[1] [Chapter XIX-A

Settlement of Cases

 

[2] [Definitions

 

245A.  In this Chapter, unless the context otherwise requires,—

 

(a)        “Bench” means a Bench of the Settlement Commission;

(b)        “case” means any proceeding under this Act for the assessment or reassessment of any person in respect of any year or years, or by way of appeal or revision in connection with such assessment or reassessment, which may be pending before an in­come-tax authority on the date on which an application under sub-section (1) of section 245C is made:

 

            Provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the filing of such appeal or application for revision under this Act and which has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause;

 

(c)        “Chairman” means the Chairman of the Settlement Commis­sion;

 

(d)        “income-tax authority” means an income-tax authority specified in section 116;

 

(e)        “Member” means a Member of the Settlement Commission, and includes the Chairman and a Vice-Chairman;

 

(f)         “Settlement Commission” means the Income-tax Settlement Commission constituted under section 245B;

 

(g)        “Vice-Chairman” means a Vice-Chairman of the Settlement Commission.]

 

Income-tax Settlement Commission.

 

245B.(1)    The Central Government shall constitute a Commission to be called the Income-tax Settlement Commission [3] [***] for the settlement of cases under this Chapter.

 

(2)     The Settlement Commission shall consist of a Chairman [4] [and as many Vice-Chairmen and other members as the Central Government thinks fit] and shall function within the Department of the Central Government dealing with direct taxes.

 

(2A)  [5] [***]

 

(3)     The Chairman [6] [, Vice-Chairman] and other members of the Settlement Commission shall be appointed by the Central Govern­ment from amongst persons of integrity and outstanding ability, having special knowledge of, and, experience in, problems relat­ing to direct taxes and business accounts:

 

            Provided that, where a member of the Board is appointed as the Chairman [7] [, Vice-Chairman] or as a member of the Settlement Commission, he shall cease to be a member of the Board.

           

                        [8] [***]

 

[9] [Jurisdiction and powers of Settlement Commission.

 

245BA.(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.

 

(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members.

 

(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.

 

(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.

 

(5) Notwithstanding anything contained in the foregoing provi­sions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remain­ing two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench:

 

            Provided that if at any stage of the hearing of any such case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard of by a Bench consisting of three members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such bench as the Chairman may deem fit.

 

(6) Subject to the other provisions of this Chapter, the places at which the Principal Bench and the additional Benches shall ordinarily sit shall be such as the Central Government may, by notification[10]  in the Official Gazette, specify.]

 

[11] [Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances.

 

245BB.(1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the Vice-Chairman or, as the case may be, such one of the Vice-Chairman as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon his office.

 

(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, autho­rise in this behalf, shall discharge the functions of the Chair­man until the date on which the Chairman resumes his duties.]

 

[12]  [Power of Chairman to transfer cases from one Bench to anoth­er.

 

245BC.      On the application of the assessee or the [13] [Chief Commis­sioner or Commissioner] and after notice to them, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one Bench, for disposal, to another Bench.]

 

[13]  [Decision to be by majority.

 

245BD.     If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the major­ity, if there is a majority, but if the members are equally divided, they shall state the point or points on which they dif­fer, and make a reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Set­tlement Commission and such point or points shall be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it.]

 

Application for settlement of cases.

 

[14] 245C. [14] [(1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his income which has not been disclosed before the [15] [Assessing] Officer, the manner in which such income has been derived, the additional amount of income-tax payable on such income and such other particulars as may be prescribed, to the Settlement Commis­sion to have the case settled and any such application shall be disposed of in the manner hereinafter provided:

 

            [15] [Provided that no such application shall be made unless,—

 

(a)        the assessee has furnished the return of income which he is or was required to furnish under any of the provisions of this Act; and

(b)        the additional amount of income-tax payable on the income disclosed in the application exceeds fifty thousand rupees.]

 

(1A)     For the purposes of sub-section (1) of this section and sub-sections (2A) to (2D) of section 245D,the additional amount of income-tax payable in respect of the income disclosed in an application made under sub-section (1) of this section shall be the amount calculated in the accordance with the provisions of sub-sections (1B) to (1D).

