The Income-tax Settlement Commission has by exercising its powers conferred by sub-section (7) of Section 245F of the Income-tax Act, 1961 (43 of 1961), has amended the Income-tax Settlement Commission (Procedure) Rules, 1997. As per the foot note given below the notification it is stated that the principal rules were published n the Gazette of India vide G.S.R. 36(E), dated 4th July, 1997 and last amended vide G.S.R. 36(E), dated 12th October, 1999. Therefore, it appears that some amendments were much desired long ago when relevant provisions of the income Tax Act stood amended. On close reading it also appears that there is some overlapping or repeation of provisions in the relevant section and the Rules.
Analysis:
In the following table an analysis of existing rule corresponding to amended Rule are given and an attempt is made to analyze the same and find out impact.
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Existing |
After amendment |
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Definitions
2. In these rules, unless the context otherwise requires,— |
Definitions
2. In these rules, unless the context otherwise requires,— |
Contextual aspect remain no change. |
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vi) "Officer of the Commission" means Secretary, Director of Income-tax (Investigation), Additional Director of Income-tax (Investigation) and Deputy Director of Income-tax (Investigation); |
'(vi) "Officer of the Commission" means Secretary, Director of Income-tax (Investigation), Additional Director of Income-tax (Investigation), Joint Director of Income-tax (Investigation), Deputy Director of Income-tax (Investigation) and Assistant Director of Income (Investigation).'; |
New authorities added are:
Joint Director of Income-tax (Investigation),
Assistant Director of Income (Investigation) |
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(vii) "Secretary" means the Secretary of the Commission and includes an Administrative Officer; |
(vii) "Secretary" means the Secretary of the Commission and includes an Administrative Officer; and a superintendent. |
A superintendent' is also now deemed a secretary. |
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Procedure for filing settlement application |
Procedure for filing settlement application |
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5. (1) A settlement application shall be presented in Form No. 34B set out in Appendix II to the Income-tax Rules, 1962, by the applicant in person or by his agent, to the Secretary at the headquarters of the Commission at New Delhi or of the Bench within whose jurisdiction his case falls or to any officer authorised in this behalf by the Secretary, or shall be sent by registered post addressed to the Secretary, or to such officer. |
"(1) A settlement application shall be made by the applicant in person or his authorised representative, to the Secretary at the headquarters of the Commission at New Delhi or of the Bench within whose jurisdiction his case falls or to an officer authorised in this behalf by the Secretary, or shall be sent by registered post addressed to the Secretary, or to such officer" |
a. Earlier words used are 'application shall be presented', after amendment words used are 'application shall be made.
b. Form no. is not mentioned in amended Rule.
The words 'to any officer' were used earlier now words 'to an officer', are used. |
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(2) A settlement application sent by post under sub-rule (1) shall be deemed to have been presented to the Secretary or the officer authorised by the Secretary on the day on which it is received in the office of the Commission. |
(2) A settlement application sent by post under sub-rule (1) shall be deemed to have been presented to the Secretary or the officer authorised by the Secretary on the day on which it is received in the office of the Commission. |
Not amended in this rule it is just reproduced for better understanding. The date of receipt of application is the date or presentation and not the date of posting. |
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"(3) The application shall be accompanied by a copy of self (-) attested challans or other documents as evidence in respect of payment of tax and interest by the applicant. |
New Sub-rule (3) provide that the application shall be accompanied with self attested copy of documentary evidence of payment of tax and interest. |
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Commissioner's report, etc., under section 245D(1)
6. On receipt of a settlement application, a copy of the said application (excluding the Annexure) shall be forwarded by the Commission to the Commissioner with the direction to furnish his report under sub-section (1) of section 245D within 45 days of the receipt of the said copy of the application by him. |
"6. Report of the Commissioner under sub-section (2B) of Section 245D.—
The Commissioner shall furnish seven copies of report referred to in sub-section (2B) of Section 245D, to the Commission and one copy to the applicant simultaneously. |
The amended Rule need to be read with S. 245D(2A)- (2D) wherein other procedure and periods were specified by an amendment w.e.f. 01.06.2007. The amendment in Rule is consequential to amendments by way of substitution of sub-sections (2A) to (2D) by the Finance Act 2007, w.e.f.01.06.2007. Thus the amendment in Rules appears to be considerably delayed, as pointed out in beginning of the article. |
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Preparation of paper books, etc
7. (1) If the applicant or the Commissioner, as the case may be, proposes to refer or rely upon any documents or statements or other papers, he may submit six copies of a paper book containing such papers duly indexed and paged at least two weeks before the date of hearing under sub-section (1) of section 245D of the Act:
Provided, however, that the Commission may in an appropriate case condone the delay and admit the paper book.
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"7. Preparation of paper books, etc.—
If the applicant proposed to refer to or rely upon any documents or statements or other papers, during the course of hearing under sub-section (4) of Section 245D of the Act, he may submit seven copies of a paper books containing such papers duly indexed and numbered, within thirty days of the receipt of an order under sub-section (2C) of Section 245D, or within thirty days of the date by which the application was required to be declared invalid but has not been so declared:
Provided that the Commission may, in appropriate cases, condone the delay and admit the paper book.
