Quick Summary
Income Tax Settlement Commission allows taxpayers to settle disputes by paying disputed tax with interest and penalty, avoiding prolonged litigation.
Income Tax Settlement Commission is a quasi-judicial body that facilitates settlement of tax disputes between taxpayers and the Income Tax Department.
When Can One Approach
- Cases pending before assessing officer
- Cases pending appeal
- Cases where search/survey conducted
- Cases where assessment completed
Procedure
- File application in prescribed form
- Disclose additional income if any
- Pay tax, interest, and penalty
- Commission examines application
- Opportunity of hearing
- Settlement order passed
Benefits
- Immunity from prosecution
- Immunity from penalty (under certain sections)
- Finality of settlement
- Avoids prolonged litigation
Limitations
Cannot approach if: Prosecution initiated, cases involving serious fraud, cases already decided by ITAT/High Court/Supreme Court.
Key Points
- Settles tax disputes amicably
- Immunity from prosecution
- Finality once settled
- Payment of tax + interest + penalty required
- Cannot approach if prosecution initiated
- Quicker resolution than courts