6
[22A. Definitions.—In this Chapter, unless the context otherwise requires,—
(a) “Bench” means a Bench of the Settlement Commission;
7
[(b) “case” means any proceeding for assessment under this Act, of any person in respect of any
assessment year or assessment years which may be pending before an Assessing Officer on the date
on which an application under sub-section (1) of section 22C is made:
1. The Explanation omitted by Act 18 of 1992, s. 96 (w.e.f. 1-4-1993).
2. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
3. The proviso omitted by Act 46 of 1964, s. 21 (w.e.f. 1-4-1965).
4. Ins. by s. 21, ibid. (w.e.f. 1-4-1965).
5. Ins. by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976).
6. Subs. by Act 11 of 1987, s. 77, for section 22A (w.e.f. 1-6-1987).
7. Subs. by Act 22 of 2007, s. 84, for clause (b) (w.e.f. 1-6-2007).
49
1
* * * * *
Explanation.—For the purposes of this clause—
(i) a proceeding for assessment or reassessment referred to in 2
[section 17 shall, in case where
a notice under the said section] is issued but not on the basis of search under section 37A or
requisition under section 37B, be deemed to have commenced from the date on which a notice
under section 17 is issued;
3
[(ii) a proceeding for making fresh assessment in pursuance of an order under section 23A or
section 24 or section 25, setting aside or cancelling an assessment shall be deemed to have been
commenced from the date on which such order, setting aside or cancelling an assessment was
passed.]
4
[(iii) a proceeding for assessment or reassessment for any of the assessment years, in
consequence of a search initiated under section 37A or requisition made under section 37B, shall
be deemed to have commenced on the date of issue of notice initiating such proceedings and
concluded on the date on which the assessment is made;]
(iv) a proceeding for assessment for an assessment year, other than the proceeding of
assessment or reassessment referred to in 5
[clause (i) or clause (ii) clause (iii)], shall be deemed
to have commenced from the 1st day of the assessment year and concluded on the date on which
the assessment is made;]
(c) “Chairman” means the Chairman of the Settlement Commission;
(d) “Member” means a Member of the Settlement Commission, and includes the Chairman and a
Vice-Chairman;
(e) “Settlement Commission” means the Income-tax Settlement Commission constituted under
section 245B of the Income-tax Act;
(f) “Vice-Chairman” means a Vice-Chairman of the Settlement Commission 6
[and includes a
Member who is senior amongst the Members of a Bench];
(g) “wealth-tax authority” means an income-tax authority specified in section 116 of the Incometax Act who is treated as a wealth-tax authority under section 8.]
22B. Wealth-tax Settlement Commission.—(1) The Central Government shall constitute a
Commission to be called the Wealth-tax Settlement Commission 7
*** for the settlement of cases under
this Chapter.
(2) The Settlement Commission shall consist of a Chairman 8
[and as many Vice-Chairmen and other
members as the Central Government thinks fit] and shall function within the Department of the Central
Government dealing with direct taxes.
1. The proviso omitted by Act 25 of 2014, s. 77 (w.e.f. 1-10-2014). Earlier it was amended by Act 14 of 2010, s. 53
(w.e.f. 1-6-2010).
2. Subs. by s. 77, ibid., for “clause (i) of the proviso shall, in case where a notice under section 17” (w.e.f. 1-10-2014).
3. Subs. by s. 77, ibid., for clause (ii) (w.e.f. 1-10-2014).
4. Subs. by Act 14 of 2010, s. 53, for clasue (iii) (w.e.f. 1-6-2010).
5. Subs. by Act 25 of 2014, s. 77, for “clause (i) or clause (ii) of the proviso or clause (iii) of the Explanation”
(w.e.f. 1-10-2014). Ealier it was amended by Act 14 of 2010, s. 53 (w.e.f. 1-6-2010).
6. Ins. by Act 22 of 2007, s. 84 (w.e.f. 1-6-2007).
7. The brackets and words “(hereafter in this Chapter referred to as “the Settlement Commission”)” omitted by Act 11 of 1987, s.
78 (w.e.f. 1-6-1987).
