned order dated 29th July, 2016. - In case, the amount of ₹ 42 lakhs is not deposited on or before 31st March, 2017 with the Revenue, the protection available under this order would come to an en .....

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nt Commission, Additional Bench, Mumbai (the Commission) under Section 254D(4) of the Income Tax Act, 1961 (the Act). The impugned order disposes of the petitioner's application under Section 245C for settlement in respect of the Assessment Years 2007-08 to 2014-15. 3. The impugned order settled the petitioner's application to the extent it related to the Assessment Year 2014-15 by determining the settlement at ₹ 6.27 crores from ₹ 4.99 cores, as declared by the petitioner. T .....

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cording to the impugned order, additional taxable income should be declared for each of the assessment years. Therefore, as no additional income was declared for Assessment Years 2007-08 to 2013-14, the impugned order rejected settlement. The above basis of the impugned order of the three member bench of Commission was contrary to the decision of a five member Special Bench of the Commission in Airtech Pvt. Ltd. 209 ITR 21. This different view was on the ground that the five member Special Bench .....

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h Pvt. Ltd. (supra) requires reconsideration, they could have requested the Chairperson of the Commission to consider constituting a Special Bench of more than five members and referring the issue to it. Consistency, certainty and equal application of law to all are the basic constituents of Rule of Law. In its absence, the Commissioner would become a body deciding matters on discretion alone, leading to break down of Rule of Law. Thus, prima facie, the Commission could not have refused to settl .....

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tion by seven member Special Bench of the Commission : "Whether in an application for settlement u/s 245C(1) covering more than one assessment year, the applicant must mandatorily disclose additional income not disclosed before the Assessing Officer, for each assessment year covered by the application and on such additional income there must be a liability to pay income tax for each such year especially in view of amendments brought about in proviso to section 245C(1), read with section 245 .....

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Bench of the Commission, there is no requirement of disclosing additional taxable income for each of the assessment years which form part of an application for settlement. It is pertinent to note that order dated 2nd December 2016 of the seven member bench of the Commission has not yet been challenged by the Revenue. 7. It is further submitted by the petitioner that an application for settlement is only one though it may consists of more than one assessment years. Consequently, as held by the Sp .....

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itioner's application for settlement for the Assessment Years 2007-08 to 2013-14 for not disclosing additional income in its application, prima facie appears to be incorrect. In the above view, the Assessing Officer is restrained from issuing notices and initiating proceedings under the normal provisions of the Act for Assessment Years 2007-08 to 2013-14. 8. However, the above interim relief is granted as Mr. Jain, learned Counsel appearing for the petitioner, on instructions, states that in .....

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ion arises. 9. So far as the Assessment Year 201415 is concerned, the petitioner had declared in its application for settlement an amount of ₹ 4.99 cores as being the additional income sought to be settled. The amount of tax payable on the assessment of ₹ 4.99 crores has already been paid. The impugned order has enhanced the settlement by further amount of ₹ 1.28 crores. According to the petitioner, the impugned order suffers from non-consideration of the submissions made and, .....

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