TMI Blog1973 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal was justified in holding that the admission made by the assessee in his application under section 271(4A) to the effect that the value of the assets held in the name of his son may be added to his own income, will not be binding on the assessee in the event of there being no settlement of his income, as requested for by him ? (2) Whether the Tribunal was justified in the income earned by the assessee in the name of his son in spite of the assessee's admission that his son was his benamidar? (3) Whether the Tribunal was justified in holding that there was no material on record to prove that the assessee's son was a benamidar, particularly when the admission of the assessee that his son was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication for settlement under section 271(4A) of the Income-tax Act, 1961, could not be held binding on the assessee if his proposal for settlement was not accepted by the department. If the respondent's assessment was on merits, it was incumbent on the department to have furnished the requisite material showing that his son, Darshanlal, was his benamidar and any admission made in the offer by way of an application for settlement under section 271(4A) could not be considered if the offer was not accepted by the department. The department made an application to the Appellate Tribunal under section 256(1) of the Act, which was rejected. Misc. Civil Case No. 492 of 1973 involves the same question and it relates to the assessment year, 1966 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure of such particulars ; (b) has co-operated in any enquiry relating to the assessment of such income ; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year : Provided that if in a case the minimum penalty imposable under-clause (i) or, as the case may be, clause (iii) of sub-section (1) in respect of the relevant assessment year, or where such disclosure relates to more than one assessment year, the aggregate of the minimum penalty imposable in respect of those ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can evidently not be permitted and we feel that the Appellate Assistant Commissioner and the Appellate Tribunal were correct in holding that in the event of there being no settlement, the disclosures made in the offer ought to be excluded from consideration altogether. If the department's contention were to be accepted, it would defeat the very purpose of enacting section 271(4A) of the Act. We may observe that unless the offer is accepted and acted upon by the department, the other sub-sections of section 271 will be attracted in the matter of imposition of penalty and the two provisions cannot be allowed to be mixed up to the entire advantage of the department and disadvantage of an assessee. We, therefore, do not think that the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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