CHAPTER XII-C
SPECIAL PROVISIONS
RELATING TO RETAIL TRADE, ETC.
[Chapter
XII-C, consisting of sections 115K to 115N, omitted by the Finance Act, 1997, w.e.f. 1-4-1998. Earlier Chapter XII-C was inserted by the
Finance Act, 1992, w.e.f. 1-4-1993.]
Special
provision for computation of income in certain cases.
115K. 96[1] [Omitted by the Finance Act, 1997, w.e.f.
1-4-1998.]
Return of income not to
be filed in certain cases.
115L. 97[2] [Omitted by the Finance Act, 1997, w.e.f.
1-4-1998.]
Special
provision for disallowance of deductions and rebate of income.
115M. 98[3] [Omitted by the Finance Act, 1997, w.e.f.
1-4-1998.]
Bar of proceedings in
certain cases.
115N. 99[4] [Omitted by the Finance Act, 1997, w.e.f.
1-4-1998.]
[1]Prior to its omission, section 115K, as inserted by
the Finance Act, 1992, w.e.f. 1-4-1993, and later on
amended by the Finance Act, 1993, w.e.f.
1-4-1993/1-4-1994, the Finance Act, 1994, w.e.f.
1-4-1995, the Finance Act, 1995, w.e.f. 1-4-1996 and
the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997, read
as under :
‘115K.
Special provision for computation of income in certain cases.—(1)
Notwithstanding anything contained in any other provision of this Act relating
to the computation of income chargeable under the head “Profits and gains of
business or profession”, in the case of any person, to whom this section
applies and who is—
(a)
carrying on the business of retail trade in any goods
or merchandise; or
(b)
carrying on the business of running an eating place or of operating, hiring or
leasing a motor cab, a maxicab or a three-wheeled
motor vehicle or any other business as may be prescribed; or
(c) engaged in any vocation,
and
submits a statement in accordance with the provisions of sub-section (4), a sum
of forty-nine thousand three hundred and thirty rupees shall be deemed to be
the profits and gains of such person from such business or vocation.
(2)
The provisions of sub-section (1) shall apply to any person, being an
individual or a Hindu undivided family, where—
(a)
such person has not been assessed to income-tax for
any assessment year commencing on or before the 1st day of April, 1992;
(b)
in the case of person referred to in—
(i) clause (a) of sub-section (1), his
turnover from the business of retail trade during the relevant previous year
does not exceed seven lakh rupees and his income from
such business during that year does not exceed forty-nine thousand three
hundred and thirty rupees;
(ii)
clause (b) or clause (c) of sub-section
(1), his income from the said business or vocation, during the relevant
previous year does not exceed forty-nine thousand three hundred and thirty
rupees; and
(c)
such person does not have any income, in excess of five thousand rupees in the
aggregate, chargeable to tax from any source falling under any head of income
other than the income from the business or vocation referred to in clause (a),
clause (b) or, as the case may be, clause (c) of sub-section (1)
during the relevant previous year.
(3)
Any person to whom this section applies shall be liable to pay tax, at the rate
specified in the Finance Act of the relevant year for computing advance tax, on
the income deemed under sub-section (1) and the other income referred to in
clause (c) of sub-section (2).
(4)
Every statement referred to in sub-section (1) shall—
(a)
be in the prescribed form†, contain the name of
such person, his address, nature of business or vocation and a declaration by
him that,—
(i) where he is carrying on the business of retail
trade, his turnover from such trade during the relevant previous year does not
exceed seven lakh rupees and his income from such
trade during that year does not exceed forty-nine thousand three hundred and
thirty rupees;
(ii)
where he is carrying on the business or vocation
referred to in clause (b) or, as the case may be, clause (c) of
that sub-section, his income during the relevant previous year from such
business or vocation does not exceed forty-nine thousand three hundred and
thirty rupees,
and such
statement shall also be verified in the prescribed manner;
(b)
be submitted on or before the 31st day of March of the
relevant previous year along with the proof of payment of the amount of tax
referred to in sub-section (3).
Explanation.—For the purposes of this section,—
(a)
the expressions “motor cab”, “maxicab” and “motor
vehicle” shall have the meanings respectively assigned to them in section 2††
of the Motor Vehicles Act, 1988 (59 of 1988);
(b) “vocation” includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying, repair work of any kind and other services of a similar nature.’
[2]Prior to its omission, section 115L, as inserted by
the Finance Act, 1992, w.e.f. 1-4-1993, read as under :
“115L. Return of income not to be filed in certain cases.—Subject to the provisions of section 115N, a person who has submitted a statement under sub-section (1) of section 115K shall not be required to furnish a return of income under sub-section (1) of section 139 and the other provisions of Chapter XIV will not apply in his case.”
[3]Prior to its omission, section 115M, as inserted by
the Finance Act, 1992, w.e.f. 1-4-1993, read as under :
“115M. Special provision for disallowance of deductions and rebate of income-tax.—No deduction under Chapter VI-A (except section 80L) or rebate of income-tax under Chapter VIII shall be allowed in the case of a person who has submitted a statement under sub-section (1) of section 115K.”
[4]Prior to its omission, section 115N, as inserted by the
Finance Act, 1992,w.e.f. 1-4-1993 and later on amended by the Finance Act,
1993, w.e.f. 1-4-1993 and the Finance Act, 1994, w.e.f. 1-4-1995, read as under :
“115N. Bar of proceedings in certain cases.—No proceeding under any other Chapter of this Act shall be initiated against any person who has submitted a statement under sub-section (1) of section 115K for the relevant assessment year unless the Deputy Commissioner, in consequence of evidence in his possession, has reason to believe that the statement furnished by any person under section 115K is untrue.”