2004 (3) TMI 10

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....2 instituted by the income-tax authorities. Petitions under section 482 of the Code of Criminal Procedure, 1973 (in short "the Code"), were filed by appellant No.1 (hereinafter referred to as "the firm") and L.N. Poddar, a partner of the assessee-firm before the Patna High Court. The specific stand of the petitioners before the High Court was that the proceedings should not continue as applications for settlement were filed and pending before the Settlement Commission, Income tax and Wealth-tax (hereinafter referred to as "the Commission"). The High Court did not accept the stand as no order granting any immunity had been passed by the Commission. Referring to the factual position also it was held that no case for interference was made out ....

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....y or in part) from the imposition of any penalty under this Act, with respect to the case covered by the settlement: Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 245C (1A) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub-section (4) of section 245D within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was gra....

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....urage filing of belated applications after prosecution is launched and also reasons envisaged in CIT v. B.N. Bhattachargee [1979] 118 ITR 461 (SC), wherein it was observed that section 245H is a magnet which attracts large tax-dodgers, and it was emphasised that the power of immunisation against criminal prosecution should be used in deserving cases. Whether grant of immunity is called for in a given case is to be decided by the Commission on the facts of each case and no straight-jacket formula for any universal application can be laid down. In the instant case, the Commission has been satisfied that grant of immunity is called for. Since that decision has not been questioned by the income-tax authorities it has attained finality. Conditio....