12[Abatement of
proceeding before Settlement Commission.
245HA. (1) Where—
(i) an application made
under section 245C on or after the 1st day of
June, 2007 has been rejected under sub-section (1) of section
245D; or
(ii) an application
made under section 245C has not been allowed to
be proceeded with under sub-section (2A) or further proceeded with under
sub-section (2D) of section 245D; or
(iii) an application
made under section 245C has been declared as
invalid under sub-section (2C) of section 245D;
or
(iv) in respect of any
other application made under section 245C, an
order under sub-section (4) of section 245D has
not been passed within the time or period specified under sub-section (4A) of section 245D,
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 day 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),
on the date on which the time or period specified in sub-section (4A) of section 245D expires.
(2) Where a proceeding before the
Settlement Commission abates, the Assessing Officer, or, as the case may be,
any other income-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
245C had been made.
(3) For the purposes of
sub-section (2), the Assessing Officer, or, as the case may be, other
income-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
income-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 149, 153, 153B, 154, 155, 158BE and 231 and for
the purposes of payment of interest under section 243
or 244 or, as the case may be, section 244A, for making the assessment or
reassessment under sub-section (2), the period commencing on and from the date
of the application to the Settlement Commission under section
245C and ending with “specified date” referred to in sub-section (1) shall
be excluded; and where the assessee is a firm, for the purposes of the
time-limit for cancellation of registration of the firm under sub-section (1)
of section 186, the period aforesaid shall, likewise, be excluded.]