The Madras High Court directed the Income Tax Settlement Commission to reconsider Khazana Jewellery’s settlement plea involving 268 kg undisclosed gold stock, quashing its 2020 rejection and ordering a fresh review to avert penalties, interest, and prosecution.
The Orissa High Court held Section 161 allows only apparent error correction, mandating reasoned scrutiny of records and materials. A Division Bench of Harish Tandon and Murahari Sri Raman faulted authorities for ignoring ITC reconciliations, quashing the rejection infirm.
