Settlement Commission jurisdiction does not bar recovery of unpaid additional tax after default under the settlement scheme.

The settlement scheme under Chapter XIX-A confers exclusive jurisdiction on the Settlement Commission only in respect of matters before it until an order under section 245D(4) is passed, but that exclusivity does not defeat the specific recovery mechanism in section 245D(2D). Where additional tax fixed under sections 245D(2A) and 245D(2B) is not paid within the allowed time or extended time, the Assessing Officer may recover the unpaid amount with interest in accordance with Chapter XVII. On that construction, section 245F does not bar recovery after default, and the contrary view quashing recovery steps could not stand.

---

---

Issues: Whether, after an application under the settlement scheme is allowed to be proceeded with and the assessee is granted time or instalments to pay the additional tax, the Assessing Officer can recover the unpaid amount on default and whether section 245F bars such recovery action.

Analysis: Chapter XIX-A of the Income-tax Act creates the settlement mechanism and confers exclusive jurisdiction on the Settlement Commission only in relation to the matters before it, until an order under section 245D(4) is passed. The statutory scheme also contains a separate recovery provision. Where the additional tax payable under section 245D(2A) is not paid within time or within the extended time allowed under section 245D(2B), section 245D(2D) authorises recovery of the unpaid amount, together with interest, by the Assessing Officer in accordance with Chapter XVII. The exclusive jurisdiction under section 245F does not nullify this specific recovery power when default has occurred after the Commission has fixed the payment schedule.

Conclusion: The Assessing Officer was not barred from proceeding to recover the unpaid amount after default, and the earlier order quashing the recovery steps could not be sustained.

Final Conclusion: The appeal succeeded on the legal issue, the contrary view of the single judge was set aside, and the matters were remitted for fresh decision on the challenged notices.

Ratio Decidendi: The exclusive jurisdiction of the Settlement Commission under section 245F is confined to the case before it and does not prevent recovery under section 245D(2D) once the assessee defaults in payment of the additional tax directed under sections 245D(2A) and 245D(2B).

---