(8) The provisions of this section shall, mutatis mutan- [New] dis and so far as may be, apply in relation to the levy and collection of any penalty or other sum in respect of any ' period upto the date of the partition, whether total or par-
}i tial, of a Hindu family as they apply in relation to the levy and collection of tax in respect of any such period.
Explanation.--In this section,-" ~ '[Ncw]
(a) "partition" means-
(i) a physical division of the property, if the pro- perty admits of such division, or,
(ii) where the property does not admit of physical division, then such division as the property admits of; .......... .. and a mere severance of status shall not be deemed to be a partition;
(b) "partial partition" means a partition which is par- tial as regards the persons constituting the Hindu undivided family, or the properties belonging to the Hindu undivided family, or both.
H--Shipping business of non-residents.
(1) The provisions of this section shall, notwithstanding Section :82. anything contained in the other provisions of this Act, apply Shipping for the purpose of the levy and recovery of tax in the case Eggﬂzifdcnfj of a non-resident who carries on business in India in any [s;4 ,c,m,,, financial year as the owner or chartener of a ship (such per-- pan son hereinafter in this section being referred to as the prin- cipal) .......... .. ' (2) Where a ship of the principal carries passengers, [5, 4413 (2), livestock, mail or goods shipped at a port in India, one-sixth latter 112"] of the amount paid or payable on acéount of such carriage to the principal 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 principal on account of such carriage .......... ..
(3) Before the departure from any port in_ India of any [s- 4413(1)] such ship ............. ..the master of the ship' shall prepare and furnish to the Income-tax 0 er a re , , of the full amount paid or payable to the prin pal, or' d any person on his s 5 '3 1 l l [s' _ earlier half, part] [s- _ 44B(3), earlier part] [s- , 443(2), earlier half, part] [s- 4413(3).
latter part] [s.44C] [s. 44A, latter part ] Section 183;
Recovery of tax in respect of non-resi-
dent from his assets [s.4.2(I), Ist l'rov.] 208 Clauses 182-183 'behalf: on account of the carriage of all passengers, live- stock, mail or goods shipped at that port since the last arri- val of the ship thereat.
(4) On receipt of the return, the Income-tax Officer shall assess the income referred to in sub-section (2) .......... ..and determine the sum payable as tax thereon at the rate or rates for the time being applicable to the total income of a company which has not made the arrangements referred to in section 203 [18(3D), main para], and such sum shall be payable by the master of the ship ....... ..
(5) For the purpose of determining the tax payable under sub-section (4), the Income-tax Oﬁicer may call for such accounts or documents as he may requﬁe .......... ..
(6) .......... ..A port clearance shall not be granted to the ship until the Customs-Collector, or other oﬂicer duly autho- rised to grant the same, is satisﬁed that the tax assessable under this section has been duly paid.
(7) Nothing in this section shall be deemed to prevent the principal from claiming in the ﬁnancial year following that in which any payment has been made on his behalf 'under this section, that an assessment be made of his total income of the previous year, and that the tax payable on the basis thereof be determined in accordance with" the other provisions of this Act, and if he so claims, any such payment as aforesaid shall be treated as a payment in advance of the tax leviable i.n the relevant assessment ear, and the difference between the sum so paid and the am unt of tax found payable by him on such assessment shal be paid by him or refunded to him, as the case may be. =;
(8) The provisions of this section shall not apply where the Income-tax Ofﬁcer is satisﬁed that there is an agenit of the principal from whom the tax will be recoverable in: the igflevant assessment year under the other provisions of this . ct.
\ I--Recovery of tax in respect of non-residents.
u x Without prejudice to the provisions of section 1'7 (1) [section embodying the rule that a representative asse see-
is liable to pay the tax] or of section 176 [section newly dd- ed authorising the Income-tax Ofﬁcer to proceed ag nst assets with agent], where the person entitled to the inc me .......... ..referred to in section 9. clause (i) [42(1) main ra, earlier part] is a non-resident. the tax chargeable ther on, whether in his name or in the name of his agent whq is liable as a representative assessee. may be recovered; by deduction under any of the provisions of sections 20E to 204 [18(2) to 18(3D)] and .......... ..any arrears of tax may be recovered also in accordance with the provisions of his Act from any assets of the non-ii-¢sident which are, or ay at any time come within; India. 3 ' a ( ¥q 4'.
