2024 (2) TMI 895 - SCH - Income Tax

Application for settlement of cases u/s 245C - disclosure of income - under valuation of stock - as decided by HC 2016 (8) TMI 1358 - ALLAHABAD HIGH COURT ITSC in the case in hand warrants no interference as there is no contravention of any provision of statute and ITSC has not committed any manifest error so as to warrant interference in writ jurisdiction under Article 226 of the Constitution of India - HELD THAT - We find that (i) the principles laid down by this Court in Ajmera Housing Corporation and another vs. Commissioner of Income Tax 2010 (8) TMI 35 - SUPREME COURT have been correctly understood by the High Court; (ii) keeping in view the peculiar facts and circumstances of the cases in hand, the High Court has rightly affirmed the order(s) passed by the Settlement Commission. On re-appreciation of the facts of each case, we are satisfied that there was no deliberate attempt on the part of the respondent-assessees to suppress or conceal any material information. There was faithful compliance of Section 245-C as interpreted by this Court in Ajmera Housing Corporation case (supra). No case to interfere with the impugned judgment(s) is made out. The civil appeals are, accordingly, dismissed.

Summary

Issues Involved:
The judgment involves the interpretation of principles laid down in Ajmera Housing Corporation case and the affirmation of orders passed by the Settlement Commission based on the peculiar facts and circumstances of the cases. The main issue is whether there was a deliberate attempt by the respondent-assessees to suppress or conceal material information, and whether there was faithful compliance with Section 245-C of the Income Tax Act, 1961.

Interpretation of Principles from Ajmera Housing Corporation Case:
The Supreme Court, comprising Hon'ble Mr. Justice Surya Kant and Hon'ble Mr. Justice K.V. Viswanathan, after hearing both parties at length, found that the principles laid down in Ajmera Housing Corporation and another vs. Commissioner of Income Tax; (2010) 8 SCC 739 were correctly understood by the High Court. The Court acknowledged that the High Court rightly affirmed the order(s) passed by the Settlement Commission, taking into account the peculiar facts and circumstances of the cases.

Compliance with Income Tax Act, 1961:
Upon re-evaluating the facts of each case, the Court determined that there was no deliberate attempt by the respondent-assessees to suppress or conceal any material information. The Court noted that there was faithful compliance with Section 245-C of the Income Tax Act, 1961, as interpreted in the Ajmera Housing Corporation case. Consequently, the Court concluded that there was no basis to interfere with the impugned judgments, leading to the dismissal of the civil appeals.

Disposal of Applications:
In addition to dismissing the civil appeals, the Court also disposed of all pending applications related to the case. This comprehensive judgment by the Supreme Court clarifies the interpretation of legal principles and compliance requirements under the Income Tax Act, 1961, providing clarity on the assessment of deliberate attempts to suppress information by assessees.