Definitions
Section 245A of the Income-tax Act, 1961 deals with definitions. In this Chapter, unless the context otherwise requires,— (a) "Bench" means a Bench of the Settlement Commission; The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
In this Chapter, unless the context otherwise requires,—
(a) "Bench" means a Bench of the Settlement Commission;
(b) "case" means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made. [***] Explanation.—For the purposes of this clause—
(i) a proceeding for assessment or reassessment or recomputation under section 147 shall be deemed to have commenced—
(a) from the date on which a notice under section 148 is issued for any assessment year;
(b) from the date of issuance of the notice referred to in sub-clause (a), for any other assessment year or assessment years for which a notice under section 148 has not been issued, but such notice could have been issued on such date, if the return of income for the other assessment year or assessment years has been furnished under section 139 or in response to a notice under section 142;
(ii) [***] (iii) a proceeding for making fresh assessment in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment shall be deemed to have commenced from the date on which such order, setting aside or cancelling an assessment was passed; (iiia) a proceeding for assessment or reassessment for any of the assessment years, referred to in clause (b) of sub-section (1) of section 153A in case of a person referred to in section 153A or section 153C, shall be deemed to have commenced on the date of issue of notice initiating such proceeding and concluded on the date on which the assessment is made;
(iv) a proceeding for assessment for any assessment year, other than the proceedings of assessment or reassessment referred to in clause (i) or clause (iii) or clause (iiia), shall be deemed to have commenced from the date on which the return of income for that assessment year is furnished under section 139 or in response to a notice served under section 142 and concluded on the date on which the assessment is made; or on the expiry of the time specified for making assessment under sub-section (1) of section 153, in case where no assessment is made;
(c) "Chairman" means the Chairman of the Settlement Commission;
(d) "income-tax authority" means an income-tax authority specified in section 116;
(da) "Interim Board" means the Interim Board for Settlement constituted under section 245AA;
(e) "Member" means a Member of the Settlement Commission, and includes the Chairman and a Vice-Chairman;
(ea) "Member of the Interim Board" means a Member of the Interim Board;
(eb) "pending application" means an application which was filed under section 245C and which fulfils the following conditions, namely: —
(i) it was not declared invalid under sub-section (2C) of section 245D; and (ii) no order under sub-section (4) of section 245D was issued on or before the 31st day of January, 2021 with respect to such application;
(f) "Settlement Commission" means the Income-tax Settlement Commission constituted under section 245B;
(g) "Vice-Chairman" means a Vice-Chairman of the Settlement Commission and includes a Member who is senior amongst the Members of a Bench.
Interim Boards for Settlement.
Section 245A, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
No provision of the Income-tax Act is textually close to this one. No counterpart in the new Act
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 116 Income-tax authorities
- s. 139 Return of income
- s. 142 Inquiry before assessment
- s. 147 Income escaping assessment
- s. 148 Issue of notice where income has escaped assessment
- s. 153 Time limit for completion of assessment, reassessment and recomputation
- s. 153A Assessment in case of search or requisition
- s. 153C Assessment of income of any other person
- s. 245AA Interim Boards for Settlement
- s. 245B Income-tax Settlement Commission
- s. 245C Application for settlement of cases
- s. 245D Procedure on receipt of an application under section 245C
- s. 254 Orders of Appellate Tribunal
- s. 263 Revision of orders prejudicial to revenue
- s. 264 Revision of other orders
Referred to by 8
- Finance Act s. 57 Substitution of new section for section 245A
- Finance Act s. 62 Amendment of section 245A
- Finance Act s. 45 Amendment of section 245A
- Finance Act s. 65 Amendment of section 245A
- Finance Act s. 58 Amendment of section 245A
- Finance Act s. 79 Amendment of section 245A
- Finance Act s. 62 Amendment of section 245A
- Finance Act s. 63 Insertion of new section 245AA
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Brij Lal vs Commnr. of Income Tax, Jalandhar
Court's Decision & Legal Precedent
Sections 234A, 234B and 234C of the Income Tax Act, 1961 are applicable to proceedings of the Settlement Commission under Chapter XIX-A to the extent indicated in the judgment, specifically that these interest provisions are applicable up to the date of the order under section 245D(1) allowing the settlement application and not beyond to the date of the final settlement order under section 245D(4). The Settlement Commission cannot reopen its concluded proceedings by invoking section 154 of the Act to levy interest under section 234B, as section 154 is inapplicable to Chapter XIX-A proceedings which have their own finality regime under section 245I.
