CIT Vs Income Tax Settlement Commission Additional Bench (Bombay High Court)
The recent judgment by the Bombay High Court highlights the judiciary’s role concerning the orders of the Income Tax Settlement Commission (ITSC). Specifically, it discusses the limitations of the High Court in scrutinizing ITSC orders as if it were an appellate court.
ITSC is empowered to pass, after hearing the applicant and the Commissioner, and after examining such further evidence as may be placed before it or obtained by it, such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner under Sub Section (1) or (3) of Section 245C of the Act. The ITSC also has power to grant immunity from penalty and prosecution, with or without conditions. The ITSC need not give any reasons and even if it gives any reason the scope of enquiry cannot go beyond – whether, it is contrary to any of the provisions of the Act and whether such contravention has prejudiced the appellant. Further the court should be concerned with the legality of procedure followed and not with the validity of the order. The judicial review is concerned not with the decision but with the decision making process. Further, even if the interpretation placed by the ITSC on documents is not correct, it would not be a ground for interference since a wrong interpretation of documents cannot be said to be a violation of the provisions of the Act. There are no allegation of bias or fraud or malice alleged in the petition against the Commission.