 

[16] [(1B)Where the income disclosed in the application relates to only one previous year,—

 

(i)         if the applicant has not furnished a return in respect of the total income of that year (whether or not an assessment has been made in respect of the total income of that year), then, except in a case covered by clause (iii), tax shall be calculated on the income disclosed in the application as if such income were the total income;

 

(ii)        if the applicant has furnished a return in respect of the total income of that year (whether or not an assessment has been made in pursuance of such return), tax shall be calculated on the aggregate of the total income returned and the income disclosed in the application as if such aggregate were the total income;

 

(iii)       if the proceeding pending before the income-tax authority is in the nature of a proceeding for reassessment of the applicant under section 147 or by way of appeal or revision in connection with such reassessment, and the applicant has not furnished a return in respect of the total income of that year in the course of such proceeding for reassessment, tax shall be calculated on the aggregate of the total income as assessed in the earlier proceeding for assessment under section 143 or section 144 or section 147 and the income disclosed in the application as if such aggregate were the total income.]

 

[17] [(1C)The additional amount of income-tax payable in respect of the income disclosed in the application relating to the previous year referred to in sub-section (1B) shall be,—

 

(a)        in a case referred to in clause (i) of that sub-section, the amount of tax calculated under that clause;

 

(b)        in a case referred to in clause (ii) of that sub-section, the amount of tax calculated under that clause as re­duced by the amount of tax calculated on the total income re­turned for that year;

 

(c)        in a case referred to in clause (iii) of that sub-section, the amount of tax calculated under that clause as re­duced by the amount of tax calculated on the total income as­sessed in the earlier proceeding for assessment under section 143 or section 144 or section 147.]

 

(1D)     Where the income disclosed in the application relates to more than one previous year, the additional amount of income-tax payable in respect of the income disclosed for each of the years shall first be calculated in accordance with the provisions of sub-sections (1B) and (1C) and the aggregate of the amount so arrived at in respect of each of the years for which the applica­tion has been made under sub-section (1) shall be the additional amount of income-tax payable in respect of the income disclosed in the application.

 

(1E)     Where any books of account, other documents, money bullion, jewellery or other valuable article or thing belonging to an assessee are seized under section 132, the assessee shall not be entitled to make an application under sub-section (1) before the expiry of one hundred and twenty days from the date of the sei­zure.]

 

(2)        Every application made under sub-section (1) shall be accom­panied by such fees as may be prescribed.

(3)        An application made under sub-section (1) shall not be al­lowed to be withdrawn by the applicant.

 

Procedure on receipt of an application under section 245C.

245D.(1)    On receipt of an application under section 245C, the Settlement Commission shall call for a report from the Commissioner and on the basis of the materials contained in such report and having regard to the nature and circumstances of the case or the complexity of the investigation involved therein, the Settlement Commission may, by order, allow the application to be proceeded with or reject the application :

 

            Provided that an application shall not be rejected under this sub-section unless an opportunity has been given to the applicant of being heard.

[18] [***]

 

[19] [(1A)Notwithstanding anything contained in sub-section (1), an application shall not be proceeded with under that sub-section if the Commissioner objects to the application being proceeded with on the ground that concealment of particulars of income on the part of the applicant or perpetration of fraud by him for evading any tax or other sum chargeable or imposable [20] [***] under this Act, has been established or is likely to be established by any income-tax authority, in relation to the case:

 

            Provided that where the Settlement Commission is not satisfied with the correctness of the objection raised by the Commissioner, the Settlement Commission may, after giving the Commissioner an opportunity of being heard by order, allow the application to be proceeded with under sub-section (1) and send a copy of its order to the Commissioner.]

 

(2)        A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner.

 

[21] [(2A) Subject to the provisions of sub-section (2B), the asses­see shall, within thirty-five days of the receipt of a copy of the order under sub-section (1) [22] [allowing the application to be proceeded with], pay the additional amount of income-tax payable on the income disclosed in the application and shall furnish proof of such payment to the Settlement Commission.

