WPMS/246/2015 on 21 April, 2025

Uttarakhand High Court

WPMS/246/2015 on 21 April, 2025

Author: Rakesh Thapliyal

Bench: Rakesh Thapliyal

             Office Notes, reports,
             orders or proceedings
SL.
      Date     or directions and                             COURT'S OR JUDGES'S ORDERS
No
             Registrar's order with
                  Signatures


                                      WPMS No. 240 of 2015
                                      Hon'ble Rakesh Thapliyal, J.

1. Mr. Hari Mohan Bhatia, learned counsel for the
petitioner.

2. Mr. Chetan Joshi, learned counsel for the
respondent.

3. The short issue, which is involved in this petition,
is whether Income Tax Settlement Commission was
right in passing the impugned order dated 23.05.2014
in the settlement application no. UP / KP – 51 / 12 –
13/119 – IT moved by the respondent.

4. Paragraph 2 of the impugned order is very
relevant, which reads as under:

“2. In these cases search and seizure action was
conducted by the Department on 30.03.2011. During this
operation cash amount of Rs. 1,27,02,210/- was found, out of
which, an amount of Rs. 1,01,70,000/- was seized. At the
time, search action this group had made a disclosure of
unaccounted income of Rs. 10.84 crore under Section 132 (4)
of the Income Tax Act. As all the applicants belong to one
group and are related to one another involving similar issues
a common order under Section 245 (D) is being passed in
these cases.”

5. Impugned order has been passed by the Income
Tax Settlement Commission on an application moved
by the respondent under Section 245C (1) of the Income
Tax Act. Section245 (C) (1) of the Income Tax Act is
being reproduced as under:

“245C (1) An assessee may, at any stage of a case
relating to him, make an application in such form and in
such manner as may be prescribed and containing a full and
true disclosure of his income, which has not been disclosed
before the Assessing Officer, the manner in which such
income has been derived, the additional amount of income
tax payable on such income and such other particulars as
may be prescribed to the Settlement Commission to have the
case settled and any such application shall be disposed of in
the manner hereinafter provided”

6. On perusal of Section 245 C (1), it is clear that the
Assessee may move an application for settlement to the
Settlement Commission only in respect of unaccounted
income, which was not disclosed before the Assessing
Officer. On perusal of paragraph 2 of the impugned
order it reveals that unaccounted amount which was
shown in the application moved under Section 245C (1)
of the Income Tax Act was already surrendered and
disclosed. If unaccounted income was already
disclosed and surrendered then the question is whether
application moved by the respondent before the
Income Tax Settlement Commission is maintainable.

7. Mr. Chetan Joshi, learned counsel for the
respondents, wants three days time to address this
issue.

8. On his request, list this matter 24.04.2025 along
with other connected petitions under the same head.

(Rakesh Thapliyal, J.)
21.04.2025.

SKS