~ K 209 Clause 184 J --Persons leaving India.
(1) Notwithstanding anything contained in section 3 5¢°ti°" '34- [section 3], when it appears to the Income--tax Oﬂicer that f,?'°"""°m any individual may leave India during 'the current assess-1.,,,ving1,,d;,,, ment year, or shortly after its expiry,-and that he has no [L ,';'A(,), present intention of returning, .......... ..the total income of main para, such individual for the period from the expiry of the pre- earlier half] vious year for that assessment year, 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 [s. 234A (1), year or part thereof included in such period ............ ..... .. ngain para. shall be chargeable to tax at the rate or rates in force in '""f' ham that assessment year, and separate assessments shall be 9"] made in respect of each such completed previous year or part thereof. ' (3) The Income-tax Officer may estimate the income of 5- ?4A(')v such individual for such period or any part thereof, ﬂgff' where it cannot be readily determined in the manner pro- paft] ' vided in this Act.
(4) For the purpose of making an assessment under sub- [I- 24A(2)l section (1), the Inc.ome~tax 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 2 notice, a return in the same form and veriﬁed in the same manner as a return under section 143(2) [sub-section (2) of section 22], setting forth .......... ..his total income for each ....... .. completed previous year comprised in the period re ferred to in sub-section (1) and his estimated total income for any part of a complete 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 1 noticeiissued under section 143(2) [sub-section (2) of section 22]. 1 (5) Tax chargeable under, this section shall be in addi- [Nlcw] tion to the tax, if any, chargeable under any other provision of this Act. -
(6) Where the provisions of sub-section (1) are appli- [Nlvwl cable, any notice issued by the Income-tax Oﬂicer under 1 section 143(2) [sub-section (2): of sectihn 22] or section 154 (1) [section 34(1), second part, portion relating to the issue of a notice containing the're._t;uirem'eht to be included on the lines of section 22(2)] in respect dfiany tax chargeable , under any other provision of this Act may, notwithstanding anything contained in section 143(2) Esection 22(2)] or sec- tion 154(1) [section 34(1) second para, portion relating to notice containing such requirements] as'the case may be. require the furnishing of the return by such individual within such _ riod, not bein less thfn.-seven days, as the Income-tar ﬂicer may thin properﬁg ' i 210 Clauses 184-186 [New] (7) Every assessment under sub-section (1) shall be _ completed within three months of the date on which the notice under sub-section (4) is served, except where such individual himself waives his right to have the assessment so completed, or where the assessment is delayed owing to any conduct of such individual.
K--Di'scontinuance of business, or dissolution.
Section 185. (1) Notwithstanding anything contained in section 3, Discontinued, [section 3] where any business, profession or vocation which E"""°" was not charged under the provisions of the Indian Income-
p,;,f]5(')' tax Act, 1918, is discontinued in any.assessment_year, the 7 of1g18 total income of such business, profession or vocation of the period from the expiry of the previous year for that assess- ment _year .upto the date of such discontinuance may, at the discretion of the Income-tax Oﬂicer, be charged to tax in that assessment year.
[New] (2) The total income of each completed previous year or part thereof 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 thereof.
[S- 25(2)» (3) Any person discontinuing any such, business, pro- °a"'" Pm] fession or vocation shall give to the Income-tax Oﬁicer notice of such discontinuance within ﬁfteen days there-
of .......... .. -
[s. 25(1), (4) Tax chargeable under this section shall be in addi- Pm] tion to the tax, if any, chargeable under any other provision of this Act.
section 133, ( 1) Where any business, profession or vocation carried A_ssociati0n on by .......... ..an association of persons has been discontinu- 'g3:i';:;d °' ed or where .......... .. an association of persons is dissolved,--- d'5°°"'i""°d- (a) the Income-tax Oﬁicer shall make an assessment of §;r'f]'*('3' the total income of the .......... ..association of per- sons as if no such discontinuance or dissolution had taken place; and [8- 44(3), (b) every person who was at the time of such discon- Paﬁl tinuance or dissolution a .......... ..member of ' the association, and the legal representative of any such member who is deceased, shall in respect of the in- come of the association be jointly and severally liable for the amount of tax.....; .... ..payable, and all the provisions of this Act, so far as may be, shall apply to any such assessment .......... ..
