Section 245D — the law in short
What the courts have decided on section 245D, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Vijay Krishnaswami v DDIT (Investigation)
Supreme CourtHelps taxpayer
The Settlement Commission accepted my disclosure. Can the department still prosecute me for evasion?
No. Every order of settlement is conclusive under s.245-I, so where the Commission has recorded full and true disclosure the factual foundation for a wilful attempt to evade under s.276C(1) is gone and continuing the prosecution is an abuse of process. The prosecution was quashed and costs of Rs. 2,00,000 were imposed on the Revenue.
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Jain Metal Rolling Mills v Union of India
High CourtHelps taxpayerValidity unconfirmed
I filed a settlement application in March 2021. Can it be rejected using the 1 February 2021 cut-off?
No. The cut-off of 1 February 2021 in s.245C(5) is read down and substituted by 31 March 2021, because the Settlement Commission continued to exist both legally and factually until that date. Assessees who were eligible and who filed, or could have filed, applications up to 31 March 2021 keep the right to have them dealt with by the Interim Board, and the CBDT order of 28 September 2021 has to be read the same corrected way.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.