HASMUKHLAL THAKORDAS DALWALA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These petitions arise in common background and would therefore, be disposed of by this common judgment. For convenience, we may record facts from Special Civil Application No.3759 of 2010. The petitioner is an individual. He has challenged an order dated 25.6.1999 passed by the Settlement Commission under the Income-Tax Act, 1961 (for short 'the Act') determining the petitioner's liability under Sec. 245D(1) of the Act. The petitioner has also challenged further orders passed by the Settlement Commission under Sec. 154 of the Act, to which a reference would be made at a later stage.

(2.) Search operations were carried out concerning the petitioner under Sec. 132 of the Act on 10.1.1989. On the basis of search operations, the Assessing Officer completed assessment for the Assessment Years 1987-88, 1988-89 and 1989-90 on 31.3.1993. The petitioner preferred appeal against said order of the Assessing Officer. The Appellate Commissioner by his order dated 13.1.1994 set aside the assessment for the said years and asked the Assessing Officer to carry out fresh assessments. When the assessment proceedings after remand were thus pending before the Assessing Officer, the petitioner filed an application dated 24.11.1995 before the Settlement Commission under Sec. 245C of the Act for the above 3 years.

(3.) While such proceedings were pending before the Settlement Commission, the Assessing Officer passed the fresh order of assessment on 29.3.1996 for the same period. On 30.9.1996, the Settlement Commission admitted the petitioner's application in terms of Sec. 245D(1) of the Act.