AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (4) TMI 1088
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....aj, Adv JUDGMENT AVNEESH JHINGAN, J : - 1. The revenue has filed writ petition assailing the order of the Income Tax Settlement Commission (for short 'the Commission') dated 31.03.2013 only to the extent of granting immunity to the private respondents from prosecution and penalty. 2. On 04.12.2009 search was conducted on premises of Career Point Group, respondent No. 2(hereinafter referred to as 'company'). The respondent Nos.3, 4 & 5 are the directors of the company. The incriminating material was seized during the search indicating that the company was claiming bogus expenses, not complying with the provision of TDS and siphoning-off the funds for purchase of immovable property. There was evidence with regard to bogus payments....
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....her particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided. 245H(1). The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 245C has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his income and the manner in which such income has been derived, grant to such person, subject to such conditions as it may think fit to impose for the reasons to be recorded in writing, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central....
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....ion to proceed or reject it. Proviso provides the deeming fiction that in case application is not decided within fourteen days from the date of receipt, it shall be deemed to have been allowed to proceed. Sub-section (2) mandates the supply of order passed under section 245D(1) to the applicant and the Commissioner. As per sub-section (2B), in cases where the application is allowed to be proceeded, the Commission within thirty days of receipt of application shall call the report from the Commissioner. The report is to be furnished within thirty days of receipt of communication from the Commission. Under sub-section (2C) on the basis of the report received, the Commission may pass an order declaring the application to be invalid.....
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.... mentioned. The order has to provide that in case of settlement having been obtained on the basis of fraud or misrepresentation of the facts, it shall be void. 9. Section 245H empowers the Commission to grant immunity from prosecution under the Act or Indian Penal Code or any other Central Code and from imposition of penalty under this Act. The immunity is granted by Commission on being satisfied that applicant cooperated during the proceedings, made full and true disclosure of income and manner in which the discosed income was derived. 10. There are two requirements under Section 245C(1):- (i) full and true disclosure of the income not disclosed to AO and (ii) the manner the income disclosed was derived. The failure of the applica....
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....time of passing order under Section 245D(4). 13. For the Commission to grant immunity under Section 245H there are three requirements:- (i) full and true disclosure of the income not disclosed to AO; (ii) the manner in which the income was derived and (iii) that the applicant cooperated in the proceedings before the Settlement Commission. The Commission on being satisfied that applicant cooperated during the proceedings coupled with the fulfillment of two conditions as required under Section 245C may grant immunity to the applicant from prosecution and penalty subject to the conditions it may deems fit. 14. The proceedings filed by the private respondents were admitted under Section 245D(1) on 22.09.2011 and by order dated 08.11.2011 ....