[New] (2) Where such' discontinuance or dissolution takes place after any proceedings in respect of an assessment year ave commenced, the procecdings be continued agains ' the s _t persons referred to in: sub- on (1) from -the sta e at I . r 211 Clauses 186-188 V which the proceedings stood at the time of such disconti- nuance o'r dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly. .
(3) The provisions of sub-sections (1) and (2) shall, so [New] for as may be and mutatis mutandis, apply in relation to [s. (2) part any penalty or other sum, chargeable under any provision 5-44 3) Part] of this Act, as they apply in relation to tax.
(4) Nothing in this section shall aﬁect the provisions Of [New] section 170(2) [24B(1), portion limiting liability of legal re- presentative to extent of estate].
/ L--Special propisions for certain kinds of income.
Where the time taken by the author of a literary or Scctiors I37- artistic work in the making thereof is more than twelve R°Y".";'°' .......... ..months,............the amount received or receivable f;§';'§"tm_ by him during any previous year on account of any lump rafy 0, mi. sum consideration for the assignment or grant of any of stic work. his interests in the copyright of that work or of royalties [8 "AM or copyright fees (whether receivable in lump sum or other- ' wise), in respect of that work, shall, if he so claims, be allocated for purposes of assessment as hereunder---
(i) where the time so taken is less than twenty-four , months, one-half of the amount of such lump sum, royalties or fees as the income of the previous year in which the vsfhole amount is received or receiva-
ble, and the other half as the income of the next succeeding previous year; and
(ii) where the time so taken is twenty-four months, or more, one-third of the amount of such lump sum, royalties or fees as the income of the previous year in which the" whole amount is received or receiva- ble, and one-third of the said amount' as the income of each of the two next succeeding previous years.
Explanation:-For the purposes of this section, the ex- pression 'author' includes a joint author, and the expression 'lump sum', in regard to royalties or copyright fees, inclu- des an advance payment on account of such royalties or copyright fees which is not returnable.' M----Liability of State Governments. §,'§?Zi.§'s't otnss' ' - - income-tax.
.......... ..Income--tax payable on the interest............ on Fm 9-tcurmf-8 any security of the State Govanment ,; issued income-tax °"' $'"'° free shall be payable by the St te Govepgment at such rate gf";'ﬁ';1,'§°m' as may be laid down by any Ce ral Acté ~ pm I l .« l, r Section 189.
Assessment of registered firms.
[8- '-',3 (5) opening lines ] [5' ?3(5) (3):
mam para ] [s- 23(5)_(a).
xst Proviso] [s- 23(5)(a).
and Proviso] Section-190.
212Clauses 189-191 CHAPTER XVI SPECIAL PROVISIONS APPLICABLE TO FIRMS A----Assessment.
(1) Notwithstanding anything contained in sections 147 and 148 [section 23(1) to (4)], .......... ..and subject to the pro- visions of sub-section (3 , in the case of a registered ﬁrm, after assessing the total i come of the ﬁrm,-
(i) the income-tax payable by the ﬁrm itself shall be determined; and
(ii) the share of each partner in the income of the ﬁrm .......... ..shall be included in his total income- and assessed to tax accordingly.
(2) .......... ..If such share of any partner is a loss it shall be set off against his other income or carried forward and set off in accordance with the provisions of sections 72 to 80 [24(1) and (2)].
