-D. Procedure on receipt of an application under section 22-C .- [(1) On receipt of an application under section 22-C, 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.] [ Substituted by Act 22 of 2007, Section 86, for sub-Section (1)(w.e.f. 1.6.2007).]

[* * *] [ Sub-Section (1-A) omitted by Act 49 of 1991, Section 78 (w.e.f. 27.9.1991).]

(2)

A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner.

[(2-A) Where an application was made under section 22-C 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, 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 application 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).

(2-B) 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 (2-A) 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.

(3)

[ The Settlement Commission, in respect of-

(i) an application which has not been declared invalid under sub-section (2-C); or

(ii) an application referred to in sub-section (2-D) 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:

(4)

After examination of the records and the report of the Commissioner, if any, received under-

(i) sub-section (2-B) or sub-section (3), or

(ii) the provisions of sub-section (1), as they stood immediately before their amendment by the Finance Act, 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.

(i) in respect of an application referred to in sub-section (2-A) or sub¬-section (2-D), on or before the 31st day of March, 2008;

(ii) in respect of an application made on or after 1st day of June, 2007, within twelve months from the end of the month in which the application was made.]

(5)

[ Subject to the provisions of section 22-BA, 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 22-BD shall apply.] [ Inserted by Act 11 of 1987, Section 81 (w.e.f. 1.6.1987).]

(6)

Every order passed under sub-section (4) shall provide for the terms of settlement including any demand by way of [tax, penalty or interest] [ Substituted by Act 11 of 1987, Section 81, for " tax or penalty " (w.e.f. 1.6.1987).], 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.

[(6-A) 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] [Inserted by Act 6 of 1984, Section 62 (w.e.f. 1.10.1984). ][one and one-fourth per cent. for every month or part of a month] [ Substituted by Act 22 of 2007, Section 86, for " fifteen per cent. per annum " (w.e.f. 1.4.2008).][on the amount remaining unpaid from the date or expiry of the period of thirty-five days aforesaid.] [Inserted by Act 6 of 1984, Section 62 (w.e.f. 1.10.1984). ]

(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.

(8)

[ For the removal of doubts, it is hereby declared that nothing contained in section 17-A shall apply to any order passed under sub-section (4) or to any order or assessment or re-assessment required to be made by the ] [Inserted by Act 67 of 1984, Section 62 (w.e.f. 1.10.1984). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).][in pursuance of any directions contained in such order passed by the Settlement Commission.] [Inserted by Act 67 of 1984, Section 62 (w.e.f. 1.10.1984). ]

[22-DD. Power of Settlement Commission to order provisional attachment to protect revenue

.-(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32:

Provided that where a provisional attachment made under section 34-C is pending immediately before an application is made under section 22-C, an order under this sub-section shall continue such provisional attachment upto the period upto which an order made under section 34-C would have continued if such application had not been made:

Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.

(2)

Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit ] [ Substituted by Act 22 of 2007, Section 86, for sub-Sections (3), (4) and (4-A) (w.e.f. 1.6.2007).][* * *] [ Certain words omitted by Act 22 of 2007, Section 87 (w.e.f. 1.6.2007).].