Section 245HA of Income Tax Act "Abatement of proceeding before Settlement Commission"
245HA. (1) Where-
(i) an application made under section 245C on or after the
1st day of June, 2007 has been rejected under sub-section
(1) of section 245D; or
(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
(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;
(ca) in respect of an application referred to clause (iiia),
the day on which the order under sub-section (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 income-tax 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. 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.