PCIT Vs Smt. Umah Agarwal (Karnataka High Court)
Karnataka High Court held that settlement commission, accepting additional income offered as reasonable and giving immunity from penalty and prosecution, by accepting the explanation ‘in the spirit of settlement’ cannot be faulted.
Facts- The present petition is filed by the Revenue seeking for setting aside of the order passed by the Settlement Commission dated 11.03.2020 whereby application of the petitioner for settlement u/s. 245C of the Income Tax Act, 1961 for the Assessment Years 2012-2013 to 2019-2020 was accepted and it was ordered that the additional income offered of Rs.2,20,00,000/- was reasonable and fair, immunity from penalty and prosecution was also ordered, however interest under Section 234A, 234B and 234C was to be levied by applying provision of Section 234B (2A) of the Act.
The Revenue being aggrieved by the order of the Settlement Commission and in light of finality to the order of the Settlement Commission in terms of Section 245-I has approached this Court and invoked the writ jurisdiction to assail the order of the Settlement Commission.
Conclusion- Held that conclusion of the Settlement Commission by accepting the explanation ‘in the spirit of settlement’ cannot be faulted calling for interference in exercise of the limited jurisdiction.
