CHAPTER XXIII
MISCELLANEOUS
6[R1] [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 7[R2] [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.
8[R3] 281A. [Repealed by the Benami Transactions (Prohibition) Act, 1988, w.e.f. 19-5-1988.]
9[R4] [Provisional
attachment to protect revenue in certain cases.
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 10[R5] [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 11[R6] [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.
12[R7] [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 13[R8] [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 :
14[R9] [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 15[R10] [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 16[R11] [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.
16a[R12] 285. [Omitted by the Finance Act, 1987, w.e.f. 1-6-1987.]
Information by contractors in certain cases.
17[R13] 285A. [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.]
18[R14] [Submission
of statements by producers of cinematograph films.
285B.
19[R15] 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 20[R16] [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 21[R17] [twenty-five]
thousand rupees in the aggregate made by him or due from him to each such
person as is engaged by him in such production 22[R18] [***].]
Information by companies respecting shareholders to whom dividends
have been paid.
22a[R19] 286. [Omitted by the Finance Act, 1987, w.e.f.
1-6-1987.]
]23[R20] [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 24[R21] [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.
25[R22] (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 26[R23] [* * *] 27[R24] [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.]
28[R25] [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).]
29[R26] Appearance by authorised representative. 30[R27]
31[R28] 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.
32[R29] (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 Board33[R30] ; or
(vi) any person who
has acquired such educational qualifications as the Board may prescribe34[R31] for this
purpose; or
35[R32] (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 36[R33] 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 22637[R34] of the Companies
Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of
companies registered in that State.
(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 39[R36] [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)*, for such time as the 40[R37] [Chief
Commissioner or Commissioner] may by order determine in the case of a person
referred to in sub-clause (b)*, and for the period during which
the insolvency continues in the case of a person referred to in sub-clause (c)*.
(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 practise as a legal
practitioner or accountant, as the case may be;
41[R38] (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 authority42[R39] 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).
43[R40] [Rounding
off of income.
0288A.
44[R41] [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.]
46[R43] [Rounding
off of tax, etc.
47[R44] 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.]
Receipt to be given.
289. A receipt shall be given for any
money paid or recovered under this Act.
Indemnity.
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 48[R45] [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.
Cognizance of offences.
292. No court inferior to that of a presidency
magistrate or a magistrate of the first class shall try any offence under this
Act.
49[R46] [Section
360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders
Act, 1958, not to apply.
292A.
Nothing contained in section
36050[R47] 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.]
51[R48] [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.]
Bar of
suits in civil courts.
293. No suit shall be brought in any
civil court to set aside or modify any 52[R49] [***]53[R50] [proceeding taken
or] order made under this Act; and no prosecution, suit or other proceeding
shall lie against 54[R51] [the Government
or] any officer of the Government for anything in good faith done or intended
to be done under this Act.
55[R52] [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 notification56[R53] 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 57[R54] [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.
58[R55] [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.]]
59[R56] [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 60[R57] [***] 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.
61[R58] [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*, 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) 62[R59] 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) 63[R60] income derived in part from agriculture and in part from
business;
(ii) 64[R61] persons residing
outside
65[R62] (iii) an individual who is liable to be
assessed under the provisions of sub-section (2) of section 64;]
(c) 66[R63] 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) 67[R64] the percentage on
the written down value which may be allowed as depreciation in respect of
buildings, machinery, plant or furniture;
68[R65] (dd) 69[R66] the extent to
which, and the conditions subject to which, any expenditure referred to in
sub-section (3) of section 37 may be allowed;]
70[R67] [(dda) 71[R68] the matters
specified in sub-sections (2) and (3) of section 44AA;]
(e) the percentage or the amount to be prescribed 72[R69] [under clause (i) of
sub-section (4) of section 80C*];
73[R70] [(ee) 74[R71] 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) 75[R72] 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 139A75a[R73] ;
(eec) 76[R74] the form of the
report of audit and the particulars which such report shall contain under
sub-section (2A) of section 142;]
(f) 77[R75] the manner in
which and the period to which any such income as is referred to in section 180 may
be allocated;0
(g) 78[R76] the authority to
be prescribed for any of the purposes of this Act;
(h) 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) 79[R77] the procedure to
be followed on applications for refunds;
80[R78] [(kk) 81[R79] 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) 82[R80] the regulation of
any matter for which provision is made in section 230;
(m) 83[R81] 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;
84[R82] [(mm) 85[R83] the circumstances
in which, the conditions subject to which and the manner in which, the 86[R84] [* * *] 87[R85] [Commissioner
(Appeals)] may permit an appellant to produce evidence which he did not produce
or which he was not allowed to produce before the 88[R86] [Assessing]
Officer;]
89[R87] [(mma) 90[R88] the form in which
the statement under section 285B shall be delivered to the 88[R89] [Assessing]
Officer;]
(n) 91-92[R90] 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.
