S. R. Ferro Alloys v. ITSC (2024)469 ITR 438 / 81 taxmann.com 481 (MP)(HC)

S. 245D : Settlement Commission-Settlement of cases-Procedure-Application-Search and seizure and Survey-Disclosing unaccounted income-Order of settlement Commission on basis of volumetric report of person not qualified and incompetent to evaluate mined ore submitted by department is unsustainable-Withdrawal of writ petition against survey proceedings with liberty to pursue issue of volumetric report before Settlement Commission-No presumption of estoppel against assessee by withdrawal of writ petition-Assessment of undisclosed income can be done only with reference to incriminating material recovered from search and not post search material-Report stating inaccuracies of report prepared by incompetent person and submitted by Department-Dismissal of statutory mining plan prepared under mines and minerals (Development And Regulation) Act, 1957 and approved by IBM-Order of Settlement Commission erroneous-Matter remanded to Settlement Commission.[S. 132, 132, 133A, 153A, 245C, 245D(4) Mines And Minerals (Development And Regulation) Act, 1957, Art. 226]

Against the order of Settlement Commission  the assessee filed writ petition before High Court allowing the petition the Court held that  order of settlement Commission on basis of volumetric report of person not qualified and incompetent to evaluate mined ore submitted by department is unsustainable.  Withdrawal of writ petition against survey proceedings with liberty to pursue issue of volumetric report before Settlement Commission, no presumption of  estoppel against assessee by withdrawal of writ petition. Assessment of undisclosed income can be done only with reference to incriminating material recovered from search and not post search material.  Report stating inaccuracies of report prepared by incompetent person and submitted by Department.  Dismissal of statutory mining plan prepared under mines and minerals (Development And Regulation) Act, 1957 and approved by  IBM.  Order of Settlement Commission is  erroneous. Matter  is remanded to Settlement Commission  with the direction to   pass appropriate order in accordance with law.

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