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TMI Blog2007 (6) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had also made an application for allowing him to remit the additional income tax of Rs. 9,62,240 in instalments. The Settlement Commission, by its order dated July 6, 1999, had passed an order under section 245D(1) of the Act. While doing so, the Settlement Commission had issued the following orders and directions, the same are as under: "8. In accordance with the provisions of section 245D(2A) of the Income-tax Act, the appellant shall pay, within 35 days of the receipt of this order, the additional amount of income-tax payable on the income disclosed in the settlement application and furnish proof of such payment to the Settlement Commission and its Assessing Officer, within 15 days of making the aforesaid payment. If the applicant does not pay the additional amount of income-tax payable within the time specified in section 245D(2A) of the Income-tax Act, the amount of income-tax remaining unpaid, together with the interest payable thereon under section 245D(2C) of the Income-tax Act, shall be recovered by the Assessing Officer in accordance with the provisions of section 245D(2D) of the Income-tax Act." Pursuant to the above order, the assessee had paid the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee sought to justify the impugned order passed by the learned single judge. Chapter XIX-A of the Act provides for settlement of cases. Section 245A contains definitions of certain words and expressions used in Chapter XIX-A. Section 245B empowers the Central Government to constitute a Commission to be called the Income-tax Settlement Commission. Section 245BA provides for jurisdiction and powers of the Settlement Commission. Section 245C of the Act provides for filing of an application by an assessee for settlement of cases before the Settlement Commission. Section 245D of the Act provides for procedure on receipt of an application under section 245C of the Act. Sub-section (1) of section 245D of the Act authorises the Settlement Commission to take cognizance of an application, filed by an assessee and also authorises the Settlement Commission to reject the said application under certain circumstances. Once an application is entertained, the Settlement Commission can proceed to pass an order, after affording an opportunity of hearing to the assessee or his representatives. Sub-section (2) of section 245D of the Act mandates that an order made under sub-section (1) shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are vested in an income-tax authority under this Act. (2) Where an application made under section 245C has been allowed to be proceeded with under section 245D, the Settlement Commission shall, until an order is passed under sub-section (4) of section 245D, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of an income-tax authority under this Act in relation to the case. (3) Notwithstanding anything contained in sub-section (2) and in the absence of any express direction to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation of any other provision of this Act requiring the applicant to pay tax on the basis of self-assessment in relation to the matters before the Settlement Commission. (4) For the removal of doubt, it is hereby declared that, in the absence of any express direction by the Settlement Commission to the contrary, nothing in this Chapter shall affect the operation of the provisions of this Act in so far as they relate to any matters other than those before the Settlement Commission. ((5) and (6) (Omitted by the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003) and exhibit P6 dated February 9, 2004 (in O. P. No. 9866 of 2004). The admitted facts are: 18(a). The Assessing Officer had quantified the tax liability under the Act for the assessment periods 1990-91, 1991-92 and 1992-93, and had demanded the tax with interest in a sum of Rs. 78,45,838. Additional amount of income-tax of Rs. 9,62,240 was also demanded from the assessee on the basis of additional income disclosed. The assessee had filed an application before the Settlement Commission as provided under section 245C of the Act. The petitioner/assessee had also moved an application before the Settlement Commission for allowing him to remit the additional income-tax of Rs. 9,62,240 in instalments. 18(b). The Settlement Commission, after receipt of the application under section 245C of the Act and after hearing the representatives of the assessee and the Department, has decided to admit and proceed with the application under section 245D(1) of the Act for the assessment years 1990-91 to 1993-94. The Settlement Commission while considering the additional income disclosed by the assessee vide the revised statement of facts filed on July 1, 1999, in exercise of its powers unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication is filed under section 245C and admitted by the Settlement Commission by passing an order under section 245D(1) of the Act, the Commission will have exclusive jurisdiction to perform any or all the functions of an income-tax authority in respect of the "case" before the Commission till an order is passed under section 245D(4) of the Act. However, if an order is passed by the Settlement Commission in exercise of its powers under sections 245D(2A) and 245D(2B) of the Act directing the assessee to pay the additional amount of income-tax on the income disclosed in the settlement application, if the assessee commits any default, the amount of income-tax remaining unpaid together with interest payable thereon can be recovered by the Assessing Officer in accordance with the provisions of section 245D(2D) of the Act. That is what has been done by the Tax Recovery Officer and the assessing authority and the Settlement Commission. But the learned single judge without reference to section 245D(2D) of the Act and just keeping in view the provisions of section 245F has proceeded to allow O. P. No. 1798 of 2000 and O. P. No. 12979 of 2003. The finding and the conclusion reached by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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