 

[23] [(2B) If the Settlement Commission is satisfied, on an applica­tion made in this behalf by the assessee, that he is unable for good and sufficient reasons to pay the additional amount of income-tax referred to in sub-section (2A) within the time speci­fied in that sub-section, it may extend the time for payment of the amount which remains unpaid or allow payment thereof by instalments if the assessee furnishes adequate security for the payment thereof.

 

[24] [(2C)Where the additional amount of income-tax is not paid within the time specified under sub-section (2A), then, whether or not the Settlement Commission has extended the time for pay­ment of the amount which remains unpaid or has allowed payment thereof by instalments under sub-section (2B), the assessee shall be liable to pay simple interest at fifteen per cent per annum on the amount remaining unpaid from the date of expiry of the period of thirty-five days referred to in sub-section (2A).

 

[25] [(2D)Where the additional amount of income-tax referred to in sub-section (2A) is not paid by the assessee within the time specified under that sub-section or extended under sub-section (2B), as the case may be, the Settlement Commission may direct that the amount of income-tax remaining unpaid, together with any interest payable thereon under sub-section (2C), be recovered and any penalty for default in making payment of such additional amount may be imposed and recovered, in accordance with the provisions of Chapter XVII, by the 75[26] [Assessing] Officer having jurisdiction over the assessee.]

 

(3)        Where an application is allowed to be proceeded with under sub-section (1), the Settlement Commission may call for the relevant records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is neces­sary, it may direct the Commissioner to make or cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case.

 

(4)        After examination of the records and the report of the Com­missioner, received under sub-section (1), and the report, if any, of the Commissioner received under sub-section (3), and after giving an opportunity to the applicant and to the Commis­sioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Set­tlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner under sub-section (1) or sub-section (3).

 

[27] [(5) Subject to the provisions of section 245BA, the materials brought on record before the Settlement Commission shall be considered by the Members of the concerned Bench before passing any order under sub-section (4) and, in relation to the passing of such order, the provisions of section 245BD shall apply.]

 

(6)        Every order passed under sub-section (4) shall provide for the terms of settlement including any demand by way of [28] [tax, penalty or interest], the manner in which any sum due under the settlement shall be paid and all other matters to make the set­tlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or misrepresenta­tion of facts.

 

[29] (6A)    Where any tax payable in pursuance of an order under sub-section (4) is not paid by the assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalments, the assessee shall be liable to pay simple interest at fifteen per cent per annum on the amount remaining unpaid from the date of expiry of the period of thirty-five days aforesaid.]

 

(7)        Where a settlement becomes void as provided under sub-section (6), the proceedings with respect to the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the income-tax authority concerned, may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at any time before the expiry of two years from the end of the financial year in which the set­tlement became void.

 

[30] [(8)     For the removal of doubts, it is hereby declared that nothing contained in section 153 shall apply to any order passed under sub-section (4) or to any order of assessment, reassessment or recomputation required to be made by the [31] [Assessing] Officer in pursuance of any directions contained in such order passed by the Settlement Commission [32] [and nothing contained in the proviso to sub-section (1) of section 186 shall apply to the cancellation of the registration of a firm required to be made in pursuance of any such directions as aforesaid.]

 

[33] [Power of Settlement Commission to order provisional attachment to protect revenue.

245DD.(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is neces­sary so to do, it may, by order, attach provisionally any proper­ty belonging to the applicant in the manner provided in the Second Schedule:

 

            Provided that where a provisional attachment made under section 281B is pending immediately before an application is made under section 245C, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under section 281B would have continued if such application had not been made:

 

            Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period re­ferred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.

 

(2)  Every provisional attachment made by the Settlement Commis­sion under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

 

            Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years.]

 

Power of Settlement Commission to reopen completed proceedings.

 

245E.   If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding connected with the case but which has been completed [34] [***] under this Act by any income-tax authority before the application under section 245C was made, it may with the concurrence of the applicant reopen such proceeding and pass such order thereon as it thinks fit, as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceeding also:

 

            [35] [Provided that no proceeding shall be reopened by the Settle­ment Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 245C exceeds nine years.]

 

Powers and procedure of Settlement Commission.

 

245F.(1)    In addition to the powers conferred on the Settlement Commission under this Chapter, it shall have all the powers which are vested in an income-tax authority under this Act.

