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TMI Blog2019 (5) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... kground. 3. Petitioner is a Private Limited Company. It is a part of Samdariya Group, comprising of four entities, viz. M/s. Samdariya Enterprises; (2) M/s. Samdariya Builder Green City; (3) M/s. Samdariya Dharamchand Tejraj Saraf (HUF) and (4) M/s. Samdariya Builders Private Limited, (the petitioner above). 4. On 16.5.2013 search and seizure under Section 132 and 133A by the Income Tax Act were conducted by the Department on the Samdariya Group, including Petitioner Company, covering residential and business premises of the group including some brokers. So far as the petitioner company is concerned, it is alleged, that no incriminating material was found against the petitioner company during the search and seizure operations, except 9 lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondents have filed the reply contending that no interference is called for with the order impugned and the writ petition is liable to be dismissed. 7. We have heard Shri Sahni, learned counsel for the petitioner and Shri Sanjay Lal, learned counsel for the respondents at length and considered the material placed on record. 8. Shri Sahni, learned counsel for petitioner submitted that the Settlement Commissioner while passing the order impugned under Section 245 D(4) of the Act committed serious illegality in not providing settlement when the Petitioner Company had made full and true disclosure of income along with the manner in which such income was derived in the application filed under Section 245(C) of the Act. He submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of, the Commission after following the prescribed procedure can allow the application to be proceeded with or rejected. Only after the Commission allows the petition to be proceeded with, it exercises the power of settlement. 12. The Commission's power of settlement has to be exercised in accordance with the provisions of the Act. Though the Commission has sufficient elbow room in assessing the income of the applicant, it cannot make any order with a term of settlement which would be in conflict with the mandatory provisions of the Act, like in the quantum and payment of tax and the interest. The object of the legislature, in introducing Section 245-C is to see that protracted proceedings before the authorities or in courts are avoided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the authorities in any proceeding, but is disclosed in the petition under Section 245C. It is not that any amount of undisclosed income can be brought to the notice of the Commission in the said petition. The Commission exercises jurisdiction if the additional amount of tax on such undisclosed income is more than a particular figure. The assessee must have in addition furnished the return of income which he is or was required to furnish under any of the provisions of the Act. In essence, the requirement is that there must be an income disclosed in a return furnished and undisclosed income disclosed to the Commission by a petition under Section 245C. 16. It is pertinent to note that unlike Section 139 of the Act which provides for fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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