Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Settlement Commission |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Income Tax Act, 1961; Section 245 : Income Tax Settlement Commission-Order of Settlement-Section 245- Scope and ambit of-Held: Foundation for settlement is filing of an application by assessee at any stage of a case-Full and true disclosure of the income is statutory requirement for consideration of the application provided additional tax on the undisclosed income not to exceed the prescribed limit-Merely because provisions under Section 245(I) provides that order of settlement is conclusive it does not take away the power of the Commission/Revenue to decide whether the settlement was obtained by fraud/misrepresentation-Misrepresentation/fraud implies no true and fair disclosure of the income, which is against the legislative intent-Since Revenue established that the order was obtained by misrepresentation, Commission could decide the issue afresh-Directions issued-Interpretation of Statutes. Settlement Commission's power of settlement-Scope of-Discussed Order vis-a-vis assessment-Distinction between. Words and Phrases : 'case'-Meaning of in the context of Section 245A(b) of the Income Tax Act, 1961. Respondent-assessee filed an application for settlement in terms of Section 245C of the Income Tax Act before the Income Tax Settlement Commission. Assessee claimed to have received certain amount, as loan as disclosed by him in the application. The Settlement Commissioner passed an order treating the loan amount as advance. The order was challenged by Revenue Authorities by filing a petition under Section 245D(6) of the Act, which was rejected by the Commissioner. Hence the present appeal filed by the Revenue. It was contended by the Revenue that the application filed by them was not really for review; that there was no question of the subsequent Bench sitting in appeal over the earlier Bench's decision; that the jurisdiction under Section 245D (6) of the Act is exercisable when it is subsequently found by the Commission that the settlement had been obtained by fraud or misrepresentation of facts; that the investigating officer had stated that the alleged money lenders categorically denied to have advanced any loan; that there was inherent improbability in the assessee's stand that seven persons/money lenders would keep huge sums of money and would give money on the same day by cash; that since there was no assessment, question of furnishing certificates about assessment from unconnected persons, is sufficient to show misrepresentation of facts; and that no returns of income were filed by the lenders upto relevant time. Assessee submitted that finality is attached to the order passed under Section 245D (4) in terms of Section 245I of the Act; that the order was obtained by fraud or misrepresentation of facts; that the Revenue cannot initiate any proceedings in terms of Section 245D (6) of the Act; that on mere unsubstantiated allegation regarding lack of capacity to advance loans, alleged inherent improbabilities, or the authorities' giving a different version after having issued certificates, there is no scope for coming to the conclusion that there was any fraud or misrepresentation of facts. Thus, the Commission had rightly refused to accept the prayer made by the Revenue as it would have amounted to review of the earlier order and in essence would have amounted to the subsequent Bench sitting in appeal over the decision of the earlier Bench. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2005 INSC 93 |
Petitioner | Commissioner Of Income Tax, Jalpaiguri |
Respondent | Om Prakash Mittal |
SCR | [2005] 2 S.C.R. 263 |
Judgement Date | 2005-02-22 |
Case Number | 5334 |
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