(3) .......... ..When any of the partners of a registered ﬁrm is a non-resident, the tax on his share in the in- come .......... ..of the ﬁrm shall be assessed on the ﬁrm at the rate or rates which would be applicable if it? were assessed on him personally, and the tax so assessed shall be paid by the ﬁrm. ~ ' In the case of an unregistered ﬁrm, the Income-tax Ofﬁ-
Assessment of Ce1"' unregistered ﬁrms.
[S-23(5)(b)l Section 191 .
Application
(a) may .......... ..determine the tax payable b the ﬁrm. itself on the basis of the total income 0 the ﬁrm; or
(b) .......... ..if, in his opinion, the aggregate amo nt of the tax .......... ..payable by the partners 1'. t ﬁrm were treated as a registered firm would e eater- than the aggregate amount of the tax which . ould be payable by the ﬁrm under clause (a) and the tax which would be ' ayable by the partners indi- vidually, ma A procee to make the assessmentiunder section 189(1 (ii) [23(5)(a)(ii)] as if the ﬁrm 1' ere a registered firm; and Where the procedure sp ciﬁed in this clause is applied to any unregistere ﬁrm, the provisions of section 189(2) and 189(3) [1 t and 2nd provisos to section 23(5)(a)] shall apply here- to as they apply in the case of a registered rm.
B--Registration. E (1) An application for registration of a ﬁrm for the pur-
for rcgistra- poses of this Act may be made to the Income-tax Officer tion.
[s.26'A(1)] on behalf of any ﬁrm if---
(i) -the partnership is eyidenced by an instrunient,..-
and 5 L1', ,5.
'6' r ....._e.4....'. .' 213 3 Clause 191
(ii) the individual shares of the partners are speciﬁed in that instrument, or can be ascertained from that instrument with or without the aid of the instru- ments of partnership of any other connected firms.
(2) Such application may, subject to the provisions of [NW] this section, be made either during the existence of the ﬁrm or after its dissolution. . r (3) The _application shall be made to the "Income-tax ['~rf5A (2)& Oﬂicer having jurisdiction to assessthe 'ﬁrm, and shall be fﬂth' Rufgi, signed---- second para:
(a) by all the partners (not being minors) personally, Pm] or
(b) in the case of a dissolved ﬁrm, by all "persons (not being minors) who were partners in the ﬁrm im- mediately before its dissolution. and by the legal representative of any such partner who is deceas-
ed. V (4) The application shall be made before the end of,[f,;,,_'§¢':d(')' the_ previous year for the assessment year in respect of with Rule 2, which registration is sought: - _ Second para.
part] Provided that the Income-tax Oﬁicer may entertain an application made after the end of the previous year, if he is satisﬁed that the ﬁrm was prevented by sufficient cause from making the application before the end of the previous year. 4 _ (5) The application shall be accompanied by the 0Ti_gi- Edrisﬁcag) nal instrument evidencing the partnersltip, together with with Rhxlc~31 a copy thereof: ' ' Provided that if the Income-tax Oﬂider is satisﬁed that for sufficient reason the original instrument cannot con- veniently be produced, he may accept a 'copy of it certiﬁed in writing by all the partners (not being minors). or, where the application is made after the dissolution of the ﬁrm, by all the persons referred to in clausei(b) of sub-section (3), to be a correct copy, or a certified (logy of the instru- ment: and in such cases the application,s all be accompa- ;_ nied by' a duplicate copy of the original instrument: ' {Provided further that where the individual shares of _i the partners are not speciﬁed in the ins ,' ent of partner- ; ship, the provisions of this sectiqn shall ' pply also in rela- ' tion to the instruments of partnership re erred to in clause'
(ii) of sub-section (1) as they apply in relation to the instru- niient evidencing the partnershipof the firm to be register- e .
(6) The application shall be made in the prescribed [s- 2611(2). form and shall give the following particulars-- 'ﬁfe 3'
(i) the names and addresses of the rtners of the ﬁrm £3115': during the previous year, tgdther with their ° °] shares: -e 3 3 .
we {New} [See. Rule 6] [New] Section 192.
Procedure on receipt of application.
