CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 245A.
45. In section 245A of the Income-tax Act, in clause (b), with effect from the 1st day of June, 2010,—
(i) in the proviso, clauses (ii) and (iii) shall be omitted;
(ii) in the Explanation,—
(a) clause (ii) shall be omitted;
(b) after clause (iii), the following clause shall be inserted, namely:—
"(iiia) a proceeding for assessment or reassessment for any of the assessment years, referred to in clause (b) of sub-section (1) of section 153A in case of a person referred to in section 153A or section 153C, shall be deemed to have commenced on the date of issue of notice initiating such proceedings and concluded on the date on which the assessment is made;";
(c) in clause (iv), for the words, brackets and figures "clause (ii) or clause (iii) or clause (iv) of the proviso", the words, brackets, figures and letter "clause (iv) of the proviso or clause (iiia) of the Explanation" shall be substituted.
Notes on Clauses:
Clause 45 of the Bill seeks to amend section 245A of the Income tax Act relating to definitions.
Under the existing provisions contained in clause (b) of the aforesaid section, the expression "case" means any proceeding for assessment 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 sub-section (1) of section 245C is made. It, inter alia, provides that a proceeding of assessment or reassessment for any of the assessment years referred to in clause (b) of sub-section (1) of section 153A and, in clause (b) of sub-section (1) of section 153B, in case of a person referred to in section 153A or section 153C, shall not be a proceeding for assessment for the purposes of this clause.
It is proposed to omit clauses (ii) and (iii) of the proviso to clause (b) of the aforesaid section so as to include within the definition of "case", a proceeding for assessment or reassessment referred to in clause (b) of sub-section (1) of section 153A, and clause (b) of sub-section (1) of section 153B, in case of a person referred to in section 153A or section 153C.
It is further proposed to amend the Explanation to specify the date on which the proceedings for assessment or reassessment shall be deemed to have commenced and concluded, in case of a person referred to in section 153A or section 153C.
These amendments will take effect from 1st June, 2010.
