2013 (10) TMI 985

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.... the provisions of sub-section (2C) of Section 245D of the Income Tax Act 1961. By the order which has been impugned, the Settlement Commission has held as follows : "In the totality of facts available to us at present, we are satisfied about the true and full nature of the disclosure made. The manner of making undisclosed income, in the facts of the case, as stated, is on sales kept outside the books resulting in understatement to sales. Needless to say, as observed by the Hon'ble High Court in this very case, that if at a later stage of the proceedings, facts come to our knowledge showing suppression of full material facts or mis-statements thereof, the law will take its own course." 2. The Commission has accordingly held that the a....

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....r cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case, and the Commissioner shall furnish the report within a period of ninety days of the receipt of communication from the Settlement Commission; Provided that where the Commissioner does not furnish the report within the aforesaid period, the Settlement Commission may proceed to pass an order under sub-section (4) without such report." 4. The provisions of sub-section (3) of Section 245D would make it clear that where an application has not been declared to be invalid by the Settlement Commission under sub-section (2C), the Commission is empowered to call for records from the Co....

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....ner of Income Tax (Central) Pune has drawn the attention of the Commission to the specific issues on which a further enquiry or investigation under Section 245D(3) would be necessary. 6. Sub-section (4) of Section 245D provides as follows : "(4) After examination of the records and the report of the Commissioner, if any, received under - (i) sub-section (2B) or sub-section (3), or (ii) the provisions of sub-section (1) as they stood immediately before their amendment by the Finance Act, 2007, and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtai....

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....further enquiry or investigation is necessary under sub-section (3), such an enquiry or investigation has to be ordered by the Commissioner because sub-section (3) confers jurisdiction on the Commissioner to conduct the enquiry or the investigation, as the case may be. Equally, it is evident both from the language of sub-section (3) and the terms of sub-section (4) that the Settlement Commission is not required in every case to cause an enquiry or investigation to be made under sub-section (3). That is evident by the use of the words "if any" in sub-section (4). Moreover, under subsection (4) the Settlement Commission, besides considering the report, if any, of the Commissioner under sub-section (2B) or sub-section (3) is empowered to exami....