(2) If the Commissioner proposes to refer to or rely upon any documents or statements or other papers during the course of hearing under sub-section (4) of Section 245D of the Act, he may submit seven copies of a paper book containing such papers duly indexed and numbered along with his report referred to in rule 9. |
Now seven copies of paper books are to be submitted by applicant or Commissioner as the case may be. The changes in procedure and time frame is consequential to amendment of section as stated in earlier para. Besides that there appears no significant change in implication, the manner of drafting is adopted differently.
The word however is not used in amended proviso. It seems that this has been considered superficial. |
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(2) If the applicant proposes to refer to or rely upon any documents or statements or other papers, during the course of hearing under sub-section (4) of section 245D of the Act, he may submit six copies of a paper book containing such papers duly indexed and paged, within thirty days or within such extended period as may be allowed by the Commission, of the receipt of an order under sub-section (1) of section 245D.
(3) If the Commissioner proposes to refer to or rely upon any documents or statements or other papers during the course of hearing under sub-section (4) of section 245D of the Act, he may submit six copies of a paper book containing such papers duly indexed and paged along with his report referred to in rule 9.
(4) The Commission may, suo motu, direct the preparation of six copies of a paper book by and at the cost of the applicant or the Commissioner, as the case may be, containing copies of such statements, documents and papers, etc., as it may consider necessary for the proper disposal of the settlement application or matters arising therefrom.
(5) The papers referred to in sub-rules (1), (2), (3) and (4) must be legibly written or type-written in double space or printed. If xerox copy of the document is filed, then the same should be legible. Each paper should be certified as a true copy by the party filing the same, or his authorised representative and indexed in such a manner as to give a brief description of the documents, with page numbers and the authority before whom it was filed. |
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(3) The papers referred to in sub-rules (1) and (2) must be legibly written or type-written in double space or printed and each paper shall be certified as a true copy by the party filing the same, or his authorised representative and indexed in such a manner as to give a brief description of the documents, with page numbers and the authority before whom it was filed." |
This is about manner of preparation and filing of paper book. |
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Commissioner's further report
9. Where an order is passed by the Commission under sub-section (1) of section 245D allowing the settlement application to be proceeded with, a copy of the annexure to the said application, altogether with a copy each of the statements and other documents accompanying such annexure, shall be forwarded to the Commissioner along with a copy of the said order with the direction that the Commissioner shall furnish a further report within ninety days of the receipt of the said annexure (including the statements and other documents accompanying it) or within such further period as the Commission may specify.
If the Commissioner fails to furnish his report on or before the expiry of the specified period of 90 days or such extended period, the Commission may pass the appropriate order without such report. |
9. "Commissioner's further report.—{1) Where an application has not been declared invalid under sub-section (2C) of Section 245D or an application has been allowed to be further proceeded with under sub-section (2D) of Section 245D, the information contained in the annexure and in the statements and other documents accompanying such annexure shall be sent to the Commissioner by the Commission with the direction that the Commissioner shall furnish a further report in seven copies within forty-five days of the receipt of said annexure or within such extended period as may be allowed by the Commission on a request made by the Commissioner.
(2) If the Commissioner fails to furnish his report on or before the expiry of the specified period of forty-five days or within further extended period as the Commission may allow, as the case may be, the Commission may proceed to hear the case without such report.
(3) A copy of the report of the Commissioner under sub-rule (1) of rule 9 shall be sent to the applicant by the Commission. |
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9A. Applicant's Comments on Commissioner's report under rule 9.
(1) The applicant may furnish comments on the Commissioner's report received under rule 9 within fifteen days of the receipt of the copy of the said report by him or within such extended period as may be allowed by the Commission on a written request made by the applicant.
(2) The comments of the applicant shall be accompanied by a paper book in support thereof, having the specifications referred to in rule 7.
(3) If the applicant fails to furnish comments on or before the expiry of the specified period of fifteen days or within further extended period under sub-rule (1), the Commission may proceed further with the case without such comments." |
This is about filing of paper book by the applicant containing comments on the report of the Commissioner and further documents relied on by him. |
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"12A. Constitution of Two-member bench.- Where one of the member (whether such person be the Presiding Officer or other member of the bench) is unable to discharge his function on the bench under the circumstances referred to in sub-section (5) of Section 245BA, the remaining members with the approval of the Chairman or the Vice (Chairman- added by author) as the case may be, may function as a bench." |
This Rule appears to be superficial because as per author, S. 245BA (5) itself provide for the related matter and in addition to that the section also provide that when the presiding officer is of view that matter is such which require consideration by three member bench, then he will refer the matter to the Chairman for transfer of the case to such bench.
