Bar on subsequent application for settlement [Section 245K] :
(i) In the event of occurrence of any of the following, the person concerned or any person related to such person shall not be entitled to apply for settlement in relation to any other matter –
(1) the order of settlement passed under section 245D(4) provides for imposition of penalty for concealment of income; or
(2) after the passing of order under section 245D(4) in relation to a case, the person is convicted of an offence under Chapter XXII in relation to that case; or
(3) the case of such person was sent back to the Assessing Officer by the Settlement Commission on or before 1.6.2002.
(ii) Further, with effect from 1.6.2007, the option of going to the Settlement Commission would be available only once in the lifetime of a person. Therefore, where an application for settlement is made on or after 1.6.2007 and such application has been allowed to be proceeded with, then such person will not be subsequently entitled to make any application under section 245C.
Note – Any person related to the person who has already approached the Settlement Commission once, also cannot approach the Settlement Commission subsequently. The related person with respect to a person means,-
| Person | Related person |
| Individual | · any company in which such person holds more than 50% of the shares or voting rights at any time; or
· any firm or AOP or BOI in which such person is entitled to more than 50% of the profits at any time; or · any HUF in which such person is a karta |
| Company | · any individual who held more than 50% of the shares or voting rights in such company at any time before the date of application before the Settlement Commission by such person |
| Firm or AOP or BOI | · any individual who was entitled to more than 50% of the profits in such firm, AOP or BOI, at any time before the date of application before the Settlement Commission by such person |
| HUF | · The karta of that HUF |
The restriction of not approaching the Settlement Commission again was so far applicable only to the concerned person. Therefore, an individual who has approached the Settlement Commission once can subsequently approach again through an entity controlled by him. This defeats the purpose of restricting the opportunity of approaching the Settlement Commission only once for any person. Therefore, section 245K has been amended with effect from 1st June, 2015 to apply the restriction to the related persons as well.