9911796707
TMI Blog2017 (6) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... - SUPREME COURT OF INDIA ) and to hold that the initial disclosures themselves were untrue projecting the additional disclosures for all years the assessees had sought settlement, we find the Commission committed no error in accepting them and in proceeding to pass final order on such settlement applications. X X X X Extracts X X X X X X X X Extracts X X X X ..... Settlement Commission passed the impugned order and, as noted, accepted the offers of settlement and granted immunity to the assessees from prosecution and penalties. 7. This order, the Revenue has challenged primarily on the ground that the assessees had failed to make true and full disclosures of their income, which is one of the basic requirements of settlement as provided in subsection (1) of section 245C of the Act. The Revenue has also questioned the approach of the Commission in not carrying out further inquiries. 13.06.17 8. Appearing for the Revenue, learned counsel Shri Manish Bhatt contended that the assessees had after making initial disclosures, during the proceedings before the Settlement Commission, made further substantial disclosures. This itself would mean that assessees' initial disclosures were not true and full. Relying on the judgment of the Supreme Court in case of Ajmera Housing Corporation and Another v. Commissioner of IncomeTax reported in [2010] 326 ITR 642 (SC), counsel submitted that it is not open for the assessee to revive its disclosure. Our attention was drawn to a judgment of Division Bench of this Court in case of Principal Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed are the prerequisites for a valid application under section 245C(1) of the Act. Additionally, the amount of income tax payable on such undisclosed income is to be computed and mentioned in the application. It needs little emphasis that section 245C(1) of the Act mandates "full and true" disclosure of the particulars of undisclosed income and "the manner" in which such income was derived and, therefore, unless the Settlement Commission records its satisfaction on this aspect, it will not have the jurisdiction to pass any order on the matter covered by the application. … … 33. As aforestated, in the scheme of Chapter XIXA, there is no stipulation for revision of an application filed under section 245C(1) of the Act and thus the natural corollary is that determination of income by the Settlement Commission has necessarily to be with reference to the income disclosed in the application filed under the said Section in the prescribed form. Para … … 36. We are convinced that, in the instant case, the disclosure of ₹ 11.41 crores as additional undisclosed income in the revised annexure, filed on 19th September, 1994 alone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r ROI - - 2,10,810 0 0 Addl. Income offered in SC - - 0 87,65,000 1,00,32,930 18797930 50,00,000 Shree Shakti Associatte d Income as per ROI 27376 43,93,019 21,90,311 0 0 Addl. Income offered in SC 0 20,25,000 34,53,900 45,65,340 3,43,592 10387832 50,00,000 Shree Ambe Realty Income as per ROI 65915 10,31,479 2,97,680 0 0 Addl. Income offered in SC 0 15,45,000 28,35,000 21,35,571 8,91,757 7407328 50,00,000 Shrushti Constructio Income as per ROI - - 27,71,764 0 0 Addl. Income offered in SC - - 0 1,20,17,941 40,71,560 16089501 50,00,000 These assessees made further disclosure of ₹ 50 lakhs each in the assessment year 2014-15 at the time of settlement proceedings. If one were to compare the further disclosures in light of the initial disclosures made for the assessment year 2014-15, the same may project a substantial and in some cases a steep rise. However, if one were to project the further disclosures of ₹ 50 lakhs each for the entire period for which the settlement is sought and the total initial disclosures for the years under consideration, the further disclosures do not represent a substantial rise. In case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
