Chapter XXIII
Miscellaneous
111] Certain
transfers to be void.
281. (1) Where,
during the pendency of any proceeding under this Act or after the completion
thereof, but before the service of notice under rule 2 of the Second Schedule, any
assessee creates a charge on, or parts with the possession (by way of sale,
mortgage, gift, exchange or any other mode of transfer whatsoever) of, any of
his assets in favour of any other person, such charge or transfer shall be void
as against any claim in respect of any tax or any
other sum payable by the assessee as a result of the completion of the said
proceeding or otherwise :
Provided that such charge or transfer shall not be void if it is made—
(i) for adequate consideration and without notice of the
pendency of such proceeding or, as the case may be, without notice of such tax
or other sum payable by the assessee ; or
(ii) with the previous permission of the 122] [Assessing] Officer.
(2) This section applies to cases where the amount of tax or
other sum payable or likely to be payable exceeds five thousand rupees and the
assets charged or transferred exceed ten thousand rupees in value.
Explanation.—In this section, “assets” means land,
building, machinery, plant, shares, securities and fixed deposits in banks, to
the extent to which any of the assets aforesaid does not form part of the
stock-in-trade of the business of the assessee.]
Effect of failure to furnish information
in respect of properties held Benami.
281A. 133] [Repealed
by the Benami Transactions (Prohibition) Act, 1988, w.e.f. 19-5-1988.]
144] Provisional
attachment to protect revenue in certain cases14a5] .
281B. (1)
Where, during the pendency of any proceeding for the assessment of any income
or for the assessment or reassessment of any income which has escaped
assessment, the 156] [Assessing] Officer is of the opinion that
for the purpose of protecting the interests of the revenue it is necessary so to
do, he may, with the previous approval of the 167] [Chief Commissioner, Commissioner, Director General or Director], by order in
writing, attach provisionally any property belonging to the assessee in the
manner provided in the Second Schedule.
178] [Explanation.—For the purposes of this sub-section, proceedings under
sub-section (5) of section 132
shall be deemed to be proceedings for the assessment of any income or for the
assessment or reassessment of any income which has escaped assessment.]
(2) Every such provisional attachment shall cease to have
effect after the expiry of a period of six months from the date of the order
made under sub-section (1) :
Provided that the 189] [Chief Commissioner, Commissioner, Director
General or Director] may, for reasons to be recorded in writing, extend the
aforesaid period by such further period or periods as he thinks fit, so,
however, that the total period of extension shall not in any case exceed two
years :
1910] [Provided
further that where an application for settlement under section 245C is made, the period commencing from the date
on which such application is made and ending with the date on which an order
under sub-section (1) of section 245D is made shall be excluded from the period specified in the preceding
proviso.]
282. (1) A
notice or requisition under this Act may be served on the person therein named
either by post or as if it were a summons issued by a court under the Code of Civil
Procedure, 1908 (5 of 1908).
(2) Any such notice or requisition may be
addressed—
(a) in the case of a firm or a Hindu undivided family, to any
member of the firm or to the manager or any adult member of the family ;
(b) in the case of a local authority or company, to the
principal officer thereof ;
(c) in the case of any other association or body of individuals,
to the principal officer or any member thereof ;
(d) in the case of any other person (not being an individual),
to the person who manages or controls his affairs.
Service of notice when family is disrupted or firm, etc., is
dissolved.
283. (1) After
a finding of total partition has been recorded by the 2011] [Assessing]
Officer under section 171 in respect
of any Hindu family, notices under this Act in respect of the income of the
Hindu family shall be served on the person who was the last manager of the
Hindu family, or, if such person is dead, then on all adults who were members
of the Hindu family immediately before the partition.
(2) Where a firm or other
association of persons is dissolved, notices under this Act in respect of the
income of the firm or association may be served on any person who was a partner
(not being a minor) or member of the association, as the case may be,
immediately before its dissolution.
Service of notice in the case of
discontinued business.
284. Where
an assessment is to be made under section 176, the 2112] [Assessing]
Officer may serve on the person whose income is to be assessed, or, in the case
of a firm or an association of persons, on any person who was a member of such
firm or association at the time of its discontinuance or, in the case of a
company, on the principal officer thereof, a notice containing all or any of
the requirements which may be included in a notice under sub-section (2) of section
139, and the provisions of this Act
shall, so far as may be, apply accordingly as if the notice were a notice
issued under that section.
Information by persons responsible for paying interest.
285.
[Omitted by the Finance Act,
1987, w.e.f. 1-6-1987.]
Information by contractors in certain cases.
285A. 2213] [Omitted by the Finance Act, 1988, w.e.f. 1-4-1988. Section 285A was
inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.]
2314] [Submission of statements by producers of
cinematograph films.