8. Subs. by Act 46 of 1986, s. 35, for “and two other members” (w.e.f. 10-9-1986).
50
1
* * * * *
(3) The Chairman 2
[, Vice-Chairman] and other members of the Settlement Commission shall be
appointed by the Central Government from amongst persons of integrity and outstanding ability, having
special knowledge of, and experience in, problems relating to direct taxes and business accounts:
Provided that, where a member of the Board is appointed as the Chairman 2
[, Vice-Chairman] or as a
member of the Settlement Commission, he shall cease to be a member of the Board.
3
* * * * *
4
[22BA. Jurisdiction and powers of Settlement Commission.—(1) Subject to the other provisions
of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by
Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or
a Vice-Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the
other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the
Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the
Vice-Chairman or, as the case may be, other Member of another Bench.
(5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any
rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person
be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to
absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of
the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two
persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining
two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench:
Provided that if at any stage of the hearing of any case or matter, it appears to the Presiding Officer
that the case or matter is of such a nature that it ought to be heard by a Bench consisting of three
Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for
transfer to such Bench as the Chairman may deem fit.
5
[(5A) Notwithstanding anything contained in the foregoing provisions of this section, the Chairman
may, for the disposal of any particular case, constitute a Special Bench consisting of more than three
Members.]
(6) Subject to the other provisions of this Chapter, the places at which the principal Bench and the
additional Benches shall ordinarily sit, shall be such as the Central Government may, by notification in
the Official Gazette, specify 5
[and the Special Bench shall sit at a place to be fixed by the Chairman].
1. Sub-section (2A) omitted by Act 46 of 1986, s. 35 (w.e.f. 10-9-1986). Earlier sub-section (2A) was inserted by Act 14 of 1982,
s. 36 (w.e.f. 1-4-1982).
2. Ins. by s. 35, ibid. (w.e.f. 10-9-1986).
3. The second proviso omitted by s. 35, ibid. (w.e.f. 10-9-1986).
4. Ins. by Act 11 of 1987, s. 79 (w.e.f. 1-6-1987).
5. Ins. by Act 49 of 1991, s. 77 (w.e.f. 1-10-1991).
51
22BB. Vice-Chairman to act as Chairman or to discharge his functions in certain
circumstances.—(1) In the event of the occurrence of any vacancy in the office of the Chairman by
reason of his death, resignation or otherwise, the Vice- Chairman or, as the case may be, such one of the
Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this
behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with
the provisions of this Chapter to fill such vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other
cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central
Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the
functions of the Chairman until the date on which the Chairman resumes his duties.
22BC. Power of Chairman to transfer cases from one Bench to another.—On the application of
the assessee or the 1
[Chief Commissioner or Commissioner] and after notice to them, and after hearing
such of them as may desire to be heard, or on his own motion without such notice, the Chairman may
transfer any case pending before one Bench, for disposal, to another Bench.
22BD. Decision to be by majority.—If the Members of a Bench differ in opinion on any point, the
point shall be decided according to the opinion of the majority, if there is a majority, but if the Members
are equally divided, they shall state the point or points on which they differ, and make a reference to the
Chairman who shall either hear the point or points himself or refer the case for hearing on such point or
points by one or more of the other Members of the Settlement Commission and such point or points shall
be decided according to the opinion of the majority of the Members of the Settlement Commission who
have heard the case, including those who first heard it.]
22C. Application for settlement of cases.—2
[(1) An assessee may, at any stage of a case relating to
him, make an application in such form and in such manner as may be prescribed, and containing a full
and true disclosure of his wealth which has not been disclosed before the 3
[Assessing Officer], the manner
in which such wealth has been derived, the additional amount of wealth-tax payable on such wealth and
such other particulars as may be prescribed, to the Settlement Commission to have the case settled and
any such application shall be disposed of in the manner hereinafter provided :
4
[Provided that no such application shall be made unless such wealth-tax and the interest thereon,
which would have been paid under the provisions of this Act had the wealth declared in the application
been declared in the return of wealth before the Assessing Officer on the date of application, has been
paid on or before the date of making the application and the proof of such payment is attached with the
application.]
(1A) For the purposes of sub-section (1) of this section 5
*** the additional amount of wealth-tax
payable in respect of the wealth disclosed in an application made under sub-section (1) of this section
shall be the amount calculated in accordance with the provisions of sub-sections (1B) to (1D).
6
[
7
[(1B) Where the wealth disclosed in the application relates to only one previous year,—
(i) if the applicant has not furnished a return in respect of the net wealth of that year, then,
wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net
wealth;
1. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988).
