Settlement Commission u/s.245-D of the Income Tax Act 1961. - Income Tax - 1239/CBDT

INSTRUCTION NO. 1239/CBDT Date - March 3, 1979 Section(s) Referred: 245D(6) Statute: Income - Tax Act, 1961 The CBDT recently had an occasion to examine whether the Income-tax authorities were competent to extend the dates of payments specified by the Settlement Commission in its order for payment of the sums payable under its order. The two possible views in this matter were that- a) in view of the provisions of Sec.245-I which makes every order of settlement passed u/s.245D(4) conclusive as to the matter stated therein no income-tax authority had any power to vary the terms of payment laid down by the Settlement Commission in its order; and b) Section 245J by referring therein to the provisions of chapter XVII implies that wherever justified the ITO can allow further extension of time/grant instalments on such conditions as may be imposed by him and the finality provisions of sec.245-I would not apply in view of the provisions of section 245 J 2. The matter was examined in consultation with the Law Ministry. The board have been advised that where the Settlement Commission's order is specific about the instalments and about the payment of interest thereon, that order is final on the matters provided for therein. It would not therefore be permissible for the ITO to grant instalments not in accordance with the settlement commission's order.