285B. 2415] Any person
carrying on the production of a cinematograph film during the whole or any part
of any financial year shall, in respect of the period during which such
production is carried on by him in such financial year, prepare and deliver or
cause to be delivered to the 2516] [Assessing]
Officer, within thirty days from the end of such financial year or within
thirty days from the date of the completion of the production of the film,
whichever is earlier, a statement in the prescribed form containing particulars
of all payments of over 2617] [fifty] thousand rupees in the aggregate made by him
or due from him to each such person as is engaged by him in such production 2718] [***].]
2819] Obligation to furnish annual information
return.
285BA. (1) Any person, being—
(a) an assessee; or
(b) the prescribed person in the case of an office of
Government; or
(c) a local authority or other public body or association; or
(d) the Registrar or Sub-Registrar appointed under section 6 of
the Registration Act, 1908 (16 of 1908); or
(e) the
registering authority empowered to register motor vehicles under Chapter IV of
the Motor Vehicles Act, 1988 (59 of 1988); or
(f) the Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act,
1898 (6 of 1898); or
(g) the Collector referred to in clause (c) of section 3 of the Land Acquisition Act,
1894 (1 of 1894); or
(h) the recognised stock exchange referred to in clause
(f) of section 2 of the Securities Contracts (Regulation) Act,
1956 (42 of 1956); or
(i) an officer of the Reserve Bank of
(j) a
depository referred to in clause (e) of sub-section
(1) of
section 2 of the Depositories Act, 1996 (22 of 1996),who is responsible for
registering, or, maintaining books of account or other document containing a
record of any specified financial transaction, under any law for the time being
in force, shall furnish an annual information return28a20] , in respect of such specified financial
transaction which is registered or recorded by him during any financial year
beginning on or after the 1st day of April, 2004 and information relating to which
is relevant and required for the purposes of this Act, to the prescribed
income-tax authority28b21] or such other authority or agency as may be
prescribed.
(2) The
annual information return referred to in sub-section (1) shall be furnished
within the prescribed time28c22] after the end of such financial year, in such form
and manner (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or
any computer readable media) as may be prescribed.
(3) For
the purposes of sub-section (1), “specified financial transaction” means any—
(a) Transaction of purchase,
sale or exchange of goods or property or right or interest in a property; or
(b) Transaction for rendering
any service; or
(c) Transaction under a works
contract; or
(d) Transaction by way of an investment made
or an expenditure incurred; or
(e) Transaction for taking or accepting any
loan or deposit,which may be prescribed28d23] :
Provided that
the Board may prescribe different values for different transactions in respect
of different persons having regard to the nature of such transaction :
Provided
further that the value or, as the case may be, the
aggregate value of such transactions during a financial year so prescribed
shall not be less than fifty thousand rupees.
(4) Where the prescribed income-tax authority
considers that the annual information return furnished under sub-section (1) is
defective, he may intimate the defect to the person who has furnished such
return and give him an opportunity of rectifying the defect within a period of
one month from the date of such intimation or within such further period which,
on an application made in this behalf, the prescribed income-tax authority may,
in his discretion, allow; and if the defect is not rectified within the said
period of one month or, as the case may be, the further period so allowed,
then, notwithstanding anything contained in any other provision of this Act,
such return shall be treated as an invalid return and the provisions of this
Act shall apply as if such person had failed to furnish the annual information
return.
(5) Where a person who is required to furnish
an annual information return under sub-section (1) has not furnished the same
within the prescribed time, the prescribed income-tax authority may serve upon
such person a notice requiring him to furnish such return within a period not
exceeding sixty days from the date of service of such notice and he shall
furnish the annual information return within the time specified in the notice.]
Information by companies respecting
shareholders to whom dividends have been paid.
286. [Omitted by the Finance Act, 1987, w.e.f.
1-6-1987.]
2924] Publication of information respecting
assessees in certain cases.
287. (1) If the Central Government is of
opinion that it is necessary or expedient in the public interest to publish the
names of any assessees and any other particulars relating to any proceedings 3025] [or
prosecutions] under this Act in respect of such assessees, it may cause to be
published such names and particulars in such manner as it thinks fit.
3126] (2) No publication under this section
shall be made in relation to any penalty imposed under this Act until the time
for presenting an appeal to the 3227] [***]
3328] [Commissioner
(Appeals)] has expired without an appeal having been presented or the appeal,
if presented, has been disposed of.]
Explanation.—In the case of a firm, company or other association
of persons, the names of the partners of the firm, directors, managing agents,
secretaries and treasurers, or managers of the company, or the members of the
association, as the case may be, may also be published if, in the opinion of
the Central Government, the circumstances of the case justify it.]
3429] Appearance by registered valuer in
certain matters.
287A. Any
assessee who is entitled or required to attend before any income-tax authority
or the Appellate Tribunal in connection with any matter relating to the
valuation of any asset, otherwise than when required under section 131 to attend personally for examination on oath
or affirmation, may attend by a registered valuer.
Explanation.—In this section, “registered valuer” has the same
meaning as in clause (oaa) of
section 2 of the Wealth-tax Act, 1957 (27 of 1957).]