2. Subs. by Act 67 of 1984, s. 60, for sub-section (1) (w.e.f. 1-10-1984).
3. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
4. Subs. by Act 22 of 2007, s. 85, for the proviso (w.e.f. 1-6-2007). Earlier it was inserted by Act 11 of 1987, s. 80
(w.e.f. 1-6-1987).
5. The words, brackets, figures and letters “and sub-sections (2A) to (2D) of section 22D” omitted by s. 85, ibid. (w.e.f. 1-6-
2007).
6. Subs. by Act 11 of 1987, s. 80, for sub-sections (1B) and (1C) (w.e.f. 1-6-1987).
7. Subs. by Act 22 of 2007, s. 85, for sub-section (1B) (w.e.f. 1-6-2007).
52
(ii) if the applicant has furnished a return in respect of the net wealth of that year, wealth-tax shall
be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application
as if such aggregate were the net wealth.]
(1C) The additional amount of wealth-tax payable in respect of the wealth disclosed in the application
relating to the previous year referred to in sub-section (1B) shall be,—
(a) in a case referred to in clause (i) of that sub-section, the amount of wealth-tax calculated under
that clause;
(b) in a case referred to in clause (ii) of that sub-section, the amount of wealth-tax calculated
under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for
that year;
1
* * * * *]
(1D) Where the wealth disclosed in the application relates to more than one assessment year, the
additional amount of wealth-tax payable in respect of the wealth disclosed for each of the years shall first
be calculated in accordance with the provisions of sub-sections (1B) and (1C) and the aggregate of the
amount so arrived at in respect of each of the years for which the application has been made under
sub-section (1) shall be the additional amount of wealth-tax payable in respect of the wealth disclosed in
the application.
(1E) Where any books of account or other documents belonging to an assessee are seized under
section 37A, the assessee shall not be entitled to make an application under sub-section (1) before the
expiry of one hundred and twenty days from the date of the seizure.]
(2) Every application made under sub-section (1) shall be accompanied by such fees as may be
prescribed.
(3) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant.
2
[(4) An assessee shall, on the date on which he makes an application under sub-section (1) to the
Settlement Commission, also intimate the Assessing Officer in the prescribed manner of having made
such application to the said Commission.]
22D. Procedure on receipt of an application under section 22C.— 3
[(1) On receipt of an
application under section 22C, the Settlement Commission shall, within seven days from the date of
receipt of the application, issue a notice to the applicant requiring him to explain as to why the application
made by him be allowed to be proceeded with, 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.]
4
* * * * *
1. Clause (c) omitted by Act 22 of 2007, s. 85 (w.e.f. 1-6-2007).
2. Ins. by s. 85, ibid. (w.e.f.1-6-2007).
3. Subs. by s. 86, ibid., for sub-section (1) (w.e.f. 1-6-2007). Earlier it was amended by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991)
and Act 20 of 2002, s. 112 (w.e.f. 1-6-2002).
4. Sub-section (1A) omitted by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991). Earlier it was inserted by Act 21 of 1979, s. 24
(w.e.f. 1-4-1979).
53
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the
Commissioner.
1
[(2A) Where an application was made under section 22C before the 1st day of June, 2007 but an
order under the provisions of sub-section (1) of this section, as they stood immediately before their
amendment by the Finance Act, 2007 (22 of 2007), has not been made before the 1st day of June, 2007,
such application shall be deemed to have been allowed to be proceeded with if the additional wealth-tax
on the wealth disclosed in such application and the interest thereon is paid on or before the 31st day of
July, 2007.
Explanation.—In respect of the applications referred to in this sub-section, the 31st day of July, 2007
shall be deemed to be the date of the order of rejection or allowing the application to be proceeded with
under sub-section (1).
(2B) The Settlement Commission shall,—
(i) in respect of an application which is allowed to be proceeded with under sub-section (1),
within thirty days from the date on which the application was made; or
(ii) in respect of an application referred to in sub-section (2A) which is deemed to have been
allowed to be proceeded with under that sub-section, on or before the 7th day of August, 2007,
call for a report from the Commissioner, and the Commissioner shall furnish the report within a period of
thirty days of the receipt of communication from the Settlement Commission.