93[R91] [(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.]
94[R92] [95[R93] [Rules
and certain notifications to be placed before Parliament.
296. The Central Government shall
cause every rule made under this Act 96[R94] [, 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.]]
Repeals and savings.
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 assessment 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 accordingly;
(e) 97[R95] [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, 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) 98[R96] any notification
issued under sub-section (1) of section 60 99[R97] [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 1[R98] [***]:
2[R99] [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.
Power to remove difficulties.
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.
3[R100] (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.]
[R1]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R2]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R3]Prior to its repeal, section 281A, as 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, stood as under :
“(1) No suit to enforce any right in respect of any property held benami, whether against the person in whose name the property is held or against any other person, shall be instituted in any court by or on behalf of a person (hereafter in this section referred to as the claimant) claiming to be the real owner of such property unless notice in the prescribed form and containing the prescribed particulars in respect of the property has been given by the claimant within a period of one year from the date of acquisition of the property to the Chief Commissioner or Commissioner.
(1A) Where any such property is acquired by the claimant before the 1st day of March, 1984, the provisions of sub-section (1) shall be deemed to have been fulfilled if notice in the prescribed form and containing the prescribed particulars in respect of the property is given by the claimant, within a period of one year from the said date, to the Chief Commissioner or Commissioner.
(1B) Notwithstanding anything contained in sub-section (1) or sub-section (1A), in relation to any suit relating to any immovable property of a value not exceeding fifty thousand rupees, the provisions of sub-section (1) or, as the case may be, sub-section (1A), shall be deemed to have been fulfilled if, at any time before the suit, notice in the prescribed form and containing the prescribed particulars in respect of the property has been given by the claimant to the Chief Commissioner or Commissioner.
(2) The Chief Commissioner or Commissioner shall, on an application made in the prescribed manner, by the claimant or any person acting on his behalf or claiming under him, and on payment of the prescribed fees, issue, for the purposes of a suit referred to in sub-section (1), a certified copy of any notice given by the claimant under sub-section (1) or sub-section (1A) or sub-section (1B), within fourteen days from the date of receipt of the application.
(3) This section shall not apply to any suit of a value not exceeding two thousand rupees which is tried by,—
(a) a Court of Small Causes constituted under the Presidency Small Cause Courts Act, 1882 (15 of 1882), or the Provincial Small Cause Courts Act, 1887 (9 of 1887) ; or
(b) a court invested with the jurisdiction of a Court of Small Causes, by or under any enactment for the time being in force, in the exercise of such jurisdiction.”
[R4]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R5]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R6]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.
[R7]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.
[R8]. 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.
[R9]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.
[R10]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R11]Substituted for “Income-tax”, by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R12]Prior to its omission, section 285 stood as under :
‘The person responsible for paying any interest, not being “interest on securities”, shall, on or before the fifteenth day of June in each year, furnish to the Income-tax Officer having jurisdiction to assess him, a return in the prescribed form and verified in the prescribed manner of the names and addresses of all persons to whom during the previous financial year he has paid interest or aggregate interest exceeding such amount, not being less than four hundred rupees, as may be prescribed in this behalf, together with the amount paid to each such person.’
[R13]Prior to its omission, section 285A, as amended by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, stood as under :
“(1) Where any person (hereinafter referred to as the contractor) enters into a contract with another person for carrying out any work or for the supply of goods or services in connection therewith, the value of which work or supply or both exceeds fifty thousand rupees, he shall, within one month of the making of the contract, furnish to the Income-tax Officer having jurisdiction to assess the contractor such particulars relating to the contract and in such form as may be prescribed.
(2) Without prejudice to the provisions of any other law for the time being in force, where any contractor contravenes the provisions of sub-section (1), the Commissioner may impose upon him such fine not exceeding fifty rupees as he thinks fit for every day during which the contravention continues, so, however, that the amount of fine so imposed shall not, in the aggregate, exceed twenty-five per cent of the value of the contract.
(3) The Commissioner shall, on making an order under this section imposing a fine, forthwith send a copy of the same to the Income-tax Officer.”
[R14]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R15]See rule 121A and Form No. 52A for Form of Statement to be furnished by producer of films.
[R16]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R17]“as employee or otherwise” omitted by the Finance Act, 1989, w.e.f. 1-6-1989.
[R18]Substituted for “five” by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.
