CHAPTER XV
LIABILITY IN SPECIAL CASES
A.—Legal representatives
(1) Where a person dies, his legal representatives shall be
liable to pay any sum which the deceased would have been liable to pay if he
had not died, in the like manner and to the same extent as the deceased.
(2) For the purpose of making an assessment
(including an assessment, reassessment or recomputation
under section 147) of the income of the deceased and for the purpose of levying
any sum in the hands of the legal representative in accordance with the
provisions of sub-section (1),—
(a) Any proceeding taken
against the deceased before his death shall be deemed to have been taken
against the legal representative and may be continued against the legal
representative from the stage at which it stood on the date of the death of the
deceased;
(b) Any proceeding which
could have been taken against the deceased if he had survived, may be taken
against the legal representative; and
(c) All the provisions
of this Act shall apply accordingly.
(3) The legal representative of the deceased
shall, for the purposes of this Act, be deemed to be an assessee.
(4) Every legal representative shall be
personally liable for any tax payable by him in his capacity as legal
representative if, while his liability for tax remains undercharged, he creates
a charge on or disposes of or parts with any assets of the estate of the
deceased, which are in, or may come into, his possession, but such liability
shall be limited to the value of the asset so charged, disposed of or parted
with.
(5) The provisions of sub-section (2) of
section 161, section 162 and section 167 shall, so far as may be and to the
extent to which they are not inconsistent with the provisions of this section,
apply in relation to a legal representative.
(6) The liability of a legal representative
under this section shall, subject to the provisions of sub-section (4) and
sub-section (5), be limited to the extent to which the estate is capable of
meeting the liability.
B.—Representative assessees — General provisions
160. Representative assessee:-
(1) For the purposes of this Act,
"representative assessee" means—
(i) In
respect of the income of a non-resident specified in 1[J1] [* * *] sub-section (1) of section 9, the agent of the
non-resident, including a person who is treated as an agent under section 163;
(ii) In respect of the
income of a minor, lunatic or idiot, the guardian or manager who is entitled to
receive or is in receipt of such income on behalf of such minor, lunatic or
idiot;
(iii) In respect of
income which the Court of Wards, the Administrator-General, the Official
Trustee or any receiver or manager (including any person whatever his
designation, who in fact manages property on behalf of another) appointed by or
under any order of a court, receives or is entitled to receive, on behalf or
for the benefit of any person, such Court of Wards, Administrator-General,
Official Trustee, receiver or manager;
(iv) In respect of income
which a trustee appointed under a trust declared by a duly executed instrument
in writing whether testamentary or otherwise [including any wakf
deed which is valid under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] receives or is entitled
to receive on behalf or for the benefit of any person, such trustee or
trustees;
2[J2] [(v) In
respect of income which a trustee appointed under an oral trust receives or is
entitled to receive on behalf or for the benefit of any person, such trustee or
trustees.
Explanation 1.—A trust which is
not declared by a duly executed instrument in writing [including any wakf deed which is valid under the Mussalman
Wakf Validating Act, 1913 (6 of 1913),] shall be
deemed, for the purposes of clause (iv), to be a trust declared by a
duly executed instrument in writing if a statement in writing, signed by the
trustee or trustees, setting out the purpose or purposes of the trust,
particulars as to the trustee or trustees, the beneficiary or beneficiaries and
the trust property, is forwarded to the 3[J3] [Assessing] Officer,—
(i) Where
the trust has been declared before the 1st day of June, 1981, within a period
of three months from that day; and
(ii) In any other case,
within three months from the date of declaration of the trust.
Explanation 2.—For the purposes of
clause (v), "oral trust" means a trust which is not declared
by a duly executed instrument in writing [including any wakf
deed which is valid under the Mussalman Wakf Validating Act, 1913 (6 of 1913),] and which is not
deemed under Explanation 1 to be a trust declared by a duly executed
instrument in writing.]
(2) Every representative assessee shall be
deemed to be an assessee for the purposes of this Act.
161. Liability of representative assessee1[J4] :-
(1) Every representative assessee, as regards the income in respect of which he is a representative assessee, shall be subject to the same duties, responsibilities and liabilities as if the income were income received by or accruing to or in favour of him beneficially, and shall be liable to assessment in his own name in respect of that income; but any such assessment shall be deemed to be made upon him in his representative capacity only, and the tax shall, subject to the other provisions contained in this Chapter, be levied upon and recovered from him in like manner and to the same extent as it would be leviable upon and recoverable from the person represented by him.
2[J5] [(1A) Notwithstanding
anything contained in sub-section (1), where any income in respect of which the
person mentioned in clause (iv) of sub-section (1) of section 160 is
liable as representative assessee consists of, or includes, profits and gains
of business, tax shall be charged on the whole of the income in respect of
which such person is so liable at the maximum marginal rate:
Provided that the
provisions of this sub-section shall not apply where such profits and gains are
receivable under a trust declared by any person by will exclusively for the
benefit of any relative dependent on him for support and maintenance, and such
trust is the only trust so declared by him.
[Explanation omitted by the Finance (No.
2) Act, 1991, w.e.f. 1-4-1991.]
(2) Where any
person is, in respect of any income, assessable under this Chapter in the
capacity of a representative assessee, he shall not, in respect of that income,
be assessed under any other provision of this Act.
162.
Right of representative assessee to recover tax paid:-
(1) Every representative assessee who, as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on whose behalf it is paid, or to retain out of any moneys that may be in his possession or may come to him in his representative capacity, an amount equal to the sum so paid.
(2) Any
representative assessee, or any person who apprehends that he may be assessed
as a representative assessee, may retain out of any money payable by him to the
person on whose behalf he is liable to pay tax (hereinafter in this section
referred to as the principal), a sum equal to his estimated liability under this
Chapter, and in the event of any disagreement between the principal and such
representative assessee or person as to the amount to be so retained, such
representative assessee or person may secure from the 1[J6] [Assessing] Officer a certificate stating the amount to be
so retained pending final settlement of the liability, and the certificate so
obtained shall be his warrant for retaining that amount.
(3) The amount recoverable from such representative assessee or person at the time of final settlement shall not exceed the amount specified in such certificate, except to the extent to which such representative assessee or person may, at such time, have in his hands additional assets of the principal.
