The Income Tax Settlement Commission (ITSC) has the power to ...

Income Tax Settlement Commission can go beyond application, consider all aspects for finality. Not regular assessment.

Case Laws     Income Tax

July 6, 2024

The Income Tax Settlement Commission (ITSC) has the power to pass an order not limited to aspects covered by the assessee's application but can consider issues mentioned in the Commissioner's report. The ITSC has authority to consider all aspects arising from the application to extend finality to disputes. It does not wield authority for regular assessment but passes an order based on settlement terms containing mutual consensus. The ITSC's objective is to compromise with errant taxpayers, different from the Assessing Officer's power of regular assessment. The contested additions were made after careful perusal of the report submitted to the ITSC. The ITSC exercised its power considering the settlement process's intent, and the addition cannot be deemed manifestly erroneous. An applicant cannot assert an indefeasible right to accept the disclosed income.

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