Income Tax Act, 2025
Section 4: Ins. by Act 22 of 2007, s. 68 (w.e.f. 12007).
4. Ins. by Act 22 of 2007, s. 68 (w.e.f. 12007).
5. The words “has not complied with the conditions subject to which the immunity was granted or that such person” omitted
by Act 11 of 1987, s. 64 (w.e.f. 11987).
6. Ins. by Act 22 of 2007, s. 69 (w.e.f. 12007). Earlier section 245HA was inserted by Act 11 of 1987, s. 65 (w.e.f. 1
1987) which was amended by Act 4 of 1988, s. 2 (w.e.f. 11988) and later on omitted by Act 20 of 2002, s. 96 (w.e.f. 12002).
716
(ii) an application made under section 245C has not been allowed to be proceeded with under
sub-section (2A) or further proceeded with under sub-section (2D) of section 245D; or
(iii) an application made under section 245C has been declared as invalid under sub-section (2C)
of section 245D; or
1[(iiia) in respect of any application made under section 245C, an order under sub-section (4)
of section 245D has been passed not providing for the terms of settlement; or]
(iv) in respect of any other application made under section 245C, an order under sub-section (4)
of section 245D has not been passed within the time or period specified under sub-section (4A)
of section 245D,
the proceedings before the Settlement Commission shall abate on the specified date.
Explanation.—For the purposes of this sub-section, "specified date" means—
(a) in respect of an application referred to in clause (i), the day on which the application was
rejected;
(b) in respect of an application referred to in clause (ii), the 31st day of July, 2007;
(c) in respect of an application referred to in clause (iii), the last day of the month in which the
application was declared invalid;
1[(ca) in respect of an application referred to clause (iiia), the day on which the order under subsection (4) of section 245D was passed not providing for the terms of settlement;]
(d) in respect of an application referred to in clause (iv), on the date on which the time or period
specified in sub-section (4A) of section 245D expires.
(2) Where a proceeding before the Settlement Commission abates, the Assessing Officer, or, as the
case may be, any other income-tax authority before whom the proceeding at the time of making the
application was pending, shall dispose of the case in accordance with the provisions of this Act as if no
application under section 245C had been made.
(3) For the purposes of sub-section (2), the Assessing Officer, or, as the case may be, other incometax authority, shall be entitled to use all the material 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 material, information,
inquiry and evidence had been produced before the Assessing Officer or other income-tax authority or
held or recorded by him in the course of the proceedings before him.
(4) For the purposes of the time-limit under sections 149, 153, 153B, 154, 155, 158BE and 231 and
for the purposes of payment of interest under section 243 or 244 or, as the case may be, section 244A, for
making the assessment or reassessment under sub-section (2), the period commencing on and from the
date of the application to the Settlement Commission under section 245C and ending with “specified
date” referred to in sub-section (1) 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.
245HAA. Credit for tax paid in case of abatement of proceedings.—Where an application made
under section 245C on or after the 1st day of June, 2007, is rejected under sub-section (1) of section
245D, or any other application made under section 245C is not allowed to be proceeded with under
sub-section (2A) of section 245D or is declared invalid under sub-section (2C) of section 245D or has not
been allowed to be further proceeded with under sub-section (2D) of section 245D or an order under
sub-section (4) of section 245D has not been passed within the time or period specified under
sub-section (4A) of section 245D, the Assessing Officer shall allow the credit for the tax and interest paid
on or before the date of making the application or during the pendency of the case before the Settlement
Commission.]
an application made under section 245C has not been allowed to be proceeded with under
sub-section
or further proceeded with under sub-section
of section 245D; or
an application made under section 245C has been declared as invalid under sub-section
of section 245D; or
1[
in respect of any application made under section 245C, an order under sub-section
of section 245D has been passed not providing for the terms of settlement; or]
in respect of any other application made under section 245C, an order under sub-section
of section 245D has not been passed within the time or period specified under sub-section
of section 245D,
the proceedings before the Settlement Commission shall abate on the specified date.
Explanation.—For the purposes of this sub-section, "specified date" means—
in respect of an application referred to in clause
in respect of an application referred to in clause
in respect of an application referred to in clause
in respect of an application referred to clause
of section 245D was passed not providing for the terms of settlement;]
in respect of an application referred to in clause
of section 245D expires.
Where a proceeding before the Settlement Commission abates, the Assessing Officer, or, as the
case may be, any other income-tax authority before whom the proceeding at the time of making the
application was pending, shall dispose of the case in accordance with the provisions of this Act as if no
application under section 245C had been made.
For the purposes of sub-section
For the purposes of the time-limit under sections 149, 153, 153B, 154, 155, 158BE and 231 and
for the purposes of payment of interest under section 243 or 244 or, as the case may be, section 244A, for
making the assessment or reassessment under sub-section
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
of section 186, the period
aforesaid shall, likewise, be excluded.
245HAA. Credit for tax paid in case of abatement of proceedings.—Where an application made
under section 245C on or after the 1st day of June, 2007, is rejected under sub-section
of section
245D, or any other application made under section 245C is not allowed to be proceeded with under
sub-section
of section 245D or is declared invalid under sub-section
of section 245D or has not
been allowed to be further proceeded with under sub-section
of section 245D or an order under
sub-section
of section 245D has not been passed within the time or period specified under
sub-section
of section 245D, the Assessing Officer shall allow the credit for the tax and interest paid
on or before the date of making the application or during the pendency of the case before the Settlement
Commission.]