On this section: Definitions for Chapter XIX-A; definition of 'case' in clause (b) is exhaustive and requires assessment or re-assessment proceeding to be pending
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Brij Lal vs Commnr. of Income Tax, Jalandhar
Court's Decision & Legal Precedent
Sections 234A, 234B and 234C of the Income Tax Act, 1961 are applicable to proceedings of the Settlement Commission under Chapter XIX-A to the extent that they govern the computation of interest on undisclosed income disclosed in settlement applications. However, the terminal point for levy of interest under section 234B is the date of the order under section 245D(1) (admission of settlement application) and not the date of the order under section 245D(4) (final settlement order). The Settlement Commission cannot reopen its concluded proceedings by invoking section 154 of the Act to levy interest under section 234B that was not levied in the original proceedings, as section 154 is not applicable to Chapter XIX-A proceedings and section 245I makes settlement orders final and conclusive.
On this section: Applied to establish definition of 'case' as exhaustive definition limiting settlement applications to pending proceedings
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C. I. T. , Jalpaiguri vs Om Prakash Mittal
Court's Decision & Legal Precedent
The Income Tax Settlement Commission possesses the statutory power under Section 245D(6) to declare a settlement order void on the grounds that it was obtained by fraud or misrepresentation of facts. Such power is not limited to suo motu action by the Commission but can be invoked by the revenue (CIT) by filing an application with material substantiating fraud or misrepresentation. The examination of fraud or misrepresentation does not constitute review of the earlier Commission decision or appellate reconsideration by a subsequent Bench, but rather determination of a mandatory statutory condition precedent to the validity and finality of the settlement order. The foundation of the settlement scheme under Chapter XIX-A is the requirement of 'full and true disclosure' in the application under Section 245C. If an order is obtained by fraud or misrepresentation of facts, the fundamental premise of true disclosure is absent, and the order cannot stand as valid. Therefore, the Commission's jurisdiction under Section 245D(6) to examine and determine fraud or misrepresentation is not merely permissive but necessary to give effect to the statutory condition that every settlement order must provide for its voidness upon such subsequent findings.
On this section: Definition of 'case' - covers proceedings for assessment, re-assessment, appeals, and revisions pending before any income-tax authority when settlement application is made
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 245A
What have the courts held on Section 245A of the Income-tax Act?
Brij Lal vs Commnr. of Income Tax, Jalandhar (21 Oct 2010) is the leading judgment on this section among those set out below: Definitions for Chapter XIX-A; definition of 'case' in clause (b) is exhaustive and requires assessment or re-assessment proceeding to be pending. Another 2 judgments on this section are set out below, all of them from the Supreme Court. They run from 2005 to 2010.
How do I find court cases under Section 245A of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 245A, section 245A Income Tax Act, section 245A of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Brij Lal vs Commnr. of Income Tax, Jalandhar (21 Oct 2010).
What should I read with Section 245A of the Income-tax Act, and has it changed?
Its own text turns on section 116 (Income-tax authorities), section 139 (Return of income), section 142 (Inquiry before assessment), section 147 (Income escaping assessment), and on 11 further provisions, so none of them can safely be read on its own. 8 other provisions in this corpus refer back to it.
When did Section 245A of the Income-tax Act come into force?
Section 245A of the Income-tax Act, cited as Income Tax Act 245A, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.