(2C) Where a report of the Commissioner called for under sub-section (2B) has been furnished within
the period specified therein, the Settlement Commission may, on the basis of the material contained in
such 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
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 Commissioner has not furnished the report within the aforesaid
period, the Settlement Commission shall proceed further in the matter without the report of the
Commissioner.
(2D) Where an application was made under sub-section (1) of section 22C before the 1st day of June,
2007 and an order under the provisions of sub-section (1) of this section, as they stood immediately
before their amendment by the Finance Act, 2007 (22 of 2007), allowing the application to have been
proceeded with, has been passed before the 1st day of June, 2007, but an order under the provisions of
sub-section (4), as they stood immediately before their amendment by the Finance Act, 2007, was not
passed before the 1st day of June, 2007, such application shall not be allowed to be further proceeded
with unless the additional wealth-tax on the wealth disclosed in such application and the interest thereon,
is, notwithstanding any extension of time already granted by the Settlement Commission, paid on or
before the 31st day of July, 2007.]
2
[(3) The Settlement Commission, in respect of—
(i) an application which has not been declared invalid under sub-section (2C); or
1. Subs. by Act 22 of 2007, s. 86, for sub-sections (2A), (2B), (2C) and (2D) (w.e.f. 1-6-2007).
2. Subs. by s. 86, ibid., for sub-sections (3) (4) and (4A) (w.e.f. 1-6-2007). Earlier sub-section (4A) was inserted by Act 20 of
2002, s. 112 (w.e.f. 1-6-2002).
54
(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 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 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
Commissioner shall furnish the report within a period of ninety days of the receipt of communication
from the Settlement Commission:
Provided that where the Commissioner does not furnish his report within the aforesaid period, the
Settlement Commission may proceed to pass an order under sub-section (4) without such report.
(4) After examination of the records and the report of the Commissioner, if any, received under—
(i) sub-section (2B) or sub-section (3), or
(ii) the provisions of sub-section (1), as they stood immediately before their amendment by the
Finance Act, 2007 (22 of 2007),
and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or
through a representative duly authorised in this behalf, and after examining such further evidence as may
be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions
of this Act, pass such order, as it thinks fit, on the matters covered by the application and any other matter
relating to the case not covered by the application, but referred to in the report of the Commissioner.
(4A) The Settlement Commission shall pass an order under sub-section (4),—
(i) in respect of an application referred to in sub-section (2A) or sub-section (2D), on or before the
31st day of March, 2008;
(ii) in respect of an application made on or after the 1st day of June, 2007 1
[but before the 1st day
of June, 2010], within twelve months from the end of the month in which the application was made;
2
[(iii) in respect of an application made on or after the 1st day of June, 2010, within eighteen
months from the end of the month in which the application was made.]]
3
[(5) Subject to the provisions of section 22BA, the materials brought on record before the Settlement
Commission shall be considered by the Members of the concerned Bench before passing any order under
sub-section (4) and, in relation to the passing of such order, the provisions of section 22BD shall apply.]
(6) Every order passed under sub-section (4) shall provide for the terms of settlement including any
demand by way of 4
[tax, penalty or interest], the manner in which any sum due under the settlement shall
be paid and all other matters to make the settlement effective and shall also provide that the settlement
shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud
or misrepresentation of facts.
1. Ins. by Act 14 of 2010, s. 54 (w.e.f. 1-4-2010).
2. Ins. by s. 54, ibid. (w.e.f. 1-6-2010).
3. Ins. by Act 11 of 1987, s. 81 (w.e.f. 1-6-1987). Earlier it was amended by Act 14 of 1982, s. 37 (w.e.f. 1-4-1982) which was
later omitted by Act 46 of 1986, s. 36 (w.e.f. 10-9-1986).
4. Subs. by s. 81, ibid., for “tax or penalty” (w.e.f. 1-6-1987). Earlier the quoted words were substituted for “tax, penalty or
interest” by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).
55
1
[(6A) Where any tax payable in pursuance of an order under sub-section (4) is not paid by the
assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the
Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by
instalments, the assessee shall be liable to pay simple interest at 2
[one and one-fourth per cent. for every
month or part of a month] on the amount remaining unpaid from the date of expiry of the period of thirtyfive days aforesaid.]
