TMI Blog2019 (5) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... by a petition u/s 245C. Unlike Section 139 which provides for filing of revised return, there is no provision for revision of an application made in terms of Section 245C. That shows clear legislative intent that the applicant for settlement has to make a true and fair declaration from the threshold. It is on the basis of the application received that the Commission calls for the report to decide whether the application is to be rejected or permitted to be continued. The declaration contemplated in Section 245C is in the nature of voluntary disclosure of concealed income, but as noted above it must be true and fair disclosure. Voluntary disclosure and making a full and true disclosure of the income are necessary preconditions for invo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following factual background. 3. Petitioner is a Private Limited Company. It is a part of Samdariya Group, comprising of four entities, viz. M/s. Samdariya Enterprises; (2) M/s. Samdariya Builder Green City; (3) M/s. Samdariya Dharamchand Tejraj Saraf (HUF) and (4) M/s. Samdariya Builders Private Limited, (the petitioner above). 4. On 16.5.2013 search and seizure under Section 132 and 133A by the Income Tax Act were conducted by the Department on the Samdariya Group, including Petitioner Company, covering residential and business premises of the group including some brokers. So far as the petitioner company is concerned, it is alleged, that no incriminating material was found against the petitioner company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Settlement Commissioner pertaining to the Petitioner Company. 6. After notice, respondents have filed the reply contending that no interference is called for with the order impugned and the writ petition is liable to be dismissed. 7. We have heard Shri Sahni, learned counsel for the petitioner and Shri Sanjay Lal, learned counsel for the respondents at length and considered the material placed on record. 8. Shri Sahni, learned counsel for petitioner submitted that the Settlement Commissioner while passing the order impugned under Section 245 D(4) of the Act committed serious illegality in not providing settlement when the Petitioner Company had made full and true disclosure of income al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for settlement is filed under Section 245-C, it is not automatically admitted. Section 245-D deals with the procedure on receipt of an application under Section 245C. Under sub-section (1) thereof, the Commission after following the prescribed procedure can allow the application to be proceeded with or rejected. Only after the Commission allows the petition to be proceeded with, it exercises the power of settlement. 12. The Commission s power of settlement has to be exercised in accordance with the provisions of the Act. Though the Commission has sufficient elbow room in assessing the income of the applicant, it cannot make any order with a term of settlement which would be in conflict with the mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase or complexity of the investigation involved therein, it can either reject the application or allow the application to be proceeded with as provided in Section 245D(1). 15. It has to be noted that the Commission exercises power in respect of income which was not disclosed before the authorities in any proceeding, but is disclosed in the petition under Section 245C. It is not that any amount of undisclosed income can be brought to the notice of the Commission in the said petition. The Commission exercises jurisdiction if the additional amount of tax on such undisclosed income is more than a particular figure. The assessee must have in addition furnished the return of income which he is or was required to furnish under any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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