Income Tax Act, 2025
Section 2: Ins. by Act 8 of 2011, s. 29, (w.e.f. 12011).
2. Ins. by Act 8 of 2011, s. 29, (w.e.f. 12011).
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(b) a person shall be deemed to have a substantial interest in a business or profession, if—
(A) in a case where the business or profession is carried on by a company, such person is,
1[on the date of search], the beneficial owner of shares (not being shares entitled to a fixed rate of
dividend, whether with or without a right to participate in profits) carrying not less than twenty
per cent of the voting power; and
(B) in any other case, such person is, 1[on the date of search], beneficially entitled to not less
than twenty per cent of the profits of such business or profession.]
(1A) For the purposes of sub-section (1) of this section 2***, 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 accordance with the provisions of sub-sections (1B) to (1D).
3[(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, then, 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, 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.]
4[(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;
5* * * * *
(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.
6* * * * *
(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.
7[(4) An assessee shall, on the date on which he makes an application under sub-section (1) to the
Settlement Commission, also intimate the Assessing Officer in the prescribed manner of having made
such application to the said Commission.]
1. Subs. by Act 23 of 2012, s. 90, for “at any time during the previous year” (w.e.f. 12012).
2. The words, brackets, figures and letters “and sub-sections (2A) to (2D) of section 245D” omitted by Act 22 of 2007, s. 63
(w.e.f. 12007).
a person shall be deemed to have a substantial interest in a business or profession, if—
in a case where the business or profession is carried on by a company, such person is,
1[on the date of search], the beneficial owner of shares (not being shares entitled to a fixed rate of
dividend, whether with or without a right to participate in profits) carrying not less than twenty
per cent of the voting power; and
in any other case, such person is, 1[on the date of search], beneficially entitled to not less
than twenty per cent of the profits of such business or profession.]
For the purposes of sub-section
of this section 2***, the additional amount of income-tax
payable in respect of the income disclosed in an application made under sub-section
of this section
shall be the amount calculated in accordance with the provisions of sub-sections
to
Where the income disclosed in the application relates to only one previous year,—
if the applicant has not furnished a return in respect of the total income of that year, then, tax
shall be calculated on the income disclosed in the application as if such income were the total income;
if the applicant has furnished a return in respect of the total income of that year, 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.]
4[
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
shall be,—
in a case referred to in clause
of that sub-section, the amount of tax calculated under that
clause;
in a case referred to in clause
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;
5* * * * *
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
and
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
shall be the additional amount of income-tax payable in respect of the income disclosed in
the application.
6* * * * *
Every application made under sub-section
shall be accompanied by such fees as may be
prescribed.
An application made under sub-section
shall not be allowed to be withdrawn by the applicant.
7[
An assessee shall, on the date on which he makes an application under sub-section
to the
Settlement Commission, also intimate the Assessing Officer in the prescribed manner of having made
such application to the said Commission.]
1. Subs. by Act 23 of 2012, s. 90, for “at any time during the previous year” (w.e.f. 12012).
2. The words, brackets, figures and letters “and sub-sections
to
of section 245D” omitted by Act 22 of 2007, s. 63
(w.e.f. 12007).