Sri Krishna Tiles and Potteries (Madras) Pvt. Ltd Vs Commissioner of Wealth Tax (Madras High Court)
Madras High Court held that interference with order passed by Income Tax Settlement Commission (ITSC) should be avoided unless a case of bias or fraud or malice is alleged. Accordingly, writ disposed of.
Facts- These appeals filed by the assessee impugn the order dated 30.04.2021 passed by a learned Single Judge of this Court, allowing the petitions that were filed by the Commissioner of Wealth Tax and Commissioner of Income Tax, viz., respondent No.1 herein. Respondent No.1 had challenged the order passed by the Settlement Commission under Section 245D(4) of the Income Tax Act, 1961 and also Section 22D(4) of the Wealth Tax Act.
Conclusion- Held that when such an application is made and the ITSC is satisfied that there has been a full and true disclosure, the department cannot raise any grievance. Unless a case of bias or fraud or malice is alleged, not being a bald allegation, but with details, no petition by Revenue impugning an order by the ITSC should be entertained.
Therefore, as is evident from Section 245 of the Act, the Central Government has appointed the members of Income Tax Settlement Commission (ITSC) as their representatives to settle the disputes with assesee, and it reflects the confidence they had in the members because the persons appointed are of integrity and known for their outstanding ability and expertise and for the special knowledge and experience in problems relating to taxes and business accounts. These members, therefore, have been authorised to settle the disputes on behalf of the Government and it would not lie in the mouth of the Government to challenge the decision taken by their own representatives without making allegations of bias or fraud or malice.