C.—Representative assessees — Special cases
163. Who may be regarded as agent1[J7] :-
(1) For the purposes of this Act,
"agent", in relation to a non-resident, includes any person in India—
(a) Who is employed by
or on behalf of the non-resident; or
(b) Who has any business
connection with the non-resident; or
(c) From or through whom
the non-resident is in receipt of any income, whether directly or indirectly;
or
(d) Who is the trustee
of the non-resident; and includes also any other person who, whether a resident
or non-resident, has acquired by means of a transfer, a
capital asset in India:
Provided that a broker in India who, in respect of any
transactions, does not deal directly with or on behalf of a non-resident
principal but deals with or through a non-resident broker shall not be deemed
to be an agent under this section in respect of such transactions, if the
following conditions are fulfilled, namely:—
(i) The
transactions are carried on in the ordinary course of business through the
first-mentioned broker; and
(ii) The non-resident
broker is carrying on such transactions in the ordinary course of his business
and not as a principal.
2[J8] [Explanation.—For the purposes of this
sub-section, the expression "business connection" shall have the
meaning assigned to it in Explanation 2 to clause (i)
of sub-section (1) of section 9 of this Act.]
(2) No person shall be treated as the agent
of a non-resident unless he had had an opportunity of being heard by the 3[J9] [Assessing] Officers as to his liability to be treated as
such.
DEPARTMENTAL
VIEW
1. Under the provisions of this section, any person from or
through whom the non-resident is in receipt of any
income, whether directly or indirectly, can be regarded as an agent in relation
to the non-resident. Accordingly, the company itself employing a non-resident
who has left India without claiming refund of taxes borne by the employer can
file the return and can be assessed in its own name in respect of that income
under section 161(1) and claim the refund. [Circular No. 707, dated
11-7-1995]
1[J10] [164.
Charge of tax where share of beneficiaries’ unknown2[J11] :-
(1) 3[J12] [Subject to the
provisions of sub-sections (2) and (3), where] any income in respect of which
the persons mentioned in clauses (iii) and (iv) of sub-section
(1) of section 160 are liable as representative assessees or any part thereof
is not specifically receivable on behalf or for the benefit of any one person
or where the individual shares of the persons on whose behalf or for whose
benefit such income or such part thereof is receivable are indeterminate or
unknown (such income, such part of the income and such persons being hereafter
in this section referred to as "relevant income", "part of
relevant income" and "beneficiaries", respectively), 4[J13] [tax shall be
charged on the relevant income or part of relevant income at the maximum
marginal rate:]
Provided that in a case where—
5[J14] [(i) None of the beneficiaries has any other income chargeable
under this Act exceeding the maximum amount not chargeable to tax in the case
of an 6[J15] [association of
persons] or is a beneficiary under any other trust; or]
(ii) The relevant income
or part of relevant income is receivable under 7[J16] [a trust declared
by any person by will and such trust is the only trust so declared by him]; or
(iii) The relevant income
or part of relevant income is receivable under a trust created before the 1st
day of March, 1970, by a non-testamentary instrument and the 8[J17] [Assessing]
Officer is satisfied, having regard to all the circumstances existing at the
relevant time, that the trust was created bona fide exclusively for the
benefit of the relatives of the settlor, or where the
settlers is a Hindu undivided family, exclusively for the benefit of the
members of such family, in circumstances where such relatives or members were
mainly dependant on the settlor for their support and
maintenance; or
(iv) The relevant income
is receivable by the trustees on behalf of a provident fund, superannuation
fund, gratuity fund, pension fund or any other fund created bona fide by
a person carrying on a business or profession exclusively for the benefit of
persons employed in such business or profession, tax shall be charged 9[J18] [on the relevant
income or part of relevant income as if it] were the total income of an 10[J19] [association of
persons]:
11[J20] [Provided further
that where any income in respect of which the person mentioned in clause (iv)
of sub-section (1) of section 160 is liable as representative assessee consists
of, or includes, profits and gains of business, the preceding proviso shall
apply only if such profits and gains are receivable under a trust declared by
any person by will exclusively for the benefit of any relative dependant on him
for support and maintenance, and such trust is the only trust so declared by
him.]
12[J21] [(2) In the case of relevant income which is
derived from property held under trust wholly for charitable or religious
purposes, 13[J22] [or which is of
the nature referred to in sub-clause (iia) of
clause (24) of section 2], 14[J23] [or which is of
the nature referred to in sub-section (4A) of section 11,] tax shall be charged
on so much of the relevant income as is not exempt under section 11 15[J24] [or section 12],
as if the relevant income not so exempt were the income of an association of
persons:
16[J25] [Provided
that in a case where the whole or any part of the relevant income is not exempt
under section 11 or section 12 by virtue of the provisions contained in clause
(c) or clause (d) of sub-section (1) of section 13, tax shall be
charged on the relevant income or part of relevant income at the maximum
marginal rate.]]
