Scope of Proceedings


Scope of Proceedings

Created On: | 607 Views
Scope of proceedings for which application can be made to Settlement Commission expanded

Scope of proceedings for which application can be made to Settlement Commission expanded

The existing provision for making the application to the Settlement Commission provide asunder:

An assessee may make an application for settlement to Settlement Commission at any stage of a case relating to him which is pending before an Assessing Officer on the date of making such application.

Meaning of case [Section 245A(b)]: "Case" means any proceeding for assessment under this Act, 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 under section 245C(1) is made.

Proceeding of assessment for which application cannot be made to Settlement Commission [Proviso to section 245A(b)]: As per the proviso, in case of the following proceeding through pending before the Assessing Officer, the assessee shall not be allowed to make the application to the Settlement Commission:

(i) a proceeding for assessment or reassessment or recomputation under section 147.

(ii) a proceeding for making fresh assessment in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment.

Amendment made by the Finance (No. 2) Act, 2014 [W.e.f. 1-10-2014)

The above proviso to section 245A(b) has been omitted w.e.f. 1-10-2014 and hence now application toSettlement Commission can also be made in case of the following if proceeding of the same are pending:

(i) a proceeding for assessment or reassessment or recomputation under section 147. These proceeding shall be deemed to have commenced from the date on which a notice under section 148 is issued;

(ii) a proceeding for making fresh assessment in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment. These proceedings shall be deemed to have commenced from the date on which the order under section 254 or section 263 or section 264, setting aside or cancelling an assessment was passed.

Proceedings of assessment for which application can be made to Settlement Commission after amendment: From the above, it may be observed that the application to Settlement Commission can be made for the following proceedings for assessment in respect of assessment year or assessment years which is/are pending before the Assessing Officer on the date on which application under section 24C(1) is made:

(a) a proceeding for assessment or reassessment or recomputation under section 147. These proceeding shall be deemed to have commenced from the date on which a notice under section 148 is issued;

(b) a proceeding for assessment or reassessment for 6 assessment years immediately preceding the assessment year in which search is conducted in case of a person referred to in section 153 A or 153C.

(c) a proceeding for assessment or re-assessment for the assessment year relevant to the previous year in which search in conducted or books are requisitioned under section 132A in case of a person referred to in section 153A or 153C. The above proceedings shall be deemed to have commenced on the date of issue of notice initiating such proceedings and concluded on the date on which assessment is made.

(d) a proceeding for making fresh assessment in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment. These proceedings shall be deemed to have commenced from the date on which the order under section 254 or section 263 or section 264, setting aside or cancelling an assessment was passed.

(e) a proceeding for assessment for any assessment year other than the proceeding of assessment or reassessment referred to in clause (a) to (d) above. In other words, it is for proceedings for assessment u/s 143 or section 144. The above proceeding shall be deemed to have commenced from the 1st day of the assessment year and concluded on the date on which the assessment is made.BACK

 

 

.

 

.

Subscribe to our Newsletter for Latest News & Updates.