Standard Operating Procedure in relation to proceedings u/s 245D(2C) - Income Tax - F. No. 1/170/Tech/2014/SC/-669 to 674

F. No. 1/170/Tech/2014/SC/-669 to 674 GOVERNMENT OF INDIA INCOME TAX SETTLEMENT COMMISSION 4th Floor, Lok Nayak Bhawan, Khan Market, New Delhi-110003 Date. 15.09.2014 To All Vice-Chairmen Members, Income Tax Settlement Commission, Principal Bench all Additional Benches New Delhi/Mumbai/Kolkata/Chennai Madan/Sir Sub : Standard Operating Procedure in relation to proceedings u/s 245D(2C) - reg. Section 245D(2B) lays down that, after the admission of a settlement application u/s 245D(1) of the Income Tax Act, 1961, the ITSC shall call for a report from the CIT, within 30 days of the date of receipt of such application. The CIT is required to submit the report u/s 245D(2B) within 30 days of the receipt of communication from the ITSC. Provisions of section 245D(2C) require the ITSC to pass an order within a period of 15 days, if required, declaring such application as invalid. 2. It has been noticed that the procedure being followed by various Benches in this regard is not uniform. With a view to bringing uniformity in the procedure to be followed in relation to proceedings u/s 245D(2C), following guidelines are issued. 3. Once the ITSC calls for a report from the CIT u/s 245D(2B), five possible situations can emerge: a) The CIT submits the report within the time allowed objecting to the admission of the application and requesting it to be declared as invalid, b) The CIT submits the report within the time allowed but does not object to the admission of the application, c) The CIT submits the report after the expiry of the time allowed objecting to the admission of the application and requesting it to be declared as invalid. d) The CIT submits the report after the expiry of the time allowed but does not object to the admission of the application, e) The CIT fails to submit any report. 3.1 In the situation mentioned in clause (a) above, a notice should be issued fixing the case for hearing and after hearing both the CIT and the applicant, an order should be passed within 15 days of receipt of the report of the CIT declaring the application as invalid or valid. 3.2 In the situation mentioned in clause (b) (d) above, as the CIT has not objected to the admission of the application, the ITSC should proceed further in the matter and call for a report under Rule 9. 3.3 In the situation mentioned in clause (c) above, as the CIT has failed to submit the report within the time allowed, the ITSC should proceed further in the matter and call for a report under Rule 9. 3.4 In the situation mentioned in clause (e) above, the ITSC should proceed further in the matter and call for a report under Rule 9. 4. This issues with the approval of the Chairman, Income Tax Settlement Commission. Yours faithfully, (Parmod Kumar) Suprintendent