3
[(6B) The Settlement Commission may, at any time within a period of six months from the date of
the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it
under sub-section (4):
Provided that an amendment which has the effect of modifying the liability of the applicant shall not
be made under this sub-section unless the Settlement Commission has given notice to the applicant and
the Commissioner of its intention to do so and has allowed the applicant and the Commissioner an
opportunity of being heard.]
(7) Where a settlement becomes void as provided in sub-section (6), the proceedings with respect to
the matters covered by the settlement shall be deemed to have been revived from the stage at which the
application was allowed to be proceeded with by the Settlement Commission and the wealth-tax authority
concerned may, notwithstanding anything contained in any other provision of this Act, complete such
proceedings at any time before the expiry of two years from the end of the financial year in which the
settlement became void.
1
[(8) For the removal of doubts, it is hereby declared that nothing contained in section 17A shall
apply to any order passed under sub-section (4) or to any order of assessment or reassessment required to
be made by the 4
[Assessing Officer] in pursuance of any directions contained in such order passed by the
Settlement Commission.]
5
[22DD. Power of Settlement Commission to order provisional attachment to protect
revenue.—(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of
the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may,
by order, attach provisionally any property belonging to the applicant in the manner provided in the
Second Schedule to the Income-tax Act as made applicable to this Act by section 32:
Provided that where a provisional attachment made under section 34C is pending immediately before
an application is made under section 22C, an order under this sub-section shall continue such provisional
attachment up to the period up to which an order made under section 34C would have continued if such
application had not been made:
Provided further that where the Settlement Commission passes an order under this sub-section after
the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply
to such order as if the said order had originally been passed by the Settlement Commission.
(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall
cease to have effect after the expiry of a period of six months from the date of the order made under subsection (1):
Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the
aforesaid period by such further period or periods as it thinks fit 6
***.]
1. Ins. by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).
2. Subs. by Act 22 of 2007, s. 86, for “fifteen per cent. per annum” (w.e.f. 1-4-2008).
3. Ins. by Act 8 of 2011, s. 35 (w.e.f. 1-6-2011).
4. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988).
5. Ins. by Act 26 of 1988, s. 56 (w.e.f. 1-4-1988).
6. The words “, so, however, that the total period of extension shall not in any case exceed two years” omitted by Act 22 of 2007,
s. 87 (w.e.f. 1-6-2007).
56
22E. Power of Settlement Commission to reopen completed proceedings.—If the Settlement
Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the
proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding
connected with the case, but which has been completed under this Act by any wealth-tax authority before
the application under section 22C was made, it may, with the concurrence of the applicant, reopen such
proceeding and pass such order thereon as it thinks fit as if the case in relation to which the application
for settlement had been made by the applicant under that section covered such proceeding also:
1
[Provided that no proceeding shall be reopened by the Settlement Commission under this section if
the period between the end of the assessment year to which such a proceeding relates and the date of
application for settlement under section 22C exceeds nine years:]
2
[Provided further that no proceeding shall be reopened by the Settlement Commission under this
section in a case where an application under section 22C is made on or after the 1st day of June, 2007.]
22F. Powers and procedure of Settlement Commission.—(1) In addition to the powers conferred
on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a
wealth-tax authority under this Act.
(2) Where an application made under section 22C has been allowed to be proceeded with under
section 22D, the Settlement Commission shall, until an order is passed under sub-section (4) of section
22D, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise
the powers and perform the functions of a wealth-tax authority under this Act in relation to the case:
3
[Provided that where an application has been made under section 22C on or after the 1st day of June,
2007, the Settlement Commission shall have such exclusive jurisdiction from the date on which the
application was made:
Provided further that where—
(i) an application made on or after the 1st day of June, 2007, is rejected under sub-section (1) of
section 22D; or
(ii) an application is not allowed to be proceeded with under sub-section (2A) of section 22D, or,
as the case may be, is declared invalid under sub-section (2C) of that section; or
(iii) an application is not allowed to be further proceeded with under sub-section (2D) of section
22D,
the Settlement Commission, in respect of such application shall have such exclusive jurisdiction up to the
date on which the application is rejected, or, not allowed to be proceeded with, or, declared invalid, or,
not allowed to be further proceeded with, as the case may be.]
(3) Notwithstanding anything contained in sub-section (2) and in the absence of any express direction
to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation
of any other provisions of this Act requiring the applicant to pay tax on the basis of self-assessment in
relation to the matters before the Settlement Commission.
