SETTLEMENT COMMISSSION (IT/WT)

The Settlement Commission (IT/WT) was constituted in 1976 under section 245 B of Income-Tax Act, 1961 (Chapter XIX-A) and section 22B of the Wealth Tax Act, 1957. The Commission has its Principal Bench at New Delhi and three Additional Benches at Chennai, Kolkata and Mumbai. In December, 2011, two new Additional Benches at New Delhi and one new Additional Bench of Income Tax Settlement Commission at Mumbai was setup.
1. The Settlement Commission consists of one Chairman and two Members in the Principal Bench atNew Delhi and one Vice Chairman and two Members in each of the Additional Benches.
2. The Settlement Commission is a statutory body and deals with the settlement applications filed by the assessees under the Income-Tax Act, 1961 and the Wealth-tax Act, 1957. An assessee can approach the Settlement Commission at any stage of the proceedings for assessment pending before an Assessing Officer, subject to certain prescribed conditions. Further, where the application relates to Income Tax, the additional tax payable on the income disclosed in the application must be more than Rs. 3.00 lakh.
3. The Commission has the power to grant immunity from prosecution from any offence under Income Tax Act, 1961 or the Wealth Tax Act, 1957 and also from imposition of penalty under the Income Tax Act or under the Indian Penal Code or any other Central Act and also from imposition of penalty under the Income Tax Act, 1961 and the Wealth Tax Act, 1957 in cases where the applicants make a full and true disclosure of their income or wealth and fulfills certain other prescribed conditions. The order passed by the Settlement Commission is conclusive as to the matters stated therein and no appeal lies to any authority against the order passed by the Settlement Commission.
4. An assesses may make an application to the Settlement Commission to have the case settled, in such form and in such manner as may be prescribed, on containing a full and true disclosure of his income/wealth which has not been disclosed before the Assessing Officer and the manner in which such income/ wealth has been derived. The additional tax and interest thereon has to be paid on or before the date of making the application and the proof of such payment is to be attached with the application.
5. A settlement application has to be presented in prescribed form by the applicant in person or by his agent, to the Secretary at the Headquarters of the Commission at New Delhi or at the Branch within whose jurisdiction his case falls or to any officer authorized in this behalf by the Secretary, or is to be sent by Registered Post addressed to the Secretary or to such authorized officer.