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TMI Blog2014 (5) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... ing interference under Article 226 of the Constitution - The Writ Court, under Article 226 of the Constitution is not bound to interfere in its discretionary remedy even if there was an error of law or fact - Article 226 merely vest a discretion to the Court to interfere in exceptional cases and even if the impugned order was not in conformity with law, the Court was not bound to set aside the order - an order passed by the Settlement Commission attains finality u/s 245(i) of the Act - the Court is not inclined to exercise its discretionary jurisdiction under Article 226 of the Constitution to interfere in the orders passed by the Settlement Commission – Decided against Assessee. - Civil Misc Writ Petition (Tax) No. 1015 of 2013 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner filed a settlement application under Section 245-C(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) before the Settlement Commission for the aforesaid two assessment years. The Settlement Commission computed the total income of the petitioner for the assessment year 2001-02 at Rs.97,89,530/- and for the assessment year 2002-03 at Rs.41,83,494/-. The Commission found that since the petitioner had committed a default and did not truly disclose his income, the penalty could not be waived. The Commission held, that since the default had been established, the petitioner could not go scot-free with complete waiver of penalty under Section 271(1)(c) of the Act. The Commission accordingly calculated the minimum penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d been accepted. This would determine the amount of tax which would have been avoided for the purpose of clause (iii) of Section 271(1)(c) of the Act. The learned counsel submitted that the tax, which would have been avoided is to be found by deducting from the tax actually assessed, the tax which would have been assessed had the return been accepted. The learned counsel consequently, submitted that the assessing officer had imposed tax @ 30% for the undisclosed income, whereas the petitioner had already paid 10% on that undisclosed income and consequently, the difference of the tax was only 20%, which should have been taken into consideration for the purpose of calculating the minimum penalty under sub clause (iii) of Section 271(1)(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at would have been chargeable had such total income been reduced by the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished.] From a perusal of sub-clause (iii) of Section 271(1)(c) of the Act, it is clear, that a person shall pay by way of penalty, a sum, but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of particulars of his income. The amount of tax sought to be evaded has been explained in Explanation 4(c) of the Act, which means the difference between the tax on the total income assessed and the tax which would have been chargeable, had such total income been reduced by the amount of income in respect of which particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culating the penalty, the Court is of the opinion, that where the petitioner volunteered to appear before the Settlement Commission for settlement of his matter, the discretion exercised by the Settlement Commission requires no interference unless the exercise of power made by the Settlement Commission was perverse requiring interference under Article 226 of the Constitution. The Writ Court, under Article 226 of the Constitution is not bound to interfere in its discretionary remedy even if there was an error of law or fact. Article 226 merely vest a discretion to the Court to interfere in exceptional cases and even if the impugned order was not in conformity with law, the Court was not bound to set aside the order. In Chandra Singh vs. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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