TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 489
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....ndhra Pradesh, Maharashtra and Goa. 4. On 16.12.2004, a search and seizure operation was carried out in the business and residential premises of respondent No.2 under Section 132 of the Act. That apart, survey was also conducted under Section 133A of the Act. Pursuant to notice under Section 153A of the Act, respondent No.2 filed its returns of income for the assessment years 2001-2002 to 2005-2006 as under: Asst. Year Addl. Income offered 2001-02 Rs. 12,493 2002-03 Rs. 2,40,000 2003-04 Rs. 2,23,517 2004-05 Rs. 56,577 2005-06 Rs. 77,636 5. During pendency of the assessment proceeding following the search and seizure, respondent No.2 filed an application before the Settlement Commission under Section 245C of the Act. Respondent No.2 disclosed before the Settlement Commission additional income over and above which was declared under Section 153A of the Act in the returns of income as under: Asst. Year Addl. Income offered 2001-02 Rs. 8,02,293 2002-03 Rs. 69,14,707 2003-04 NIL 2004-05 NIL 2005-06 NIL Total Rs. 77,17,000 6. In response to notice issued by the Settlement Commission, petitioner submitted objection under Rule 6 of the....
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....application for settlement. Therefore, Settlement Commission was not justified in accepting the plea of settlement of respondent No.2. 10. On the other hand, Mr. M.Naga Deepak, learned counsel for respondent No.2 submits that same set of arguments were advanced before the Settlement Commission which were rejected. Scope of interference with an order of Settlement Commission in judicial review proceedings is very limited. In such a proceeding, Court would only look into as to whether there is any procedural violation by the Settlement Commission or there is any violation of the principles of natural justice. In support of his contention, he has placed reliance on a decision of the Supreme Court in Jyotendrasinhji v. S.I.Tripathi AIR 1993 SC 1991. He, therefore, submits that the writ petition should be dismissed. 11. Submissions made by learned counsel for the parties have received the due consideration of the Court. 12. Before dealing with the order passed by the Settlement Commission, we may briefly advert to the scheme of settlement as provided under the Act. 12.1. Chapter XIX-A of the Act comprising Sections 245A to 245M deals with settlement of cases. Section 245A(f) of the ....
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.... the applicant within seven days to explain as to why he had made the application, whereafter the Settlement Commission is required to pass an order in writing within fourteen days either rejecting the application or allowing the application to proceed further. In the event no order is passed, the proviso to sub-section (1) contemplates that the application shall be deemed to have been allowed by the Settlement Commission to be proceeded with. As per sub-section (2B), the Settlement Commission shall call for a report from the Principal Commissioner or Commissioner who shall thereafter submit a report within thirty days. Further, the Settlement Commission may also call for the records from the Principal Commissioner or Commissioner if Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary. 12.6. Sub-section (4) of Section 245D of the Act is relevant. It says that after examination of the record and report of the Principal Commissioner or Commissioner and after giving an opportunity to the applicant as well as to the Principal Commissioner or Commissioner of being heard either in person or through an authorised representative and....
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....the records and the report of the commissioner received under sub-section (1), and the report, if any, of the commissioner received under sub-section (3), and after giving an opportunity to the applicant and to the commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the settlement commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the commissioner under sub-section (1) or subsection (3)." Section 245-E empowers the Commission to re-open the completed proceedings in appropriate cases, while Section 245-F confers all the powers of an Income Tax authority upon the Commission. Section 245-H empowers the Commission to grant immunity from penalty and prosecution, with or without conditions, in cases where it is satisfied that the assessee has made a full disclosure of his income and its sources. Under Section 245-HA, the Commission can send back the matter to a....
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.... not a limitation inherent in Article 136; it is a limitation which this court imposes on itself having regard to the nature of the function performed by the Commission and keeping in view the principles of judicial review. May be, there is also some force in what Dr. Gauri Shankar says viz., that the order of commission is in the nature of a package deal and that it may not be possible, ordinarily speaking, to dissect its order and that the assessee should not be permitted to accept what is favourable to him and reject what is not. According to learned counsel, the Commission is not even required or obligated to pass a reasoned order. Be that as it may, the fact remains that it is open to the Commission to accept an amount of tax by way of settlement and to prescribe the manner in which the said amount shall be paid. It may condone the defaults and lapses on the part of the assessee and may waive interest, penalties or prosecution, where it thinks appropriate. Indeed, it would be difficult to predicate the reasons and considerations which induce the commission to make a particular order, unless of course the commission itself chooses to give reasons for its order. Even if it gives....