CHAPTER XXIII
MISCELLANEOUS
1[1] [281.
Certain transfers to be void:-
(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 2[2] [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.]
281A.
Effect of failure to furnish information in respect of properties held became:-
Repealed
by the Benami Transactions (Prohibition) Act, 1988, w.e.f. 19-5-1988.
It was inserted by the Taxation Laws (Amendment) Act, 1972, w.e.f.
15-11-1972 and amended by the Finance Act, 1984, w.e.f.
1-4-1984.]
1[3] [281B.
Provisional attachment to protect revenue in certain cases:-
(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 2[4] [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 3[5] [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.
4[6] [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 5[7] [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:]
6[8] [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. Service of notice generally:-
(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.
1[9] [282A.
Authentication of notices and other documents:-
(1) Where this Act requires a notice or
other document to be issued by any income-tax authority, such notice or other
document shall be signed in manuscript by that authority.
(2)
Every notice or other document to
be issued, served or given for the purposes of this Act by any income-tax
authority, shall be deemed to be authenticated if the name and office of a
designated income-tax authority is printed, stamped or otherwise written
thereon.
(3)
For the purposes of this section, a
designated income-tax authority shall mean any income-tax authority authorised by the Board to issue, serve or give such notice
or other document after authentication in the manner as provided in sub-section
(2).]
283. Service of notice when family is disrupted or firm, etc.,
is dissolved:-
(1) After a finding of total partition has
been recorded by the 1[10] [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.
284. Service of notice in the case of discontinued business:-
Where an assessment is to
be made under section 176, the 1[11] [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.
285. Information by persons responsible for paying interest:-
Omitted
by the Finance Act, 1987, w.e.f. 1-6-1987.]
285A. Information by contractors in certain cases:-
Omitted
by the Finance Act, 1988, w.e.f. 1-4-1988. It was inserted by the Direct Taxes (Amendment) Act, 1964,
w.e.f. 6-10-1964 and amended by the Taxation Laws
(Amendment) Act, 1975, w.e.f. 1-4-1976.]
1[12] [285B. Submission of statements by producers
of cinematograph films2[13] :-
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 3[14] [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 form4[15] containing particulars of all payments of over 5[16] [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 6[17] [* * *].]
1[18] [285BA. Obligation to furnish annual
information return2[19] :-
(1) Any person, being—
(a) An assessee; or
(b)
The prescribed person in the case of an office of Government; or
(c) A local authority or other public body or
association; or
(d) The Registrar or sub-Registrar appointed under
section 6 of the Registration Act, 1908 (16 of 1908)3;[20] or
(e) The registering authority empowered to
register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of
1988)4[21] ; or
(f) The Post Master General as referred to in
clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898)5[22] ; or
(g) The Collector referred to in clause (c)
of section 3 of the Land Acquisition Act, 1894 (1 of 1894)6[23] ; or
(h) The recognized stock exchange referred to in
clause (f) of section 2 of the Securities Contracts (Regulation) Act,
1956 (42 of 1956)7[24] ; or
(i) An officer
of the Reserve Bank of India, constituted under section 3 of the Reserve Bank
of India Act, 1934 (2 of 1934)8[25] ; or
(j) A depository referred to in clause (e)
of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996)9,[26]
who is responsible for
registering, or maintaining books of account or other documents containing a
record of any specified financial transaction, under any law for the time being
in force, shall furnish an annual information return, in respect of such
specified financial transaction which is registered or recorded by him during
any financial year beginning on or after the 1st day of April, 2004 and
information relating to which is relevant and required for the purposes of this
Act, to the prescribed income-tax authority or such other authority or agency
as may be prescribed.
(2)
The annual information return referred
to in sub-section (1) shall be furnished within the prescribed time after the
end of such financial year, in such form and manner (including on a floppy,
diskette, magnetic cartridge tape, CD-ROM or any computer readable media) as
may be prescribed.
