TaxTMI 
TaxTMI 
2010 (8) TMI 1047
X X X X Extracts X X X X
X X X X Extracts X X X X
....ued an order dated 11-9-2009 to the Registry to reconstruct the bundle and to proceed further. As per the said order, the entire case records were reconstructed and that is how the reconstructed records are now placed before me for disposal. 2. The petitioner is an income-tax assessee. He derives his income from four sources viz., from vegetable business, real estate business in the name of 'Janaki Real Estate', a screening theatre called 'Bharani Theatre', taken on lease and distribution of films under the name of 'Devi Karumariamman Films'. For the years 1983-84, 1984-85, 1985-86, 1986-87, 1987-88, he filed income-tax returns on 22-3-1988. The said returns were assessed under section 143(3) of the Income-tax Act. Subsequently, the peti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7 Rs. 9,87,590 For the Assessment year 1987-88 Rs. 18,19,950 Rs. 46,07,000 4. Thus, the total income computed for the purpose of income-tax by the Commission was Rs. 46,07,000. The Commission also gave waiver of 50 per cent of the interest and also granted payment of the income-tax in eight equal instalments. Immunity from penalty and prosecution was also granted. Challenging the said order of the Settlement Commission, Additional Bench, Chennai in Settlement Application No. 21/III/79/94-II, dated 26-9-1994, the petitioner has come forward with this writ petition to quash the same. 5. I have heard the learned Senior Counsel appearing for the petitioner and the learned Senior Standing Counsel for Income-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s assessed the income-tax as though the Commission is exercising the power of the Assessing Authority under section 147 of the Income-tax Act. Therefore, according to the learned Senior counsel, the order impugned in this writ petition is liable to be set aside. 7. The learned Senior Standing Counsel appearing for Income-tax Department would submit that there is no controversy in respect of the settled position of law that the Commission has no power to make reassessment of the income of the applicant after having coming to the conclusion that the disclosure made by the applicant is not full and true. The learned counsel would rely on a judgment of the yet another Division Bench of this Court in CIT v. ITSC [2009] 310 ITR 10 1. But he wo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....closure made by the petitioner was not full and true, the commission should have dismissed the application leaving the option to the petitioner to work out his remedies in the manner known to law and also giving liberty to the Assessing Authority to reopen the assessment under section 147 of the Act. Instead of doing that the commission itself has taken up the role of Assessing Authority and has reassessed the alleged additional income of the petitioner for the purpose of tax under section 147 of the Act. This, in my considered opinion, as held by the Hon'ble Supreme Court as well as the Division Benches of this Court, is wholly without jurisdiction and therefore, the same is liable to be quashed. 10. Nextly, coming to the contention of ....