Maintainability of Application u/s 245 C(1)

Shri Bhanubhai Ishwarbhai Patel
F No 10/C/333/84-IT 

ITSC - Delhi
Order dated 6.2.1987

In a case where the Income tax authorities had obtained the books of accounts and documents seized by the customs authorities, and the assessee had filed the settlement application within two days of the requisitioning of the seized books of account, the question was whether the assessee was debarred under section 245(1E) from making application before the expiry of 120 days from the date of requisitioning of the books of account from the customs authorities. It was held by the Commission that the language of section 245C(1E) is quite clear in as much as it disentitles an assessee to make a settlement application before the expiry of 120 days from the date of the seizure of books of accounts and other documents or assets belonging to the assessee under section 132 and is hardly appropriate to cover a case where the books of accounts, other documents or assets are requisitioned by the Income-tax Officer from any other officer or authority. In case the legislature so intended, it could have provided in section 132A(3) that, the legal fiction created therein would apply not only to sub-section (4A) to (14) of Section 132, but also to section 245C(1E). Therefore, the preliminary objection of the Commissioner was rejected.

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M/s Plastomat
SA No 8/26/92/21-IT

I T S C Delhi
Order dt 2.11.95
85 Taxman 661

AO had observed that cheque drawn for payment of purchase of Zinc were self drawn and encashed by applicant's employees and account books were manipulated. He contemplated additions as bogus purchases. Applicant filed SA disclosing much higher amount than contemplated by AO. Applicant's stand was that higher amount of Zinc had to be purchased to meet the ISI standards. Whether ITSC could admit the application so as to take up the role of appellate authority or judge the correctness of AOs findings.

Held : YES : However, to the extent the income disclosed including source and manner of earning, was within the knowledge of the dept, it could not constitute disclosure within the meaning of Section 245C(1).

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M/s Sree Ramakrishna Textiles, Coimbatore
SA No 641/CBE/9/99-IT

ITSC Chennai
Order dt 23.12.99

Where true and full disclosure in the declaration filed earlier under the VDIS have not been made, are the applicants precluded from approaching the Settlement Commission by way of disclosure of further additional income.

It will be incorrect to hold that the applications are to be rejected on the grounds that there was no true and full disclosure in the declaration filed earlier under the VDIS. The eligibility of the application for admission has to be determined independently under the relevant provisions of Chapter XIX-A without linking the same with any disclosure made under VDIS.

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