3530] Appearance
by authorised representative.3631]
3732] 288. (1) Any
assessee who is entitled or required to attend before any income-tax authority
or the Appellate Tribunal in connection with any proceeding under this Act
otherwise than when required under section 131 to attend personally for
examination on oath or affirmation, may, subject to the other provisions of
this section, attend by an authorised representative.
3833] (2) For the purposes of this section,
“authorised representative” means a person authorised by the assessee in
writing to appear on his behalf, being—
(i) a
person related to the assessee in any manner, or a person regularly employed by
the assessee; or
(ii) any
officer of a Scheduled Bank with which the assessee maintains a current account
or has other regular dealings; or
(iii) any
legal practitioner who is entitled to practise in any
civil court in
(iv) an
accountant; or
(v) any
person who has passed any accountancy examination recognised in this behalf by
the Board3934] ; or
(vi) any
person who has acquired such educational qualifications as the Board may
prescribe4035] for this purpose; or
4136] [(via) any person who, before the coming into
force of this Act in the Union territory of Dadra and Nagar Haveli, Goa, Daman
and Diu, or Pondicherry, attended before an income-tax authority in the said
territory on behalf of any assessee otherwise than in the capacity of an
employee or relative of that assessee; or]
(vii) any
other person who, immediately before the commencement of this Act, was an
income-tax practitioner within the meaning of clause (iv) of sub-section (2) of section 61 of the Indian Income-tax
Act, 1922 (11 of 1922), and was actually practising as such.
Explanation.—In this section, “accountant” means a 4237] chartered
accountant within the meaning of the Chartered Accountants Act, 1949 (38 of
1949), and includes, in relation to any State, any person who by virtue of the
provisions of sub-section (2) of section 2264338] of
the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an
auditor of companies registered in that State.
(3) 4439] [***]
(4) No person—
(a) who
has been dismissed or removed from Government service after the 1st day of
April, 1938; or
(b) who
has been convicted of an offence connected with any income-tax proceeding or on
whom a penalty has been imposed under this Act, other than a penalty imposed on
him under 4540] [clause (ii) of sub-section (1) of] section 271; or
(c) who has become an insolvent,shall be qualified to represent an assessee under sub-section (1), for all times in the case of a person referred to in sub-clause (a)*41] , for such time as the 4642] [Chief Commissioner or Commissioner] may by order determine in the case of a person referred to in sub-clause (b)*43] , and for the period during which the insolvency continues in the case of a person referred to in sub-clause (c)*44] .
(5) If any person—
(a) who
is a legal practitioner or an accountant is found guilty of misconduct in his
professional capacity by any authority entitled to institute disciplinary
proceedings against him, an order passed by that authority shall have effect in
relation to his right to attend before an income-tax authority as it has in
relation to his right to practice as a legal practitioner or accountant, as the
case may be;
4745] (b) who is not a legal practitioner or an
accountant, is found guilty of misconduct in connection with any income-tax
proceedings by the prescribed authority, the prescribed authority4846] may direct that he shall thenceforth be
disqualified to represent an assessee under sub-section (1).
(6) Any order or direction under clause (b) of sub-section (4) or clause (b) of sub-section (5) shall be
subject to the following conditions, namely:—
(a) no
such order or direction shall be made in respect of any person unless he has
been given a reasonable opportunity of being heard;
(b) any
person against whom any such order or direction is made may, within one month
of the making of the order or direction, appeal to the Board to have the order
or direction cancelled; and
(c) no
such order or direction shall take effect until the expiration of one month
from the making thereof, or, where an appeal has been preferred, until the
disposal of the appeal.
(7) A person disqualified to represent an assessee by virtue of the provisions of sub-section (3) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), shall be disqualified to represent an assessee under sub-section (1).
288A. 5048] [ The amount of total income] computed in
accordance with the foregoing provisions of this Act shall be rounded off to
the nearest multiple of ten rupees and for this purpose any part of a rupee
consisting of paise shall be
ignored and thereafter if such amount is not a multiple of ten, then, if the
last figure in that amount is five or more, the amount shall be increased to
the next higher amount which is a multiple of ten and if the last figure is
less than five, the amount shall be reduced to the next lower amount which is a
multiple of ten; and the amount so rounded off shall be deemed to be the total
income of the assessee for the purposes of this Act.]
5250] [Rounding off of tax, etc.
5351] 288B. The
amount of tax (including tax deductible at source or payable in advance),
interest, penalty, fine or any other sum payable, and the amount of refund due,
under the provisions of this Act shall be rounded off to the nearest rupee and,
for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased
to one rupee and if such part is less than fifty paise it shall be ignored.]
289. A
receipt shall be given for any money paid or recovered under this Act.
290. Every
person deducting, retaining, or paying any tax in pursuance of this Act in
respect of income belonging to another person is hereby indemnified for the
deduction, retention, or payment thereof.
Power to tender immunity from prosecution.
