KOTAK MAHINDRA BANK LIMITED versus COMMISSIONER OF INCOME TAX BANGALORE AND ANR.

KOTAK MAHINDRA BANK LIMITED versus COMMISSIONER OF INCOME TAX BANGALORE AND ANR.

The Settlement Commission had rightly applied its mind, considered the report of the Commissioner and the disclosures made by the assessee, found that the assessee cooperated and made full and true disclosure (including offering additional income which the assessee accepted to tax), and validly exercised its discretion under Section 245H to grant immunity from prosecution and penalty. The High Court erred in remanding the immunity issue; the Commission's reasoned order dated 04.03.2008 is restored.

Parties
Appellant / Assessee: Kotak Mahindra Bank Limited; Respondent / Revenue: Commissioner of Income Tax, Bangalore and Anr.
Jurisdiction
India
Judgment Date
25 September 2023
Procedural Posture
Civil Appeal (appeal to the Supreme Court) / Appeal Against High Court Judgment Dated 06.07.2012; Final Hearing and Judgment by the Supreme Court
Outcome
Appeal allowed; High Court judgment dated 06.07.2012 set aside; Settlement Commission order dated 04.03.2008 restored.
Legal Topics
Section 245 H, Section 245 C, Settlement Commission, Immunity From Prosecution and Penalty, Remand
Income Tax Administrative Law Judicial Review Section 245 H Section 245 C Settlement Commission Immunity From Prosecution and Penalty Remand

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Parties

Kotak Mahindra Bank Limited

Appellant / Assessee

Commissioner of Income Tax, Bangalore and Anr.

Respondent / Revenue

Procedural Posture

Civil Appeal (appeal to the Supreme Court) / Appeal Against High Court Judgment Dated 06.07.2012; Final Hearing and Judgment by the Supreme Court

Legal Issues

  1. 1 Whether the Settlement Commission rightly exercised its discretion under Section 245H to grant immunity from prosecution and penalty where the disclosures before the Commission concerned income that had been discovered by the Assessing Officer
  2. 2 Whether the High Court was correct in remanding the question of immunity for fresh consideration on the ground that the Settlement Commission had not demonstrated absence of wilful concealment by the assessee

Ratio Decidendi

The Settlement Commission had rightly applied its mind, considered the report of the Commissioner and the disclosures made by the assessee, found that the assessee cooperated and made full and true disclosure (including offering additional income which the assessee accepted to tax), and validly exercised its discretion under Section 245H to grant immunity from prosecution and penalty. The High Court erred in remanding the immunity issue; the Commission's reasoned order dated 04.03.2008 is restored.

Court Disposition

Appeal allowed; High Court judgment dated 06.07.2012 set aside; Settlement Commission order dated 04.03.2008 restored.

Orders

  • Judgment dated 06.07.2012 of the High Court of Karnataka set aside
  • Order of the learned Single Judge dated 20.05.2010 set aside