In a bid to get relief under certain sunset clauses, tax evaders and defaulters flooded all four benches of the Income Tax Settlement Commission (ITSC) with their applications on the last two days of this month. Sources reveal that the number of complaints received on May 30 and 31, were more than 25 per cent of the 3,147 cumulative pending cases till March 10, 2007.

Also, the four benches of the commission at Delhi, Mumbai, Kolkata and Chenai remained open till midnight today and applications were received till 8 pm. This special treatment to applicants was given on the request of Income Tax Settlement Commission Bar Association (ISCBA) as these sunset clauses would be ineffective from June 1.

Interestingly, all the four benches received application in the range of 300 to 700 during five financial years from 2001-02 to 2005-06. In contrast, the past two days have seen the number rise to 624 (till 7 pm), while the final figure is expected to be higher. During the first two months of this fiscal, the total numbers of applications were 791.

These sunset clauses are Section 245 A-b, 254E and 245H of Income Tax 196. Amendment under Finance Act 2007, has changed the definition of the case under Section 245. Now cases such as income escaping assessment, notice for escaped assessment, revision case, appeals, set aside cases and search cases are out of ITSC purview.

The Commission cannot reopen completed cases in the interest of revenue for the six years previous to the settlement under Section 254E. It can also not provide immunity under Section 245H to various central Acts other than I-T Act and Wealth Tax Act.

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