TMI Blog2024 (2) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... cing unaccounted sales by the under-invoicing of sales receipts and collecting a part in cash was found - Commission was of the view that the petitioner had not adduced any reason or basis for apportioning the undisclosed income in the hands of the petitioner and the Company M/s Hailstone Innovations Private Limited during the course of the hearing, and no explanation came forward to explain the difference between the unaccounted sales calculated by the Principal Commissioner of Income Tax on the basis of the seized material and the unaccounted sale computed by the petitioner - Commission concluded that the petitioner had not come before the Board with clean hands and had not offered full and true particulars of his income. HELD THAT: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r law for the time being in force. Section 245-L declares that any proceedings under Chapter XIX-A before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 for the purposes of Section 196 of the Indian Penal Code. Thus, Section 245 provides a complete code and prescribes finality in the orders passed by the Settlement Commission. As incumbent upon the assessee to approach the Settlement Commission with true and full disclosure of income and its sources. PCIT, in his report, has held that the petitioner did not have any basis for apportionment of expenditure and undisclosed income between him and the Company. Despite the opportunity having been granted to the petitioner during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Assessment Years 2015-16 to 2019-20. The assessment for all the years was completed under Section 143(3) read with 153-A of the Act vide order dated 28.09.2021 with nil demand. Though the decision was taken to discontinue the Income Tax Settlement Commission with effect from 01.02.2021, the 2nd respondent issued notification No. F.No. 299/22/2021-Director (Inv. III)/174 dated 28.09.2021 under Section 119(2)(b) of the Act extending the time limit for filing of the application before the Interim Board for Settlement till 30.09.2021 under conditions prescribed therein. 2.1 The petitioner had filed an application within the extended time before the 3rd respondent under Section 245-C. The 3rd respondent was pleased to call for a repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He is also the Partner in M/s Baba Engineering Works, M/s Capital Equipment and Spares, M/s Screen World, M/s Siva Pipes and M/s Hindustan Fabricators. 3.1 During the course of search and seizure under Section 132, in the case of the petitioner/group, incriminating material evidencing unaccounted sales by the under-invoicing of sales receipts and collecting a part in cash was found. The Principal Income Tax Commissioner, in his report submitted under Rule 9, had computed the total unaccounted sales for the period for the Assessment Years 2014-15 to 2020-21 to Rs. 61,27,92,924/- and the total unaccounted income to the tune of Rs. 42,37,13,070/-. Whereas the petitioner had worked out the total unaccounted sale to Rs. 22,44,21,599/- and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax on the basis of the seized material and the unaccounted sale computed by the petitioner. 3.4 Considering the aforesaid, the Commission concluded that the petitioner had not come before the Board with clean hands and had not offered full and true particulars of his income. Section 245C(1) provides disclosure of full and true particulars of the income and the manner in which that income had been derived and apportioned in order to get the settlement. As the conditions prescribed in the provisions of Section 245C(1) have not been fulfilled in the case, the application was rejected by the impugned order. 4. Learned Counsel for the petitioner submits that the petitioner had filed an objection to the report, and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Every order of settlement passed under sub-section (4) of section 245-D is conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in Chapter XIX-A, be re-opened in any proceedings under the Act or under any other law for the time being in force. Section 245-L declares that any proceedings under Chapter XIX-A before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 for the purposes of Section 196 of the Indian Penal Code. Thus, Section 245 provides a complete code and prescribes finality in the orders passed by the Settlement Commission. 6. As mentioned above, it is incumbent upon the assessee to approach the Settleme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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