TaxTMI 
TaxTMI 
2018 (8) TMI 1208
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....ttlement made under Chapter XIXA of the Income Tax Act, 1961 (the Act). The application was made by the Petitioner to settle its dispute for Assessment Years 2009-10 to 201516 with the Revenue. This order of rejection was passed at the stage of Section 245D( 4) of the Act, on account of a failure to make a full and true disclosure of its undisclosed income as required under the Act, for the purposes of settlement. 2 The Petitioner is engaged in the business of real estate Development. More particularly, Petitioner is engaged in executing housing projects and also providing facilitation work to obtain permission/ clearance for development of land. It was in the above facts that the Petitioner had made a declaration of its undisclosed inco....
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....e take a view on this, it may be necessary to deal with the second ground of rejection. 5(i) So far the Applicant's income on account of the facilitation work done for obtaining clearance in connection with the development of land is concerned, it is the case of the Applicant that this income was entirely made up of the details recorded in the seized diaries. (ii) During the course of the hearing, the Commission called upon the Applicants to give the full details in respect of the additional income earned and expenses incurred on account of the facilitation work done for obtaining clearance in connection with the development of land. However, the Applicants were unable to give any details except stating that these expenses were in....
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....licant seems to be concealing full information as the same may result in to revelation of many more issues leading to possible enhancement of additional income. As the applicant has earned quite substantial receipts from the transactions relating to Joshi Site, sale of land and for clearance of housing scheme, it is difficult to believe that requisite information is not available with the applicant. This conduct on the part of applicant makes us believe that the applicant does not want to disclose full details and information about these transactions. It is also not clear whether all income based on similar kind of entries found/ recorded on seized material has been offered in SOF." 6 The Petitioner has moved this Court in its writ juris....
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.... is no requirement of substantiating the income by giving particulars of the income. Our attention is drawn to Section 271 AAB of the Act, which requires not only disclosing the manner in which the income is derived but a further requirement of substantiating the same is also there and this requirement is absent in Section 245C(1) of the Act. This disclosing the manner in which income has been earned, would require giving particulars of the manner in which it was earned. Merely stating the source of the income or the head of income, would not mean the manner in which the income is earned is enclosed. The manner i.e. the way in which income was earned, would involve disclosing the particulars, when specifically asked for i.e. the property or....