India - Income Tax Act 2010 - Saarc

S. 245D I.T. ACT, 1961 1.834application, issue a notice to the applicant requiring him to explain as to why theapplication made by him be allowed to be proceeded with, and on hearing theapplicant, the Settlement Commission shall, within a period of fourteen daysfrom the date of the application, by an order in writing, reject the application orallow the application to be proceeded with:Provided that where no order has been passed within the aforesaid period bythe Settlement Commission, the application shall be deemed to have beenallowed to be proceeded with.](1A) 85 [Omitted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991.](2) A copy of every order under sub-section (1) shall be sent to the applicant andto the Commissioner.86[(2A) Where an application was made under section 245C before the 1st day ofJune, 2007, but an order under the provisions of sub-section (1) of this section,as they stood immediately before their amendment by the Finance Act, 2007, hasnot been made before the 1st day of June, 2007, such application shall be deemedto have been allowed to be proceeded with if the additional tax on the incomedisclosed in such application and the interest thereon is paid on or before the 31stday of July, 2007.Explanation.—In respect of the applications referred to in this sub-section, the31st day of July, 2007 shall be deemed to be the date of the order of rejection orallowing the application to be proceeded with under sub-section (1).85. Prior to omission, sub-section (1A) was inserted by the Finance Act, 1979, w.e.f. 1-4-1979and amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1984.86. Sub-sections (2A), (2B), (2C) and (2D) substituted by the Finance Act, 2007, w.e.f.1-6-2007. Prior to their substitution, sub-sections (2A), (2B), (2C) and (2D), as amended bythe Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, Finance Act, 1985, w.r.e.f.1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :“(2A) Subject to the provisions of sub-section (2B), the assessee shall, within thirty-fivedays of the receipt of a copy of the order under sub-section (1) allowing the applicationto be proceeded with, pay the additional amount of income-tax payable on the incomedisclosed in the application and shall furnish proof of such payment to the SettlementCommission.(2B) If the Settlement Commission is satisfied, on an application made in this behalf by theassessee, that he is unable for good and sufficient reasons to pay the additional amountof 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 paymentthereof by instalments if the assessee furnishes adequate security for the payment thereof.(2C) Where the additional amount of income-tax is not paid within the time specifiedunder sub-section (2A), then, whether or not the Settlement Commission has extended thetime for payment of the amount which remains unpaid or has allowed payment thereofby instalments under sub-section (2B), the assessee shall be liable to pay simple interestat fifteen per cent per annum on the amount remaining unpaid from the date of expiry ofthe period of thirty-five days referred to in sub-section (2A).(2D) Where the additional amount of income-tax referred to in sub-section (2A) is not paidby the assessee within the time specified under that sub-section or extended under subsection(2B), as the case may be, the Settlement Commission may direct that the amountof income-tax remaining unpaid, together with any interest payable thereon under subsection(2C), be recovered and any penalty for default in making payment of suchadditional amount may be imposed and recovered, in accordance with the provisions ofChapter XVII, by the Assessing Officer having jurisdiction over the assessee.”