In Brief
Kotak Mahindra Bank Limited challenged the High Court order remanding its case to the Settlement Commission regarding immunity from penalty and prosecution. The Bank, engaged in banking and leasing, had applied to settle its tax liabilities under Section 245C of the Income Tax Act for assessment years 1994-1995 to 1999-2000, disclosing undisclosed income relating to lease transactions. The Supreme Court held that the Settlement Commission correctly granted immunity under Section 245H upon finding full disclosure and cooperation. Rejecting the High Court's interference, the Court ruled that judicial review of Settlement Commission discretionary orders is strictly limited and courts should not re-examine sufficiency of material placed before the Commission absent fraud, bias, or contravention of the Act.
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