AJMERA HOUSING CORPORATION & ANR. ETC. ETC. versus COMMISSIONER OF INCOME TAX

Citation: [2010] 10 S.C.R. 183 · Decided: 20-08-2010 · Supreme Court of India · Bench: D.K. JAIN · Disposal: Dismissed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2010] 10 S.C.R. 183 
AJMERA HOUSING CORPORATION & ANR. ETC. ETC. 
A 
v. 
COMMISSIONER OF INCOME TAX 
(Civil Appeal Nos. 6827-6848 of 2010) 
AUGUST 20, 2010 
[D.K. JAIN AND H.L. DATTU, JJ.] 
Income Tax Act, 1961 - s 245C- Settlement of cases -
Pre-requisites for - Held: Section 245C mandates disclosure 
B 
of 'full and true' particulars of undisclosed income and 'the 
C 
manner' in which such income had been derived - Amount 
of income tax payable on such undisclosed income is to be 
computed and mentioned in the application - Income Tax 
Settlement Commission has the jurisdiction to pass any order 
on the matter covered by the application only when it records 
D 
its satisfaction on the said aspect - There is no stipulation 
for ·revision of application filed uls. 245C(1) and thus, 
determination of income by Settlement Commission has 
necessarily to be with reference to the income disclosed in 
the application filed uls. 245C in the prescribed form - On 
E 
facts, Income Tax Settlement Commission decided to 
proceed with the application of the assessee u/s. 245C(1 ), 
disclosing additional incomes at different stages of 
proceedings and thereafter, passed final order uls. 2450(4), 
determining the total income of assessee for assessment 
F 
years - Order of High Court setting aside the final order, and 
remanding the matters back to Settlement Commission for 
consideration afresh, does not call for interference -
Disclosure of Rs. 11.41 crores as additional undisclosed 
income in the revised annexure as against the income of Rs. 
1. 94 crores, sufficient to establish that the application made 
G 
by assessee u/s. 245C(1) could not be entertained as it did 
not contain a 'true and full' disclosure' of their undisclosed 
income and 'the manner' in which such income had been 
183 
H 
184 
SUPREME COURT REPORTS 
[2010) 10 S.C.R. 
A derived - Income Tax Settlement Commission (Procedure) 
Rules, 1987 - r. 6 - Constitution of India, 12950 - Article 136. 
Interpretation of statutes - Taxing statute - Construction 
of - Held: Is to be construed strictly - Relevant provision is 
8 
to be looked at -
There is no presumption as to a tax -
Nothing is to be read in and nothing is to be implied - There 
is no equity about a tax. 
The appellant-assessee filed an application u/s. 
245C(1) of the Income Tax Act, 1961 for settlement before 
C the Income Tax Settlement Commission, disclosing an 
additional income of Rs.1,94,33,580/- for the assessment 
years 1989-90 to 1993-94, in addition to the income 
declared in the returns of income submitted by them 
earlier. The Commissioner of Income Tax objected to the 
D entertainment of the application for settlement as not 
being a full and true disclosure of their income. On 19th 
September, 1994, the assessee filed a revised settlement 
application containing "confidential annexure and related 
papers", declaring an additional income. On 17th 
E November, 1994, the Settlement Commission decided to 
proceed with the application. During the course of 
hearing in the case before the Settlement Commission, ' 
the assessee made a further disclosure of undisclosed 
income. On 29th January, 1999, the Settlement 
F Commission passed the final order u/s. 2450(4), 
determining the total income of the assessee for 
assessment years 1989-90 to 1993-94 at Rs.42.58 crores. 
It imposed a 'token' penalty of Rs.50 lakhs as against the 
minimum leviable penalty of Rs.562.87 lakhs, as per its 
own assessment and graoted:-immunity-to-thectssessee 
G against prosecution andfo respect of other penalties 
under the Act. The Commissioner filed a writ petition. The 
High Court allowed the writ petition and set aside the 
order of the Settlement Commission. It declared order 
dated 17th November, 1994 as void ab-initio and quashed 
H 
AJMERA HOUSING CORPORATION v. 
185 
. COMMISSIONER OF INCOME TAX 
order dated 29th January, 1999. The High Court remitted 
A 
the proceedings back tp the Settlement Commission for 
decision afresh. Pursuant to and in furtherance of the 
order passed by this Court, the matter was heard afresh 
by the High Court. The High Court again set aside 
Settlement Commission's order dated 29th January, 1999 
B 
and remitted the matter back to ·the Settlement 
Commission for consideration afresh. Therefore, the 
appellants filed the instant appeals. 
Dismissing the appeals, the Court 
c 
HELD: 1.1 The disclosure of 'full and true' particulars 
of undisclosed income and 'the manner' in which suc

Excerpt shown. Read the full judgment & AI analysis in Lexace.