 

(2)     Where an application made under section 245C has been allowed to be proceeded with under section 245D, the Settlement Commis­sion shall, until an order is passed under sub-section (4) of section 245D, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of an income-tax authority under this Act in relation to the case.

 

(3)     Notwithstanding anything contained in sub-section (2) and in the absence of any express direction to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation of any other provision of this Act requiring the applicant to pay tax on the basis of self-assessment [36] [***] in relation to the matters before the Settlement Commission.

 

(4)     For the removal of doubt, it is hereby declared that, in the absence of any express direction by the Settlement Commission to the contrary, nothing in this Chapter shall affect the operation of the provisions of this Act insofar as they relate to any matters other than those before the Settlement Commission.

 

(5)     [37] [***]

 

(6)     [37] [***]

 

 [38] [(7) The Settlement Commission shall, subject to the provisions of this Chapter, have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sit­tings.]

 

Inspection, etc., of reports.

245G. [39] No person shall be entitled to inspect, or obtain copies of, any reports made by any income-tax authority to the Settle­ment Commission; but the Settlement Commission may, in its dis­cretion, furnish copies thereof to any such person on an applica­tion made to it in this behalf and on payment of the prescribed fee :

 

                        Provided that, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on record against him in any such report, the Settlement Commission shall, on an application made in this behalf, and on payment of the prescribed fee by such person, furnish him with a certified copy of any such report or part thereof relevant for the purpose.

 

Power of Settlement Commission to grant immunity from prosecution and penalty.

 

245H.(1)    The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 245C has co-operated with the Settlement Commission in the pro­ceedings before it and has made a full and true disclosure of his income and the manner in which such income has been derived, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and also [40] [(either wholly or in part)] from the imposition of any penalty under this Act, with respect to the case covered by the settlement :

 

            [41] [Provided that no such immunity shall be granted by the Settle­ment Commission in cases where the proceedings for the prosecu­tion for any such offence have been instituted before the date of receipt of the application under section 245C.]

 

[42]  [(1A)  An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum speci­fied in the order of settlement passed under sub-section (4) of section 245D within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.]

 

(2)        An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Settlement Commission, if it is satisfied that such person[42] [***] had, in the course of the settlement proceedings, concealed any particulars material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.

 

[43] [Power of Settlement Commission to send a case back to the [44] [Assessing] Officer if the assessee does not co-operate.

245HA.(1) The Settlement Commission may, if it is of opinion that any person who made an application for settlement under section 245C has not co-operated with the Settlement Commission in the proceedings before it, send the case back to the [45] [As­sessing] Officer who shall thereupon dispose of the case in accordance with the provisions of this Act as if no application under section 245C had been made.

 

(2)  For the purposes of sub-section (1), the[45]  [Assessing] Offi­cer shall be entitled to use all the materials and other informa­tion produced by the assessee before the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it as if such materials, information, inquiry and evidence had been produced before the [46]  [Assessing] Officer or held or recorded by him in the course of the proceedings before him.

 

(3)  For the purposes of the time-limit under sections 149, 153, 154, 155 and 231 and for the purposes of payment of interest under sections 243 and 244, in a case referred to in sub-section (1), the period commencing on and from the date of the applica­tion to the Settlement Commission under section 245C and ending with the date of receipt by the [47] [Assessing] Officer of the order of the Settlement Commission sending the case back to the [48]  [Assessing] Officer shall be excluded; and where the assessee is a firm, for the purposes of the time-limit for cancellation of registration of the firm under sub-section (1) of section 186, the period aforesaid shall, likewise, be excluded.]

 

Order of settlement to be conclusive.

 

245-I. Every order of settlement passed under sub-section (4) of section 245D shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force.

 

Recovery of sums due under order of settlement.

245J. Any sum specified in an order of settlement passed under sub-section (4) of section 245D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of Chapter XVII, by the[48]  [Assessing] Officer having jurisdiction over the person who made the application for settlement under section 245C.

 

Proceedings before Settlement Commission to be judicial proceed­ings.

245L.   Any proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860).

 

Bar on subsequent application for settlement in certain cases.

