Section 245J — Recovery of Sums Due Under Order of Settlement
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Provision: Any sum specified in an order of settlement under section 245D(4) may, subject to the conditions specified therein, be recovered — and penalty for default in payment imposed and recovered — in accordance with Chapter XVII, by the Assessing Officer having jurisdiction over the applicant.
Heading: Recovery of sums due under order of settlement.
Finance Act, 2026: Not amended.
Authorities digested: 1 (candour rule — a recovery-machinery provision routing collection through Chapter XVII).
A. SECTION COMMENTARY
1. Collection through the ordinary machinery
Section 245J ensures that a settlement order is not merely declaratory: the sums it specifies are recoverable, and default penalties imposable, through the ordinary collection machinery of Chapter XVII, administered by the Assessing Officer having jurisdiction over the applicant. The settlement fixes the liability; recovery follows the normal route. The recovery is “subject to such conditions, if any, as may be specified” in the order — for instance, an instalment schedule sanctioned by the Commission.
2. Candour note
The provision is recovery machinery; the substantive contests are about the validity and finality of the order (sections 245D and 245-I), not about the mechanism of recovery, which simply borrows Chapter XVII. No reported decision turning specifically on section 245J has been traced; the governing recovery principles are those of Chapter XVII, identified as cognate.
B. STATUTORY POSITION (verbatim text)
The text of the section, as it stands in the Act (FA-2025 base), is set out below.
245J. Any sum specified in an order of settlement passed under sub-section (4) of section 245D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of Chapter XVII, by the Assessing Officer having jurisdiction over the person who made the application for settlement under section 245C.
C. AUTHORITIES
Recovery-machinery provision; governing principles are cognate to Chapter XVII.
Cluster 1 — Candour / cognate (Chapter XVII recovery)
Candour — no direct authority; recovery follows Chapter XVII
Position: No reported decision construing section 245J on its merits has been traced. The sums settled are recovered as a tax demand under Chapter XVII (sections 220–232 and the Second Schedule), subject to the conditions in the order. Stated candidly; the cognate Chapter XVII recovery jurisprudence governs the mechanics.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced from the Income-tax Act, 1961 (text as printed in the local Act, base text amended up to the Finance Act, 2025), with the publisher's footnote apparatus and amendment-marker brackets removed; three asterisks (***) denote words or a provision omitted by amendment and retained only to mark the omission. The Income-tax Settlement Commission ceased to operate for applications made on or after 1 February 2021 (Finance Act, 2021); pending applications stand transferred to the Interim Board for Settlement (section 245AA). Finance Act, 2026 makes no change to any section of Chapter XIX-A. Citations are stated as reported; orders of the Tribunal and High Courts are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.
CHAPTER XIX-A — SETTLEMENT OF CASES
Section 245J — Recovery of Sums Due Under Order of Settlement
Case Laws & Commentary · Income-tax Act, 1961 (as amended by the Finance Act, 2026) · bharattax.co Treatise
Provision: Any sum specified in an order of settlement under section 245D(4) may, subject to the conditions specified therein, be recovered — and penalty for default in payment imposed and recovered — in accordance with Chapter XVII, by the Assessing Officer having jurisdiction over the applicant.
Heading: Recovery of sums due under order of settlement.
Finance Act, 2026: Not amended.
Authorities digested: 1 (candour rule — a recovery-machinery provision routing collection through Chapter XVII).
A. SECTION COMMENTARY
1. Collection through the ordinary machinery
Section 245J ensures that a settlement order is not merely declaratory: the sums it specifies are recoverable, and default penalties imposable, through the ordinary collection machinery of Chapter XVII, administered by the Assessing Officer having jurisdiction over the applicant. The settlement fixes the liability; recovery follows the normal route. The recovery is “subject to such conditions, if any, as may be specified” in the order — for instance, an instalment schedule sanctioned by the Commission.
2. Candour note
The provision is recovery machinery; the substantive contests are about the validity and finality of the order (sections 245D and 245-I), not about the mechanism of recovery, which simply borrows Chapter XVII. No reported decision turning specifically on section 245J has been traced; the governing recovery principles are those of Chapter XVII, identified as cognate.
B. STATUTORY POSITION (verbatim text)
The text of the section, as it stands in the Act (FA-2025 base), is set out below.
245J. Any sum specified in an order of settlement passed under sub-section (4) of section 245D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of Chapter XVII, by the Assessing Officer having jurisdiction over the person who made the application for settlement under section 245C.
C. AUTHORITIES
Recovery-machinery provision; governing principles are cognate to Chapter XVII.
Cluster 1 — Candour / cognate (Chapter XVII recovery)
Candour — no direct authority; recovery follows Chapter XVII
Position: No reported decision construing section 245J on its merits has been traced. The sums settled are recovered as a tax demand under Chapter XVII (sections 220–232 and the Second Schedule), subject to the conditions in the order. Stated candidly; the cognate Chapter XVII recovery jurisprudence governs the mechanics.
Compiled for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text is reproduced from the Income-tax Act, 1961 (text as printed in the local Act, base text amended up to the Finance Act, 2025), with the publisher's footnote apparatus and amendment-marker brackets removed; three asterisks (***) denote words or a provision omitted by amendment and retained only to mark the omission. The Income-tax Settlement Commission ceased to operate for applications made on or after 1 February 2021 (Finance Act, 2021); pending applications stand transferred to the Interim Board for Settlement (section 245AA). Finance Act, 2026 makes no change to any section of Chapter XIX-A. Citations are stated as reported; orders of the Tribunal and High Courts are flagged as such. Where a section has not been judicially construed, that is stated candidly and the nearest governing authority is given. This material is for professional reference and is not legal advice.