Remitting Cases u/s 245HA

Rasik Ramji Kamani vs. S.I. Tripathi

202 ITR 74 (Bom)

The provisions of section 245HA of the Income-tax Act, 1961 and section 22HA of the Wealth-tax Act, 1957 are merely procedural in nature and do not affect any substantive right of the assessee. The provisions have retrospective operation. The proceedings before the Settlement Commission are in the nature of a concession given to an assessee who has suppressed income and the Settlement Commission has been authorised to give immunity to such assessees. The Settlement Commission cannot grant immunity if the assessee fails to give a full and true account of his income.

It was held that the question as to whether the petitioner cooperated with the Settlement Commission was a pure question of fact and it was not permissible to disturb the finding recorded by the high power Settlement Commission constituted under the Act in exercise of writ jurisdiction. Secondly, even on the merits, the submission had no substance. The ITSC had pointed out in its order that how the petitioner had successfully kept the proceedings hanging on for a period of 13 years from the affidavits filed by the petitioner and from the correspondence, it was apparent that the resort to the Commission was only with a view to take shelter from civil and criminal liabilities. The Settlement Commission was justified in disposing of the application wherein it was directed by the order of the Commission that all the cases before the Income-tax and Wealth-tax. Assessing Officer shall be disposed of as if no application for immunity was filed.

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Rasik Ramji Kamani vs. S.I. Tripathi

203 ITR 848 (Bom) (1991)

Amendment made in section 245HA is procedural and applicable to pending proceedings before the Commission and Commission's rejection of settlement petition admitted in December 1976, due to assessee's non-co-operation held valid. Great expertise and greater responsibility in the decision making process are integral parts of the functioning of the Commission. Neither the revenue nor the tax payer can play truant with that highly responsible purpose actuated and result-oriented mechanism.

A settlement effective and meaningful, would require complete co-operation and frankness from the tax-payer. The Commission's finding that the assessee had not furnished it with full and true particulars thereby rendering it impossible to reach a meaningful and effective settlement as visualized by the Act, in the proceedings over a span of 13 years was fully justified.

The amendment made in section 245HA of the Income-tax Act 22C of the Wealth-tax Act by the Finance Act, 1987, with effect from 1st June, 1987 is purely procedural in character and will therefore apply to pending proceedings.

R.S.Madho Ram and Sons vs. ITSC

107 CTR 191(Del)

In the event of Settlement Commission having remitted the case back to the Assessing Officer u/s 245HA(1) it was held by the hon'ble court-that is deemed that the assessment order passed prior to moving of Settlement Commission stands set aside and assessee was to be assessed afresh.

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