TaxTMI 
TaxTMI 
2018 (9) TMI 539
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....The investigation conducted during searches revealed existence of a number of safe deposit lockers, some of them being operational in the name of the petitioner. Statements, including that of the petitioner, were recorded on 15.02.2014. The searches of the lockers revealed large amount of unaccounted cash and other valuables including jewellery and documents. It is alleged that the statement of first accused before income tax authority indicated that these lockers were opened and operated, inter alia, by the petitioner (second accused) on his instructions. While the acts of commission constituting offences punishable under Sections 277 (i) of Income Tax Act, 1961 and under Sections 181, 177, 193, 196, 120-B read with Section 34 of Indian Penal Code, 1860 (IPC) have been attributed to the first accused, it has been alleged in the complaint that the petitioner had given false statements and had also abetted the first accused and having indulged in certain acts of commission constituting offences punishable under Sections 271 (i), 278 of Income Tax Act, 1961 and under Sections 181, 177, 193, 196, 120-B read with Section 34 IPC. 3. Since the complaint was presented by the respondent....
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....CC 624 to argue that there is no merit in the contention raised, in view of the fact that no order granting immunity from prosecution was applied for, or granted, in the course of proceedings arising out of the settlement applications which, in the submission of the counsel, even otherwise, have since been dismissed. 7. Chapter XIX-A captioned as "settlement of cases" was inserted in the Income Tax Act, 1961 by Taxation Laws (Amendment) Act, 1975, w.e.f. 01.04.1976. Section 245-B confers upon the Central Government, the power to constitute the Income Tax Settlement Commission "for the settlement of cases" under the said chapter. The jurisdiction and powers of Settlement Commission are delineated by detailed provision contained in Section 245-BA. The application for settlement of cases is made under Section 245-C which, to the extent necessary, may be quoted as under:- "An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his income which has not been disclosed before the Assessing Officer, the manner in which such income has been derived, the additional a....
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....he Income Tax Act, 1961 "in relation to" such case, the jurisdiction of the Settlement Commission to do so being "exclusive". The submission of the counsel for the petitioner is that since the applications for settlement, including of the petitioner, had been submitted on 26.12.2014 and the Settlement Commission had permitted such applications "to be proceeded with" in exercise of its jurisdiction under Section 245D(1), by order dated 07.01.2015, the jurisdiction and powers of the income tax authorities had come to a standstill, the power and jurisdiction to issue any orders in relation to such case consequently vesting only in "exclusive jurisdiction" of the Settlement Commission. It is the argument of the petitioner that, from this perspective, grant of sanction on 09.01.2015 and the filing of the criminal complaint against the petitioner and other accused on 27.01.2015 by authorities other than the Settlement Commission, were in the nature of such acts as were not authorized by law. 12. The submissions of the petitioner founded essentially on the principle of "immunity" are mis-conceived for the simple reason there is no concept of "absolute immunity". The provision contained....
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....onsequent upon the order of the Settlement Commission allowing the application "to be proceeded with" rendering the provision contained in Section 245-H a dead letter. The provision contained in Section 245-H therefore, must be construed and understood to be conveying that the powers and functions of the income tax authorities with regard to assessment or realization/recovery of the revenue, come to a standstill upon the matter reaching the Settlement Commission but it does not ipso facto take away their power to initiate criminal action which operates in a different sphere. 14. As was conceded by the counsel for the petitioner at the hearing, no application was even made before the Settlement Commission, nor any order to such effect accorded suo motu by the Settlement Commission under Section 245-H of Income Tax Act, 1961 granting immunity - temporary or otherwise - from prosecution to the petitioner in relation to the case in question. It was also conceded that the settlement applications have subsequently been dismissed. 15. The fact that the Settlement Commission receives, entertains, accepts or takes on board an application for settlement cannot result in the other proce....