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TMI Blog2021 (4) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... aring on behalf of the writ petitioner mainly contended that an application was filed under Section 245(C) of the Income Tax Act before the Settlement Commission to resolve the disputes with the Department. The petitioner claims that he made true and full disclosure in respect of his income and place the facts before the Settlement Commission. However, the Settlement Commission misunderstood the facts and circumstances, more specifically, with reference to the loan transaction between the petitioner and Mr.J.Srinivasan and rejected the application on the said ground. The Settlement Commission erroneously made a finding that the petitioner has admitted the loan advance to Mr.J.Srinivasan and contribution made in the chit business with the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at true and full disclosure are not made and the facts are controverted, then the application itself is to be rejected in limini, in view of the pre-requisite condition contemplated under Section 245(C) of the Income Tax Act. In the present case, the Settlement Commission categorically made a finding that there is no cogent reason given for retracting the statements made on three different occasions except for a vague assertion that the petitioner wish to help Mr.J.Srinivasan and that he was unaware of the financial implications of the statements made during the course of search and immediately thereafter. Further, it is observed that the facts make it different for the Commission to accept the contention advanced by the petitioner that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . S.I. Tripathi) and [1997] 223 ITR 840(Kuldeep Industrial Corporation v. ITO) clearly lays down the parameters of the scope of the enquiry by the High Court under article 226 or by the Supreme Court under article 136 of the Constitution of India. In the circumstances, where the Commission has, on the basis of materials on record, come to a decision, it would not be open to the High Court to substitute its view on the materials disclosed in preference to that of the Settlement Commission. In [1993] 204 ITR 616 (Shriyans Prasad Jain v. ITO), the apex court held that the court could not go into the questions of fact recorded by the Commission. Considering the limited jurisdiction and the fact that after due appreciation of the facts, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e line, satisfaction of the same should remain to live in the mind of the Commission till the final order is passed. On the other hand, if the Commission finds, at any stage of the proceedings under Section 245D that the applicant has not come before the Commission with clean hands and by disclosing true and full income, it is empowered to reject the application, thereby driving the applicant to face the regular assessment proceedings. The applicant cannot, as a matter of right, seek the Commission to carry over the application from one stage to another, notwithstanding the fact as to whether true and full disclosure of income was made or not. In other words, the applicant who approaches the Commission, bypassing the regular assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 245(C) of the Income Tax Act contemplates 'Application for Settlement of cases'. Sub clause 1 enumerates that 'An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his income which has not been disclosed before the Assessing Officer, the manner in which such income has been derived, the additional amount of income-tax payable on such income and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided." 9. Section 245(D) contemplates 'Procedure on receipt of an application under se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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