(3) For the purposes of sub-section (1),
"specified financial transaction" means any—
(a) Transaction of purchase, sale or exchange of
goods or property or right or interest in a property; or
(b)
Transaction for rendering any service; or
(c)
Transaction under a works contract; or
(d)
Transaction by way of an investment made or an expenditure incurred; or
(e)
Transaction for taking or accepting any loan or deposit,
Which may be prescribed?
Provided that the Board may prescribe different values for
different transactions in respect of different persons having regard to the
nature of such transactions:
Provided further that the value or, as the case may be, the
aggregate value of such transactions during a financial year so prescribed
shall not be less than fifty thousand rupees.
(4) Where the prescribed income-tax
authority considers that the annual information return furnished under
sub-section (1) is defective, he may intimate the defect to the person who has
furnished such return and give him an opportunity of rectifying the defect
within a period of one month from the date of such intimation or within such
further period which, on an application made in this behalf, the prescribed
income-tax authority may, in his discretion, allow; and if the defect is not
rectified within the said period of one month or, as the case may be, the
further period so allowed, then notwithstanding anything contained in any other
provision of this Act, such return shall be treated as an invalid return and the
provisions of this Act, shall apply as if such person had failed to furnish the
annual information return.
(5) Where a person who is required to
furnish an annual information return sub-section (1) has not furnished the same
within the prescribed time, the prescribed income-tax authority may serve upon
such person a notice requiring him to furnish such return within a period not
exceeding sixty days from the date of service of such notice and he shall
furnish the annual information return within the time specified in the notice.]
DEPARTMENTAL
VIEW
1. With a view to ensuring that the annual information return
conforms to the required specifications, the person(s) responsible for filing
return shall ensure the following:—
(i) Form
No. 61A -Part A is duly filled in and verified and enclosed in paper format
with the Form No. 61A — Part B in computer media
(ii) The data structure
of the AIR conforms to the data structure prescribed by the Administrator-
Annual Information Return authorized by the Board.
(iii) The computer media
containing AIR is readable, clean, virus-free and not corrupt
(iv) Permanent Account Number (PAN) of the person responsible for filing
AIR (except in cases of Government departments) is mentioned in Form No. 61A
(Part A and Part B).
(v) Tax Deduction
Account Number (TAN) of the office of the Principal Officer of the person
responsible for filing AIR is mentioned in Form No. 61A (Part A and Part B) as
the folio number for non-government filers and of the filer in case of government
filers. In case TAN is not allotted, the return should be accompanied by a copy
of acknowledgement of application made for allotment of TAN or duly filled in
Form No. 49B with the requisite fees (only for government filers).
(vi) The Control Totals
of total number of transactions and total value of all transactions mentioned
at item Nos. 8 and 9 of Form No. 61A (Part A) tally with the corresponding
total at item No. 7 and 8 of Form No. 61A (Part B).
(vii) The PAN, name,
address, date of transaction, mode of transaction and amount of the transacting
party or each of the joint parties in respect of every transaction are
correctly and properly filled in at item no. 9 of Form 61A (Part B). Where PAN
is not required to be obtained under the law, it shall be mentioned in the form
as to whether the transacting party is a government department or consular
office or Form 60 or Form 61, as the case may be, has been received.
In case the AIR on the
computer readable media is found to be corrupted or does not fulfill the above
guidelines, the filer is expected to make appropriate correction and re-submit
the Return. [Circular No. 7/2005, dated 24-8-2005]
286. Information by companies respecting shareholders to whom
dividends have been Paid:-
Omitted
by the Finance Act, 1987, w.e.f. 1-6-1987.]
1[27] [287. Publication of information respecting
assessees in certain cases:-
(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 2[28] [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.
3[29] [(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 4[30] [* * *] 5[31] [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.]
1[32] [287A. Appearance by registered valuer in certain matters:-
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).]
288. Appearance by authorised
representative1[33] :-
(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.
(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 practice in any civil court in India;
or
(iv) An
accountant; or
(v)
Any person who has passed any accountancy examination recognized in this behalf
by the Board; or
(vi) Any
person who has acquired such educational qualifications as the Board may
prescribe for this purpose; or
2[34] [(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 chartered accountant within the meaning of the
Chartered Accountants Act, 19493[35] (38 of 1949), and includes, in relation to any State, any
person who by virtue of the provisions of sub-section (2) of section 226 of the
Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an
auditor of companies registered in that State.
