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TMI Blog1986 (6) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 245C(1) of the Act, those matters which are not the subject-matters of the settlement, the Settlement Commission would not have the powers to deal with them and in that situation it would be for the ITO alone to deal with that item or issue. It was further argued that even under section 245F(4) of the Act it is made clear that in the absence of any express direction by the Settlement Commission nothing will prevent the operation of the provisions of the Act so long those are not matters connected with the settlement petition. It was, therefore, argued that once an assessment having been made in which certain mistakes have crept in it would be for the ITO alone to carry out such rectification. The only item that was considered for sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-7-1982 and the order of the Settlement Commission is dated 9-11-1982. The order of the Settlement Commission has been made part of the record. The order of the Settlement Commission dated 9-11-1982 is only on the admission of the settlement petition and not on the finality of the issue. According to the assessee, section 245F(1) indicates that the Settlement Commission shall have all the powers of the income-tax authority and sub-section (2) further emphasises that it shall have exclusive jurisdiction over the assessment. Reference was also made to section 245A(a) of the Act regarding the definition of the case and it was also argued that though all the matters concerning an assessment may not be subject-matter of settlement but the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istant Commissioner or an Income-tax officer." Section 245C provides for making of an application by an assessee, which should contain such particulars as may be prescribed by the Settlement Commission to enable the Settlement Commission to decide on the settlement. Sub-clause (iii) of this section provides that once an application has been made for settlement, then the assessee can withdraw the application so made. Section 245D of the Act talks of the procedure to be adopted by the Settlement Commission on receipt of an application from an assessee like calling for the report from the Commissioner for purposes of admission or otherwise of the petition filed by the assessee. Section 245F(1), (2), (3) and (4) read as under : "(1) In addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are vested in an income-tax authority which income-tax authority is defined in section 245A(b). Sub-section (2) of this section further makes a clarification that once an application has been allowed to be proceeded with under that section, then till it is disposed of the Settlement Commission shall have the exclusive jurisdiction and shall exercise the powers and perform the functions of the income-tax authority in relation to the case. The definition of the case is contained in clause (a) of section 245A. This clearly indicates that the case is related to the assessment of an assessee of a particular assessment year or in respect of more than one assessment years. There is no such thing as the Settlement Commission having jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot allowed to be proceeded with, then for the purposes of calculating the limitation for completion of an assessment the time lost from the date of making of an application to the Settlement Commission till the date of such order is to be excluded. According to section 245F, the Settlement Commission assumes jurisdiction over the case only when it admits the petition. The assessee having made a petition is not allowed to withdraw the petition. Once the petition is admitted, then from the manner in which the section has been worded it seems that the case is to proceed from the time of making of the application by the assessee because only on that particular point of time, the requirement is that the case must be pending. 3.1 The question, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e; and (c) the provisions of the Act would remain and continue to be effective in respect of matters which are not the subject-matter of the petition before the Settlement Commission unless the Settlement Commission expressly directs so. In the case before us, the ITO had made an order under section 154 and chosen to withdraw the relief under section 80J already granted by him on the ground that the assessee was not entitled to such a relief as the present assessment year was the sixth year to which section 80J relief is not applicable. The assessee has filed the form of application for settlement but the subject-matter to be settled as per Annexure 2 mentioned in the application has been filed and it does not indicate in the letter tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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