291. (1) The
Central Government may, if it is of opinion (the reasons for such opinion being
recorded in writing) that with a view to obtaining the evidence of any person
appearing to have been directly or indirectly concerned in or privy to the
concealment of income or to the evasion of payment of tax on income 5452] [it
is necessary or expedient so to do], tender to such person immunity from
prosecution for any offence under this Act or under the Indian Penal Code (45
of 1860), or under any other Central Act for the time being in force and also
from the imposition of any penalty under this Act on condition of his making a
full and true disclosure of the whole circumstances relating to the concealment
of income or evasion of payment of tax on income.
(2) A tender of immunity made to, and accepted by, the person
concerned, shall, to the extent to which the immunity extends, render him immune
from prosecution for any offence in respect of which the tender was made or
from the imposition of any penalty under this Act.
(3) If it appears to the Central Government that any person to
whom immunity has been tendered under this section has not complied with the
condition on which the tender was made or is wilfully concealing anything or is
giving false evidence, the Central Government may record a finding to that
effect, and thereupon the immunity shall be deemed to have been withdrawn, and
any such person may be tried for the offence in respect of which the tender of
immunity was made or for any other offence of which he appears to have been
guilty in connection with the same matter and shall also become liable to the
imposition of any penalty under this Act to which he would otherwise have been
liable.
292. No court inferior to that of a
presidency magistrate or a magistrate of the first class shall try any offence
under this Act.
5553] Section 360 of the Code of Criminal
Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply.
292A. Nothing
contained in section 36056 54] of
the Code of Criminal Procedure, 1973 (2 of 1974), or in the Probation of
Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of an
offence under this Act unless that person is under eighteen years of age.]
5755] Return of income, etc., not to be
invalid on certain grounds.
292B. No return
of income, assessment, notice, summons or other proceeding, furnished or made
or issued or taken or purported to have been furnished or made or issued or
taken in pursuance of any of the provisions of this Act shall be invalid or
shall be deemed to be invalid merely by reason of any mistake, defect or
omission in such return of income, assessment, notice, summons or other
proceeding if such return of income, assessment, notice, summons or other
proceeding is in substance and effect in conformity with or according to the
intent and purpose of this Act.]
293. No
suit shall be brought in any civil court to set aside or modify any 5856] [***]
5957] [proceeding
taken6058] or]
order made under this Act; and no prosecution, suit or other proceeding shall
lie against 6159] [the
Government or] any officer of the Government for anything in good faith done or
intended to be done under this Act.
6260] Power to make exemption, etc., in
relation to participation in the business of prospecting for, extraction, etc.,
of mineral oils.
293A. (1) If
the Central Government is satisfied that it is necessary or expedient so to do
in the public interest, it may, by notification6361] in
the Official Gazette, make an exemption, reduction in rate or other
modification in respect of income-tax in favour of any class of persons
specified in sub-section
(2) or in regard to the whole or any part
of the income of such class of persons 6462] [or
in regard to the status in which such class of persons or the members thereof
are to be assessed on their income from the business referred to in clause (a) of sub-section (2) :
Provided that the notification for modification in respect of the status may be
given effect from an assessment year beginning on or after the 1st day of
April, 1993.]
(2) The persons referred to in sub-section (1) are the following,
namely :—
(a) persons
with whom the Central Government has entered into agreements for the
association or participation of that Government or any person authorised by
that Government in any business consisting of the prospecting for or extraction
or production of mineral oils;
(b) persons
providing any services or facilities or supplying any ship, aircraft,
machinery or plant (whether by way of sale or hire) in connection with any
business consisting of the prospecting for or extraction or production of
mineral oils carried on by that Government or any person specified by that
Government in this behalf by notification in the Official Gazette; and
(c) employees
of the persons referred to in clause (a)
or clause (b).
(3) Every notification issued under this section shall be laid
before each House of Parliament.
6563] [Explanation.—For the purposes of this
section,—
(a) “mineral
oil” includes petroleum and natural gas;
(b) “status”
means the category under which the assessee is assessed as “individual”, “Hindu
undivided family” and so on.]]
6664] Power of Central Government or Board to
condone delays in obtaining approval.
293B. Where,
under any provision of this Act, the approval of the Central Government or the Board is required to be obtained
before a specified date, it shall be open to the Central Government or, as the
case may be, the Board to condone, for sufficient cause, any delay in obtaining
such approval.]
Act to have effect pending legislative provision for charge of
tax.
294. If
on the 1st day of April in any assessment year provision has not yet been made by a Central Act for the charging of income-tax
6765] [***]
for that assessment year, this Act shall nevertheless have effect until such provision
is so made as if the provision in force in the preceding assessment year or the
provision proposed in the Bill then before Parliament, whichever is more
favourable to the assessee, were actually in force.
6866] Power to make exemption, etc., in
relation to certain Union territories.
294A. If
the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or
removing any difficulty that may arise
as a result of the application of this Act to the Union territories of Dadra and Nagar Haveli, Goa*67] ,
Daman and Diu, and Pondicherry, or in the case of the Union territory of
Pondicherry, for implementing any provision of the Treaty of Cession concluded between
France and India on the 28th day of May, 1956, that Government may, by general
or special order, make an exemption, reduction in rate or other modification in
respect of income-tax or super-tax in favour of any assessee or class of
assessees or in regard to the whole or any part of the income of any assessee
or class of assessees :
Provided that the power conferred by this section shall not be exercisable after
the 31st day of March, 1967, except for the purpose of rescinding an exemption,
reduction or modification already made.]