[(3) Omitted
by the Taxation Laws (Amendment) Act, 1984, w.e.f.
1-10-1984.]
(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 4[36] [clause (ii)
of sub-section (1) of] section 271; or
(c) Who has become an insolvent,
shall be qualified to
represent an assessee under sub-section (1), for all
times in the case of a person referred to in sub-clause (a), for such
time as the 5[37] [Chief
Commissioner or Commissioner] may by order determine in the case of a person
referred to in sub-clause (b), and for the period during which the
insolvency continues in the case of a person referred to in sub-clause (c).
(5) If any person—
(a) who is a legal
practitioner or an accountant is found guilty of misconduct in his professional
capacity by any authority entitled to institute disciplinary proceedings
against him, an order passed by that authority shall have effect in relation to
his right to attend before an income-tax authority as it has in relation to his
right to practise as a legal practitioner or
accountant, as the case may be;
6[38] (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 authority 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).
DEPARTMENTAL
VIEW
1. In view of the limitations placed by section 288 on
appearance before income-tax authorities, only persons entitled to appear for
an assessee under that section should be allowed to
appear before the income-tax authorities. However, persons who are not authorised to appear under that section may be permitted to
produce books of accounts or documents but any explanation of the accounts or
documents should be given only by the assessee or by
the person entitled to appear on behalf of the assessee.
[Circular No. 19D, dated 3rd July, 1964]
1[39] [288A. Rounding off of income:-
2[40] [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 Ac
1[42] [288B. Rounding off amount payable and refund
due:-
Any amount payable, and the
amount of refund due, under the 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.]
DEPARTMENTAL
VIEW
1. The rounding off is to be done in relation to the total
amount of the tax finally payable or refundable and not in relation to the
amounts under the various minor heads. If the total tax payable or refundable
is comprised of amounts falling under different minor heads, the rounding off
of these separate amounts should be done in such manner that the aggregate
amount of the tax as rounded off conforms to the sum of the separate amounts
under the various minor heads as rounded off. [Circular No. 12/40/66, dated
25th January, 1967]
A receipt shall be given
for any money paid or recovered under this Act.
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.
291. Power to tender immunity from prosecution:-
(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 1[43] [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, 1860 (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.
No court inferior to that
of a Presidency Magistrate or a Magistrate of the first class shall try any
offence under this Act.
1[44] [292A. Section 360 of the Code of Criminal
Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply:-
Nothing contained in
section 360 of the Code of Criminal Procedure, 19732[45] (2 of 1974), or in the Probation of Offenders Act, 19583[46] (20 of 1958), shall apply to a person convicted of an
offence under this Act unless that person is under eighteen years of age.]
1[47] [292B. Return of income, etc., not to be
invalid on certain grounds:-
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.]
1[48] [292BB. Notice deemed to be valid in certain
circumstances:-
Where an assessee has appeared in any proceeding or cooperated in
any inquiry relating to an assessment or reassessment, it shall be deemed that
any notice under any provision of this Act, which is required to be served upon
him, has been duly served upon him in time in accordance with the provisions of
this Act and such assessee shall be precluded from
taking any objection in any proceeding or inquiry under this Act that the
notice was—
(a)
Not served upon him; or
(b)
Not served upon him in time; or
(c) Served upon him in
an improper manner.]
Provided that nothing contained in this section shall apply where
the assessee has raised such objection before the
completion of such assessment or reassessment.]
1[49] [292C. Presumption as to assets, books of
account, etc.:-
2[50] [(1)] Where any books of account, other
documents, money, bullion, jewellery or other
valuable article or thing are or is found in the possession or control of any
person in the course of a search under section 132 3[51] [or survey under
section 133A], it may, in any proceeding under this Act, be presumed—
(i) That such books
of account, other documents, money, bullion, jewellery
or other valuable article or thing belong or belongs to such person;
(ii) That the contents of such books of account and
other documents are true; and
(iii) That the signature and every other part of such
books of account and other documents which purport to be in the handwriting of
any particular person or which may reasonably be assumed to have been signed
by, or to be in the handwriting of, any particular person, are in that person's
handwriting, and in the case of a document stamped, executed or attested, that
it was duly stamped and executed or attested by the person by whom it purports
to have been so executed or attested.]
