Section 22D:
Procedure on receipt of an application under section 22C.
1[22D. Procedure on receipt of an application under section 22C.--2[(1) On receipt of an
application under section 22C, the Settlement Commission shall, within seven days from the date of
receipt of the application, issue a notice to the applicant requiring him to explain as to why the application
made by him be allowed to be proceeded with, and on hearing the applicant, the Settlement Commission
shall, within a period of fourteen days from the date of the application, by an order in writing, reject the
application or allow the application to be proceeded with:
Provided that where no order has been passed within the aforesaid period by the Settlement
Commission, the application shall be deemed to have been allowed to be proceeded with.]
3* * * * *
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the
Commissioner.
4[(2A) Where an application was made under section 22C before the 1st day of June, 2007 but an
order under the provisions of sub-section (1) of this section, as they stood immediately before their
amendment by the Finance Act, 2007 (22 of 2007), has not been made before the 1st day of June, 2007,
such application shall be deemed to have been allowed to be proceeded with if the additional wealth-tax
on the wealth disclosed in such application and the interest thereon is paid on or before the 31st day of
July, 2007.
Explanation.--In respect of the applications referred to in this sub-section, the 31st day of July, 2007
shall be deemed to be the date of the order of rejection or allowing the application to be proceeded with
under sub-section (1).
(2B) The Settlement Commission shall,--
(i) in respect of an application which is allowed to be proceeded with under sub-section (1),
within thirty days from the date on which the application was made; or
(ii) in respect of an application referred to in sub-section (2A) which is deemed to have been
allowed to be proceeded with under that sub-section, on or before the 7th day of August, 2007,call for a report from the Commissioner, and the Commissioner shall furnish the report within a period of
thirty days of the receipt of communication from the Settlement Commission.
(2C) Where a report of the Commissioner called for under sub-section (2B) has been furnished within
the period specified therein, the Settlement Commission may, on the basis of the material contained in
such report and within a period of fifteen days of the receipt of the report, by an order in writing, declare
the application in question as invalid, and shall send the copy of such order to the applicant and the
Commissioner:
Provided that an application shall not be declared invalid unless an opportunity has been given to the
applicant of being heard:
Provided further that where the Commissioner has not furnished the report within the aforesaid
period, the Settlement Commission shall proceed further in the matter without the report of the
Commissioner.
(2D) Where an application was made under sub-section (1) of section 22C before the 1st day of June,
2007 and an order under the provisions of sub-section (1) of this section, as they stood immediately
before their amendment by the Finance Act, 2007 (22 of 2007), allowing the application to have been
proceeded with, has been passed before the 1st day of June, 2007, but an order under the provisions of
sub-section (4), as they stood immediately before their amendment by the Finance Act, 2007, was not
passed before the 1st day of June, 2007, such application shall not be allowed to be further proceeded
with unless the additional wealth-tax on the wealth disclosed in such application and the interest thereon,
is, notwithstanding any extension of time already granted by the Settlement Commission, paid on or
before the 31st day of July, 2007.]
5[(3) The Settlement Commission, in respect of--
(i) an application which has not been declared invalid under sub-section (2C); or
(ii) an application referred to in sub-section (2D) which has been allowed to be further proceeded
with under that sub-section,may call for the records from the Commissioner and after examination of such records, if the Settlement
Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may
direct the Commissioner to make or cause to be made such further enquiry or investigation and furnish a
report on the matters covered by the application and any other matter relating to the case, and the
Commissioner shall furnish the report within a period of ninety days of the receipt of communication
from the Settlement Commission:
Provided that where the Commissioner does not furnish his report within the aforesaid period, the
Settlement Commission may proceed to pass an order under sub-section (4) without such report.
(4) After examination of the records and the report of the Commissioner, if any, received under--
(i) sub-section (2B) or sub-section (3), or
(ii) the provisions of sub-section (1), as they stood immediately before their amendment by the
Finance Act, 2007 (22 of 2007),and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or
through a representative duly authorised in this behalf, and after examining such further evidence as may
be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions
of this Act, pass such order, as it thinks fit, on the matters covered by the application and any other matter
relating to the case not covered by the application, but referred to in the report of the Commissioner.