17[J26] [(3) In a case where the relevant income is
derived from property held under trust in part only for charitable or religious
purposes 18[J27] [or is of the
nature referred to in sub-clause (iia) of
clause 24 of section 2] 19[J28] [or is of the
nature referred to in sub-section (4A) of section 11,] and either the relevant
income applicable to purposes other than charitable or religious purposes (or
any part thereof) 20[J29] [is not
specifically receivable on behalf or for the benefit of any one person or the
individual shares of the beneficiaries in the income so applicable are
indeterminate or unknown, the tax chargeable on the relevant income shall be
the aggregate of—
(a) the tax which would
be chargeable on that part of the relevant income which is applicable to
charitable or religious purposes (as reduced by the income, if any, which is
exempt under section 11) as if such part (or such part as so reduced) were the
total income of an association of persons; and
(b) the tax on that part
of the relevant income which is applicable to purposes other than charitable or
religious purposes, and which is either not specifically receivable on behalf
or for the benefit of any one person or in respect of which the shares of the
beneficiaries are indeterminate or unknown, at the maximum marginal rate:]
Provided that in a case where—
21[J30] [(i) none of the beneficiaries in respect of the part
of the relevant income which is not applicable to charitable or religious
purposes has any other income chargeable under this Act exceeding the maximum
amount not chargeable to tax in the case of an association of persons or is a
beneficiary under any other trust; or]
(ii) The relevant income
is receivable under 22[J31] [a trust declared
by any person by will and such trust is the only trust so declared by him]; or
(iii) The relevant income
is receivable under a trust created before the 1st day of March, 1970, by a
non-testamentary instrument and the 23[J32] [Assessing]
Officer is satisfied, having regard to all the circumstances existing at the
relevant time, that the trust, to the extent it is not for charitable or
religious purposes, was created bona fide exclusively for the benefit of
the relatives of the settlers, or where the settlers is a Hindu undivided
family, exclusively for the benefit of the members of such family, in
circumstances where such relatives or members were mainly dependant on the
settlers for their support and maintenance, tax shall be charged 24[J33] [on the relevant
income] as if the relevant income (as reduced by the income, if any, which is
exempt under section 11) were the total income of an association of persons:]
25[J34] [Provided
further that where the relevant income consists of, or includes, profits and
gains of business, the preceding proviso shall apply only if the income is
receivable under a trust declared by any person by will exclusively for the
benefit of any relative dependant on him for support and maintenance, and such
trust is the only trust so declared by him:
Provided also that in a case where the whole or any part of the
relevant income is not exempt under section 11 or section 12 by virtue of the
provisions contained in clause (c) or clause (d) of sub-section
(1) of section 13, tax shall be charged on the relevant income or part of
relevant income at the maximum marginal rate.]]
26[J35] [Explanation
1.—For the purposes of this section,—
(i) any
income in respect of which the persons mentioned in clause (iii) and
clause (iv) of sub-section (1) of section 160 are liable as
representative assessee or any part thereof shall be deemed as being not
specifically receivable on behalf or for the benefit of any one person unless
the person on whose behalf or for whose benefit such income or such part
thereof is receivable during the previous year is expressly stated in the order
of the court or the instrument of trust or wakf deed,
as the case may be, and is identifiable as such on the date of such order, instrument
or deed;
(ii) the individual
shares of the persons on whose behalf or for whose benefit such income or such
part thereof is received shall be deemed to be indeterminate or unknown unless
the individual shares of the persons on whose behalf or for whose benefit such
income or such part thereof is receivable, are expressly stated in the order of
the court or the instrument of trust or wakf deed, as
the case may be, and are ascertainable as such on the date of such order,
instrument or deed.
[Explanation
2. — Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. It
was inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.]
DEPARTMENTAL
VIEW
1. Income of a trust declared by any person by will where such
trust is the only trust so declared by him will continue to be charged to tax
in the manner prescribed in the first proviso to section 164(1). [Circular
No. 577, dated 4th September, 1990]
1[J36] [164A. Charge of tax in case of oral trust:-
Where a trustee receives or
is entitled to receive any income on behalf or for the benefit of any person
under an oral trust, then, notwithstanding anything contained in any other
provision of this Act, tax shall be charged on such income at the maximum
marginal rate.
Explanation. — For the
purposes of this section,—
[(i) Omitted by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1989.]
(ii) "Oral
trust" shall have the meaning assigned to it in Explanation 2 below
sub-section (1) of section 160.]
165. Case where part of trust income is chargeable:-
Where part only of the
income of a trust is chargeable under this Act, that proportion only of the
income receivable by a beneficiary from the trust which the part so chargeable
bears to the whole income of the trust shall be deemed to have been derived from
that part.
D.—Representative assessees — Miscellaneous provisions
166. Direct assessment or recovery not barred1[J37] :-
Nothing in the foregoing
sections in this Chapter shall prevent either the direct assessment of the
person on whose behalf or for whose benefit income therein referred to is receivable, or the recovery from such person of the tax
payable in respect of such income.
DEPARTMENTAL
VIEW
1. The general principle is to charge all income only once.
The Assessing Officer should keep this point in view at the time of raising the
initial assessment either of the trust or the beneficiaries and adopt a course
beneficial to the Revenue. Having exercised his option once it will not be open
to the Assessing Officer to assess the same income for that assessment year in
the hands of the other person. [Circular No. 157, dated 26th December, 1974]
167. Remedies against property in cases
of representative assessees:-
The 1[J38] [Assessing] Officer shall have the same remedies against all property of any kind vested in or under the control or management of any representative assessee as he would have against the property of any person liable to pay any tax, and in as full and ample a manner, whether the demand is raised against the representative assessee or against the beneficiary direct.
1[J39] [DD.—Firms, association of persons and body of individuals
167A. Charge of tax in the case of a
firm:-
In the case of a firm which is assessable as a firm, tax shall be charged on its total income at the 2[J40] [rate as specified in the Finance Act of the relevant year].]
1[J41] [167B.
Charge of tax where shares of members in association of persons or body of
individuals unknown, etc.2[J42] :-
(1) Where the
individual shares of the members of an association of persons or body of
individuals (other than a company or a co-operative society or a society
registered under the Societies Registration Act, 1860 (21 of 1860), or under
any law corresponding to that Act in force in any part of India) in the whole
or any part of the income of such association or body are indeterminate or
unknown, tax shall be charged on the total income of the association or body at
the maximum marginal rate:
Provided that, where the total income of any member of such association or body is chargeable to tax at a rate which is higher than the maximum marginal rate, tax shall be charged on the total income of the association or body at such higher rate.
(2) Where, in the case of an association of persons or body of individuals as aforesaid [not being a case falling under sub-section (1)],—
(i) the total income of any member thereof for the previous year (excluding his share from such association or body) exceeds the maximum amount which is not chargeable to tax in the case of that member under the Finance Act of the relevant year, tax shall be charged on the total income of the association or body at the maximum marginal rate;
(ii) any
member or members thereof is or are chargeable to tax at a rate or rates which
is or are higher than the maximum marginal rate, tax shall be charged on that
portion or portions of the total income of the association or body which is or
are relatable to the share or shares of such member or members at such higher
rate or rates, as the case may be, and the balance of the total income of the
association or body shall be taxed at the maximum marginal rate.