4[52] [(2) Where any books of account, other
documents or assets have been delivered to the requisitioning officer in
accordance with the provisions of section 132A, then, the provisions of
sub-section (1) shall apply as if such books of account, other documents or
assets which had been taken into custody from the person referred to in clause
(a) or clause (b) or clause (c), as the case may be, of sub-section (1) of
section 132A, had been found in the possession or control of that person in the
course of a search under section 132.]
293. Bar of suits in civil courts:-
No suit shall be brought in
any civil court to set aside or modify 1[53] [any 2[54] [proceeding taken
or order made]] under this Act, and no prosecution, suit or other proceeding
shall lie against 3[55] [the Government
or] any officer of the Government for anything in good faith done or intended
to be done under this Act.
1[56] [293A. Power to make exemption, etc., in
relation to participation in the business of prospecting for, extraction, etc.,
of mineral oils:-
(1) If the Central Government is satisfied
that it is necessary or expedient so to do in the public interest, it may, by
notification2[57] 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 3[58] [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.
4[59] [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.]]
1[60] [293B. Power of Central Government or Board to
condone delays in obtaining approval:-
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.]
294. Act to have effect pending legislative provision for charge
of tax:-
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 1[61] [* * *] 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
favorable to the assessee, were actually in force.
1[62] [294A. Power to make exemption, etc., in
relation to certain Union territories:-
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,2[63] 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. Power to make rules1[64] :-
(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) 2[65] 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) 3[66] income derived in part from agriculture and in part from
business;
(ii) 4[67] persons residing
outside India;
5[68] [(iii) an individual who is liable to be assessed
under the provisions of sub-section (2) of section 64;]
(c)
6[69] 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)
7[70] the percentage on
the written down value which may be allowed as depreciation in respect of
buildings, machinery, plant or furniture;
8[71] [(dd) 9[72] the extent to
which, and the conditions subject to which, any expenditure referred to in
sub-section (3) of section 37 may be allowed;]
10[73] [(dda) 11[74] the matters specified
in sub-sections (2) and (3) of section 44AA;]
12[75] [(e) Omitted by the Finance Act, 2005, w.e.f. 1-4-2006.]
13[76] [(ee) 14[77] 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) 15[78] 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 139A;
16[79] [(eeba) the documents, statements, receipts,
certificates or audited reports which may not be furnished along with the
return but shall be produced before the Assessing Officer on demand under
section 139C;
(eebb) the
class or classes of persons who shall be required to furnish the return of
income in electronic form; the form and the manner of furnishing the said
return in electronic form; documents, statements, receipts, certificates or
reports which shall not be furnished with the return in electronic form and the
computer resource or electronic record to which such return may be transmitted
under section 139D;]
(eec) 17[80] the form of the
report of audit and the particulars which such report shall contain under
sub-section (2A) of section 142;]
(f)
18[81] the manner in
which and the period to which any such income as is referred to in section 180
may be allocated;
19[82] [(fa) the
form and manner in which the information relating to payment of any sum may be
furnished under sub-section (6) of section 195;]
(g)
20[83] the authority to
be prescribed for any of the purposes of this Act;
21[84] (h) the procedure for giving effect to the terms
of any agreement for the granting of relief in respect of double taxation or
for the avoidance of double taxation which may be entered into by the Central
Government under this Act;
(i) The
form and manner in which any application, claim, return or information may be
made or furnished and the fees that may be levied in respect of any application
or claim;
(j)
The manner in which any document
required to be filed under this Act may be verified;
(k)
22[85] the procedure to
be followed on applications for refunds;
23[86] [(kk) 24[87] 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)
25[88] the regulation of
any matter for which provision is made in section 230;
(m)
26[89] 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;
27[90] [(mm) 28t[91] he circumstances
in which, the conditions subject to which and the manner in which, the 29[92] [* * *] 30[93] [Commissioner
(Appeals)] may permit an appellant to produce evidence which he did not produce
or which he was not allowed to produce before the 31[94] [Assessing]
Officer;]
32[95] [(mma) 33t[96] he form in which
the statement under section 285B shall be delivered to the 34[97] [Assessing]
Officer;]
(n)
35[98] the maintenance
of a register of persons other than legal practitioners or accountants as
defined in sub-section (2) of section 288 practising
before income-tax authorities and for the constitution of and the procedure to
be followed by the authority referred to in sub-section (5) of that section;
(o)
The issue of certificate verifying
the payment of tax by assessees;
(p)
Any other matter which by this Act
is to be, or may be, prescribed.
