TMI Blog2021 (4) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... e found to be error apparent. When there was an adjudication of facts and the Settlement Commission arrived a finding that factually the petitioner has not established that he filed an application under Section 245(C) with true and full disclosure, then the High Court is expected to exercise restraint in entertaining a writ proceedings under Article 226 of the Constitution of India. In the present case, the petitioner could not able to establish that he approached the Settlement Commission with clean hands and the element of true and full disclosure as contemplated under Section 245(C) had not been established before the Settlement Commission and therefore, there is no perversity or infirmity as such in respect of the findings arrived. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribution made in the chit business with the said Mr.J.Srinivasan on three different dates and having made an offer of additional income in respect of such amounts at the time of the search action. The petitioner has chosen to retract from all the above statements. Such a finding is not correct, in view of the fact that in respect of the amount received, Mr.J.Srinivasan paid tax in his regular assessment and those facts were not considered by the Settlement Commission and the learned counsel for the petitioner is of an opinion that there cannot be any double taxation in respect of the same amount. 3. Relying on Section 245(C) of the Income Tax Act, the learned counsel for the petitioner contended that the petitioner had approached the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept the contention advanced by the petitioner that the statements were made, helped Mr.J.Srinivasan. Thus, the condition that the petitioner has made full and true disclosure of the particulars of income and all the material facts cannot be said to be fulfilled. Thus, the Commission formed an opinion that the Commission is unable to lay down any terms of settlement as required in Sub Section (6) of Section 245D. Accordingly, the Commission was constrained to send the case back to the Department for determining the taxable income of the petitioner for the years under consideration. 5. Relying on the categorical findings of the Settlement Commission, the learned Senior Standing counsel appearing on behalf of the respondents cited the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited jurisdiction and the fact that after due appreciation of the facts, the Settlement Commission had arrived at its finding, we do not find any merit to accept the plea of the petitioner herein. Consequently, the writ petition stands dismissed. There will be no order as to costs. 6. In the case of Abdul rahim Vs. Income Tax Settlement Commission, Chennai, reported in [2018] 96 taxmann.com 571(Madras), the High Court made the following observations: 16. It is to be noted at this juncture that the Settlement Commission is vested with power to reject the Settlement Application at three stages, as provided under Section 245D of the said Act. Rejection at the threshold is contemplated under Section 245D(1). Rejection after n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther words, the applicant who approaches the Commission, bypassing the regular assessment proceedings, must provide material facts without any suppression and establish that the disclosure of income in the application is true and full in its strict sense. Otherwise, the applicant cannot find fault with the Commission in showing him the door to face the regular assessment proceedings. The term true and full disclosure does not mean that whatever the amount shown by the applicant, which according to him is undisclosed income, is in fact, the true and full disclosure. It may be the disclosure of undisclosed income in the view of the applicant. But whether such disclosure is true and full , in its strict sense, is a question that should fetc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter provided. 9. Section 245(D) contemplates 'Procedure on receipt of an application under section 245C'. Therefore, to entertain an application for settlement, these preliminary factors are to be considered by the Settlement Commission. Once on facts, Settlement Commission made a finding that the petitioner has not approached the Commission with full and true disclosure, then there is no reason to proceed further to settle the disputes between the parties. 10. In the present case, the findings of the Settlement Commission are unambiguous and specific facts and circumstances were also relied on by the Settlement Commission to arrive a decision regarding true and full disclosure by the petitioner. Such a finding of fact need ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