Explanation.—For the purposes of this section, the individual shares of
the members of an association of persons or body of individuals in the whole or
any part of the income of such association or body shall be deemed to be
indeterminate or unknown if such shares (in relation to the whole or any part
of such income) are indeterminate or unknown on the date of formation of such
association or body or at any time thereafter.]
E.—Executors
(1) Subject as hereinafter provided, the
income of the estate of deceased person shall be chargeable to tax in the hands
of the executor,—
(a) If there is only one
executor, then, as if the executor were an individual; or
(b) If there are more
executors than one, then, as if the executors were an association of persons;
and for the purposes of this Act, the executor shall be deemed to be resident
or non-resident according as the deceased person was a resident or non-resident
during the previous year in which his death took place.
(2) The assessment of an executor under this
section shall be made separately from any assessment that may be made on him in
respect of his own income.
(3) Separate assessments shall be made under
this section on the total income of each completed previous year or part
thereof as is included in the period from the date of the death to the date of
complete distribution to the beneficiaries of the estate according to their
several interests.
(4) In computing the total income of any
previous year under this section, any income of the estate of that previous
year distributed to, or applied to the benefit of, any specific legatee of the
estate during that previous year shall be excluded; but the income so excluded
shall be included in the total income of the previous year of such specific
legatee.
Explanation.—
In this section, "executor"
includes an administrator or other person administering the estate of a
deceased person.
169. Right of executor to recover tax paid:-
The provisions of section
162 shall, so far as may be, apply in the case of an executor in respect of tax
paid or payable by him as they apply in the case of a representative assessee.
F.—Succession to business or profession
170. Succession to business otherwise than on death:-
(1) Where a person carrying on any business
or profession (such person hereinafter in this section being referred to as the
predecessor) has been succeeded therein by any other person (hereinafter in
this section referred to as the successor) who continues to carry on that
business or profession,—
(a) The predecessor
shall be assessed in respect of the income of the previous year in which the
succession took place up to the date of succession;
(b) The successor shall
be assessed in respect of the income of the previous year after the date of
succession.
(2) Notwithstanding anything contained in
sub-section (1), when the predecessor cannot be found, the assessment of the
income of the previous year in which the succession took place up to the date
of succession and of the previous year preceding that year shall be made on the
successor in like manner and to the same extent as it would have been made on
the predecessor, and all the provisions of this Act shall, so far as may be,
apply accordingly.
(3) When any sum payable under this section
in respect of the income of such business or profession for the previous year
in which the succession took place up to the date of succession or for the
previous year preceding that year, assessed on the predecessor, cannot be
recovered from him, the 1[J43] [Assessing]
Officer shall record a finding to that effect and the sum payable by the
predecessor shall thereafter be payable by and recoverable from the successor,
and the successor shall be entitled to recover from the predecessor any sum so
paid.
(4) Where any business or profession carried
on by a Hindu undivided family is succeeded to, and simultaneously with the
succession or after the succession there has been a partition of the joint
family property between the members or groups of members, the tax due in
respect of the income of the business or profession succeeded to, up to the
date of succession, shall be assessed and recovered in the manner provided in
section 171, but without prejudice to the provisions of this section.
Explanation.—For the purposes of this section, "income" includes
any gain accruing from the transfer, in any manner whatsoever, of the business
or profession as a result of the succession.
G.—Partition
171. Assessment after partition of a Hindu undivided family:-
(1)
A Hindu family hitherto assessed as
undivided shall be deemed for the purposes of this Act to continue to be a
Hindu undivided family, except where and in so far as a finding of partition
has been given under this section in respect of the Hindu undivided family.
(2)
Where, at the time of making an
assessment under section 143 or section 144, it is claimed by or on behalf of
any member of a Hindu family assessed as undivided that a partition, whether
total or partial, has taken place among the members of such family, the 1[J44] [Assessing]
Officer shall make an inquiry there into after giving notice of the inquiry to
all the members of the family.
(3)
On the completion of the inquiry,
the 2 [J45] [Assessing]
Officers shall record a finding as to whether there has been a total or partial
partition of the joint family property, and, if there has been such a
partition, the date on which it has taken place.
(4)
Where a finding of total or partial
partition has been recorded by the 3[J46] [Assessing]
Officer under this section, and the partition took place during the previous
year,—
(a) the total income of
the joint family in respect of the period up to the date of partition shall be
assessed as if no partition had taken place; and
(b) Each member or group
of members shall, in addition to any tax for which he or it may be separately
liable and notwithstanding anything contained in clause (2) of section 10, be
jointly and severally liable for the tax on the income so assessed.
(5)
Where the finding of total or
partial partition has been recorded by the 4[J47] [Assessing]
Officer under the section, and the partition took place after the expiry of the
previous year, the total income of the previous year of the joint family shall
be assessed as if no partition had taken place; and the provisions of clause (b)
of sub-section (4) shall, so far as may be, apply to the case.
(6)
Notwithstanding anything contained
in this section, if the 5[J48] [Assessing]
Officer finds after completion of the assessment of a Hindu undivided family,
that the family has already effected a partition, whether total or partial, the
6[J49] [Assessing]
Officer shall proceed to recover the tax from every person who was a member of
the family before the partition, and every such person shall be jointly and
severally liable for the tax on the income so assessed.
(7)
For the purposes of this section,
the several liability of any member or group of members there under shall be
computed according to the portion of the joint family property allotted to him
or it at the partition, whether total or partial.
(8)
The provisions of this section
shall, so far as may be, apply in relation to the levy and collection of any
penalty, interest, fine or other sum in respect of any period up to the date of
the partition, whether total or partial, of a Hindu undivided family as they
apply in relation to the levy and collection of tax in respect of any such
period.
