Commissioner of Income Tax Central II Vs Standard Farms Pvt. Ltd. & Anr. (Delhi High Court)
Delhi High Court recently reviewed the decision in the case of Commissioner of Income Tax (Central II) Vs Standard Farms Pvt. Ltd. & Anr. The review petitions were filed by the petitioners seeking a reconsideration of the court’s earlier order, which set aside an order by the Income Tax Settlement Commission (ITSC) that had granted immunity from prosecution and penalty. The petitioners contended that the ITSC had correctly granted immunity after considering the satisfaction required under Section 245H(1) of the Income Tax Act, 1961.
The case centered on the procedure followed by the ITSC when granting immunity from prosecution and penalty. The Revenue had challenged the ITSC’s decision, asserting that the commission had failed to record its satisfaction on two crucial aspects: whether the petitioners had made a full and true disclosure of income, and whether they had cooperated during the proceedings. These conditions are mandatory for granting immunity under Section 245H(1) of the Income Tax Act, and the Revenue argued that the ITSC had not sufficiently established these criteria. The court, in a prior ruling, remanded the matter back to the ITSC, pointing out the failure to explicitly confirm the fulfillment of these conditions.
