Can anyone tell me what is settlement commission? what is the purpose behind of creating it ?
thanking you....
Heera Nahariya
(****)
(467 Points)
Replied 14 December 2009
Whenever proceedings under section 143(3) i.e. scrutiny and 147 i.e. income escaping assessment is taken up one can apply to settlement commission which is constituted under section 245 of income tax act. By applying to SC one can get rid of some rigorous penalties and prosecutions. It is imperative to mention that only two types of cases can be dealt by settlement commission. That means that SC doesnt interfere with appellate jurisdictional authorities of income tax dept as well as courts i.e. High Court and Supreme Court. The applicant to SC must have clear intention of true disclosure.
Jayendra Sahu
(Student)
(165 Points)
Replied 14 December 2009
The objective of setting up this Commission is to provide a body for settling across the board, tax liabilities in complicated cases with doubtful benefit to revenue avoiding endless and prolonged litigation and consequential strain on investigational resources of Income-tax Department.
Basically shortcuts are devised here to settle a case so that investigating costs do not exceed the consequent benefit derived(both for the assessee & IT deptt.).
ravi.
(article trainee)
(424 Points)
Replied 14 December 2009
thnk u frnds.
but if u can give some examples will be helpfu..
CAclubindia
