Abatement of proceeding before Settlement Commission.
284. (1) The proceedings before the Settlement Commission shall abate on the date specified in sub-section (2), if—
(a) an application made under section 273,—
(i) has not been allowed to be proceeded with or has been rejected under sub-section (2) of section 275; or
(ii) has been declared as invalid under sub-section (6) of section 275; or
(b) an order under sub-section (1) of section 277 has not been passed within the time period specified under sub-section (4) of section 277.
(2) The date referred to in sub-section (1) shall be -
(a) in respect of sub-clause (i) of clause (a) of the said sub-section, the day on which the application was rejected;
(b) in respect of sub-clause (ii) of clause (a) of the said sub-section , the last day of the month in which the application was declared invalid; and
(c) in respect of clause (b), on the date on which the time period specified in subsection (4) of section 277 expires.
(3) If 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 Code as if no application under section 273 had been made.
(4) For the purposes of sub-section (3), 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.
(5) In a case referred to in sub-section (3), the period commencing from the date of application to the Settlement Commission under section 273 and ending with the date referred to in sub-section (2) shall be excluded from the time limits specified in sections 161 and 163, for the purposes of making a rectification or an assessment or reassessment, and under section 216 for the purposes of payment of interest.