295. (1) The
Board may, subject to the control of the Central Government, by notification in the Gazette of India, make
rules for the whole or any part of India for carrying out the purposes of this
Act.
(2) In particular, and without prejudice
to the generality of the foregoing power, such rules may provide for all or any
of the following matters :—
(a) 6968] the
ascertainment and determination of any class of income;
(b) the manner in which and the procedure by
which the income shall be arrived at in the case of—
(i) 7069] income
derived in part from agriculture and in part from business;
(ii) 7170] persons
residing outside
7271] [(iii) an
individual who is liable to be assessed under the provisions of sub-section (2)
of section 64;]
(c) 7372] the
determination of the value of any perquisite chargeable to tax under this Act
in such manner and on such basis as appears to the Board to be proper and
reasonable;
(d) 7473] the
percentage on the written down value which may be allowed as depreciation in
respect of buildings, machinery, plant or furniture;
7574] [(dd) 7675] the extent
to which, and the conditions subject to which, any expenditure referred to in
sub-section (3) of section 37 may be allowed;]
7776] [(dda) 7877] the
matters specified in sub-sections (2) and (3) of section 44AA;]
7978] [(e) the percentage or the amount
to be prescribed 8079] [under clause (i) of sub-section (4) of section 80C];]
8180] [(ee) 8281] the
conditions or limitations subject to which any payment of rent made by an
assessee shall be deducted under section 80GG;
(eea) the cases, the nature and value of assets,
the limits and heads of expenditure and the outgoings, which are required to be
prescribed under sub-section (6) of section 139;
(eeb) 8382] the
time within which any person may apply for the allotment of a permanent account
number, the form and the manner in which such application may be made and the
particulars which such application shall contain and the transactions with
respect to which permanent account numbers shall be quoted on documents
relating to such transactions under section 139A8483] ;
(eec) 8584] the
form of the report of audit and the particulars which such report shall
contain under sub-section (2A) of section 142;]
(f) 8685] the
manner in which and the period to which any such income as is referred to in
section 180 may be allocated;
(g) 8786] the
authority to be prescribed for any of the purposes of this Act;
(h) 8887] the
procedure for giving effect to the terms of any agreement for the granting of relief
in respect of double taxation or for the avoidance of double taxation which
may be entered into by the Central Government under this Act;
(i) the
form and manner in which any application, claim, return or information may be made
or furnished and the fees that may be levied in respect of any application or
claim;
(j) the
manner in which any document required to be filed under this Act may be
verified;
(k) 8988] the
procedure to be followed on applications for refunds;
9089] [(kk) 9190] the
procedure to be followed in calculating interest payable by assessees or
interest payable by Government to assessees under any provision of this Act,
including the rounding off of the period for which such interest is to be
calculated in cases where such period includes a fraction of a month, and
specifying the circumstances in which and the extent to which petty amounts of
interest payable by assessees may be ignored;]
(l) 9291] the
regulation of any matter for which provision is made in section 230;
(m) 9392] the
form and manner in which any appeal or cross-objection may be filed under this
Act, the fee payable in respect thereof and the manner in which intimation of
any such order as is referred to in clause (c) of sub-section (2) of section 249 may be served;
9493] (mm) 9594] the
circumstances in which, the conditions subject to which and the manner in
which, the 9695] [***]
9796] [Commissioner
(Appeals)] may permit an appellant to produce evidence which he did not produce
or which he was not allowed to produce before the 9897] [Assessing]
Officer;]
9998] (mma) 199] the
form in which the statement under
section 285B shall be delivered to the 98100] [Assessing] Officer;]
(n) 2101] the maintenance of a register of persons other
than legal practitioners or accountants as defined in sub-section
(2) of section 288 practising before
income-tax authorities and for the constitution of and the procedure to be
followed by the authority referred to in sub-section (5) of that section;
(o) the issue of certificate verifying the
payment of tax by assessees;
(p) any other matter which by this Act is to
be, or may be, prescribed.
(3) In cases coming under clause (b) of sub-section (2), where the income liable to tax cannot be
definitely ascertained, or can be ascertained only with an amount of trouble
and expense to the assessee which in the opinion of the Board is unreasonable,
the rules made under this section may—
(a) prescribe methods by which an estimate
of such income may be made; and
(b) in cases coming under sub-clause (i) of clause (b) of sub-section (2) specify the proportion of the income which
shall be deemed to be income liable to tax;and an
assessment based on such estimate or proportion shall be deemed to be duly made
in accordance with the provisions of this Act.
3102] (4) The
power to make rules conferred by this section shall include the power to give
retrospective effect, from a date not earlier than the date of commencement of
this Act, to the rules or any of them and, unless the contrary is permitted
(whether expressly or by necessary implication), no retrospective effect shall
be given to any rule so as to prejudicially affect the interests of assessees.]
