Section 245E of Income Tax Act for AY 2023-24

Section 245E of Income Tax Act 1961 amended by the Finance Act 2022. Power of Settlement Commission to reopen completed proceedings.

Amended and updated notes on section 245E 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 Power of Settlement Commission to reopen completed proceedings.

Chapter XIXA (Sections 245A to 245L) of the Income Tax Act 1961 deals with the provisions related to settlement of cases. Section 245E of IT Act 1961 provides for Power of Settlement Commission to reopen completed proceedings.

Recently, we have discussed in detail section 245DD (Power of Settlement Commission to order provisional attachment to protect revenue) of IT Act 1961. Today, we learn the provisions of section 245E of Income-tax Act 1961. The amended provision of section 245E 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 245E 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-245E: 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 income-tax authority before the application under section 245C 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 :

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 245C exceeds nine years :

Provided further that no proceeding shall be reopened by the Settlement Commission under this section in a case where an application under section 245C is made on or after the 1st day of June, 2007.


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