7[J50] [(9) Notwithstanding anything contained in
the foregoing provisions of this section, where a partial partition has taken
place after the 31st day of December, 1978, among the members of a Hindu
undivided family hitherto assessed as undivided,—
(a) No claim that such
partial partition has taken place shall be inquired into under sub-section (2)
and no finding shall be recorded under sub-section (3) that such partial
partition had taken place and any finding recorded under sub-section (3) to
that effect whether before or after the 18th day of June, 1980, being the date
of introduction of the Finance (No. 2) Bill, 1980, shall be null and void;
(b) Such family shall
continue to be liable to be assessed under this Act as if no such partial
partition had taken place;
(c) Each member or group
of members of such family immediately before such partial partition and the
family shall be jointly and severally liable for any tax, penalty, interest,
fine or other sum payable under this Act by the family in respect of any
period, whether before or after such partial partition;
(d) The several
liability of any member or group of members aforesaid shall be computed
according to the portion of the joint family property allotted to him or it at
such partial partition, and the provisions of this Act shall apply
accordingly.]
Explanation. — In this section,—
(a) "Partition"
means—
(i) where
the property admits of a physical division, a physical division of the
property, but a physical division of the income without a physical division of
the property producing the income shall not be deemed to be a partition; or
(ii) where the property does
not admit of a physical division, then such division as the property admits of,
but a mere severance of status shall not be deemed to be a partition;
(b) "Partial
partition" means a partition which is partial as regards the persons
constituting the Hindu undivided family, or the properties belonging to the
Hindu undivided family, or both.
H.—Profits of non-residents from occasional shipping business
172. Shipping business of non-residents1[J51] :-
(1)
The provisions of this section
shall, notwithstanding anything contained in the other provisions of this Act,
apply for the purpose of the levy and recovery of tax in the case of any ship,
belonging to or chartered by a non-resident, which carries passengers,
livestock, mail or goods shipped at a port in India 2[J52] [* * *].
(2) Where such a ship carries passengers,
livestock, mail or goods shipped at a port in India, 3[J53] [seven and a
half] per cent of the amount paid or payable on account of such carriage to the
owner or the charterer or to any person on his
behalf, whether that amount is paid or payable in or out of India, shall be
deemed to be income accruing in India to the owner or charterer
on account of such carriage.
(3) Before the departure from any port in
India of any such ship, the master of the ship shall prepare and furnish to the
4[J54] [Assessing]
Officer a return of the full amount paid or payable to the owner or charterer or any person on his behalf, on account of the
carriage of all passengers, livestock, mail or goods shipped at that port since
the last arrival of the ship thereat:
Provided that where the 5[J55] [Assessing]
Officer is satisfied that it is not possible for the master of the ship to
furnish the return required by this sub-section before the departure of the
ship from the port and provided the master of the ship has made satisfactory
arrangements for the filing of the return and payment of the tax by any other
person on his behalf, the 6[J56] [Assessing]
Officer may, if the return is filed within thirty days of the departure of the
ship, deem the filing of the return by the person so authorised
by the master as sufficient compliance with this sub-section.
(4) On receipt of the return, the 7[J57] [Assessing]
Officer shall assess the income referred to in sub-section (2) and determine
the sum payable as tax thereon at the rate or rates 8[J58] [in force]
applicable to the total income of a company which has not made the arrangements
referred to in section 194 and such sum shall be payable by the master of the
ship.
9[J59] [(4A) No order assessing the income and
determining the sum of tax payable thereon shall be made under sub-section (4)
after the expiry of nine months from the end of the financial year in which the
return under sub-section (3) is furnished:
Provided that where the return under sub-section (3) has been
furnished before the 1st day of April, 2007, such order shall be made on or before
the 31st day of December, 2008.]
(5)
For the purpose of determining the
tax payable under sub-section (4), the 10[J60] [Assessing]
Officer may call for such accounts or
documents as he may require.
(6)
A port clearance shall not be
granted to the ship until the Collector of Customs or other officer duly authorised to grant the same, is satisfied that the tax
assessable under this section has been duly paid or that satisfactory
arrangements have been made for the payment thereof.
(7)
Nothing in this section shall be
deemed to prevent the owner or charterer of a ship
from claiming before the expiry of the assessment year relevant to the previous
year in which the date of departure of the ship from the Indian port falls,
that an assessment be made of his total income of the previous year and the tax
payable on the basis thereof be determined in accordance with the other provisions
of this Act, and if he so claims, any payment made under this section in
respect of the passengers, livestock, mail or goods shipped at Indian ports
during that previous year shall be treated as a payment in advance of the tax leviable for that assessment year, and the difference
between the sum so paid and the amount of tax found payable by him on such
assessment shall be paid by him or refunded to him, as the case may be.
11[J61] [(8) For the purposes of this section, the
amount referred to in sub-section (2) shall include the amount paid or payable
by way of demurrage charge or handling charge or any other amount of similar
nature.]
DEPARTMENTAL
VIEW
1. In case of a regular assessment under section 172(7), the
non-resident assessee is liable to pay interest under sections 234B and 234C
and also entitled to receive interest under section 244A of the Income-tax Act,
as the case may be. [Circular No. 9/2001, dated 9-7-2001, withdrawing
Circular No. 730, dated 14-12-1995]
2. Section 172 deals with shipping business of non-residents.
It is a self-contained code for the levy and recovery of the tax, ship-wise and
journey-wise, and requires the filing of the return within a maximum time of
thirty days from the date of departure of the ship. The provisions of section
172 apply notwithstanding anything contained in other provisions of the Act.
Therefore, in such cases the provisions of sections 194C and 195 relating to
tax deduction at source are not applicable. [Circular No. 723, dated
19-9-1995] There would be cases where payments are made to shipping agents
of non-resident ships-owners or charters for carriage of passengers, etc.
shipped at a port in India. Since the agent acts on behalf of the non-resident
ship owner or charterer, he steps into the shoes of
the principal. Accordingly, provisions of section 172 shall apply and those of
sections 194C and 195 will not apply. [Ibid]
I.—Recovery of tax in respect of non-residents
173. Recovery of tax in respect of non-resident from his assets:-
Without prejudice to the
provisions of sub-section (1) of section 161 or of section 167, where the
person entitled to the income referred to in clause (i)
of sub-section (1) of section 9 is a non-resident, the tax chargeable thereon,
whether in his name or in the name of his agent who is liable as a
representative assessee, may be recovered by deduction under any of the
provisions of Chapter XVIIB and any arrears of tax may be recovered also in
accordance with the provisions of this Act from any assets of the non-resident
which are, or may at any time come, within India.
