CHAPTER XXIII
Miscellaneous
35[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 36[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.
281A. 37[R3] [Repealed by the Benami Transactions
(Prohibition) Act, 1988, w.e.f. 19-5-1988.]
38[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 39[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 40[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.
41[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 42[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 :
43[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 44[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 45[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.
285. [Omitted by the Finance Act, 1987, w.e.f. 1-6-1987.]
Information by contractors in certain cases.
285A. 46[R12] [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.]
47[R13] [Submission of statements by producers of cinematograph films.
285B. 48[R14] 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 49[R15] [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 50[R16] [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 51[R17] [***].]
The following section 285BA shall be inserted after section 285B by the
Finance Act, 2003, w.e.f. 1-4-2004 :
285BA. 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.
Information by
companies respecting shareholders to whom dividends have been paid.
286. [Omitted
by the Finance Act, 1987, w.e.f. 1-6-1987.]
52[R18] [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 53[R19] [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.
54[R20] [(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 55[R21] [* *
*] 56[R22] [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.]
57[R23] [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).]
58[R24] Appearance by authorised
representative.59[R25]
60[R26] 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.
61[R27] (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 India; or
(iv) an accountant;
or
(v) any person who
has passed any accountancy examination recognised in this behalf by the Board62[R28] ; or
(vi) any person who
has acquired such educational qualifications as the Board may prescribe63[R29] for this purpose; or
64[R30] [(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 65[R31] 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 22666[R32] 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 68[R34] [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) *[R35] , for such time as the 69[R36] [Chief Commissioner or Commissioner] may
by order determine in the case of a person referred to in sub-clause (b)*[R37] , and for the period during which the
insolvency continues in the case of a person referred to in sub-clause (c)
*[R38] .
(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;
70[R39] (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 authority71 [R40] 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).
72[R41] [Rounding off of income.
288A. 73[R42] [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.]
75[R44] [Rounding off of tax, etc.
76[R45] 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 77[R46] [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.
78[R47] [Section 360 of the Code of Criminal Procedure, 1973, and the Probation
of Offenders Act, 1958, not to apply.
292A. Nothing
contained in section 36079[R48] 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.]
80[R49] [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 81[R50] [***] 82[R51] [proceeding
taken83[R52] or]
order made under this Act; and no prosecution, suit or other proceeding shall
lie against 84[R53] [the
Government or] any officer of the Government for anything in good faith done or
intended to be done under this Act.
85[R54] [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
notification86[R55] 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 87[R56] [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.
88[R57] [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.]]
89[R58] [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 90[R59] [***]
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.
91[R60] [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*[R61] ,
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) 92[R62] 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)93[R63] income derived in part from agriculture
and in part from business;
(ii)94[R64] persons residing outside India;
95[R65] [(iii) an individual who is liable to be assessed under the provisions of
sub-section (2) of section 64;]
(c) 96[R66] 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) 97[R67] the percentage on the written down value
which may be allowed as depreciation in respect of buildings, machinery, plant
or furniture;
98[R68] [(dd) 99[R69] the extent to which, and the conditions
subject to which, any expenditure referred to in sub-section (3) of section 37
may be allowed;]
1[R70] [(dda) 2[R71] the matters specified in sub-sections (2)
and (3) of section 44AA;]
(e) the percentage
or the amount to be prescribed 3[R72] [under clause (i) of sub-section
(4) of section 80C*[R73] ];
4[R74] [(ee) 5[R75] 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) 6[R76] 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 139A7[R77] ;
(eec) 8[R78] the form of the report of audit and the
particulars which such report shall contain under sub-section (2A) of section
142;]
(f) 9[R79] the manner in which and the period to
which any such income as is referred to in section 180 may be allocated;
(g) 10[R80] the authority to be prescribed for any of
the purposes of this Act;
(h) 11[R81] 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) 11a[R82] the procedure to be followed on
applications for refunds;
12[R83] [(kk) 13[R84] 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) 14[R85] the regulation of any matter for which
provision is made in section 230;
(m) 15[R86] 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;
16[R87] [(mm) 17[R88] the circumstances in which, the conditions
subject to which and the manner in which, the 18[R89] [* * *] 19[R90] [Commissioner (Appeals)] may permit an
appellant to produce evidence which he did not produce or which he was not
allowed to produce before the 20[R91] [Assessing] Officer;]
21[R92] [(mma) 22[R93] the form in which the statement under
section 285B shall be delivered to the 20[R94] [Assessing] Officer;]
(n) 23[R95] the maintenance of a register of persons other
than legal practi-tioners 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.
24[R96] [(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.]
25[R97] [26[R98] [Rules and certain notifications to be placed before Parliament.
296. The
Central Government shall cause every rule made under this Act 27[R99] [,
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 assessment28
[R100] 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 accordingly29[R101] ;
(e) 30[R102] [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,31[R103]
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) 32[R104] any
notification issued under sub-section (1) of section 60 33[R105] [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 34[R106] [***]:
35[R106] [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.
36[R107] [(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 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.
[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 285A was amended by the Taxation Laws (Amendment) Act,
1975, w.e.f. 1-4-1976.