(4) For the removal of doubt, it is hereby declared that, in the absence of any express direction by the
Settlement Commission to the contrary, nothing in this Chapter shall affect the operation of the provisions
of this Act in so far as they relate to any matters other than those before the Settlement Commission.
4
[
5
* * * * *
1. Subs. by Act 11 of 1987, s. 82, for the proviso (w.e.f. 1-6-1987).
2. Ins. by Act 22 of 2007, s. 88 (w.e.f. 1-6-2007).
3. Ins. by s. 89, ibid. (w.e.f. 1-6-2007).
4. Subs. by Act 46 of 1986, s. 37, for sub-section (5) (w.e.f. 10-9-1986).
5. Sub-sections (5) and (6) omitted by Act 11 of 1987, s. 83 (w.e.f. 1-6-1987).
57
(7) The Settlement Commission shall, subject to the provisions of this Chapter, have power to
regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise
of its powers or of the discharge of its functions, including the places at which the Benches shall hold
their sittings.]
22G. Inspection, etc., of reports.—No person shall be entitled to inspect, or obtain copies of, any
reports made by any wealth-tax authority to the Settlement Commission; but the Settlement Commission
may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf
and on payment of the prescribed fee:
Provided that, for the purpose of enabling any person whose case is under consideration to rebut any
evidence brought on the record against him in any such report, the Settlement Commission shall, on an
application made in this behalf and on payment of the prescribed fee by such person, furnish him with a
certified copy of any such report or part thereof relevant for the purpose.
22H. Powers of Settlement Commission to grant immunity from prosecution.—(1) The
Settlement Commission may, if it is satisfied that any person who made the application for settlement
under section 22C has co-operated with the Settlement Commission in the proceedings before it and has
made a full and true disclosure of his net wealth and the manner in which such wealth has been acquired,
grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution
for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act
for the time being in force 1
[and also (either wholly or in part) from the imposition of any penalty] under
this Act, with respect to the case covered by the settlement:
2
[Provided that no such immunity shall be granted by the Settlement Commission in cases where the
proceedings for the prosecution for any such offence have been instituted before the date of receipt of the
application under section 22C:]
3
[Provided further that the Settlement Commission shall not grant immunity from prosecution for any
offence under the Indian Penal Code (45 of 1860) or under any Central Act other than this Act and
Income-tax Act, 1961 (43 of 1961) to a person who makes an application under section 22C on or after
the 1st day of June, 2007.]
2
[(1A) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person
fails to pay any sum specified in the order of settlement passed under sub-section (4) of section 22D
within the time specified in such order or within such further time as may be allowed by the Settlement
Commission, or fails to comply with any other condition subject to which the immunity was granted and
thereupon the provisions of this Act shall apply as if such immunity had not been granted.]
(2) An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the
Settlement Commission, if it is satisfied that such person 4
*** had, in the course of the settlement
proceedings, concealed any particular material to the settlement or had given false evidence, and
thereupon such person may be tried for the offence with respect to which the immunity was granted or for
any other offence of which he appears to have been guilty in connection with the settlement and shall also
become liable to the imposition of any penalty under this Act to which such person would have been
liable, had no such immunity been granted.
1. Subs. by Act 67 of 1984, s. 63, for “and also from the imposition of any penalty” (w.e.f. 1-10-1984).
2. Ins. by Act 11 of 1987, s. 84 (w.e.f. 1-6-1987).
3. Ins. by Act 22 of 2007, s. 90 (w.e.f. 1-6-2007).
4. The words “has not complied with the conditions subject to which the immunity was granted or that such person” omitted by
Act 11 of 1987, s. 84 (w.e.f. 1-6-1987).
58
1
[22HA. Abatement of proceedings before Settlement Commission.—(1) Where,—
(i) an application made under section 22C on or after the 1st day of June, 2007 has been rejected
under sub-section (1) of section 22D; or
(ii) an application made under section 22C has not been allowed to be proceeded with under subsection (2A) or further proceeded with under sub-section (2D) of section 22D; or
(iii) an application made under section 22C has been declared as invalid under sub-section (2C)
of section 22D; or
(iv) in respect of any other application made under section 22C, an order under sub-section (4) of
section 22D has not been passed within the time or period specified under sub-section (4A) of section
22D,
the proceedings before the Settlement Commission shall abate on the specified date.