[s. 26A (2), part, read with Rule 4] [See Rule .1,
0)] [See Rule 4 (9)1 {Ncw] INN] 214 Clauses 191-192
(ii) the dates of their admission to the partnership ,-
'(iii) the interest on capital or loans payable to the partners;
(iv) the salary or commission or any other amount payable to the partners; and
iv) the manner in which the proﬁts of the firm were divided for the latest previous year for which such division -has been made and the mode of distribution, that is to say, whether the distribu- tion was made by crediting the accounts of the partners or in any other manner, or if the proﬁts have not been divided the reason for not dividing the proﬁts.
(7) Where registration is granted to any ﬁrm for any assessment year, it shall have effect for every subsequent assessment year, provided there is no change in the consti- tution of the ﬁrm or the shares of the partners as eviden- ced by the instrument of partnership on the basis of which the registration was granted, and provided the ﬁrm furni- shes, along with its return of income for the assessment year concerned, a declaration to that effect, in the prescrib- ed form and veriﬁed in the prescribed manner.
(8) Where any such change has taken place in the pre-
vious year, the ﬁrm shall apply for fresh registration for the assessment year concerned in accordance with the pro- visions of this section.
» (1) On receipt of an\application for registration of a firm, the Income-tax Oﬂicer shall inquire into the genuine- ness of the ﬁrm and its constitution as speciﬁed inlthe in- strument of partnership (as read with the instruments of partnership referred to in clause (ii) of sub-section (1) of section 191, where the case so requires), and---
(a) if he is satisﬁed that there is or was during the pre- vious year in existence a genuine ﬁrm with the constitution so speciﬁed, he shall pass an qrrder in writing registering the ﬁrm for the assessment year ;
( b) if he is not so satisﬁed, he shall pass an order in writing refusing to register the firm. ' (2) The Income-tax 01ﬁC_€'I' shall not reject an appli- cation for registration merely on the ground that 'the ap- plication is not in order, but shall intimate the defect to the ﬁrm and give it an opportunity to rectify the defect in the application within a period of one month from the date of such intimation.
.(3) If the defect is not rectified within such tiine, the Income-tax Oﬂicer may reject the application.
'..
. 215 Clauses 192-193 (4) The Income-tax Oﬁicer shall ﬁnish- the inquiry un- [New] der this section before the expiry of a period of one year from the date of ﬁling of the a lication, or before making an assessment on the ﬁrm for We assessment year, which- ever is earlier.
(5) Where a ﬁrm is registered for any assessment year, [NeWl the Income--ta:x: Officer shall record a certiﬁcate on the in- {Sec Rule4 strument of partnership or. on the certiﬁed copy submitted 1) Part] in lieu of the original instrument, as the case may be, to the effect that the ﬁrm has been registered under this Act, for that assessment year; and where a declaration under section 191(7) [relevant sub-section of section for applica- tion for registration, to the effect that in the 'case of subs- equent assessment year only a declaration need be sent] is furnished by the ﬁrm for any subsequent assessment year, he shall also endorse a note of such declaration hav- ing been furnished on the said instrument or certiﬁed copy.
(6) Notwithstanding anything contained in ' this sec- [s. 23 (4), tion, where, in respect 'of any assessment year, there is, onmain ta. the part of a ﬁrm, any such failure as is mentioned in sec- lam' "3 tion 148 [s. 23(4), main para, earlier hal:E,,embodied in sec- P"'.1, tion re: best judgment assessment], the Income-tax Oyfﬁcer ' may refuse to register the ﬁrm for the assessment year. -
(1) I)', where a ﬁrm has been registered, or its regis- Scctim 193. .tration has effect under section 191 (7) [newly added sub- Can°§11§ti°n section in section re: application for registration, to the ff RP3""'*' effect that registration has effect for subsequent year], for ""1 any assessment year, the Income-tax Ogflcer is of opinion [N°"'1. - that there was during the previous year no genuine ﬁrm 5" 1]"'° 631 in existence as registered and that the registration was ob- ; tained or continued by misrepresentation, he may, with f the previous sanction of the Inspecting Assistant Commis- sioner and after giving the ﬁrnt a reasonable opportunity of. being heard, cancel the registration of the ﬁrm for that assessment year. ' (2) If, where a ﬁrm has been registered or its regis- [s. 23§(4), tration has effect under section'191(7) newly added sub- mini para. section in section re: application for gistration, provid-1";f]' ""3 ing that registration once granted has effect for future pa ' years] ,- for any assessment yearjsthere is, on the part of the ﬁrm, any such failure in respect of the assessment year as is mentioned in section 148 [section 23(4), main para, ear-
_lier half, i.e., section for best judgment assessment], the , . Income--tax Officer may cancel the registration of the ﬁrm E' 2 ,( ) for the assessment year, after giving the ﬁrm not less than p,'.,,.?,';,']' ' fourteen days' notice intimating his intﬂition to cancel its registration and after giving it a reasmable opportunity of being heard. , ' » Section 194.