245K. Where,—

(i) an order of settlement passed under sub-section (4) of section 245D provides for the imposition of a penalty on the person who made the application under section 245C for settle­ment, on the ground of concealment of particulars of his income; or

(ii) After the passing of an order of settlement under the said sub-section (4) in relation to a case such person is con­victed of any offence under Chapter XXII in relation to that case; [49]  [or]

[50]  [(iii) the case of such person is sent back to the [51]  [Assessing] Officer by the Settlement Commission under section 245HA,]

Then, he shall not be entitled to apply for settlement under section 245C in relation to any other matter.

 

Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission.

[52] 245M.       [Omitted by the Finance Act, 1987, w.e.f. 1-6-1987.]

 

 [1]Chapter XIX-A, consisting of sections 245A to 245M, inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.

 [2]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, section 245A, as amended by the Fi­nance (No. 2) Act, 1977, w.e.f. 10-7-1978 and Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, stood as under:

‘Definitions.—In this Chapter, unless the context otherwise requires,—

(a) “case” means any proceeding under this Act for the assessment or reassessment of any person in respect of any year or years, or by way of appeal or revision in connection with such assessment or reassessment, which may be pending before an in­come-tax authority on the date on which an application under sub-section (1) of section 245C is made;

(b) “income-tax authority” means a Director of Inspection, a Commissioner, a Commissioner (Appeals), an Appellate Assistant Commissioner, an Inspecting Assistant Commissioner or an Income-tax Officer.’

 [3]‘(hereafter in this Chapter referred to as “the Settle­ment Commission”)’ omitted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [4]Substituted for “and two other members” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986.

 [5]Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. Prior to its omission, sub-section (2A), as inserted by the Finance Act, 1982, w.e.f. 1-4-1982, stood as under:

“(2A) Notwithstanding anything contained in sub-section (2), when the post of one of the other members of the Settlement Commission is vacant for any reason, the Chairman and the other members of the Settlement Commission may function as, and exercise and discharge the powers and functions of, the Settlement Commission under this Chapter:

Provided that if in any case the Chairman and member so functioning differ on any point or points, they shall state the point or points on which they differ and refer the same, as soon as may be after the said vacancy is filled, to the member ap­pointed to fill the vacancy for hearing on such point or points and such point or points shall be decided according to his opin­ion.”

 [6]Inserted ibid.

 [7]Inserted ibid.

 [8]Second proviso omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. Prior to its omission, second proviso stood as under:

                “Provided further that, until the members are appointed under this sub-section, it shall be competent for the Central Govern­ment to require, from time to time, any two members of the Board to serve as members of the Settlement Commission for such period as the Central Government thinks fit, in addition to their duties as members of the Board.”

 [9]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [10]

 [11]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [12]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [13]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [14]See rule 44C, 44CA and Form No. 34B.

 [15]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [16]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, sub-section (1B), stood as under :

“(1B) Where the income disclosed in the application relates to only one previous year,—

(i) if the applicant has not furnished a return in respect of the total income of that year and no assessment has been made in respect of the total income of that year, tax shall be calculated on the income disclosed in the application as if such income were the total income;

(ii) if the applicant has furnished a return in respect of the total income of that year and no assessment has been made in pursuance of such return, tax shall be calculated on the aggre­gate of the total income returned and the income disclosed in the application as if such aggregate were the total income; and

(iii) if an assessment in respect of the total income of that year has been made, tax shall be calculated on the aggregate of the total income as assessed and the income disclosed in the application as if such aggregate were the total income.”

 [17]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, sub-section (1C) stood as under :

“(1C) The tax as calculated under sub-section (1B) shall be reduced,—

(a) in a case referred to in clause (i) of sub-section (1B), by the sum, if any, deducted at source under Chapter XVII-B or paid in advance under Chapter XVII-C;

(b) in a case referred to in clause (ii) of sub-section (1B), by the aggregate of the sums referred to in clause (a) and the tax, if any, paid by the applicant under section 140A; and

(c) in a case referred to in clause (iii) of sub-section (1B) by the aggregate of the sums and tax referred to in clause (b) as increased by the tax, if any, paid in pursuance of the assessment made in respect of the total income of that year, and the resultant amount so arrived at shall be the additional amount of income-tax payable in respect of the income disclosed in the application relating to that year.”

