Settlement Applications Under Section 245D(2C): Standardized Procedures for CIT Reports and Commission Decisions

The circular outlines standardized procedures for handling settlement applications under Section 245D(2C) of the Income Tax Act. After admission of an application, the Settlement Commission requests a report from the Commissioner of Income Tax (CIT), who has 30 days to respond. The Commission must then decide within 15 days whether to declare the application invalid. The circular establishes uniform guidelines for five possible scenarios based on whether the CIT submits a timely report and objects to the application. These scenarios determine whether the Commission should hold a hearing or proceed directly to request a Rule 9 report.