(4A) The Settlement Commission shall pass an order under sub-section (4),--
(i) in respect of an application referred to in sub-section (2A) or sub-section (2D), on or before the
31st day of March, 2008;
(ii) in respect of an application made on or after the 1st day of June, 2007 6[but before the 1st day
of June, 2010], within twelve months from the end of the month in which the application was made;
7[(iii) in respect of an application made on or after the 1st day of June, 2010, within eighteen
months from the end of the month in which the application was made.]]
8[(5) Subject to the provisions of section 22BA, the materials brought on record before the Settlement
Commission shall be considered by the Members of the concerned Bench before passing any order under
sub-section (4) and, in relation to the passing of such order, the provisions of section 22BD shall apply.]
(6) Every order passed under sub-section (4) shall provide for the terms of settlement including any
demand by way of 9[tax, penalty or interest], the manner in which any sum due under the settlement shall
be paid and all other matters to make the settlement effective and shall also provide that the settlement
shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud
or misrepresentation of facts.
10[(6A) Where any tax payable in pursuance of an order under sub-section (4) is not paid by the
assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the
Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by
instalments, the assessee shall be liable to pay simple interest at 11[one and one-fourth per cent. for every
month] or part of a month on the amount remaining unpaid from the date of expiry of the period of thirtyfive days aforesaid.]
12[(6B) The Settlement Commission may, at any time within a period of six months from the date of
the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it
under sub-section (4):
Provided that an amendment which has the effect of modifying the liability of the applicant shall not
be made under this sub-section unless the Settlement Commission has given notice to the applicant and
the Commissioner of its intention to do so and has allowed the applicant and the Commissioner an
opportunity of being heard.]
(7) Where a settlement becomes void as provided in sub-section (6), the proceedings with respect to
the matters covered by the settlement shall be deemed to have been revived from the stage at which the
application was allowed to be proceeded with by the Settlement Commission and the wealth-tax authority
concerned may, notwithstanding anything contained in any other provision of this Act, complete such
proceedings at any time before the expiry of two years from the end of the financial year in which the
settlement became void.
9[(8) For the removal of doubts, it is hereby declared that nothing contained in section 17A shall
apply to any order passed under sub-section (4) or to any order of assessment or reassessment required to
be made by the 13[Assessing Officer] in pursuance of any directions contained in such order passed by the
Settlement Commission.]]
Notes:
1. Ins. by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976).
2. Subs. by s. 86, ibid., for sub-section (1) (w.e.f. 1-6-2007). Earlier it was amended by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991)
and Act 20 of 2002, s. 112 (w.e.f. 1-6-2002).
3. Sub-section (1A) omitted by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991). Earlier it was inserted by Act 21 of 1979, s. 24
(w.e.f. 1-4-1979).
4. Subs. by Act 22 of 2007, s. 86, for sub-sections (2A), (2B), (2C) and (2D) (w.e.f. 1-6-2007).
5. Subs. by s. 86, ibid., for sub-sections (3) (4) and (4A) (w.e.f. 1-6-2007). Earlier sub-section (4A) was inserted by Act 20 of
2002, s. 112 (w.e.f. 1-6-2002).
6. Ins. by Act 14 of 2010, s. 54 (w.e.f. 1-4-2010).
7. Ins. by s. 54, ibid. (w.e.f. 1-6-2010).
8. Ins. by Act 11 of 1987, s. 81 (w.e.f. 1-6-1987). Earlier it was amended by Act 14 of 1982, s. 37 (w.e.f. 1-4-1982) which was
later omitted by Act 46 of 1986, s. 36 (w.e.f. 10-9-1986).
9. Subs. by s. 81, ibid., for "tax or penalty" (w.e.f. 1-6-1987). Earlier the quoted words were substituted for tax, penalty or
interest by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).
10. Ins. by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).
11. Subs. by Act 22 of 2007, s. 86, for "fifteen per cent. per annum" (w.e.f. 1-4-2008).
12. Ins. by Act 8 of 2011, s. 35 (w.e.f. 1-6-2011).
13. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988).