PCIT Central-2, Kolkata Vs Settlement Commission(Income-tax & Wealth-tax & Anr)
WPO No 289 of 2017
Forum-Calcutta High Court
Date -14th September, 2021

Sub-What are the grounds on which the High court can interfere with the order passed by the Settlement commission in its extraordinary writ jurisdiction under Article 226 of the Constitution of India?

In this case, the income-tax department challenged the order passed by the Settlement commission in the matter of UTC Marketing Private Limited being Respondent no 2 on various grounds in its report under Rule 9 of the Income-tax Settlement Commission (Procedure) Rules, 1997 whereas the Settlement Commission had passed the order on the presumption that the documents which are impounded during the course of survey are presumed to be true as per the provisions of Section 292C. The Calcutta High Court single bench relied on the decision of the Apex Court in the case of State of UP Vs Johri Mal(2004) 4 SCC 714(SC) and other judgements which has held that while exercising the power of judicial review the court is concerned more with the process of decision making rather than the merits of the decision itself and dismissed the department’s appeal by holding that the Income-tax department has failed to make out any case in the Writ petition that the settlement commission acted in any manner contrary to or in violation of any law.

This judgement though by Single bench may not travel to higher forum. Respondent No 2 was represented by Advocate Abhratosh Mazumdar and Advocate Avra Mazumdar.

Ramesh Patodia
16-09-2021