(3)
In cases coming under clause (b)
of sub-section (2), where the income liable to tax cannot be definitely
ascertained, or can be ascertained only with an amount of trouble and expense
to the assessee which in the opinion of the Board is
unreasonable, the rules made under this section may—
(a) Prescribe methods by
which an estimate of such income may be made; and
(b) In cases coming
under sub-clause (i) of clause (b) of
sub-section (2) specify the proportion of the income which shall be deemed to
be income liable to tax,
And an assessment based on
such estimate or proportion shall be deemed to be duly made in accordance with
the provisions of this Act.
36[99] [(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.]
1[100] [296.
Rules and certain notifications to be placed before Parliament:-
The Central Government
shall cause every rule made under this Act 2[101] [, 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 3[102] [before the 1st day of June, 2007] 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.]
(1)
The Indian Income-tax Act, 1922 (11
of 1922), is hereby repealed.
(2)
Notwithstanding the repeal of the Indian
Income-tax Act, 1922 (11 of 1922) (hereinafter referred to as the repealed
Act),—
(a) where a return of income has been filed before
the commencement of this Act by any person for any assessment year, proceedings
for the assessment of that person for that year may be taken and continued as
if this Act had not been passed;
(b)
where a return of income is filed after the commencement of this Act otherwise
than in pursuance of a notice under section 34 of the repealed Act by any
person for the assessment year ending on the 31st day of March, 1962, or any
earlier year, the assessment of that person for that year shall be made in
accordance with the procedure specified in this Act;
(c)
any proceeding pending on the commencement of this Act before any income-tax
authority, the Appellate Tribunal or any court, by way of appeal, reference, or
revision, shall be continued and disposed of as if this Act had not been
passed;
(d)
Where in respect of any assessment year after the year ending on the 31st day
of March, 1940,—
(i) a
notice under section 34 of the repealed Act had been issued before the
commencement of this Act, the proceedings in pursuance of such notice may be
continued and disposed of as if this Act had not been passed;
(ii) any income
chargeable to tax had escaped assessment within the meaning of that expression
in section 147 and no proceedings under section 34 of the repealed Act in
respect of any such income are pending at the commencement of this Act, a
notice under section 148 may, subject to the provisions contained in section
149 or section 150, be issued with respect to that assessment year and all the
provisions of this Act shall apply accordingly;
(e)
1[103] [subject to the provisions of clause (g) and clause
(j) of this sub-section,] section 23A of the repealed Act shall continue
to have effect in relation to the assessment of any company or its shareholders
for the assessment year ending on the 31st day of March, 1962 or any earlier
year, and the provisions of the repealed Act shall apply to all matters arising
out of such assessment as fully and effectually as if this Act had not been
passed;
(f)
any proceeding for the imposition of a
penalty in respect of any assessment completed before the first day of April,
1962, may be initiated and any such penalty may be imposed as if this Act had
not been passed;
(g)
any proceeding for the imposition of a
penalty in respect of any assessment for the year ending on the 31st day of
March, 1962, or any earlier year, which is completed on or after the 1st day of
April, 1962, may be initiated and any such penalty may be imposed under this
Act;
(h)
any election or declaration made or
option exercised by an assessee under any provision
of the repealed Act and in force immediately before the commencement of this
Act shall be deemed to have been an election or declaration made or option
exercised under the corresponding provision of this Act;
(i) where, in
respect of any assessment completed before the commencement of this Act, a
refund falls due after such commencement or default is made after such
commencement in the payment of any sum due under such completed assessment, the
provisions of this Act relating to interest payable by the Central Government
on refunds and interest payable by the assessee for
default shall apply;
(j)
any sum payable by way of income-tax,
super-tax, interest, penalty or otherwise under the repealed Act may be
recovered under this Act, but without prejudice to any action already taken for
the recovery of such sum under the repealed Act;
(k)
any agreement entered into, appointment made, approval given, recognition
granted, direction, instruction, notification, order or rule issued under any
provision of the repealed Act shall, so far as it is not inconsistent with the
corresponding provision of this Act, be deemed to have been entered into, made,
granted, given, or issued under the corresponding provision aforesaid and shall
continue in force accordingly;
(l) Any notification issued under
sub-section (1) of section 60 2[104] [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 3[105] [* * *]:
4[106] [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 there under;]
(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 there for is prescribed or provision is made for extension of time in
suitable cases by the appropriate authority.
