AVTAR SINGH Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) The petitioner challenges the order dated July 31, 2012, passed by the Income-tax Settlement Commission. Counsel for petitioner submits that the only point that arises for consideration is whether after conclusion of arguments in proceedings before the Settlement Commission, the statement made and affidavit sworn by Sandip Singh could be considered without confronting the petitioner while making an addition of Rs. 3,91,40,000, based upon the statement and the affidavit.

(2.) Counsel for the petitioner further submits that the principles of natural justice apply to proceedings before the Settlement Commission with equal vigour as they apply to any other proceedings under any other statute. The impugned order passed without confronting the petitioner with the alleged statement made and the affidavit sworn by Sandip Singh is violative of the principles of natural justice. The writ petition may be allowed, the impugned order may be set aside and the Settlement Commission may be directed to pass a fresh order after affording an opportunity to the petitioner to rebut the statement made and the affidavit sworn by Sandip Singh.

(3.) Counsel for the Revenue submits that though the petitioner may not be entirely incorrect on facts but as the order passed by the Settlement Commission is in the nature of a concession granted to an assessee, the Settlement Commission was well within its rights to consider the statement made and affidavit sworn by Sandip Singh. The petitioner has not placed any material, before this court, to raise an inference that the statement made by Sandip Singh or the affidavit sworn by him is in any manner incorrect. The mere fact that the petitioner was not confronted with the statement/affidavit is insufficient to set aside the impugned order for violation of the principles of natural justice. It is further submitted that the principles of natural justice do not operate in a vacuum and where their violation has not caused prejudice, an order cannot be set aside to fulfil an empty formality.