Section 245B and Section 245BA of Income Tax Act 1961: Income-tax Settlement Commission
Sections 245B and 245BA of the Income-tax Act, 1961 deal with the constitution, jurisdiction and functioning of the Income-tax Settlement Commission under Chapter XIX-A of the Act.
Section 245B - Income-tax Settlement Commission
Section 245B provides for constitution of the Income-tax Settlement Commission by the Central Government for settlement of cases under Chapter XIX-A of the Income-tax Act, 1961.
The Commission consists of a Chairman, Vice-Chairmen and other Members as considered necessary by the Central Government. Members are appointed from persons having integrity, outstanding ability and special knowledge or experience relating to direct taxes and business accounts.
Functions of Settlement Commission
- To examine applications for settlement of cases made under the statutory procedure.
- To exercise powers and perform functions provided under Chapter XIX-A.
- To pass orders for settlement according to the provisions of the Income-tax Act, 1961.
Section 245BA - Jurisdiction and powers of Settlement Commission
Section 245BA provides that, subject to the provisions of Chapter XIX-A, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches constituted for this purpose.
Composition of Bench
A Bench is generally presided over by the Chairman or a Vice-Chairman and consists of other Members as provided under the Act.
| Provision | Description |
|---|---|
| Section 245B | Constitution of Income-tax Settlement Commission. |
| Section 245BA | Jurisdiction, powers and authority of Settlement Commission Benches. |
| Section 245C | Application for settlement of cases. |
| Section 245D | Procedure on receipt of settlement application. |
Bench provisions under Section 245BA
The Chairman may authorise Vice-Chairmen or Members to discharge functions in relation to another Bench. The section also provides for functioning of a Bench in situations such as absence, illness or vacancy, subject to statutory conditions.
The Central Government may specify places where principal and additional Benches ordinarily sit by notification. A Special Bench may also be constituted according to the statutory provisions.
Related provisions
- Section 245A: Definitions relating to settlement of cases.
- Section 245C: Application for settlement of cases.
- Section 245D: Procedure on receipt of application.
- Section 245H: Power to grant immunity from prosecution and penalty in specified cases.
Law before implementation of Bharatiya Sakshya Adhiniyam 2023
The Bharatiya Sakshya Adhiniyam, 2023 relates to evidence law and does not govern the constitution or powers of the Income-tax Settlement Commission. This article concerns provisions of the Income-tax Act, 1961.