4103] 5104] Rules
and certain notifications to be placed before Parliament.
296. The
Central Government shall cause every rule made under this Act 6105] [, the rules of procedure framed by the
Settlement Commission under sub-section (7) of section 245F, the Authority for Advance Rulings under section
245V and the Appellate Tribunal under
sub-section (5) of section 255]
and every notification issued under sub-clause (iv) of clause (23C)
of section 10 to be laid as soon
as may be after the rule is made or the notification is issued before each
House of Parliament while it is in session, for a total period of thirty days,
which may be comprised in one session or in two or more successive sessions,
and if, before the expiry of the session immediately following the session or
the successive sessions aforesaid, both Houses agree in making any modification
in the rule or notification or both Houses agree that the rule or notification
should not be made or issued, that rule or notification shall thereafter have
effect, only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule or notification.]]
297. (1)
The Indian Income-tax Act, 1922 (11
of 1922), is hereby repealed.
(2) Notwithstanding the repeal of the Indian Income-tax Act, 1922
(11 of 1922) (hereinafter referred to as the repealed Act),—
(a) where
a return of income has been filed before the commencement of this Act by any
person for any assessment year, proceedings for the assessment7106] of that person for that year may be taken and
continued as if this Act had not been passed;
(b) where
a return of income is filed after the commencement of this Act otherwise than
in pursuance of a notice under section 34 of the repealed Act by any person for
the assessment year ending on the 31st day of March, 1962, or any earlier year,
the assessment of that person for that year shall be made in accordance with
the procedure specified in this Act;
(c) any
proceeding pending on the commencement of this Act before any income-tax
authority, the Appellate Tribunal or any court, by way of appeal, reference, or
revision, shall be continued and disposed of as if this Act had not been
passed;
(d) where
in respect of any assessment year after the year ending on the 31st day of
March, 1940,—
(i) a
notice under section 34 of the repealed Act had been issued before the
commencement of this Act, the proceedings in pursuance of such notice may be
continued and disposed of as if this Act had not been passed;
(ii) any
income chargeable to tax had escaped assessment within the meaning of that
expression in section 147 and no proceedings under section 34 of the repealed
Act in respect of any such income are pending at the commencement of this Act,
a notice under section 148 may, subject to the provisions contained in section
149 or section 150, be issued with respect to that assessment year and all the
provisions of this Act shall apply accordingly8107] ;
(e) 9108] [subject to the provisions of clause (g) and clause
(j) of this sub-section,] section 23A
of the repealed Act shall continue to have effect in relation to the assessment
of any company or its shareholders for the assessment year ending on the 31st
day of March, 1962 or any earlier year, and the provisions of the repealed Act
shall apply to all matters arising out of such assessment as fully and
effectually as if this Act had not been passed;
(f) any
proceeding for the imposition of a penalty in respect of any assessment
completed before the first day of April, 1962, may be initiated and any such
penalty may be imposed as if this Act had not been passed;
(g) any
proceeding for the imposition of a penalty in respect of any assessment for the
year ending on the 31st day of March, 1962, or any earlier year, which is
completed on or after the 1st day of April, 1962, may be initiated and any such
penalty may be imposed under this Act;
(h) any
election or declaration made or option exercised by an assessee under any
provision of the repealed Act and in force immediately before the commencement
of this Act shall be deemed to have been an election or declaration made or
option exercised under the corresponding provision of this Act;
(i) where, in respect of any assessment
completed before the commencement of this Act, a refund falls due after such
commencement or default is made after such commencement in the payment of any
sum due under such completed assessment,10109] the provisions of this Act relating to
interest payable by the Central Government on refunds and interest payable by
the assessee for default shall apply;
(j) any
sum payable by way of income-tax, super-tax, interest, penalty or otherwise
under the repealed Act may be recovered under this Act, but without prejudice
to any action already taken for the recovery of such sum under the repealed
Act;
(k) any
agreement entered into, appointment made, approval given, recognition granted,
direction, instruction, notification, order or rule issued under any
provision of the repealed Act shall, so far as it is not inconsistent with the
corresponding provision of this Act, be deemed to have been entered into, made,
granted, given or issued under the corresponding provision aforesaid and shall
continue in force accordingly;
(l) 11110] any notification issued under sub-section (1)
of section 60 12111] [or section 60A] of the repealed Act and in force
immediately before the commencement of this Act shall, to the extent to which
provision has not been made under this Act, continue in force 13112] [***]:
14113] Provided that the Central Government may rescind any such notification or amend it
so as to rescind any exemption, reduction in rate or other modification made
thereunder;]
(m) where
the period prescribed for any application, appeal, reference or revision under
the repealed Act had expired on or before the commencement of this Act, nothing
in this Act shall be construed as enabling any such application, appeal,
reference or revision to be made under this Act by reason only of the fact that
a longer period therefor is prescribed or provision is made for extension of
time in suitable cases by the appropriate authority.