Explanation.—For the purposes of this sub-section, “specified date” means—
(a) in respect of an application referred to in clause (i), the date on which the application was
rejected;
(b) in respect of an application referred to in clause (ii), the 31st day of July, 2007;
(c) in respect of an application referred to in clause (iii), the last day of the month in which the
application was declared invalid;
(d) in respect of an application referred to in clause (iv), the date on which the time or period
specified in sub-section (4A) of section 22D expires.
(2) Where a proceeding before the Settlement Commission abates, the Assessing Officer, or, as the
case may be, any other wealth-tax authority before whom the proceeding at the time of making the
application was pending, shall dispose of the case in accordance with the provisions of this Act as if no
application under section 22C had been made.
(3) For the purposes of sub-section (2), the Assessing Officer, or, as the case may be, other wealth-tax
authority, shall be entitled to use all the material and other information produced by the assessee before
the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement
Commission in the course of the proceedings before it, as if such material, information, inquiry and
evidence had been produced before the Assessing Officer or other wealth-tax authority or held or
recorded by him in the course of the proceedings before him.
(4) For the purposes of the time-limit under sections 17A, 32 and 35 and for the purposes of payment
of interest under section 34A, in case referred to in sub-section (2), the period commencing on and from
the date of an application to the Settlement Commission under section 22C and ending with “specified
date” referred to in sub-section (1) shall be excluded.
22HAA. Credit for tax paid in case of abatement of proceedings.—Where an application made
under section 22C on or after the 1st day of June, 2007, is rejected under sub-section (1) of section 22D,
or any other application made under section 22C is not allowed to be proceeded with under sub-section
(2A) of section 22D or is declared invalid under sub-section (2C) of section 22D or has not been allowed
to be further proceeded with under sub-section (2D) of section 22D or an order under sub-section (4) of
section 22D has not been passed within the time or period specified under sub-section (4A) of section
22D, the Assessing Officer shall allow the credit for the tax and interest paid on or before the date of
making the application or during the pendency of the case before the Settlement Commission.]
1. Ins. by Act 22 of 2007, s. 91 (w.e.f. 1-6-2007). Earlier section 22HA was inserted by Act 11 of 1987, s. 85 (w.e.f. 1-6-1987)
and amended by Act 4 of 1988, s. 127 (w.e.f. 1-4-1988) which was later omitted by Act 20 of 2002, s. 113 (w.e.f. 1-6-2002).
59
22-I. Order of settlement to be conclusive.—Every order of settlement passed under sub-section (4)
of section 22D shall be conclusive as to the matters stated therein and no matter covered by such order
shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under
any other law for the time being in force.
22J. Recovery of sums due under order of settlement.—Any sum specified in an order of
settlement passed under sub-section (4) of section 22D may, subject to such conditions, if any, as may be
specified therein, be recovered, and any penalty for default in making payment of such sum may be
imposed and recovered in accordance with the provisions of section 32 by the 1
[Assessing Officer] having
jurisdiction over the person who made the application for settlement under section 22C.
2
[22K. Bar on subsequent application for settlement.—(1) Where,—
(i) an order of settlement passed under sub-section (4) of section 22D provides for the imposition
of a penalty on the person who made the application under section 22C for settlement, on the ground
of concealment of particulars of his net wealth; or
(ii) after the passing of an order of settlement under the said sub-section (4) in relation to a case,
such person is convicted of any offence under Chapter VIII in relation to that case; or
(iii) the case of any such person was sent back to the Assessing Officer by the Settlement
Commission on or before the 1st day of June, 2002,
then, he shall not be entitled to apply for settlement under section 22C in relation to any other matter.
(2) Where a person has made an application under section 22C on or after the 1st day of June, 2007
and if such application has been allowed to be proceeded with under sub-section (1) of section 22D, such
person shall not be subsequently entitled to make an application under section 22C.]
22L. Proceedings before the Settlement Commission to be judicial proceedings.—Any
proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian
Penal Code (45 of 1860).
22M. [Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications
to the Settlement Commission.]—Omitted by the Finance Act, 1987, s. 87 (w.e.f. 1-6-1987). Earlier it was
inserted by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976) which was later amended by Act 67 of 1984, s. 64
(w.e.f. 1-10-1984).