J.—Persons leaving India
174. Assessment of persons leaving India:-
(1) Notwithstanding anything contained in
section 4, when it appears to the 1[J62] [Assessing]
Officer that any individual may leave India during the current assessment year
or shortly after its expiry and that he has no present intention of returning
to India, the total income of such individual for the period from the expiry of
the previous year for that assessment year up to the probable date of his
departure from India shall be chargeable to tax in that assessment year.
(2) The total income of each completed
previous year or part of any previous year included in such period shall be
chargeable to tax at the rate or rates in force in that assessment year, and
separate assessments shall be made in respect of each such completed previous
year or part of any previous year.
(3) The 2[J63] [Assessing]
Officer may estimate the income of such
individual for such period or any part thereof, where it cannot be readily
determined in the manner provided in this Act.
(4)
For the purpose of making an
assessment under sub-section (1), the 3[J64] [Assessing]
Officer may serve a notice upon such individual requiring him to furnish,
within such time, not being less than seven days, as may be specified in the
notice, a return in the same form and verified in the same manner 4[J65] [as a return
under clause (i) of sub-section (1) of section
142], setting forth his total income for each completed previous year comprised
in the period referred to in sub-section (1) and his estimated total income for
any part of the previous year comprised in that period; and the provisions of
this Act shall, so far as may be, and subject to the provisions of this
section, apply as if the notice were a 5[J66] [notice issued
under clause (i) of sub-section (1) of section
142].
(5) The tax chargeable under this section
shall be in addition to the tax, if any, chargeable under any other provision
of this Act.
(6)
Where the provisions of sub-section
(1) are applicable, any notice issued by the 6[J67] [Assessing]
Officer under 7[J68] [clause (i) of sub-section (1) of section 142 or] section 148
in respect of any tax chargeable under any other provision of this Act may,
notwithstanding anything contained in 8[J69] [clause (i) of sub-section (1) of section 142 or] section 148,
as the case may be, required the furnishing of the return by such individual
within such period, not being less than seven days, as the 9[J70] [Assessing]
Officer may think proper.
1[J71] [JA.— Association of persons or body of
individuals or artificial juridical person formed for a particular event or
purpose
Notwithstanding anything
contained in section 4, where it appears to the Assessing Officer that any
association of persons or a body of individuals or an artificial juridical
person, formed or established or incorporated for a particular event or purpose
is likely to be dissolved in the assessment year in which such association of
persons or a body of individuals or an artificial juridical person was formed
or established or incorporated or immediately after such assessment year, the
total income of such association or body or juridical person for the period
from the expiry of the previous year for that assessment year up to the date of
its dissolution shall be chargeable to tax in that assessment year, and the
provisions of sub-sections (2) to (6) of section 174 shall, so far as may be,
apply to any proceedings in the case of any such person as they apply in the
case of persons leaving India.]
K.—Persons trying to alienate their assets
175. Assessment of persons likely to transfer property to avoid
tax:-
Notwithstanding anything
contained in section 4, if it appears to the 1[J72] [Assessing]
Officer during any current assessment year that any person is likely to charge,
sell, transfer, dispose of or otherwise part with any of his assets with a view
to avoiding payment of any liability under the provisions of this Act, the
total income of such person for the period from the expiry of the previous year
for that assessment year to the date when the 2[J73] [Assessing]
Officer commences proceedings under this section shall be chargeable to tax in
that assessment year, and the provisions of sub-sections (2), (3), (4), (5) and
(6) of section 174 shall, so far as may be, apply to any proceedings in the
case of any such person as they apply in the case of persons leaving India.
L.—Discontinuance of business, or dissolution
176. Discontinued business1[J74] :-
(1) Notwithstanding anything contained in
section 4, where any business or profession is discontinued in any assessment
year, the income of the period from the expiry of the previous year for that
assessment year up to the date of such discontinuance may, at the discretion of
the 2[J75] [Assessing]
Officer, be charged to tax in that assessment year.
(2) The total income of each completed
previous year or part of any previous year included in such period shall be
chargeable to tax at the rate or rates in force in that assessment year, and
separate assessments shall be made in respect of each such completed previous
year or part of any previous year.
(3) Any person discontinuing any business or
profession shall give to the 3[J76] [Assessing]
Officer notice of such discontinuance within fifteen days thereof.
4[J77] [(3A) Where any
business is discontinued in any year, any sum received after the discontinuance
shall be deemed to be the income of the recipient and charged to tax
accordingly in the year of receipt, if such sum would have been included in the
total income of the person who carried on the business had such sum been
received before such discontinuance.]
(4) Where any profession is discontinued in
any year on account of the cessation of the profession by, or the retirement or
death of, the person carrying on the profession, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged to
tax accordingly in the year of receipt, if such sum would have been included in
the total income of the aforesaid person had it been received before such
discontinuance.
(5) Where an assessment is to be made under
the provisions of this section, the 5[J78] [Assessing]
Officer may serve on the person whose income is to be assessed or, in the case
of a firm, on any person who was a partner of such firm 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 6[J79] [clause (i) of sub-section (1) of section 142] and the
provisions of this Act shall, so far as may be, apply accordingly as if the
notice were a notice issued under 7[J80] [clause (i) of sub-section (1) of section 142].
(6)
The tax chargeable under this
section shall be in addition to the tax, if any, chargeable under any other
provision of this Act.
(7)
Where the provisions of sub-section
(1) are applicable, any notice issued by the 8[J81] [Assessing]
Officer under 9[J82] [clause (i) of sub-section (1) of section 142 or] section 148
in respect of any tax chargeable under any other provisions of this Act may,
notwithstanding anything contained in 10[J83] [clause (i) of sub-section (1) of section 142 or] section
148, as the case may be, require the furnishing of the return by the person to
whom the aforesaid notices are issued within such period, not being less than
seven days, as the 11[J84] [Assessing]
Officer may think proper.
