COMMISSIONER OF INCOME TAX Vs. INCOME TAX SETTLEMENT

JUDGEMENT

(1.) The revenue has filed writ petition assailing the order of the Income Tax Settlement Commission (for short 'the Commission') dtd. 31/3/2013 only to the extent of granting immunity to the private respondents from prosecution and penalty.

(2.) On 4/12/2009 search was conducted on premises of Career Point Group, respondent No. 2(hereinafter referred to as 'company'). The respondent Nos.3, 4 and 5 are the directors of the company. The incriminating material was seized during the search indicating that the company was claiming bogus expenses, not complying with the provision of TDS and siphoning-off the funds for purchase of immovable property. There was evidence with regard to bogus payments to facility member. Statement of Shri Om Maheshwari was recorded. Consequent to the search proceedings, the private respondents filed an application under Sec. 245C(1) of the Income Tax Act, 1961 (hereinafter 'the Act') before the Commission. Vide order dtd. 31/3/2013 the Commission finalized terms and conditions of settling cases of the company and the directors. Immunity was granted from the prosecution and penalty. The present writ petition is filed aggrieved only of immunity granted for prosecution and penalty.

(3.) Learned counsel for the petitioner submitted that the figures offered by the private respondents were not accepted by the Commission and were enhanced. Contention is that the private respondents failed to make full and true disclosure of the income and the Commission erred in granting immunity for prosecution and penalty.