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TMI Blog2014 (2) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... rred. On 07.08.1997, search and seizure operations were conducted at the residential and business premises in respect of the petitioner, his wife and other relatives. Several articles and documents were seized. The last panchnama was drawn on 26.09.1997. Upon receipt of notice, the petitioner filed a return for the period 01.04.1986 to 07.04.1987. After considering this, the Income Tax Authorities were of the opinion that the accounts indicated had sufficient complexities warranting an audit under Section 142-(2)A. An order was accordingly made on15.09.1999. A special auditor submitted the audit report on 14.02.2000. It was contended during the pendency of these proceedings that the Settlement Commission by its order dated 10.08.2000 entert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oes not contemplate stay of the proceedings during that period i.e. when the Settlement Commission is deciding whether to proceed or reject the settlement application. The jurisdiction of the Settlement Commission to proceed commences only after an order is passed under Section 245-D(1). That, after making an application for settlement the applicant is not allowed to withdraw it [see Section 245-C(3)]. Once the case stands admitted, the Settlement Commission shall have exclusive jurisdiction to exercise the powers of the Income Tax Authority." 3. It was submitted that the Assessing Officer was always free to complete the assessment within the time period permitted by law, and was not constrained from making any order. Since he did not do s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... review power despite conclusiveness provided to its order by Section 245-D(1). He also relied upon the judgment of this Court in Capital Cables (India) Private Limited v. ITSE, 2004 267 ITR 528 Delhi. 5. The pre-condition for the Commission to receive an application is that a case as defined under Section 245-A(b) should be pending as on the date of its presentation. Section 245-C spells out the conditions which the applicant has to satisfy and Section 245- D(1) outlines how such applications are to be proceeded with. The Commission after examining the matter and satisfying itself can either allow the case or reject it. It is a matter on record that when the application was admitted on 10.08.2000, the petitioner was represented and heard. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the jurisdiction of the Settlement Commission, reiterated by Section 245-F(2). Section 245-E empowers the Settlement Commissions to re-open any proceedings connected with the case in respect of which assessment too has been completed. Given these powers, the fact as to whether the Assessing Officer was in the process of making the assessment or not becomes irrelevant. If indeed the Assessing Officer had completed the assessment, the wide nature of the Commission's jurisdiction, nevertheless, would have allowed to over-ride that assessment order while framing its order under Section 245-D(4). 8. The consequence of accepting the argument of the assessee would be that even though there was a search of his premises u/s 132 of the Act which y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udicial adventure hazardous, compounded by the involved and obscure drafting of the bunch of provisions in Chap. XIXA." 9. In our view, this rule should govern our approach to the situation arising in the case in hand. 10. It is a settled rule of construction that tax laws, like all other laws, shall be interpreted reasonably and in consonance with justice so as to avoid an absurd consequence that may lead to mischief or abuse: (Hegde, J., in Jodha Mal Kuthiala vs. CIT, (1971) 82 ITR 570 (SC). A machinery provision in the Income Tax Act cannot be subjected to the literal or strict rule of construction that is adopted to interpret a charging section. In Calcutta Jute Manufacturing Co. vs. CTO, (AIR 1997 SC 2920), the Supreme Court held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, a careful study of the anatomy of Chapter XIX-A clearly brings out that it was only in the nature of machinery provisions for the purpose of settlement of tax disputes between the assessee and the Revenue. The provisions do not compel any assessee to resort to section 245C, but that can be availed of, if the assessee so chooses. In other words, the remedy provided under section 245C, as a machinery provision for effecting settlement of tax disputes, was only in the nature of a concession or option open to the assessee who desired to settle his tax matters." We concur with the above view. 12. In view of the above discussion, this Court is of the opinion that there is no merit in the petition and it is accordingly dismissed without ..... X X X X Extracts X X X X X X X X Extracts X X X X
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