Section 245K of Income Tax Act "Bar on subsequent application for settlement"
245K. (1) Where-
(i) an order of settlement passed under sub-section (4) of
section 245D provides for the imposition of a penalty on the
person who made the application under section 245C for
settlement, on the ground of concealment of particulars of
his income; or
(ii) after the passing of an order of settlement under the
said sub-section (4) in relation to a case, such person is
convicted of any offence under Chapter XXII in relation to
that case; or
(iii) the case of such person was sent back to the Assessing
Officer by the Settlement Commission on or before the 1st
day of June, 2002,
then, he or any person related to such person (herein
referred to as related person) shall not be entitled to
apply for settlement under section 245C in relation to any
other matter.
(2) Where a person has made an application under section
245C on or after the 1st day of June, 2007 and if such
application has been allowed to be proceeded with under
sub-section (1) of section 245D, such person or any related
person shall not be subsequently entitled to make an
application under section 245C.
Explanation.-For the purposes of this section, "related
person" with respect to a person means,-
(i) where such person is an individual, any company in which
such person holds more than fifty per cent of the shares or
voting rights at any time, or any firm or association of
persons or body of individuals in which such person is
entitled to more than fifty per cent of the profits at any
time, or any Hindu undivided family in which such person is
a karta;
(ii) where such person is a company, any individual who held
more than fifty per cent of the shares or voting rights in
such company at any time before the date of application
before the Settlement Commission by such person;
(iii) where such person is a firm or association of persons
or body of individuals, any individual who was entitled to
more than fifty per cent of the profits in such firm,
association of persons or body of individuals, at any time
before the date of application before the Settlement
Commission by such person;
(iv) where such person is a Hindu undivided family, the
karta of that Hindu undivided family.
245L. Any proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860).