TaxTMI 
TaxTMI 
2024 (8) TMI 762
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....4B and 234C was to be levied by applying provision of Section 234B (2A) of the Act. 2. The Revenue being aggrieved by the order of the Settlement Commission and in light of finality to the order of the Settlement Commission in terms of Section 245-I has approached this Court and invoked the writ jurisdiction to assail the order of the Settlement Commission. 3. The petitioner had filed an application under Section 235C of the Act on 18.11.2019 seeking settlement for the Assessment Years 2012-2013 to 2019-2020. In terms of the procedure under Section 245D (1) of the Act, the application was permitted to be proceeded with by order dated 25.11.2019. 4. It is made out from the facts that the applicant is an individual assessee and source of income was from salaries. The Department is stated to have carried out search under Section 132 of the Act on 20.03.2018, during which records/documents and jewellery worth Rs. 3,23,02,607/- is stated to have been seized. The statements under Section 132 (4) of the Act were also stated to have been recorded and during such search, an undisclosed income of Rs.2,16,00,000/- was stated to have been offered for tax, which statement was retracted subse....
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....he Settlement Commission require to be determined. 12. Section 245-I of the Income Tax Act reads as follows:- 245-I. Order of settlement to be conclusive. - Every order of settlement passed under sub-section (4) of section 245-D shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force. Accordingly, the order is 'conclusive as to the matters stated therein' and hence, there is finality as regards the conclusion on fact and law in terms of the statutory scheme. 13. Under the scheme of the Act, once an application is filed under Section 245-C, the Commission calls upon the applicant to explain the maintainability of such application and an order is passed either rejecting or allowing it to be proceeded. 14. The report of the Principal Commissioner/ Commissioner may be called for and on the basis of which the application may be treated as invalid or be allowed to progress upon report being filed and it may cause a further enquiry or investigation and direct report to be filed. The Settlement Comm....
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....in (2011) 1 SCC 1. The relevant extract from the said judgment reads as follows: "39. Moreover, as stated above, under the Act, there is a difference between assessment in law [regular assessment or assessment under section 143 (1)] and assessment by settlement under Chapter XIX-A. The order under section 245-D (4) is not an order of regular assessment. It is neither an order under section 143 (1) or Section 143 (3) or Section 144. Under sections 139 to 158, the process of assessment involves the filing of the return under section 139 or under section 142; inquiry by the AO under Sections 142 and 143 and making of the order of assessment by the AO under Section 143 (3) or under section 144 and issuing of notice of demand under section 156 on the basis of the assessment order. The making of the order of assessment is an integral part of the process of assessment. No such steps are required to be followed in the case of proceedings under Chapter XIX-A. The said Chapter contemplates the taxability determined with respect to undisclosed income only by the process of settlement/ arbitration. Thus, the nature of the orders under sections 143 (1), 143 (3) and 144 is different from the o....
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.... is to be noticed that the special slab of higher rate as specified under Section 115 BBE would be applicable as regards the income referred to in Sections 69, 69, 69A, 69B, 69C or Section 69D. As rightly pointed out, the PCIT has not stated as to which particular provision would be applicable as each provision has distinct scope and applicability. In the facts of the present case, the question of invoking Section 69D does not arise. If any of the provisions of Section 69, 69A to 69C are sought to be invoked, in all such provisions the non-acceptance of the explanation would result in such amount "may be deemed to be the income of the assessee for such financial year." The Apex Court in the case Commissioner of Income Tax v. Smt.P.K.Noorjahan reported in (1999) 237 ITR 570 (SC) has observed that discretion is conferred on the Assessing Officer to treat the unexplained income appropriately in the facts of the case. The observation made in para 3 of the said judgment would be of relevance and reads as follows: "3. Shri Ranbir Chandra, the learned Counsel appearing for the revenue, has urged that the Tribunal as well as the High Court were in error in their interpretation of Section....
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....that the assessee has not received gift by way of cash". Such conclusion also is well reasoned which would constitute plausible reason and a finding recorded on a satisfaction of the authority in keeping with the spirit of settlement does not warrant interference. 26. The observations of the Apex Court in the case of Jyotendrasinhji v. S.I. Tripathi reported in (1993) 201 ITR 611 (SC) are very apt in defining the scope of interference in orders of the Settlement Commission and are extracted as below: "16. ...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 reasons in a given case, the scope of enquiry in the appeal remains the same as indicated above viz., whether it is contrary....