DEPARTMENTAL
VIEW
1. With a view to ensuring that professional receipts received
after the discontinuance of profession is brought to tax the Assessing Officer
must invoke section 133(6) for calling for the information regarding all
outstanding fees in the year in which the profession is discontinued. This will
enable to keep track of the receipts in the subsequent years for income-tax
purposes as well as to verify the amounts of debts outstanding shown in the
return of net wealth. [Instruction No. 703, dated 12th June, 1974]
177. Association dissolved or business
discontinued:-
(1) Where any business or profession carried on by an association of persons has been discontinued or where an association of persons is dissolved, the 1[J85] [Assessing] Officer shall make an assessment of the total income of the association of persons as if no such discontinuance or dissolution had taken place, and all the provisions of this Act, including the provisions relating to the levy of a penalty or any other sum chargeable under any provision of this Act shall apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing sub-section, if the 2[J86] [Assessing] Officer or the 3[J87] [* * *] 4[J88] [Commissioner (Appeals)] in the course of any proceeding under this Act in respect of any such association of persons as is referred to in that sub-section is satisfied that the association of persons was guilty of any of the acts specified in Chapter XXI, he may impose or direct the imposition of a penalty in accordance with the provisions of that Chapter.
(3) Every
person who was at the time of such discontinuance or dissolution a member of
the association of persons, and the legal representative of any such person who
is deceased, shall be jointly and severally liable for the amount of tax,
penalty or other sum payable, and all the provisions of this Act, so far as may
be, shall apply to any such assessment or imposition of penalty or other sum.
(4) Where such
discontinuance or dissolution takes place after any proceedings in respect of
an assessment year have commenced, the proceedings may be continued against the
persons referred to in sub-section (3) from the stage at which the proceedings
stood at the time of such discontinuance or dissolution, and all the provisions
of this Act shall, so far as may be, apply accordingly.
(5) Nothing in
this section shall affect the provisions of sub-section (6) of section 159.
(1) Every person—
(a) Who is the
liquidator of any company which is being wound-up, whether under the orders of
a court or otherwise; or
(b) Who has been
appointed the receiver of any assets of a company, (hereinafter referred to as
the liquidator) shall, within thirty days after he has become such liquidator,
give notice of his appointment as such to the 1[J89] [Assessing]
Officer who is entitled to assess the income of the company.
(2) The 2[J90] [Assessing]
Officer shall, after making such inquiries or calling for such information as
he may deem fit, notify to the liquidator within three months from the date on
which he receives notice of the appointment of the liquidator the amount which,
in the opinion of the 3[J91] [Assessing]
Officer, would be sufficient to provide for any tax which is then, or is likely
thereafter to become, payable by the company.
(a) Shall not, without
the leave of the 5[J93] [Chief
Commissioner or Commissioner], part with any of the assets of the company or
the properties in his hands until he has been notified by the 6[J94] [Assessing]
Officer under sub-section (2); and
(b) On being so
notified, shall set aside an amount equal to the amount notified and, until he
so sets aside such amount, shall not part with any of the assets of the company
or the properties in his hands:
Provided that nothing contained in this sub-section shall debar the
liquidator from parting with such assets or properties for the purpose of the
payment of the tax payable by the company or for making any payment to secured
creditors whose debts are entitled under law to priority of payment over debts
due to Government on the date of liquidation or for meeting such costs and
expenses of the winding-up of the company as are in the opinion of the 7[J95] [Chief
Commissioner or Commissioner] reasonable.
(4) If the liquidator fails to give the
notice in accordance with sub-section (1) or fails to set aside the amount as
required by sub-section (3) or parts with any of the assets of the company or
the properties in his hands in contravention of the provisions of that
sub-section, he shall be personally liable for the payment of the tax which the
company would be liable to pay:
Provided that if the amount of any tax payable by the company is
notified under sub-section (2), the personal liability of the liquidator under
this sub-section shall be to the extent of such amount.]
(5) Where there are more liquidators than
one, the obligations and liabilities attached to the liquidator under this
section shall attach to all the liquidators jointly and severally.
(6)
The provisions of this section
shall have effect notwithstanding anything to the contrary contained in any
other law for the time being in force.
179. Liability of directors of private
company in liquidation:-
2[J97] [(1)] Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), 3[J98] [where any tax due from a private company in respect of any income of any previous year or from any other company in respect of any income of any previous year during which such other company was a private company] cannot be recovered, then, every person who was a director of the private company at any time during the relevant previous year shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.
4[J99] [(2) Where a private company is converted into a public company and the tax assessed in respect of any income of any previous year during which such company was a private company cannot be recovered, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax due in respect of any income of such private company assessable for any assessment year commencing before the 1st day of April, 1962.]
N.—Special provisions for certain kinds of income
180. Royalties or copyright fees for literary or artistic work1[J100] :-
Where the time taken by the
author of a literary or artistic work in the making thereof is more than twelve
months, the amount received or receivable by him during any previous year on
account of any lump sum consideration for the assignment or grant of any of his
interests in the copyright of that work or of royalties or copyright fees
(whether receivable in lump sum or otherwise), in respect of that work, shall,
if he so claims, be allocated for purposes of assessment in such manner and to
such period as may be prescribed:
2[J101] [Provided that nothing contained in this section
shall apply in relation to the previous year relevant to the assessment year
commencing on or after the 1st day of April, 2000.]
Explanation.—For the purposes of
this section, the expression "author" includes a joint author, and
the expression "lump sum", in regard to royalties or copyright fees,
includes an advance payment on account of such royalties or copyright fees
which is not returnable.
1[J102] [180A.
Consideration for know-how:-
Where the time taken by an
individual, who is resident in India, for developing any know-how is more than
twelve months, he may elect that the gross amount of any lump sum consideration
received or receivable by him during the previous year 2[J103] [relevant to the assessment year commencing on the 1st day
of April, 2000 or earlier assessment years] for allow-ing
use of such know-how shall be treated for the purposes of charging income-tax
for that year and for each of the two immediately preceding previous years as
if one-third thereof were included in his income chargeable to tax for each of
those years respectively and if he so elects, notwithstanding anything
contained in any other provision of this Act,—
(a) Such gross amount
shall be so treated, and
(b) the assessments for
each of the two preceding previous years shall, if made, be accordingly
rectified under section 154, the period of four years specified in sub-section
(7) of that section being reckoned from the end of the financial year in which
the assessment relating to the previous year in which the amount was received
or receivable by such individual is made.
