Abatement of Proceeding before the Settlement Commission [Sections 245HA & 245HAA] :

(i) In the following cases, the proceedings before the Settlement Commission shall abate on the specified date as given below –

	Case	Specified date
(1)	where an application made to the Settlement Commission on or after 1.6.2007 has been rejected under section 245D(1).	The date on which the application was rejected.
(2)	where an application has been declared invalid under section 245D(2C).	The last day of the month in which the application was declared invalid.
(3)	Where an order under section 245D(4) has been passed not providing for the terms of settlement.	The day on which the order under section 245D(4) was passed not providing for the terms of settlement.
(4)	Where an order under section 245D(4) has not been passed within the time allowed under section 245D(4A).	The date on which the time or period specified in section 245D(4A) expires.

(ii) On abatement of proceedings, the case would revert back to the Assessing Officer having jurisdiction or any other income-tax authority before whom the proceedings were pending at the time of making the application. Such income-tax authority shall dispose of the case in accordance with the provisions of the Act.

(iii) For completing the proceedings, the Assessing Officer or other Income-tax authority shall be entitled to use the material and information produced by the assessee before the Settlement Commission as if such material and information had been produced before the Assessing Officer or other income-tax authority. Similarly, the Assessing Officer or other Income-tax authority shall be entitled to use the results of the inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it, as if such inquiry or evidence had been held or recorded by him in the course of the proceedings before him.

(iv) The period from the date on which the application was made before the Commission up to the date on which proceedings get abated shall be excluded from the time limit for completion of proceedings by the Assessing Officer and for payment of interest under section 243, 244 or 244A.

(v) In case of abatement of settlement proceedings, the Assessing Officer is required to give credit for the tax and interest paid on or before the date of making the application or during the pendency of the case before the Settlement Commission. This has been provided by insertion of section 245HAA.