HAJI N ABDULLA Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) Rule. Heard forthwith.

(2.) The petitioner an individual has filed his returns of income for the assessment year 1995-96 to 2000-01 with the Income Tax Officer, Ward 2, Udupi. The petitioner also filed regular returns of income for the assessment year 2001-02 and 2002-03 with the Assistant Commissioner of Income Tax (Central) Circle, Mangalore. The petitioner also filed block return for assessment years 1991-92 to 2001-02 for the block period 1/4/1990 to 27/2/2001 disclosing undisclosed income of Rs.22,22,351/-. On 27/2/2001 search operation under section 132 of the I.T. Act had been carried out on the business and residential premises of the petitioner. On 27/2/2003 the block assessment order was passed determining the undisclosed income at Rs.82,68,217/-. The petitioner has preferred an appeal before the Commissioner of Income Tax (A) against the block assessment order which is pending.

(3.) The petitioner on 29/10/2003 filed an application under section 245C(1) before the Settlement Commission offering Rs.10 lakhs as additional income. By its order on 26/7/2004 the Settlement Commission rejected the application on two grounds (1) At the time of filing the application under section 245C(1) there was no valid pendency of any proceeding as the entire adjudication tax was not paid in the pending appeal; (2) there is no full and true disclosure as the Settlement Commission did not agree that the quantum of undisclosed income declared is justified. Misc. Application was taken out for rectification of this order on 17/9/2004. The same was dismissed by the order of the Settlement Commission on 28/6/2005.