Amendment of section 245HA
60. In section 245HA of the Income-tax Act , in sub-section (1), with effect from the 1st day of June, 2015,-
(A) after clause (iii), the following clause shall be inserted, namely:-
“(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”;
(B) in the Explanation, after clause (c), the following clause shall be inserted, namely:-
“(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;”.
Notes on Clauses:
Clause 60 of the Bill seeks to amend section 245HA of the Income-tax Act relating to abatement of proceeding before Settlement Commission.
The existing provision contained in sub-section (1) of section 245HA of the Income-tax Act provides for abatement of proceedings in different situations.
It is proposed to amend sub-section (1) of section 245HA of the Income-tax Act to provide that where 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 then, the proceedings before the Settlement Commission shall abate on the day on which the order under sub-section (4) of section 245D was passed not providing for the terms of settlement.
This amendment will take effect from 1st June, 2015.
