Settlement Commission

The order of the Settlement Commission is conclusive. No power is vested in the Assessing Officer to issue a notice in respect of the period and income covered by the order of the Settlement Commission, as held by AllHC in CIT v Diksha Singh — In favour of: The assessee.

Once the matter falls within the jurisdiction of the Settlement Commission, then with regard to such matter, only the Settlement Commission will have the jurisdiction to impose tax and not the assessing authority.

In the absence of any right conferred by the Act, the mere observation of the Settlement Commission will not empower the assessing or appellate authority to reassess the matter on any ground whatsoever for the same financial year with regard to which the Settlement Commission had exercised jurisdiction and given a finding.

Once power has been conferred on the Settlement Commission itself to deal with a contingency, then such power cannot be delegated directly or indirectly to any authority of the Income-tax Department.

There is no statutory provision which may empower the Settlement Commission to restore back the matter in respect of certain items to the Assessing Officer and also finally settle the income of the assessee.

Decided on: 24 August 2011.