Judicial Review of Income Tax Settlement Commission (ITSC) Orders: Navigating the Boundaries

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..... High Court. The case pertains to the scope and powers of the Income Tax Settlement Commission (ITSC) under Chapter XIX-A of the Income Tax Act, 1961 . The court examined the extent to which the ITSC can inquire into matters beyond the disclosures made in the application for settlement and the degree of judicial review permissible over the orders passed by the ITSC. Arguments Presented The writ pe .....

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..... urt Scope and Powers of the ITSC The court discussed the wide powers conferred upon the ITSC under Chapter XIX-A of the Income Tax Act. The ITSC is empowered to call for reports from the Principal Commissioner/Commissioner, direct further inquiry or investigation, and pass orders not only on matters covered by the application but also on any other matter relating to the case. The court highlighted .....

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..... he application or a failure to make a full and true disclosure. Judicial Review of ITSC Orders The court discussed the scope of judicial review of orders passed by the ITSC, referring to the Supreme Court's decisions in Jyotendrasinhji Versus SI Tripathi And Others - 1993 (4) TMI 1 - Supreme Court and KOTAK MAHINDRA BANK LIMITED Versus COMMISSIONER OF INCOME TAX BANGALORE AND ANR. - 2023 (9) T .....

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..... keeping in mind the larger purpose and intent of the settlement process. The court concluded that the procedure adopted by the ITSC was not palpably incorrect or manifestly erroneous, and the decision rendered was not contrary to any provision of the Act. Consequently, the court dismissed the writ petition, upholding the order passed by the ITSC. Summary of the Judgement The Delhi High Court, in .....

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..... contravenes the provisions of the Act, causes prejudice to the party, or is tainted by fraud, bias, or malice. The sufficiency of the material and particulars placed before the ITSC is generally beyond the purview of judicial scrutiny. In the present case, the court found no grounds to interfere with the ITSC's order, as the procedure adopted and the decision rendered were in accordance with .....

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