298. Power to remove difficulties:-
(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 purposes 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.
1[107] [(3) If any
difficulty arises in giving effect to the provisions of this Act as amended by
the Direct Tax Laws (Amendment) Act, 1987, the Central Government may, by
order, do anything not inconsistent with such provisions for the purpose of
removing the difficulty:
Provided that no such order shall be made after the expiration of
three years from the 1st day of April, 1988.
(4) Every order made under sub-section (3)
shall be laid before each House of Parliament.]
[1]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[2]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[3]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[4]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[5]Substituted for "Chief Commissioner or Commissioner" by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier, these words were substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[6]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.
[7]Substituted for "Chief Commissioner or Commissioner" by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier, these words were substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[8]Inserted by the Finance Act, 1988, w.e.f. 1-4-1988.
[9]Inserted by the Finance Act, 2008, w.e.f. 1-6-2008.
[10]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[11]Ibid.
[12]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[13]See Instruction No. 1727, dated 22-8-1986.
[14]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[15]See rule 121A and Form No. 52A.
[16]Substituted for "twenty five thousand" by the Finance Act, 2000, w.e.f. 1-4-2000, which was earlier substituted for "five thousand" by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.
[17]The words "as employee or otherwise" omitted by the Finance Act, 1989, w.e.f. 1-6-1989.
[18]Substituted by the Finance (No. 2) Act,
2004, w.e.f. 1-4-2005. Prior to the substitution,
section 285BA, as inserted by the Finance Act, 2003, w.e.f.
1-4-2004, read as under:
"285BA. Annual Information Return.—Any assessee, who enters into any financial transaction, as may be prescribed, with any other person, shall furnish, within the prescribed time, an annual information return in such form and manner, as may be prescribed, in respect of such financial transaction entered into by him during any previous year."
[19]See rule 114E and Form No. 61A.
[27]Substituted by the Finance Act, 1964, w.e.f. 1-4-1964.
[28]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[29]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[30]The words "Deputy Commissioner (Appeals) or, as case may be, the" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. The words "Deputy Commissioner (Appeals)" substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amend-ment) Act, 1987, w.e.f. 1-4-1988. The words "or, as the case may be, the Commissioner (Appeals)" were inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[31]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[32]Inserted by the Taxation Laws (Amendment) Act, 1972, w.e.f. 1-1-1973.
[33]See rules 49 to 66 and Form Nos. 38 to 40.
[34]Inserted by the Taxation Laws (Extension to Union Territories) Regulations, 1963, w.e.f. 1-4-1963.
[35]Section 2(1)(b)
of the Chartered Accountants Act, 1949 defines "chartered accountant"
as under:
"(b) "Chartered accountant" means a person who is a member of the Institute;"
[36]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. Earlier, the words "clauses (i) and (ii) of sub-section (1) of" were omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[37]Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[38]See rules 52, 59 to 66.
[39]Inserted by the Finance Act, 1966, w.e.f. 1-4-1966.
[40]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.
[41]Sub-section (2) and Explanation omitted by the Finance Act, 1968, w.e.f. 1-4-1969.
