9911796707
TMI Blog1999 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... y against the firm alone if it is considered proper. - - - - - Dated:- 5-3-1999 - Judge(s) : V. K. SINGHAL. JUDGMENT V.K. SINGHAL J.-The petitioners prayed for quashing paragraph 25 of the order of the Settlement Commission dated June 15, 1984, in respect of the assessment years 1974-75 and 1975-76 and also the order dated January 22, 1991, refusing to rectify the order dated June 15, 1984, under which, prayer to delete paragraph 25 was made. The facts of the case are, that an order was passed by the Settlement Commission on the application moved by B.J. Desai and Sons, by which, directions with regard to tax payable were given. In paragraph 25 it is observed that the Income-tax Officer will issue a demand notice and also revise t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer as contemplated under section 153(3)(v)(i) to recompute the income in the partners' case. The provisions of section 245D(8) introduced with effect from October 1, 1984, were considered only for the provision of removal of doubt of the existing position of law at the time when the time limit of section 153 is not applicable, with regard to assessments, reassessments and recomputation made in pursuance of any directions contained in the order under section 245D(4). It was also observed that it is the duty of the Commission in passing the order that the terms of settlement are set out and that the settlement is effective in accordance with the provisions of section 245D(6). The settlement cannot be considered to be effective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was found to be contrary to the provisions of the Income-tax Act. Reliance is also placed on the decision given in the case of N. Krishnan v. Settlement Commission [1989] 180 ITR 585 (Karn) wherein, it was observed that, the power of judicial review of administrative action including those of courts and tribunals conferred on the High Courts under articles 226 and 227 constitutes one of the basic structures of the Constitution. It is for an assessee to voluntarily submit to its jurisdiction after giving up his right to the ordinary remedies under the Act. In other words, it is an opportunity to surrender and to have the matter settled through the Settlement Commission. The decision of the Settlement Commission is made final and conclusive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no relevance to the orders which are passed in consequence of the order of the Settlement Commission and therefore, reference to section 153 has no relevance. It was also found that the Settlement Commission in order to make the settlement effective, the order passed by the Settlement Commission under sub-section (4) of section 245D would be for the terms of settlement including any demand by way of tax, penalty or interest. It may be that the Settlement Commission has granted registration with the understanding that the partners' would be liable to pay tax, but during the relevant time, since the partners were not before the Settlement Commission no orders could have been passed against the partners. If it is also necessary to pass an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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