TMI Blog2016 (7) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of spirit of settlement and cannot be seen in strict sense of abandoning initial disclosures and replacing the same by fresh disclosures on the basis of such revised offers. What in essence the assessee did was to raise their offers marginally to put an end to the entire dispute through settlement or in the spirit of settlement as is referred to in the said letter. This cannot be seen as accepting that original or initial declaration was not true and full disclosure thereby paving way for the application of judgment in the case of Ajmera Housing Corporation (2010 (8) TMI 35 - SUPREME COURT OF INDIA ). - Decided against revenue - Special Civil Application No. 2881 of 2015 With Special Civil Application No. 2882 of 2015 To Special Civ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax vs. Income Tax Settlement Commission in Special Civil Application No. 11909 of 2014 to 11911 of 2014, in which by a separate judgment passed today, the Court made following observations: 6. With this background, we may revert to the facts of the case. The Settlement Commission had in the impugned order examined material on record in the context of the declarations made by the applicants for settlement including certain transactions of the applicants of lending their on money on short term basis. The Settlement Commission had thereafter come to the conclusion that the offers of the assessees for settlement considering their disclosure of 15 per cent return on the revised figure of on money of ₹ 50 lakhs, ₹ 50 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which such income has been derived. We may also notice that while processing such application under section 245-D of the Act, it would be open for the Settlement Commission to reject an application for settlement if it is found that the applicant has not made true and full disclosure of his income in the application for settlement. In the context of these provisions, the Supreme Court had an occasion to examine the issue of true and full disclosure and the stage where the same must be made in the case of Ajmera Housing Corporation (supra ). It was a case where the assessee had filed an application seeking immunity under section 245C(1) of the Act disclosing additional income of ₹ 1.94 crores (rounded off) for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. This order was challenged by the Commissioner before Bombay High Court. Aggrieved by the order of High Court, the assessee had approached Supreme Court. The Supreme Court remanded the matter back before Bombay High Court for fresh consideration upon which Bombay High Court on 29.1.1999 passed an order remitting the matter back to the Settlement Commission against which the applicants-assessees approached Supreme Court. It was in this background that that the Supreme Court observed as under: ' 26........It is plain from the language of sub-section (4) of Section 245D of the Act that the jurisdiction of the Settlement Commission to pass such orders as it may think fit is confined to the matters covered by the application and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication made by the assessee on 30 th September, 1993 under Section 245C(1) of the Act could not be entertained as it did not contain a true and full disclosure of their undisclosed income and the manner in which such income had been derived. However, we say nothing more on this aspect of the matter as the Commissioner, for reasons best known to him, has chosen not to challenge this part of the impugned order.' 9. We may recall that such observations were made by the Supreme Court being conscious of the fact that the Revenue had not preferred any appeal against judgment of the High Court on the question of full and true disclosures. Despite which the Supreme Court examined the issue threadbare and made above-noted observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be would be substantially in the realm of estimation of not profit. He would however, strenuously contend that revised declaration of on money should be enough to establish that initial disclosures made by the assessees were not full or true disclosures of such income. In this context, we had called for the letter written by the applicants making such revised offers. Copies of such letters dated 6.2.2014 written by the partners of the firm are produced on record. In such letters, it was conveyed that the applicants had filed a petition for settlement in which offered a sum of ₹ 7,75,000/- at the rate of 12 per cent on peak balance of funds deployed in money lending activity. It was further stated that the applicant during the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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