SWADESHI INDUSTRIES Vs. I T SETTLEMENT COMMISSION

JUDGEMENT

(1.) IN this group of seven matters, a common order passed by the Settlement Commission in exercise of its powers under S. 245D(1) of the IT Act, 1961, has been brought in challenge. By the said order, the Commission summarily rejected the applications moved by the concerned petitioners to this group of petitions for settlement of their cases for which they had filed applications under s. 245C of the said Act.

(2.) A few relevant facts leading to these petitions deserve to be noted at the outset. At the relevant time, there were in existence in this city eleven partnership firms engaged in the business of construction activities and manufacturing gray boxes and gray boards and bricks and plastic items and of transport and supervision and as engineers. The said firms had as their partners one or some of the following persons or their near relatives: The constitution of the said firms was arrived at in such a manner that the family of each of the aforesaid five persons would be a sharer in the profits of the said firms substantially as set out above. The names of the said partnership firm were as follows :

(3.) THE aforesaid five persons who were the heads of the respective families made an application on 28th March, 1987, to the Director of Inspection (Investigation), Gujarat, making a disclosure under the amnesty scheme of unaccounted income of Rs. 33,29,354 in their status as AOP consisting of the aforesaid five persons. The aforesaid five persons made the said disclosure for the asst. yrs. 1982 83 to 1986 87, the asst. year 1986 87 being the last year covered by the voluntary disclosure scheme.