Amendment of section 249.
91. In section 249 of the Income-tax Act, in sub-section (2), in clause (b), with effect from the 1st day of April, 2017,-
(i) in the proviso, for the words “excluded, or” occurring at the end, the word “excluded:” shall be substituted;
(ii) after the proviso, the following proviso shall be inserted, namely:-
“Provided further that where an application has been made under sub-section (1) of section 270AA, the period beginning from the date on which the application is made, to the date on which the order rejecting the application is served on the assessee, shall be excluded, or”.
Notes on Clauses:
Clause 91 of the Bill seeks to amend section 249 of the Income tax Act relating to form of appeal and limitation.
Clause (b) of sub-section (2) of the aforesaid section provides that an appeal before the Commissioner (Appeals) is to be made within thirty days of the receipt of the notice of demand relating to an assessment order.
It is proposed to provide that in a case where the assessee makes an application under section 270AA of the Income-tax Act seeking immunity from penalty and prosecution, then, the period beginning from the date on which such application is made to the date on which the order rejecting the application is served on the assessee shall be excluded for calculation of the aforesaid thirty days period.
This amendment will take effect from the 1st April, 2017.
