Amended and updated notes on section 245B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Income-tax Settlement Commission.
Chapter XIXA (Sections 245A to 245L) of the Income Tax Act 1961 deals with the provisions related to settlement of cases. Section 245B of IT Act 1961 provides for Income-tax Settlement Commission.
Recently, we have discussed in detail section 245A (Definitions) of IT Act 1961. Today, we learn the provisions of section 245B of Income-tax Act 1961-2021. The amended provision of section 245B is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 245B of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-245B: Income-tax Settlement Commission
Section 245B(1) of Income Tax Act
The Central Government shall constitute a Commission to be called the Income-tax Settlement Commission for the settlement of cases under this Chapter.
Provided that the Income-tax Settlement Commission so constituted shall cease to operate on or after the 1st day of February, 2021.
[Proviso of sub-section(1) in section 245B inserted w.e.f. 1-February-2021 by the Finance Act 2021]
Section 245B(2) of Income Tax Act
The Settlement Commission shall consist of a Chairman 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.
Section 245B(3) of Income Tax Act
The Chairman, 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 , Vice-Chairman or as a member of the Settlement Commission, he shall cease to be a member of the Board.