[R13]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R14]See
rule 121A and Form No. 52A for Form of Statement to be furnished by producer of
films.
[R15]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R16] 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
[R17]“as employee or otherwise” omitted by the Finance Act, 1989, w.e.f. 1-6-1989.
[R18]Substituted
by the Finance Act, 1964, w.e.f. 1-4-1964.
[R19] Inserted by the Taxation Laws (Amendment) Act,
1975, w.e.f. 1-10-1975
[R20]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R21] 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.
[R22]Inserted
by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R23]Inserted
by the Taxation Laws (Amendment) Act, 1972, w.e.f. 1-1-1973.
[R24]For
notifications issued by the Appellate Tribunal under this section, see Income-tax
Act.
[R25]See
rules 49 to 66 and Form Nos. 38 to 40.
[R26]See
also Circular No. 19-D (XL-62), dated 3-7-1964 and Letter [F. No. 21/4/63-IT],
dated 14-6-1963.
[R27]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
[R28]See rule 50.
[R29]See rule 51.
[R30] Inserted by the Taxation Laws (Extension to
Union Territories) Regulation, 1963, w.e.f. 1-4-1963.
[R31]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.
[R32] For text of section 226(2) of the Companies Act, 1956, see Appendix One.
[R33]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.”
[R34]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.
[R35]Should
be read as clause.
[R36]Substituted
for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R37]Should be read as clause.
[R38]Should be read as clause.
[R39]See rules 52 and 59 to 66.
[R40]The
prescribed authority under rule 52 is Chief Commissioner or Commissioner having
requisite jurisdiction.
[R41]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[R42]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.
[R43]Sub-section
(2) and Explanation, omitted by the Finance Act, 1968, w.e.f. 1-4-1969.
[R44]Inserted
by the Finance Act, 1966, w.e.f. 1-4-1966.
[R45]See
also Letter [F. No. 12/40/66-IT(B)], dated 25-1-1967
and Circular No. 49, dated 16-11-1970.
[R46] Inserted by the Finance Act, 1963, w.e.f.
28-4-1963.
[R47]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-11-1975.
[R48]For
text of section 360 of the Code of Criminal Procedure, 1973, see
Appendix One.
[R49]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R50] “assessment” omitted by the Finance Act, 1987, w.r.e.f. 1-3-1987.
[R51]Inserted by the Finance Act,
1988, w.r.e.f. 1-3-1988.
[R52]For the meaning of the expression “proceeding taken”,
[R53] Inserted by the Finance Act, 1964, w.e.f.
1-4-1964.
[R54]Inserted
by the Finance Act, 1981, w.e.f. 1-4-1981.
[R55]For
notifications issued under this section,
[R56] Inserted by the Finance Act, 1995, w.r.e.f.
1-4-1993.
[R57]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.’
[R58]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R59]Words
‘or super-tax’ omitted by the Finance Act, w.e.f. 1-4-1965.
[R60]Inserted
by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f.
1-4-1963.
[R61]Goa
has now become a State.
[R62]See
rules 9A and 9B.
[R63]See
rules 7 and 8.
[R64]See
rules 10 and 11.
[R65]Inserted
by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R66]See
rule 3.
[R67]See
rule 5.
[R68] Inserted by the Finance Act, 1964, w.e.f.
1-4-1964.
[R69]See
rules 6AC, 6B and 6D (now omitted).
[R70]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R71]See
rule 6F.
[R72]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.
[R73]Now
replaced by section 88.
[R74]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R75] See rule 11B.
[R76]See
rule 114 and Form No. 49A.
[R77]See
rules 114B to 114D and Form Nos. 60 & 61.
[R78]See
rule 14A and Form No. 6B.
[R79]See
rule 9(2).
[R80]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.
[R81]See
rules 44G and 44H and Form No. 34F.
[R82]See
rule 41.
[R83]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R84]See rule 119A.
[R85]See
rules 42, 43 and 44 and Form Nos. 31 to 34.
[R86]See
rules 45, 46 and 47 and Form Nos. 35 to 36A
[R87]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1972.
[R88]See rule 46A.
[R89]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.
[R90]Inserted
by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R91]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R92]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R93]See
rule 121A and Form No. 52A.
[R94]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R95]See rules 52 to 66.
[R96]Inserted
by the Direct Taxes (Amendment) Act, 1974, w.e.f. 18-8-1974.
[R97]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.
[R98] Substituted by the Taxation Laws (Amendment)
Act, 1975, w.e.f. 1-4-1976.
[R99]Inserted
by the Finance Act, 1994, w.e.f. 1-6-1994.
[R100] For the meaning of the expression “proceedings
for the reassessment”,
[R101]For
the meaning of the expression “all the provisions of this Act shall apply
accordingly”,
[R102]Inserted
by the Finance Act, 1963, with retrospective effect from 1-4-1962.
[R103]For the meaning of the expression “computed assessment”,
[R104]For exemptions notified under section 60(1) of the 1922 Act, which continued to be in force under this clause, see Direct Taxes Circulars.
[R105]Inserted
by the Finance Act, 1966, w.r.e.f. 1-4-1962.
[R106]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.
[R107]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.