COMMISSIONER OF INCOME-TAX Vs. VYSYA BANK LTD

JUDGEMENT

(1.) In this writ petition the Petitioners have prayed for a writ in the nature of certiorari to quash the order dated 4-3-2008 passed by the second Respondent - Settlement Commission as per Annexure G.

(2.) First Respondent is a scheduled Bank and has been an income-tax Assessee for a number of years. The returns filed by the first Petitioner came to be processed and the Assessing Officer completed the assessment vide order dated 30-3-2000 for the assessment year 1997-98 as per Annexure A. In the order of assessment at Annexure A, the Assessing Officer brought to tax the concealed income, disallowed depreciation claimed on non-existing assets and corrected certain anomalies in the accounting procedure of first Respondent. Further, the Assessing Officer being satisfied that first Respondent had concealed its income levied penalty under Section 271(1)(c) of the Income-tax Act (for short 'the Income-tax Act.') vide order dated 14-6-2000 as per Annexure B. Consequently, the first Respondent issued show-cause notice to the first Respondent as to why they should not be prosecuted under Sections 276(c)(1), 277 read with Section 276(b) of the Income-tax Act as per Annexure C. Further notice under Section 148 of the Income-tax Act was issued to reopen the completed assessments of previous years. At that stage the first Respondent filed an application under Section 245C(1) of the Income-tax Act before the second Respondent - Settlement Commission for the assessment years 1995 to 2000 in the prescribed Form 34-B dated 10-7-2000 as per Annexure Y. Before the Settlement Commission the first Petitioner entered appearance and objected for admitting the application filed by the first Respondent on the ground that it has no jurisdiction to entertain the application filed by the first Respondent. The second Respondent, after hearing both the parties, passed an order on 11-12-2000 admitting the application of the first Respondent as per Annexure E. The Petitioners questioned the order of Settlement Commission at Annexure E before this Court in W.P. No. 13111/2001. This Court vide order dated 18-8-2005 disposed W.P. No. 13111/2001 directed the Settlement Commission to examine all contentions notwithstanding its earlier order dated 11-12-2000. Thereafter, the Settlement Commission passed the impugned order as per Annexure-G dated 4-3-2008. Hence, this writ petition.

(3.) During the pendency of this writ petition the Settlement Commission passed an order on 14-7-2009 rectifying its earlier order at Annexure G allowing interest tax, granting immunity from the imposition of penalty and prosecution under the Income-tax Act. In view of this development the first Petitioner filed an application seeking amendment of writ petition by way of incorporating additional facts, additional grounds and additional prayer. This Court vide order dated 11-9-2009 allowed the application for amendment of writ petition and accordingly, the writ petition came to be amended.