Explanation.—For the purposes of this section, the expression
"know-how" has the meaning assigned to it in section 35AB.]
[181. Interest on tax-free securities of a State Government:-
Omitted
by the Finance Act, 1988, w.e.f. 1-4-1989. It was amended by the Finance Act, 1965, w.e.f. 1-4-1965.]
[J1]The words "clause (i) of" omitted by the Finance Act, 1976, w.e.f. 1-6-1976.
[J2]Inserted by the Finance Act, 1981, w.e.f. 1-4-1981.
[J3]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988.
[J4]See Circular No. 26(7)-IT/42, dated 14-8-1942.
[J5]Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
[J6]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J7]See Circular No. 707, dated 11-7-1995.
[J8]Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.
[J9]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J10]Substituted by the Finance Act, 1970, w.e.f. 1-4-1971.
[J11]See Circular No. 577, dated 4-9-1990.
[J12]Restored to its original expression 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.
[J13]Substituted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J14]Substituted for "(i) none of the beneficiaries has any other income chargeable under this Act; or", ibid.
[J15]Restored to its original expression 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.
[J16]Substituted for "a trust declared by will" by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J17]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J18]Substituted for "as if the relevant income or part of relevant income" by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J19]Restored to its original expression 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.
[J20]Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
[J21]Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.
[J22]Inserted by the Finance Act, 1972, w.e.f. 1-4-1973.
[J23]Inserted by the Finance Act, 1983, w.e.f. 1-4-1984.
[J24]Inserted by the Finance Act, 1972, w.e.f. 1-4-1973.
[J25]Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
[J26]Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.
[J27]Inserted by the Finance Act, 1972, w.e.f. 1-4-1973.
[J28]Inserted by the Finance Act, 1983, w.e.f. 6-10-1984.
[J29]Substituted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J30]Substituted for "(i) none of the beneficiaries in respect of the part of the relevant income which is not applicable to charitable or religious purposes has any other income chargeable under this Act; or" by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J31]Substituted for "a trust declared by will" by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J32]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J33]Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J34]Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
[J35]Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J36]Inserted by the Finance Act, 1981, w.e.f. 1-4-1981.
[J37]See Circular No. 157, dated 26-12-1974 and Letter F. No. 45/78/66-ITJ(5), dated 24-2-1967.
[J38]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J39]Substituted by the Finance Act, 1992, w.e.f.
1-4-1993. The Chapter sub-heading "DD.—Association of persons — special
cases" was inserted by the Finance Act, 1981, w.e.f.
1-4-1981. It was omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 but was reintroduced as
"DD.—Association of persons and body of individuals" by the Direct
Tax Laws (Amendment) Act, 1989, with effect from the same date.
Section 167A was originally inserted by the Finance Act, 1981, w.e.f. 1-4-1981; substituted by the Finance Act, 1985, w.e.f. 1-4-1985 and omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. See Circular No. 320, dated 11-1-1992.
[J40]Substituted for "maximum marginal rate" by the Finance Act, 1997, w.e.f. 1-4-1998.
[J41]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, the Direct Tax Laws (Amendment) Act, 1987 had inserted section 167B with effect from the same date but it was substituted before coming into effect.
[J42]See Circular No. 577, dated 4-9-1990.
[J43]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J44]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J45]Ibid.
[J46]Ibid.
[J47]Ibid.
[J48]Ibid.
[J49]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J50]Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[J51]See Circular Nos. 723, dated 19-9-1995; 730, dated 14-12-1995 and 9/2001, dated 9-7-2001.
[J52]The words "unless the Income-tax Officer is satisfied that there is an agent of the non-resident from whom the tax will be recoverable under the other provisions of this Act" omitted by the Finance Act, 1975, w.e.f. 1-6-1975.
[J53]Substituted for "one-sixth", ibid.
[J54]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J55]Ibid.
[J56]Ibid.
[J57]Ibid.
[J58]Substituted for "for the time being" by the Finance (No. 2) Act, 1967, w.e.f 1-4-1967.
[J59]Inserted by the Finance Act, 2007, w.e.f. 1-4-2007.
[J60]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J61]Inserted by the Finance Act, 1997, w.r.e.f. 1-4-1976.
[J62]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J63]Ibid.
[J64]Ibid.
[J65]Substituted for "as a return under sub-section (2) of section 139", ibid, w.e.f. 1-4-1989.
[J66]Substituted for "notice issued under sub-section (2) of section 139", by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[J67]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J68]Substituted for "sub-section (2) of section 139 or sub-section (1) of", ibid, w.e.f. 1-4-1989.
[J69]Ibid.
[J70]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J71]Inserted by the Finance Act, 2002, w.e.f. 1-4-2002.
[J72]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J73]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J74]See Board's Instruction No. 703, dated 12-6-1974.
[J75]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f 1-4-1988.
[J76]Ibid.
[J77]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f 1-4-1976.
[J78]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J79]Substituted for "sub-section (2) of section 139" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[J80]Ibid.
[J81]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J82]Substituted for "sub-section (2) of section 139 or sub-section (1) of" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[J83]Ibid.
[J84]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J85]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J86]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J87]The words "Deputy Commissioner (Appeals) or the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" were substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. The words "or the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[J88]Inserted by the Finance (No. 2) Act, 1977, w.e.f 10-7-1978.
[J89]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J90]Ibid.
[J91]Ibid.
[J92]Substituted by the Finance Act, 1965, w.e.f. 1-4-1965.
[J93]Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[J94]Substituted for "Income-tax", ibid.
[J95]Substituted for "Commissioner", ibid.
[J96]Substituted for "M.—Private company in liquidation" by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[J97]Inserted, ibid.
[J98]Substituted for "when any private company is wound up after the commencement of this Act, and any tax assessed on the company, whether before or in the course of or after its liquidation, in respect of any income of any previous year, ibid.
[J99]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[J100]See rule 9(2).
[J101]Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.
[J102]Inserted by the Finance Act, 1985, w.e.f. 1-4-1986.
[J103]Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.
[J104]The chapter sub-heading "O.—Liability of State Governments" omitted by the Finance Act, 1988, w.e.f. 1-4-1989.