Amount taxed by Settlement Commission in the hands of directors of assessee company cannot be taxed again in assessee’s hands

B. Nanji Enterprise Ltd.Vs DCIT (Gujarat High Court)

From the material on record,it can be seen that the sum of Rs.74 lakhs was offered to tax by Bhikhubhai N. Padsala in his settlement application. Such application has been granted by the Settlement Commission by passing order of settlement. By very statutory scheme of provisions, acceptance of such income in the hands of Bhikhubhai N. Padsala would have to be preceded by payment to tax. We have therefore proceeded on the basis that the Settlement Commission accepted the said sum as income of Bhikhubhai N. Padsala

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