[42]Substituted by the Taxation Laws
(Amendment) Act, 2006, w.e.f. 13-7-2006. Prior to the
substitution, section 288B, as inserted by the Finance Act, 1966, w.e.f. 1-4-1966 read as under:
"288B.
Rounding off of tax, etc.1.—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."
1 See Circular Nos. 12/40/66-IT(B), dated 25-1-1967 and 49, dated 16-11-1970 and Letter F. No. 12/40/66-IT(B), dated 8-3-1967.
[43]Inserted by the Finance Act, 1963, w.e.f. 28-4-1963.
[44]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[46]Ibid.
[47]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[48]Inserted by the Finance Act, 2008, w.e.f. 1-4-2008.
[49]Inserted by the Finance Act, 2007, w.r.e.f. 1-10-1975.
[50]Renumbered by the Finance Act, 2008, w.r.e.f. 1-10-1975.
[51]Inserted by the Finance Act, 2008, w.r.e.f. 1-6-2002.
[52]Inserted by the Finance Act, 2008, w.r.e.f. 1-10-1975.
[53]Substituted for "any assessment order made" by the Finance Act, 1987, w.e.f. 1-3-1987.
[54]Substituted for "any order made" by the Finance Act, 1988, w.e.f. 1-3-1988.
[55]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[56]Inserted by the Finance Act, 1981, w.e.f. 1-4-1981.
[58]Inserted by the Finance Act, 1995, w.r.e.f. 1-4-1993.
[59]Substituted by the Finance Act, 1995, w.r.e.f. 1-4-1993.
[60]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[61]The word "or super-tax" omitted by the Finance Act, 1965, w.e.f. 1-4-1965.
[62]Inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963.
[63]Goa has now become a State.
[65]See rules 9A and 9B.
[66]See rules 7 and 8.
[67]See rules 10 and 11.
[68]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[69]See rule 3.
[70]See rule 5.
[71]Inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[72]See rules 6AC, 6B and 6D.
[73]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[74]See rule 6F.
[75]12 Prior to the omission, clause (e),
as amended by the Finance (No. 2) Act, 1967, w.e.f.
1-4-1968, read as under:
"(e) the percentage or the amount to be prescribed under clause (i) of sub-section (4) of section 80C;"
[76]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[77]See rule 11B.
[78]See rule 114 and Form No. 49A. See also rules 114B to 114D and Form Nos. 60 and 61.
[79]Inserted by the Finance Act, 2007, w.r.e.f. 1-6-2006.
[80]See rule 14A and Form No. 6B.
[81]See rule 9(2).
[82]Inserted by the Finance Act, 2008, w.e.f. 1-4-2008.
[83]See rules 2C, 2D, 2E, 5A, 6, 6AA, 6AAA, 6AAC, 11DD, 11L, 16A, 16B, 16C, 18AAA, 18AAB, 18BBA, 18BBC, 18BBD, 18C, 20, 20A, 36A, 37F, 52 and 114D.
[84]See rules 44G and 44H and Form No. 34F.
[85]See rule 41.
[86]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[87]See rule 119A.
[88]See rules 42, 43 and 44 and Form Nos. 31 to 34.
[89]See rules 45, 46 and 47 and Form Nos. 35 to 36A.
[90]Inserted by the Finance Act, 1972, w.e.f. 1-4-1972.
[91]See rule 46A.
[92]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.
[93]Inserted by the Finance (No. 2) Act, 1977, w.e.f 10-7-1978.
[94]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[95]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[96]See rule 121A and Form No. 52A.
[97]Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[98]See rules 52 to 66.
[99]Inserted by the Direct Taxes (Amendment) Act, 1974, w.e.f. 18-8-1974.
[100]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 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.
[101]Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.
[102]Inserted by the Finance Act, 2007, w.e.f. 1-6-2007.
[103]Inserted by the Finance Act, 1963, w.r.e.f. 1-4-1962.
[104]Inserted by the Finance Act, 1966, w.r.e.f. 1-4-1962.
[105]The 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.
[106]Inserted, ibid.
[107]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.