Settlement Commission immunity under section 245H cannot be reappraised like an appeal when based on relevant material and recorded satisfaction.

The Settlement Commission's grant of immunity from penalty and prosecution under section 245H is a discretionary exercise that depends on full and true disclosure, cooperation, the Commissioner's report, and other relevant material. Where the Commission records reasons and reaches satisfaction on those materials, its decision is not open to appellate-style reappraisal by the High Court. Judicial interference is confined to narrow grounds such as illegality, prejudice, fraud, bias, or malice. On these principles, the remand order was held unsustainable and the immunity order was restored.

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Issues: Whether the High Court was right in remanding the matter to the Settlement Commission on the ground that immunity from penalty and prosecution under section 245H had been granted without adequate material to show absence of wilful concealment.

Analysis: The statutory scheme of Chapter XIX-A requires an applicant to make a full and true disclosure of income not disclosed before the Assessing Officer and to cooperate in the settlement proceedings. The Commission, while exercising power under section 245H, must consider the Commissioner's report, the disclosures made before it, and other relevant evidence, and the grant of immunity is a matter of discretion. On the facts, the Settlement Commission recorded reasons, considered the material placed before it, noted the assessee's cooperation and additional disclosure, and concluded that immunity from penalty and prosecution was warranted. The High Court could not sit in appeal over the sufficiency of that material or reappreciate the Commission's discretionary satisfaction, save on limited grounds such as illegality, prejudice, fraud, bias, or malice.

Conclusion: The remand order was unsustainable and the Settlement Commission's grant of immunity was restored.

Ratio Decidendi: Orders of the Settlement Commission granting immunity under section 245H, when based on relevant material and recorded satisfaction as to full and true disclosure and cooperation, are not open to appellate-style judicial reappraisal; interference is confined to narrow grounds of statutory contravention, prejudice, fraud, bias, or malice.

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