“settlement application”
The decision most relied on for settlement application is CIT v. CPR Capital Services Ltd. (331 ITR 483), cited in 29 judgments on BharatTax.
Leading authorities on settlement application
If there is a change in the assessing officer, a new notice under section 143(2) should be issued, especially after a settlement application is filed or jurisdiction is transferred.
The Settlement Commission must hear applications where delay in disposal before March 31, 2008, is not attributable to the applicant. Section 245HA(1)(iv) is arbitrary and unreasonable if an applicant faces hardship due to the Settlement Commission's inability to dispose of applications by a specified date.
Income offered to tax under a settlement application with the Income Tax Settlement Commission cannot be taxed again in the hands of the assessee, as the settlement order by its statutory scheme is final.
Confidential information disclosed to the Settlement Commission cannot be used by the Assessing Officer to make additions if the settlement application is not admitted under section 245D(1).
Penalty proceedings do not fall within the ambit of Section 245E of the Income-tax Act, and the Settlement Commission exceeds its jurisdiction if it drops penalty proceedings while deciding a settlement application.
Once an application is admitted by the Settlement Commission, it has exclusive jurisdiction over the assessee's case until a final order is passed, precluding the Assessing Officer and Commissioner (Appeals) from invoking reassessment provisions.
Once an application for settlement is made under Section 245C(1) and accepted by the Income Tax Settlement Commission (ITSC), and a final order is passed under Section 245D(4), the Assessing Officer loses jurisdiction to reopen the assessment. An order under Section 245D(4) is distinct from a regular assessment under Sections 143(1), 143(3), or 144.
Seized papers referred to in a settlement application, even if they belong to third persons, can be used and utilized against those third persons.
