Binding precedent remains operative despite pending challenge, supporting deletion of interest disallowance when debt is converted into preference sha...
Section 245H's first proviso denies Settlement Commission immunity where prosecution was instituted before receipt of the settlement application. Accordingly, a settlement order cannot extend immunity to an already filed complaint concerning false statements in an income-tax search, including undisclosed bank lockers. Inherent jurisdiction may nevertheless be invoked independently to examine whether continuing a long-pending prosecution after final settlement would abuse process. Where settlement remains unchallenged, payment directions have been complied with, and continued proceedings serve no practical purpose, the criminal complaint and consequential orders may be quashed.
Section 245H's first proviso denies Settlement Commission immunity where prosecution was instituted before receipt of the settlement application. Accordingly, a settlement order cannot extend immunity to an already filed complaint concerning false statements in an income-tax search, including undisclosed bank lockers. Inherent jurisdiction may nevertheless be invoked independently to examine whether continuing a long-pending prosecution after final settlement would abuse process. Where settlement remains unchallenged, payment directions have been complied with, and continued proceedings serve no practical purpose, the criminal complaint and consequential orders may be quashed.
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TaxTMI 
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