Feb 28, 2010
The conditions for filing of an application before the
Settlement Commission and the time for disposal of an
application by the Settlement Commission are proposed
to be modified. The changes proposed are as under:-
A. Under the existing provisions of section 245A(b),
the term “case”, in relation to which an application
can be made is defined as any proceeding for assessment,
of any person in respect of any assessment year or
assessment years which may be pending before an Assessing
Officer on the date on which an application is made to the
Settlement Commission. However, it excludes, among others,
proceedings for assessment or reassessment resulting from a
search or as a result of requisition of books of account
or other documents or any assets, initiated under the Act.
It is now proposed to include proceedings for assessment or
reassessment resulting from search or as a result of requisition
of books of account or other documents or any assets,
within the definition of a “case” which can be admitted by
the Settlement Commission.
It is also proposed to amend the Explanation to section 245A(b)
to specify the date on which the proceedings for assessment or
reassessment shall be deemed to have commenced and concluded in
the case of a person whose income is being assessed or
reassessed as a result of search or as a result of requisition
of books of account or other documents or any assets.
Similarly, consequential amendments are also proposed to be made
in section 22A of the Wealth-tax Act. These amendments are proposed
to take effect from 1st June, 2010.
B. Under the existing provisions of section 245C of the Income-tax
Act, an application can be filed before the Settlement Commission,
if the additional amount of income-tax payable on the income disclosed
in the application exceeds three lakh rupees.
It is proposed to substitute the proviso to section 245C,
so as to provide that an application can be filed before the
Settlement Commission, in cases where proceedings for assessment
or reassessment have been initiated as a result of search or as a
result of requisition of books of account or other documents or
any assets, if the additional amount of income-tax payable on the
income disclosed in the application exceeds fifty lakh rupees.
It is further proposed that, in other cases, an application can
be made before the Settlement Commission, if the additional amount
of income-tax payable on the income disclosed in the application
exceeds ten lakh rupees.
These amendments are proposed to take effect from 1st June, 2010.
C. Under the existing provisions of section 245D(4A) of the
Income-tax Act, the Settlement Commission shall pass an order
within twelve months from the end of the month in which the
application was made.
It is proposed to amend clause (ii) of sub-section (4A) so as
to provide that the Settlement Commission, shall, in respect
of an application filed on or after 1st June, 2007 but before
1st June, 2010, pass an order within the said period of twelve months.
It is further proposed to insert a new clause (iii) in sub-section
(4A) so as to provide that the Settlement Commission shall,
in respect of an application made on or after 1st June, 2010,
pass an order within eighteen months from the end of the month
in which the application is made.
Consequential amendments on similar lines are proposed
to be made in section 22D of the Wealth-tax Act.
These amendments are proposed to take effect from 1st June, 2010.
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