The Planning Commission of India was constituted in the year 1950.

Background:
The Planning Commission was set up by a Resolution of the Government of India in March 1950. It was an important body responsible for formulating India's Five-Year Plans and overseeing their implementation.

Functions:
1. Formulating Five-Year Plans: The Planning Commission was responsible for formulating comprehensive Five-Year Plans for the economic development of India.
2. Allocating Resources: It allocated resources to various government departments and agencies to ensure the effective implementation of the plans.
3. Monitoring Progress: The Commission monitored the progress of various projects and programs under the Five-Year Plans and made necessary adjustments.
4. Coordinating Policies: It coordinated the economic policies of different ministries and departments to achieve the overall objectives of the plans.
5. Advising the Government: The Planning Commission provided expert advice to the government on various economic and developmental issues.

Abolition:
The Planning Commission was abolished by the government in 2014 and replaced by the NITI Aayog (National Institution for Transforming India). The decision to abolish the Planning Commission was taken to give more flexibility to states and promote cooperative federalism.

In conclusion, the Planning Commission of India was established in 1950 to plan and oversee the economic development of the country through Five-Year Plans. It played a crucial role in shaping India's economic policies and priorities for several decades before being replaced by NITI Aayog.