The meaning of expedient section 245E used in section 245A to 245M of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here is an excerpt of the court’s order in which the Hon’ble ITSC tried to explain the meaning of expedient section 245E.
Meaning of expedient section 245E defined by court
The phrase “expedient section 245E” used in section 147 of the Income Tax Act came up before hon’ble ITSC in In re order dated 2-5-1997 94 taxman 464 (ITSC) and it explained.
Meaning: The word ‘expedient’ means appropriate, advantageous, convenient as guided by self-interest.
Section 245A of Income Tax Act
245A. 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;
(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;
13-15[(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;
13-15[(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.
In this article, you can get guidance from high courts on the meaning of expedient section 245E under section 245A to 245M of the Income Tax Act.
Updated up to Finance Act 2021