[R19]Prior to its omission, section 286 stood as under :
“The principal officer of every company which is an Indian company or a company which has made such arrangements as may be prescribed for the declaration and payment of dividends in India, shall, on or before the fifteenth day of June in each year, furnish to the prescribed officer a return in the prescribed form and verified in the prescribed manner of the names and of the addresses, as entered in the register of shareholders maintained by the company, of the shareholders to whom a dividend or aggregate dividends exceeding such amount as may be prescribed in this behalf has or have been distributed during the preceding year and of the amount so distributed to each shareholder.”
[R20]Substituted by the Finance Act, 1964, w.e.f. 1-4-1964.
[R21]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R22]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R23]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.
[R24]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R25]Inserted by the Taxation Laws (Amendment) Act, 1972, w.e.f. 1-1-1973.
[R26]For notifications issued by the Appellate Tribunal under this section,
[R27]See rules 49 to 66 and Form Nos. 38 to 40.
[R28]See also Circular No. 19-D (XL-62), dated 3-7-1964 and Letter [F. No. 21/4/63-IT], dated 14-6-1963.
[R29]See rule 12A for 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.
[R30]Rule 50.
[R31]Rule 51.
[R32]Inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963.
[R33]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.
[R34]For text of section 226(2) of the Companies Act, 1956,
[R35]Omitted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. Prior to its omission, sub-section (3) stood as under :
“(3) Notwithstanding anything contained in this section, if the authorised representative is a person formerly employed as an income-tax authority, not below the rank of Income-tax Officer, and has retired or resigned from such employment after having served for not less than three years in any capacity under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), from the date of his first employment as such, he shall not be entitled to represent any assessee for a period of two years from the date of his retirement or resignation, as the case may be.”
[R36]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.
[R37]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R38]See rules 52 and 59 to 66.
[R39]The prescribed authority under rule 52 is Chief Commissioner or Commissioner having requisite jurisdiction.
[R40]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R41]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.
[R42]Sub-section (2) and Explanation, omitted, by the Finance Act, 1968, w.e.f. 1-4-1969.
[R43]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R44]See also Letter [F. No. 12/40/66-IT(B)], dated 25-1-1967 and Circular No. 49, dated 16-11-1970.
[R45]Inserted by the Finance Act, 1963, w.e.f. 28-4-1963.
[R46]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R47]For text of section 360 of the Code of Criminal Procedure, 1973,
[R48]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R49]“assessment” omitted by the Finance Act, 1987, w.r.e.f. 1-3-1987.
[R50]Inserted by the Finance Act, 1988, w.r.e.f. 1-3-1988.
[R51]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[R52]Inserted by the Finance Act, 1981, w.e.f. 1-4-1981.
[R53]For notifications issued under this section,
[R54]Inserted by the Finance Act, 1995, w.r.e.f. 1-4-1993.
[R55]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.’
[R56]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R57]“or super-tax” omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R58]Inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963.
[R59]See rules 9A and 9B.
[R60]See rules 7 and 8.
[R61]See rules 10 and 11.
[R62]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R63]See rule 3.
[R64]See rule 5.
[R65]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[R66]See rules 6AC, 6B and 6D.
[R67]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R68]See rule 6F.
[R69]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.
[R70]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R71]See rule 11B.
[R72]See rule 114 and Form No. 49A.
[R74]See rule 14A and Form No. 6B.
[R75]See rule 9(2).
[R76]See rules 2C, 2D, 2E, 5A, 6, 6AAA, 6AAC, 11DD, 11L, 16A, 16B, 16C, 18AAA, 18AAB, 18BBA, 18BBC, 18BBD, 18C, 20, 20A, 36A, 37F, 52 and 114D.
[R77]See rule 41.
[R78]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R79]See rule 119A.
[R80]See rules 42, 43 and 44 and Form Nos. 31 to 34.
[R81]See rules 45, 46 and 47 and Form Nos. 35 to 36A.
[R82]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[R83]See rule 46A.
[R84]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.
[R85]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R86]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R87]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R88]See rule 121A and Form No. 52A.
[R89]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R90]See rules 52to 66.
[R91]Inserted by the Direct Taxes (Amendment) Act, 1974, w.e.f. 18-8-1974.
[R92]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.
[R93]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R94]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[R95]Inserted by the Finance Act, 1963, with retrospective effect from 1-4-1962.
[R96]For exemptions notified under section 60(1) of the 1922 Act, which continued to be in force under this clause.
[R97]Inserted by the Finance Act, 1966, w.r.e.f. 1-4-1962.
[R98]“until rescinded by the Central Government” omitted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.e.f. 9-9-1972.
[R99]Inserted by the Rulers of Indian States (Abolition of Privileges) Act, 1972, w.e.f. 9-9-1972.