AIR 1994 SUPREME COURT 1389 ::1994 AIR SCW 804 ::(1994) 116 CurTaxRep 496 ::1994 (116) CurTaxRep 49 ::1994 (2) SCC 374 ::1994 (206) ITR 443 ::(1994) 1 SCR 64 (SC) ::1994 (1) UPTC 444 ::1994 UPTC 1 444 ::(1994) 72 Taxman 438 ::(1994) 118 Taxation 548 ::(1994) 1 JT 50 (SC)

Supreme Court Of India

Hon'ble Judge(s): J. S. Verma, Yogeshwar Dayal, B. P. Jeevan Reddy , JJJ

(A) Settlement Commission - Powers to - Filing of application before commission - Applicant assessee must disclose any income which was not disclosed before assessing officer - Mere offer of part of amount (claimed as losses) by assessee towards taxable income - Not sufficient to maintain application under S.245C(1). Income-Tax Act (43 of 1961) , S.245C(1)— The disclosure under S.24C must be of an income not disclosed before the assessing officer. If the assessing officer or the Income tax authority has already discovered it and has either gathered the material to establish the particulars of such income or fraud fully or is at a stage of investigation/enquiries where the material gathered by him is likely to establish the particulars of such income or fraud, the assessee cannot be allowed to defeat or forestall, as the case may be, the entire exercise of the Income-tax authorities just by approaching the Commission. In such a case, it cannot be said that he is acting voluntarily or in good faith. He should not be allowed to take advantage of the comparatively easy course of settlement. He must be allowed to face the normal channels of assessment/appeal etc. S.245C is meant for those assessees who seek to disclose income not disclosed before the officer including "the manner in which such income has been derived". If the department already knows and has gath....