298. (1) If
any difficulty arises in giving effect to the provisions of this Act the Central Government may, by general or special
order, do anything not inconsistent with such provisions which appears to it to
be necessary or expedient for the purpose of removing the difficulty.
(2) In particular, and without prejudice to the generality of the foregoing
power, any such order may provide for the adaptations or modifications subject
to which the repealed Act shall apply in relation to the assessments for the
assessment year ending on the 31st day of March, 1962, or any earlier year.
15114] [(3) If
any difficulty arises in giving effect to the provisions of this Act as
amended by the Direct Tax Laws (Amendment) Act, 1987, the Central Government
may, by order, do anything not inconsistent with such provisions for the
purpose of removing the difficulty:
Provided that no such order shall be made after the expiration of three years
from the 1st day of April, 1988.
(4) Every order made under sub-section (3) shall be laid before
each House of Parliament.]
1]Substituted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
2]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
3]Prior to its repeal, section 281A was inserted by the Taxation
Laws (Amendment) Act, 1972, w.e.f. 15-11-1972 and later amended by the Finance
Act, 1984, w.e.f. 1-4-1984.
4]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
5]See
Instruction No. 8/2004, dated 2-9-2004 and Circular F. No. 404/22/2004-ITCC,
dated 5-11-2004.
6]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
7]Substituted for “Chief Commissioner or Commissioner”
by the Finance Act, 1997, w.r.e.f. 1-10-1996.
Earlier “Chief Commissioner or Commissioner” was substituted for “Commissioner”
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
8]Inserted
by the Finance Act, 1988, w.e.f. 1-4-1988.
9]Substituted for “Chief Commissioner or Commissioner” by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier “Chief Commissioner or Commissioner” was substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
10]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.
11]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
12]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
13]Prior to its omission, section 285A was amended by the
Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
14]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-4-1976.
15]See rule 121A and Form No. 52A for Form of Statement
to be furnished by producer of films.
16]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
17]Substituted for “twenty-five” by the Finance Act,
2000, w.e.f. 1-4-2001. Earlier “twenty-five” was substituted for “five” by
the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.
18]“as employee or otherwise” omitted by the Finance Act,
1989, w.e.f. 1-6-1989.
19]Substituted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.
Prior to its substitution, section 285BA, as inserted by the Finance Act, 2003,
w.e.f. 1-4-2004, read as under :
“285BA. Annual information return.—Any assessee, who enters into any financial transaction, as may be prescribed, with any other person, shall furnish, within the prescribed time, an annual information return in such form and manner, as may be prescribed, in respect of such financial transaction entered into by him during any previous year.”
20]See rule
114E and Form No. 65. See also Appendix
Two.
21]Prescribed authority is Commissioner of Income-tax
(Central Information Branch).
22]Return shall be furnished on or before 31st
August immediately following the financial year in which transaction is
registered or recorded.
23]See rule
114E.
24]Substituted by the Finance Act, 1964, w.e.f. 1-4-1964.
25]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
26]Substituted by the Taxation Laws (Amendment) Act,
1975, w.e.f. 1-10-1975.
27]Words “Deputy Commissioner (Appeals) or, as the case
may be, the” omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
Earlier, “Deputy Commissioner (Appeals)” was substituted for “Appellate
Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988 and “or, as the case may be, the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
28]Inserted by the Finance (No. 2) Act, 1977, w.e.f.
10-7-1978.
29]Inserted by the Taxation Laws (Amendment) Act, 1972,
w.e.f. 1-1-1973.
31]See rules 49,
50, 51, 52, 53, 54, 55, 56, 57,
58, 59, 60, 61, 62, 63, 64, 65
and 66 and Form Nos. 38 to 40.
32]See also Circular No. 19-D (XL-62), dated 3-7-1964 and Letter [F. No. 21/4/63-IT], dated 14-6-1963.
33]See rule 12A. Particulars to be furnished by
authorised representative who has prepared the assessee’s return, are as
follows :
(a)particulars
of accounts, statements or other documents supplied to him by the assessee for
the preparation of the return of income; and
(b)where the
authorised representative has for the purpose of preparation of the return of
income carried out any examination of such accounts, statements or documents, a
report on the scope and results of such examination.
See rule 54 and Form No. 39 for application for registration as authorised income-tax practitioner and rule 55 and Form No. 40 for Form of certificate by Commissioner for registration of authorised representative.
34]See rule 50.
35]See rule 51.
36]Inserted by the Taxation Laws (Extension to
37]Clause (1)(b) of section 2 of the Chartered
Accountants Act, 1949 defines “chartered accountant” as under :
‘(b) “chartered
accountant” means a person who is a member of the *Institute;’
*Clause (1)(e) defines the “Institute” as the Institute of Chartered Accountants of India constituted under this Act.
38]For text of section 226(2) of the Companies Act, 1956,
see Appendix One.
39]Omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
40]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
Earlier, it was amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
41]Should be read as clause.
