S. 147 : Reassessment – Cash credits – Share application money – Settlement Commission accepted the returned income as per settlement petition – Reassessment notice was issued on the basis of subsequent search action in the group concern – Assessing Officer has no jurisdiction to issue notice under section 148 of the Act after passing of the order by Settlement Commission – Order of settlement commission is conclusive and cannot be reopened except as provided in that Chapter. [S. 68, 148, 245D(4), 245I]
The Assessee originally filed its return of income declaring “NIL” income. The return was processed u/s. 143(1) of the Act . Thereafter, a search and seizure action on GTL group, subsequent to the search action, a notice u/s.153C was issued by the AO to the assessee, in response to which the assesse company filed a ROI, showing the same income as was originally returned u/s.139(1). An application was made by the Assessee before the Settlement Commission in respect to AYs. 2005-06 to 2012-13. After considering the submissions The Settlement Commission passed its final order u/s. 245D (4) of the Act and accepted the declaration made by the assesse. Subsequently, the Assessing Officer received information from Investigation Wing of Income -tax Department at Mumbai, stating that loan taken by the assessee were in nature of accommodation entries and consequently passed the reassessment order making addition of Rs. 88,03,50,000/- under section 68 of the Act. On appeal the CIT(A) quashed the reassessment order. On appeal by Revenue the honorable Tribunal affirmed the order of the CIT( A) and held that order of Settlement Commission for that year is conclusive and cannot be reopened except as provided in that Chapter. Referred Omaxe Ltd. v. DCIT (2014) 364 ITR 423(Delhi)(HC) Komalkant Faikirchand Sharma v. DCIT (2019) 417 ITR 11/ 265 Taxman 284 (Guj.)(HC). (ITA No. 577/Mum/ dt. 22-12-2022 “G” (AY. 2012-13)
ACIT v. Global Holding Corporation Pvt. Ltd. (Mum.)(Trib.) www.itatonline.org

[Coram : Hon’ble Shri Om Prakash Kant, Accountant Member and Hon’ble Shri Rahul Chaudhary, Judicial Member]