TaxTMI 
TaxTMI 
2016 (9) TMI 1466
X X X X Extracts X X X X
X X X X Extracts X X X X
....e validity of an order passed by the Income Tax Settlement Commission exercising powers under Section 245D(4) of the Income Tax Act, 1961 ['the Act' for short]. The same is filed on the premise that the survey proceedings came to be initiated under Section 133A of the Act at the business premises of the assessee-company. At the relevant time, the assessee's project of construction was on going in the name of 'Rajeshwar Green' and 'Rajeshwar Planets' in the vicinity of Vadodara. During the course of survey proceedings, the authorities have found specifically that the books of accounts were not updated regularly. On the day of survey, it was found that previously profit and loss account and the balance sheet of M/s. Shriraj Developers were generated in incriminating the loose papers also found during the course of such proceedings related to the receipts of on money by the assessee and during the process of search, it was marked that two customers, who were present in the premises, their statements also came to be recorded reflecting the receipts of on money by the assessee. On the basis of documents and materials gathered during the course of survey proce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncomes offered by the applicants were hither to not disclosed before the Assessing Officer. It was also found by the Commission on verification of the record that the offer of additional undisclosed income at 15% of the worked out on money amounts should be accepted. The ascertainment of it is reflected in a tabular form mentioned in present petition. While considering the application, the Commission has, observed that the petitioner has during the course of the proceedings, voluntarily offered further additional amount of Rs. 15 lacs and Rs. 25 lacs for the assessment year 2012-13 in the spirit of settlement and to buy peace. The said offer was made by the original applicants vide their communication dated 12.02.2014 and considering the offer of material on record and the conduct on part of the respondents, the Commission has accepted the additional undisclosed income made by the applicants at 15% of the reworked on money as found to be reasonable and therefore, vide order dated 19.02.2014, the Commission has accepted the offer of additional undisclosed income as reflected above and found that the said account was correctly worked out and the issue was ordered to be settled. The C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....omply with other conditions stated in the order. 11.2 The immunity granted to the applicants may also at any time be withdrawn, if the Commission is satisfied that the applicants had in the course of the settlement proceedings, concealed any particulars material to the settlement, or have given false evidence. Thereupon, the applicants may be tried for the offence for which immunity was granted, or for any other offence for which the applicants appear to have been guilty in connection with the settlement and the applicants shall also become liable to the imposition of any penalty under the Act to which the applicants would have been liable and had such immunity not been granted." 4. In the background of aforesaid facts feeling aggrieved of and dissatisfied with the order passed by the Settlement Commission. Learned advocate for the petitioner has contended that Settlement Commission, while passing order, has committed an error in not examining the assessee from the view point of an issue that there was originally no full and true discloser of the undisclosed income. Counsel submitted that despite the settled position of law, the applicant before the Settlement Commission thou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion submitted by the respondents have been dealtwith were within the schedule prescribed by the provision of law. A detailed procedure has been observed while exercising power under section 244D so much so that a report has also been examined thoroughly by the said Commission. During the course of hearing proper opportunity was also given to the respective parties and therefore, amount which have been determined by the said Commission are just and proper. The issue before the Court in the background of this fact is whether during the course of hearing even the amount which has been increased by way of additional disclosure whether can be entertained or considered by the Commission or not? Recently, if we recall that this very issue has been dealt with in detail and taking note of the decision delivered by this Court, in a group of petition being Special Civil Application No. 11909 of 2014 and allied matters, which has considered the said issue in a decision delivered on 12.07.2016 it was found by the Court that if during the course of proceedings if the revised offers are being generated then in the nature of spirit of Settlement the same is permitted to be considered by the Commi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation by the High Court, which fact was also conceded by learned counsel appearing for the revenue. The special leave petition was disposed of in the following terms: "Without expressing any opinion on the merits of the dispute, the findings recorded on the first report or the effect of not recording a finding on the second report, we set aside the impugned order and remit the case back to the High Court for a fresh decision, leaving the parties to raise all points including the point raised before us on behalf of the assessee that the High Court should not have entertained the revenue's writ petitions in exercise of its discretionary jurisdiction under Article 226 of the Constitution of India, and the stand taken by the revenue that the application filed by the assessee for settlement before the Settlement Commission was not entertainable as the assessee had not made, inter alia, true and complete disclosure of its undisclosed income, as provided under the law. All contentions of the parties are left open to be agitated before the High Court." 8. In view of the above facts and circumstances, more particularly, in view of the fact that this Court is dealing with and examining....