Law: Income Tax Act, 1961

Section: 245D,245-E,245-F

Income-tax-----Settlement of cases---Powers of Settlement Commission---Scope of S.245-D---Jurisdiction of Settlement Commission confined to matters relating to application before it---Application relating to assessment year 1975-76---Subsequent request by assessee to reopen earlier assessments for limited purpose of spreading over enhanced value of stock disclosed by it--¬Settlement Commission not competent to drop penalty proceedings and waive penalty for assessment years 1970-71 to 1974-75---Indian Income-tax Act, 1961, Ss. 245-D, 245-E & 245-F. Subsection (4) of section 245-D of the Indian Income-tax Act, 1961, says that after examining the entire material, the commission shall "pass such orders as it thinks fit on the matters covered by the application and any other material relating to the case not covered by the application", "in accordance with the provisions of the Act" in other words, the commission has not only to act in accordance with the provisions of the Act but its jurisdiction is confined to the matters covered by the application before it. The further words "and any other material relating to the case not covered by the application" show that the commission can take into consideration any other material not covered by the application but it must be one relating to the case before it. Chapter XIX-A prescribes a procedure, which is a departure from the normal procedure provided by the Act. Once an application is admitted--¬an application can be made only in respect of a pending case---the commission takes over all the proceedings relating to that case which may be pending before any authority under the Act. But this power is confined to the case before the commission, which means the case relating to the assessment year for which the application for settlement is filed and admitted for settlement. Section 245-E empowers the commission to reopen any completed proceedings connected with the case before it but this power is circumscribed by the requirement expressly stated in the section that such reopening of completed proceedings should be necessary or expedient for the proper disposal of the case pending before it. There are two other…

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