42]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
43]Should be read as clause.
44]Should be read as clause.
45]See rules 52,
59, 60,
61, 62,
63, 64,
65 and 66
46]The prescribed authority under rule 52 is Chief Commissioner or Commissioner having requisite jurisdiction.
47]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
48]Substituted for “(1) Subject to the provisions of
sub-section (2), the amount of total income” by the Finance Act, 1968, w.e.f.
1-4-1969.
49]Sub-section (2) and Explanation, omitted by the
Finance Act, 1968, w.e.f. 1-4-1969.
50]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
51]See also
Letter [F. No. 12/40/66-IT(B)], dated 25-1-1967 and Circular No. 49, dated 16-11-1970.
52]Inserted by the Finance Act, 1963, w.e.f. 28-4-1963.
53]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
54]For text of section 360 of the Code of Criminal
Procedure, 1973, see Appendix One.
55]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
56]“assessment” omitted by the Finance Act, 1987,
w.r.e.f. 1-3-1987.
57]Inserted by the Finance Act, 1988, w.r.e.f. 1-3-1988.
59]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
60]Inserted by the Finance Act, 1981, w.e.f. 1-4-1981.
62]Inserted
by the Finance Act, 1995, w.r.e.f. 1-4-1993.
63]Substituted by the Finance Act, 1995, w.r.e.f.
1-4-1993. Prior to its substitution, the Explanation, as inserted by the
Finance Act, 1981, w.e.f. 1-4-1981, read as under :
‘Explanation.—For the purposes of this section, “mineral oil” includes petroleum and natural gas.’
64]Inserted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989.
65]Words “or super-tax” omitted by the Finance Act, 1965,
w.e.f. 1-4-1965.
66]Inserted
by the Taxation Laws (Extension to
67]
68]See rules 9A and 9B.
69]See rules 7 and 8.
70]See rules 10 and 11.
71]Inserted by the Taxation Laws (Amendment) Act, 1970,
w.e.f. 1-4-1971.
72]See rules 3 and 3A.
73]See rule 5.
74]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
75]See rules 6AC, 6B
and 6D (now omitted).
76]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-4-1976.
77]See rule 6F.
78]Clause (e) shall be omitted by the Finance Act, 2005, w.e.f. 1-4-2006.
79]Substituted for “under clause (i) of
sub-section (3) of section 87 or clause (i) of sub-section (4) of section
80A, as the case may be” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
80]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-4-1976.
81]See rule
11B.
82]See rule 114 and Form No. 49A.
83]See rules 114B, 114C
and 114D and Form Nos. 60 & 61.
84]See rule 14A and Form No. 6B.
85]See rule
9(2).
86]See rules
2C, 2CA, 2D, 2DA, 2E, 5AA, 6, 6AAA, 6AAC, 11A 11DD, 11L, 16A, 16B, 16C, 18AAA,
18AAAA, 18AAB, 18BBA, 18BBC, 18BBD, 18C, 18D, 19AD, 20, 20A, 29A, 36A, 37F, 42,
52, 114D and 114E.
87]See rules 44G and 44H and Form No. 34F.
88]See rule
41.
89]Inserted by the Taxation Laws (Amendment) Act, 1970,
w.e.f. 1-4-1971.
90]See rule 119A.
91]See rules 42, 43 and 44 and Form Nos. 30A, 30B, 30C, 31 and 33.
92]See rules 45, 46 and 47 and Form Nos. 35
to 36A.
93]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
94]See rule
46A.
95]Words “Deputy Commissioner (Appeals) or the” omitted
by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier, “Deputy
Commissioner (Appeals)” was substituted for “Appellate Assistant
Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988 and
“or the” was inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
96]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
97]Substituted for “Income-tax” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
98]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-4-1976.
99]See rule 121A and Form
No. 52A.
100]Substituted for “ Income-tex ‘’ by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
101]See rules 52,
53, 54, 55, 56, 57, 58, 59, 60,
61, 62, 63, 64, 65 and 66.
102]Inserted
by the Direct Taxes (Amendment) Act, 1974, w.e.f. 18-8-1974.
103]Restored to its original provision by the Direct Tax
Laws (Amendment) Act, 1989, w.e.f.
1-4-1989. Earlier, it was substituted by the Direct Tax Laws
(Amendment) Act, 1987, with effect from the same date.
104]Substituted by the Taxation Laws (Amendment) Act,
1975, w.e.f. 1-4-1976.
105]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
108]Inserted by the Finance Act, 1963, with retrospective
effect from 1-4-1962.
110]For exemptions notified under section 60(1) of the
1922 Act, which continued to be in force under this clause
111]Inserted by the Finance Act, 1966, w.r.e.f. 1-4-1962.
112]Words “until rescinded by the Central Government”
omitted by the Rulers of Indian States (Abolition of Privileges) Act, 1972,
w.e.f. 9-9-1972.
113]Inserted by the Rulers of Indian States (Abolition of
Privileges) Act, 1972, w.e.f. 9-9-1972.
114]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.