# Principal Commissioner of Income Tax (Central) v. U.O.I. & Ors - **Citation:** (2023) 2 ILRA 1090 - **Court:** High Court of Judicature at Allahabad - **Decided:** 2023-02-06 - **Case number:** Writ Tax No. 208 of 2017 - **Bench:** Rajesh Bindal, C.J. Alok Mathur - **Source:** https://unisonlegal.in/judgment/allahabad-high-court/principal-commissioner-of-income-tax-central-v-u-o-i-ors-49702 - **Pages:** 2 ## Headnote Civil Law - Income Tax Act, 1961Commission proceeded on application of the assesses- settled the matter rejecting the objections raised by the Income tax Department vide impugned order-Further the Settlement Commission proceeded at the behest of only two of the applicant to rectify the order u/s 245 D (6B) of the Income Tax Act, 1961-Manipulation by the respondents and the two assesses who were not before the Commission but were part of search seizure operation is evident-benefits -manner in which commission proceeded is questionable. The Commission contrary to the settled legal position has illegally and arbitrarily reviewed its order-impugned order quashed. W.P. allowed. (E-9) List of Cases cited: ## Text 1090 INDIAN LAW REPORTS ALLAHABAD SERIES (2023) 2 ILRA 1090 ORIGINAL JURISDICTION CIVIL SIDE DATED: LUCKNOW 06.02.2023 BEFORE THE HON'BLE RAJESH BINDAL, C.J. THE HON'BLE ALOK MATHUR, J. Writ Tax No. 208 of 2017 Principal Commissioner of Income Tax (Central) ...Petitioner Versus U.O.I. & Ors. ...Respondents Counsel for the Petitioner: Sri Manish Mishra, Advocate Counsel for the Respondents: Sri D.D. Chopra and Sri S.B. Pandey Senior Advocates with Sri Shishir Chandra and Shailesh Verma, Advocates Civil Law - Income Tax Act, 1961Commission proceeded on application of the assesses- settled the matter rejecting the objections raised by the Income tax Department vide impugned order-Further the Settlement Commission proceeded at the behest of only two of the applicant to rectify the order u/s 245 D (6B) of the Income Tax Act, 1961-Manipulation by the respondents and the two assesses who were not before the Commission but were part of search seizure operation is evident-benefits -manner in which commission proceeded is questionable. The Commission contrary to the settled legal position has illegally and arbitrarily reviewed its order-impugned order quashed. W.P. allowed. (E-9) List of Cases cited: 1. Commissioner of Income Tax Vs Anjum M. H. Ghaswala & ors., (2002) 1 SCC 633 2. Jyotendrasinhji Vs S.I. Tripathi & ors., 1993 Supp.(3) SCC 389 at page 399 3. Ajmera Housing Corporation & anr. Vs Commissioner of Income Tax (2010) 8 SCC 739 4. Anjum M.H. Ghaswala & ors.' case (supra) and the other 5. Brij Lal & ors. Vs Commissioner of Income Tax, Jalandhar, (2011) 1 SCC 1 (Delivered by Hon'ble Alok Mathur, J.) 1. The Principal Commissioner of Income Tax (Central), Lucknow has approached this Court by means of the present Writ Petition assailing the orders of the Income Tax Settlement Commission (hereinafter referred to as Commission) dated 19/22.08.2016 and 17.02.2017. 2. The brief facts of the case are that a search and seizure was conducted on 31.07.2013 on different premises of 5 persons, namely, (1) Dr A. K. Sachan, (2) Ms. Richa Mishra, (3) Shekhar Chief Justice's Court Serial No. 34 2 WRIT TAX No. 208 of 2017 Hospital (P) Ltd, (4) Shri Balaji Charitable Trust and (5) M/s Hind Charitable Trust. During the search cash of ₹1,76,94,500/- was seized1,76,94,500/- was seized from the residential premises and from the office rooms of the Dr A.K.Sachan and Ms Richa Mishra. At the time of the search one of the assessee Ms. Richa Mishra surrendered ₹1,76,94,500/- was seized 8.00 crores as undisclosed income as under: - Table- 1. Ms. Richa Mishra 5.00 crores 2. Shri Balaji Charitable Trust 1.50 crores 3. Shekhar Hospital (P) Ltd. 1.50 crores 2 All. Principal Commissioner of Income Tax (Central) Vs. U.O.I. & Ors. 1091 3. Out of the 5 entities which were subject to search on 31/07/2013, three of them made separate applications on 27.02.2015 before the Settlement Commission under Section 245 of the Income Tax Act, disclosing their unaccounted income as under:- Table- II 1. Ms. Richa Mishra 1,93,16,254/- 2. Shri Balaji Charitable Trust 1,69,04,560/- 3. Shekhar Hospital (P) Ltd 4,84,46,020/- 4. The Settlement Commission on receipt of the application, decided to proceed further with the application, and sent a copy to the concerned Principal Commissioner of Income Tax seeking his response as per Rule 9 of the Income Tax Settlement (Procedure) Rules, 1997 and finally settled the matter rejecting the objections raised by Income Tax Department vide impugned order dated 19/22.8.2016. 5. Present Writ Petition was filed challenging the order of the Settlement Commission. During pendency of the present petition the Settlement Commission further proceeded at the behest of only two of the applicants to rectify the order in exercise of the powers under Section 3 WRIT TAX No. 208 of 2017 245D(6B) of the Income Tax Act, 1961(hereinafter referred to as ''Act of 1961') and gave further benefit to the applicants by order dated 17.02.2017 which has also been assailed in the present petition, after amendment to the writ was carried out. THE PARTIES BEFORE THE SETTLEMENT COMMISSION : 6. Applications before the Settlement Commission were filed by following entities/persons, the description of which are as follows:- A:- Ms. Richa Mishra:- The applicant has described herself in the application as the Director controlling the administration of M/s Shekhar Hospital (Pvt. Ltd.) which is running a hospital and rendering nursing and health services. Further, she is also controlling and managing the affairs of M/s Shri Balaji Charitable Trust as a trustee, which is running a nursing college and rendering health services. She has further submitted that apart from managing these two institutions she is also running other institutions, wife of Dr. A.K. Sachan, who is working as regular employee and a Professor of Clinical Pharmacology in King George Medical University, Lucknow. B:- Shekhar Hospital (Pvt.) Ltd.:- The applicant Shekhar Hospital (Pvt.) Ltd. was incorporated on 26.12.1995 and is engaged in running a hospital at Indira Nagar, Lucknow, Uttar Pradesh. The Directors of the hospital are: (I) Dr. Rich Mishra; (2) Mr. K.K. Sachan; (3) Dr. Harish Chandra and (4) Dr. A. K. Sachan. C:- M/s Balaji Charitable Trust :- Ms. Richa Mishra is the managing trustee and Dr. A. K. Sachan is also a trustee of the said trust. The trust is running a nursing college and rendering health services. Dr A.K.Sachan is a regular4 WRIT TAX No. 208 of 2017 employee and a Professor of Clinical Pharmacology in King George Medical University, Lucknow. 7. In the application filed before the Settlement Commission on behalf of aforesaid three applicants, the amount of