9911796707
TMI Blog2005 (7) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted sales. On the basis of the said slips, the Assessing Officer under the Income-tax Act inferred an average daily unaccounted sale at Rs. 1,50,000 and worked out the unaccounted sales for the year ending March 31, 1991, at Rs. 4.50 crores, since the showroom worked for 300 days. The profit on the turnover was worked out and the assessment under the Income-tax Act for the year 1991-92 was made under section 143(3) of the said Act by making an addition of Rs. 38,74,500, on account of unaccounted sales. The petitioner raised various objections and also filed appeal, but ultimately moved the Income-tax Settlement Commission, hereinafter referred to as "the Settlement Commission"; in terms of Chapter XIX-A of the Income-tax Act. The Settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax Act also" and praying that exhibit P3 revisional order and the consequential exhibit P9 revised assessment order, under the KGST Act, be quashed. It is pointed out on behalf of the State that the impugned exhibit P9 is an appealable order and that exhibit P3 revisional order is still pending in appeal before the Tribunal, following exhibit P5 order on the petition for review. However, it is urged on behalf of the writ petitioner that the issue may be decided in view of the declaration sought for, as regards the effect of the order of the Settlement Commission. Exhibit P2 KGST assessment order dated March 30, 1996, was not challenged and the assessee has challenged before the Tribunal, only the revisional order, reopening exhibit P2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act, as regards any matter referable to unearthing of the unaccounted business income of the petitioner by the Income-tax Department. Now, proceeding to consider the said contention, the scheme of Chapter XIX-A of the Income-tax Act needs to be examined. It provides for the constitution of the Settlement Commission, prescribes its jurisdiction and enables an assessee who is qualified to apply under the provisions of the said Chapter to apply for settlement of cases relating to income, which has not been disclosed before the Assessing Officer. The procedure to be followed by the Commission is prescribed. The Settlement Commission has the power to reopen completed proceedings and the power to order provisional attachment to protect the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner under sub-section (1) or sub-section (3)." This means that the conclusiveness prescribed by section 245-I is as regards the matters covered by the order of the Settlement Commission on the matters covered by the application of the assessee and such matters relating to the case, not covered by the application, but referred to in the report of the Commissioner under sub-sections (1) and (3) of section 245D of the Income-tax Act. So much so, the conclusiveness provided by section 245-I is only regarding such matters as are determined by the Settlement Officer, meaning there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttlement Commission in its order. Hence, a declaration, as sought for by the petitioner, that "the conclusiveness as to matters settled under the order of the Settlement Commission under section 245D of the Income-tax Act applies to the proceedings under the Kerala General Sales Tax Act also" cannot be granted. By issuing the impugned order of remand in exercise of suo motu power under section 35 of the KGST Act and in passing the revised order of assessment, the authorities under the KGST Act have not in any manner reopened or impaired the conclusiveness of the order passed by the Settlement Commission under section 245D(4). All that they have done is, to rely on the Settlement Commission's order, which is a statutory one, in which it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and determining the suppressed turnover on the basis of such, determination of the suppressed income. Hence, there is no illegality in the orders impugned in this writ petition. In the counter-affidavit of the assessing authority under the KGST Act, it is contended that since, in terms of Lists I and II in the Seventh Schedule to the Constitution, the making of the Income-tax Act falls under the relevant legislative heads in the Union List and the competence to legislate the KGST Act is referable exclusively to the relevant legislative head, namely, entry 54, in the State List, the provisions in section 245-I of the Income-tax Act, as to the conclusiveness of the orders passed under section 245D(4) of that Act and prohibition therein agai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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