Supreme Court rules Income Tax Settlement Commission orders are conclusive

The Supreme Court of India has ruled that an Assessing Officer cannot reopen a settlement reached through the Income Tax Settlement Commission via reassessment under Sections 147 and 148 of the Income Tax Act, 1961. In the case of M/s. Omaxe Limited, the Court held that once a settlement is passed by the Commission, it is conclusive.

The Court clarified that the only legal avenue for the Revenue to reopen such a settlement is to refer the matter back to the Commission itself under Section 245D(6), provided there is evidence of fraud or misrepresentation. This decision upholds a previous Delhi High Court judgment that quashed a reassessment notice issued by the Income Tax department regarding deductions claimed by the real estate company.