Sub-section (5A) of Section 245BA also provide for constitution of larger bench consisting of more than three members. |
Notification - Income Tax - IT
Income-tax Settlement Commission (Procedure) Amendment Rules, 2010
MINISTRY OF FINANCE
(Settlement Commission)
New Delhi, the 6th October, 2010
G.S.R. 820(E).— In exercise of the powers conferred by sub-section (7) of Section 245F of the Income-tax Act, 1961 (43 of 1961), the Income-tax Settlement Commission hereby makes the following further amendments in the Income-tax Settlement Commission (Procedure) Rules, 1997, namely:-
1. (1) These rules may be called the Income-tax Settlement Commission (Procedure) Amendment Rules, 2010.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Settlement Commission (Procedure) Rules, 1997 (hereinafter referred to as the 'said rules'), in rule 2,-
(i) for clause (vi), the following clause shall be substituted, namely
'(vi) "Officer of the Commission" means Secretary, Director of Income-tax (Investigation), Additional Director of Income-tax (Investigation), Joint Director of Income-tax (Investigation), Deputy Director of Income-tax (Investigation) and Assistant Director of Income (Investigation).';
(ii) in clause (vii) after the words 'administrative officer', the words 'and a superintendent' shall be inserted.
3. In rule 5 of the said rules,—
(i) for sub-rule (1), the following sub-rule shall be substituted, namely:-
"(i) A settlement application shall be made by the applicant in person or his authorised representative, to the Secretary at the headquarters of the Commission at New Delhi or of the Bench within whose jurisdiction his case falls or to an officer authorised in this behalf by the Secretary, or shall be sent by registered post addressed to the Secretary, or to such officer"
(ii) after sub-rule (2), the following sub-rule shall be inserted ,namely:-
"(3) The application shall be accompanied by a copy of self (-) attested challans or other documents as evidence in respect of payment of tax and interest by the applicant.
4. For rule 6 of the said rules, the following rule shall be substituted, namely:-
"6. Report of the Commissioner under sub-section (2B) of Section 245D.—The Commissioner shall furnish seven copies of report referred to in sub-section (2B) of Section 245D, to the Commission and one copy to the applicant simultaneously.
5. For rule 7, the following rule shall be substituted, namely:—
"7. Preparation of paper books, etc.—(1) If the applicant proposed to refer to or rely upon any documents or statements or other papers, during the course of hearing under sub-section (4) of Section 245D of the Act, he may submit seven copies of a paper books containing such papers duly indexed and numbered, within thirty days of the receipt of an order under sub-section (2C) of Section 245D, or within thirty days of the date by which the application was required to be declared invalid but has not been so declared:
Provided that the Commission may, in appropriate cases, condone the delay and admit the paper book.
(2) If the Commissioner proposes to refer to or rely upon any documents or statements or other papers during the course of hearing under sub-section (4) of Section 245D of the Act, he may submit seven copies of a paper book containing such papers duly indexed and numbered along with his report referred to in rule 9.
(3) The papers referred to in sub-rules (1) and (2) must be legibly written or type-written in double space or printed and each paper shall be certified as a true copy by the party filing the same, or his authorised representative and indexed in such a manner as to give a brief description of the documents, with page numbers and the authority before whom it was filed."
6. For rule 9 of the said rules, the following rules shall be substituted, namely
9. "Commissioner's further report.—{1) Where an application has not been declared invalid under sub-section (2C) of Section 245D or an application has been allowed to be further proceeded with under sub-section (2D) of Section 245D, the information contained in the annexure and in the statements and other documents accompanying such annexure shall be sent to the Commissioner by the Commission with the direction that the Commissioner shall furnish a further report in seven copies within forty-five days of the receipt of said annexure or within such extended period as may be allowed by the Commission on a request made by the Commissioner.
(2) If the Commissioner fails to furnish his report on or before the expiry of the specified period of forty-five days or within further extended period as the Commission may allow, as the case may be, the Commission may proceed to hear the case without such report.
(3) A copy of the report of the Commissioner under sub-rule (1) of rule 9 shall be sent to the applicant by the Commission.
9A. Applicant's Comments on Commissioner's report under rule 9.—(1) The applicant may furnish comments on the Commissioner's report received under rule 9 within fifteen days of the receipt of the copy of the said report by him or within such extended period as may be allowed by the Commission on a written request made by the applicant.
(2) The comments of the applicant shall be accompanied by a paper book in support thereof, having the specifications referred to in rule 7.
(3) If the applicant fails to furnish comments on or before the expiry of the specified period of fifteen days or within further extended period under sub-rule (1), the Commission may proceed further with the case without such comments."
7. After rule 12 of the said rules, the following rule shall be inserted, namely:-
"12A. Constitution of Two-member bench.- Where one of the member (whether such person be the Presiding Officer or other member of the bench) is unable to discharge his function on the bench under the circumstances referred to in sub-section (5) of Section 245BA, the remaining members with the approval of the Chairman or the Vice as the case may be, may function as a bench."
[F.No. 1/107/Tech/2009/Misc/SC]
Dr. DHEERAJ BHATNAGAR, Secy. Income-tax
Settlement Commission
Foot Note :—The principal rules were published n the Gazette of India vide G.S.R. 36(E), dated 4th July, 1997 and last amended vide G.S.R. 36(E), dated 12th October, 1999.
