2017 (9) TMI 1721 - HC - Income Tax

Settlement of a case - Income Tax Settlement Commission (ITSC) granting immunity from penalty and prosecution under Section 245H - Held that - said complaint by the Income Tax Department against the Respondent No.1 is still pending - In view of that matter, the question of granting Respondent No.1 immunity from penalty and prosecution under Section 245H of the Act, does not arise. - Revenue petition dismissed.

Summary

Issues: Challenge to order granting immunity from penalty and prosecution under Section 245H of the Income Tax Act, 1961, and waiver of interest under Section 234A of the Act.

In the judgment, the High Court addressed the challenge brought by the Revenue against an order of the Income Tax Settlement Commission (ITSC) dated September 16, 2016. The order granted immunity from penalty and prosecution under Section 245H of the Income Tax Act, 1961, and waiver of interest under Section 234A of the Act to the Respondent No.1. The petitioner argued that immunity from penalty and prosecution cannot be granted by the ITSC due to a complaint under Section 200 Cr.P.C. for offenses punishable under Section 276 CC of the Act being instituted before the receipt of the application under Section 245C. However, it was clarified by the Respondent's counsel that the Respondent did not seek immunity from prosecution, as the complaint by the Income Tax Department against the Respondent was still pending. Consequently, the issue of granting immunity from penalty and prosecution under Section 245H did not arise.

Regarding the second issue of granting waiver of interest under Section 234A, the Respondent's counsel highlighted that all documents were not initially supplied by the Department, necessitating two reminders. The Court, considering this, found that no error was committed by the ITSC in granting the waiver of interest to the Respondent. Consequently, the petition was dismissed by the Court.