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TMI Blog2013 (10) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... stances which have been set out in the letter of the Commissioner of Income Tax dated 3 October 2013. Since the proceedings are pending before the Settlement Commission, it would not be appropriate for this Court to entertain the proceedings any further – Decided against the Revenue. - Writ Petition No. 9617 of 2013 - - - Dated:- 21-10-2013 - Dr. D. Y. Chandrachud And M. S. Sonak,JJ. For the Petitioner : Mr. Tejveer Singh For the Respondent : Mr. Jehangir Mistri, Senior Advocate with Mr. Ashish Kamat, Mr. Nikhil Rajani i/b V. Deshpande and Co. for Respondent No.2 JUDGMENT (Per Dr. D. Y. Chandrachud, J.) :- The Commissioner of Income Tax (Central), Pune has challenged an order passed by the Settlement Commission on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Settlement Commission to cause the Commissioner to make or cause to be made a further enquiry or investigation and to furnish a report on the matters covered by the application to the Settlement Commission. 3. Section 245D(3) provides as follows : (3) The Settlement Commission, in respect of - (i) an application which has not been declared invalid under subsection (2C); or (ii) an application referred to in sub-section (2D) which has been allowed to be further proceeded with under that sub-section, may call for the records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing before the Commission it was indicated that the department would be heard on the issue relating to a Section 245D(3) enquiry on 7 October 2013, but as a matter of fact the Commission has not applied its mind to whether an enquiry under Section 245D(3) should be ordered. 5. The learned senior counsel appearing on behalf of the Second Respondent on the other had has submitted that the issue as to whether an enquiry under Section 245D(3) should be ordered by the Settlement Commission has not been finally concluded by the Settlement Commission, and during the course of the proceedings, the Settlement Commission would apply its mind to that aspect. As we have noted earlier, by a letter dated 3 October 2013 to the Settlement Commission, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant and to the Commissioner to be heard before it passes an order under sub-section (4). A reading together of the provisions of sub-section (3) and sub-section (4) would indicate that the Settlement Commission is not as a mandate of law required to order a further enquiry or investigation by the Commissioner under Section 245D(3) in every case. Whether the facts of the case are of such a nature or complexity as would require a further enquiry or investigation has to be determined by the Settlement Commission after it has occasion, upon calling for the records from the Commissioner and the examination of those records to decide whether a further enquiry or investigation is necessary. Undoubtedly, if the Settlement Commission holds th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Commissioner. Hence, if the Settlement Commission intends to pass an order in respect of any other matter which has not been referred to in the application, that matter must be of a nature such that it is referred to in the report of the Commissioner. At this stage, it would also be necessary to advert to the provisions of sub-section (2) of Section 245F under which the Settlement Commission has exclusive jurisdiction to exercise the powers and to perform the functions of the Income Tax authority under the Act, where an application made under Section 245C has been allowed to be proceeded with under Section 245D, until an order is passed under subsection (4) of Section 245D. This is, however, made subject to the provisions of sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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