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SECTION:245D-PROCEDURE ON RECEIPT OF APPLICATION - Income Tax - Ready Reckoner - Income TaxExtract PROCEDURE ON RECEIPT OF APPLICATION - SECTION: 245D APPLICATION FILED TO SETTLEMENT COMMISSION (ITSC) (1) On receipt of application, ITSC within 7 days from the date of receipt of application, issue a notice to the applicant to explain as to why his application be admitted and on hearing the applicant, the Settlement Commission shall, within a period of fourteen days from the date of the application, by an order in writing, reject the application or allow the application to be proceeded with. Provided that where no order has been passed within the aforesaid period by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with. (2B) After admission of application, ITSC within 30 days of date of filing of application shall call for a report from CIT. By forwarding a copy of the applicant in Form No. 34B (other than the annexure and statements and other documents accompany such annexure along with a copy of the order under section 245D(1). And CIT shall submit report within 30 days of receipt of communication- (2C) Where a report of the Principal Commissioner or Commissioner called for under sub-section (2B) has been furnished within the period specified therein, the Settlement Commission may, on the basis of the report and within a period of fifteen days of the receipt of the report, by an order in writing, declare the application in question as invalid, and shall send the copy of such order to the applicant and the Principal Commissioner or Commissioner. Provided that an application shall not be declared invalid unless an opportunity has been given to the applicant of being heard. Provided further that where the Principal Commissioner or Commissioner has not furnished the report within the aforesaid period, the Settlement Commission shall proceed further in the matter without the report of the Principal Commissioner or Commissioner. (3) The Settlement Commission, in respect of- (i) an application which has not been declared invalid under sub-section (2C); or ii) an application referred to in sub-section (2D) which has been allowed to be further proceeded with under that sub-section may call for the records from the Principal Commissioner or Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Principal Commissioner or Commissioner to make or cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case, and the Principal Commissioner or Commissioner shall furnish the report within a period of ninety days of the receipt of communication from the Settlement Commission. Provided that where the Principal Commissioner or Commissioner does not furnish the report within the aforesaid period, the Settlement Commission may proceed to pass an order under sub-section (4) without such report. ITSC may call for records from the CIT and direct the CIT for further inquiry and investigation, as ITSC may deem necessary. CIT shall furnish the report within 90 days of receipt of communication from ITSC. ITSC may also proceed without such report, if report is not received within 90 days . After examining the records and the report by CIT, and after giving an opportunity of being heard, shall pass an order under section 245D(4) within 18 months from the end of the month in which application was made. If settlement order is not passed within the prescribed time proceedings shall abate after the expiry of 18 months as aforesaid. And proceedings shall revive before the respective Income tax authority as if no application was made.
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