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No addition in respect of share application money when names and addresses of share holders were given to AO
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Friends, it has been held that Once Settlement Commission has completed proceedings, its order has to be considered conclusive as regards matters “stated therein” per Section 245I and reopening any proceeding in respect of matters covered in order would be barred. Any reassessment proceedings sought to be excluded from purview of “case” must be in respect of Section 148 notice sent while proceedings before Settlement Commission are ongoing. Once Settlement Commission had completed proceedings, its order had to be considered conclusive as regards matters “stated therein” per Section 245I and reopening any proceeding in respect of matters covered in order would be barred. Therefore, impugned notice issued to assessee u/s. 153C could not be sustained. Hence, impugned notice and all further proceedings quashed. It was open to the respondent/Revenue to move the Settlement Commission for appropriate relief of declaration that its previous order under Section 245D (6) is void, setting out the relevant facts and circumstances. Assessee’s petition allowed
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Reassessment proceedings u/s 147 r.w.s 148 of the Act cannot be initiated after expiry of 4 years from the end of the relevant assessment year unless there is a failure on the part of the assessee to disclose fully and truly all material facts