 [18]Second proviso omitted by the Finance Act, 1979, w.e.f. 1-4-1979.

 [19]Inserted, ibid.

 [20]“under the Indian Income-tax Act, 1922 (11 of 1922), or” omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [21]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [22]Inserted by the Finance Act, 1985, with retrospective effect from 1-10-1984.

 [23]Inserted, ibid.

 [24]Inserted, ibid.

 [25]Inserted, ibid.

 [26]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [27]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987. Original sub-section (5), as amended by the Finance Act, 1982, w.e.f. 1-4-1982, was omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. Omitted sub-section read as under:

“(5) Subject to the provisions of sub-section (2A) of section 245B, the materials brought on record before the Settlement Com­mission shall be considered by all the members thereof before passing any order under sub-section (4) and, in the case of a difference of opinion among the members, the opinion of the majority shall prevail and the such order shall be expressed in terms of views of the majority.”

 [28]Substituted for “tax or penalty” by the Finance Act, 1987, w.e.f. 1-6-1987. Earlier “tax or penalty” was substituted for “tax, penalty or interest” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [29]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [30]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [31]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [32]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [33]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.

 [34]“Under the Indian Income-tax Act, 1922 (11 of 1922), or” omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [35]Substituted by the Finance Act, 1987, w.e.f. 1-6-1987. Prior to its substitution, it read as under:

Provided that no proceeding shall be reopened by the Settlement Commission under this section after the expiry of a period of eight years from the end of the assessment year to which such proceeding relates.”

 [36]“or by way of advance tax” omitted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [37]Omitted by he Finance Act, 1987, w.e.f. 1-6-1987. Original sub-section (5), which was earlier substituted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f 10-9-1986, stood as under :

“(5) The powers or functions of the Settlement Commission maybe exercised or discharged by Benches constituted by the Chairman of the Settlement Commission from amongst the members thereof.”

 [38]Inserted by the Taxation Laws (Amendment & Miscellane­ous Provisions) Act, 1986, w.e.f. 10-9-1986.

 [39]See rule 44D.

 [40]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.

 [41]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [42]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [43]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [44]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [45]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [46]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [47]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [48]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [49]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [50]Inserted by the Finance Act, 1987, w.e.f. 1-6-1987.

 [51]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.

 [52]Prior to its omission, section 245M, which was origi­nally inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and later amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, stood as under:

“245M. (1) Notwithstanding anything contained in this Chapter, any assessee who has filed an appeal to the Appellate Tribunal under this Act which is pending before it shall, on withdrawing such appeal from the Appellate Tribunal before the 1st day of October, 1984, be entitled to make an application to the Settle­ment Commission to have his case settled under this Chapter:

Provided that no such assessee shall be entitled to make an application in a case where the Income-tax Officer has preferred an appeal under sub-section (2) of section 253 against the order to which the assessee’s appeal relates.

(2) Any assessee referred to in sub-section (1) may make an application to the Appellate Tribunal for permission to withdraw the appeal.

(3) On receipt of an application under sub-section(2), the Appel­late Tribunal shall grant permission to withdraw the appeal.

(4) Upon the withdrawal of the appeal, the proceeding in appeal immediately before such withdrawal shall, for the purposes of this Chapter, be deemed to be proceeding pending before an in­come-tax authority.

(5) An application to the Settlement Commission under this sec­tion shall be made within a period of thirty days from the date on which the order of the Appellate Tribunal permitting the withdrawal of the appeal is communicated to the assessee.

(6) An application made to the Settlement Commission under this section shall be deemed to be an application made under sub-section (1) of section 245C and the provisions of this Chapter [except sub-section (7) of section 245D] shall apply accordingly.

(7) Where an application made to the Settlement Commission under this section is not entertained by the Settlement Commission, then the assessee shall not be deemed to have withdrawn the appeal from the Appellate Tribunal and the provisions contained in section 253, section 254 and section 255 shall, so far as may be, apply accordingly.”