216Clauses 193-195 [New] (3) Where the registration of a ﬁrm is cancelled for any assessment year, the Income-tax Oﬂicer shall amend the assessments of the and its partners for that assess- gtent year on the footing that the ﬁrm is an unregistered rm.
[New] (4_) The provisions of section 161 [35 (1) to (4)] shall, mutatis mutandis, apply to the amendments of the assess- ments of the firm and its partners under sub-section (3). ' the period of four years speciﬁed in section 161 (7) [S. 35 (1)] being reckoned from the date of the order cancelling the registration. .
INew] (5) No order cancelling the registration of a ﬁrm for any assessment year shall be made after the expiry of eight years from the end of that assessment year.
C--Changes in constitution, succession and dissolution.
(1) Where, at the time of m'aking an assessment under Change in section 147 or 148 [23] it is found that a change has occur- °'t2n-Wlltiol red in the constitution of a ﬁrm, .... .. the assessment shall ° "'ﬁ""° be made on the ﬁrm as constituted at the time of making 5- 25 (')3 the assessment: * Provided that the income of the previous year shall, for the purposes of inclusion in the total incomes of the partners, be apportioned between the partners vtho, in such previous year, were entitled to receive the same:
Provided further that when the tax assessed 'ipon a partner cannot be recovered from him, it shall reco- vered from the ﬁrm as constituted at the time of rnaking the assessment.» g {New} (2) For the purppses of this section, there is 'a change in the constitution o;f the ﬁmn-- (
(a) if one or more of thé partners cease to be ners or one or more new partners are admitted, i such circumstances that one or more/of the perso who were partners of the' firm before the chang con- tinue as partner or partners after the chan e, or
(b) where all the partners continue with a chat: ge in their respective shares or in the shares of szxme of them. ' . Where a ﬁrm carrying on a business profession E r vo-
§f,?c1:;i335I,f cation is succeeded bx another ﬁrm, and the case is ngt one one ﬁnn by covered by section 1 4 [26 (1), relating to changes 11 the . 100016? ﬁmh constitution of the ﬁrm], separate assessments sh ll be [New] made on the predecessor ﬁrm; and the successor ft m in accordance with the jarovisiorts of section 180 [26(2)].§ i 217 Clauses 196-197 (1) Where any business, profession or vocation carried S¢Cti°n 195- on by a firm .... .. has been discontinued, or where a ﬁrm Finn di8§01V- ....... .. is dissolved,-- gisggjfggggf
(a) the Income-tax Officer shall make an assessment [",'t*j*(')' of the total income of the .... .. ﬁrm as if no such discontinuance or dissolution had taken place ; and
(b) every person who was at the time of such discon-- [s. 44 (3), tinuance or dissolution a partner of the ﬁrm, and Part] the legal representative of any such partner who ' is deceased, shall, in respect of the income of the ﬁrm, .... .. be jointly and severally liable for- the amount of tax ....... .. payable, and all the provi-
sions of this Act, so far as may be, shall apply to any such assessment ............. ..
(2) Where such discontinuance or dissolution takes [Nevg place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred tofin sub-section (1) from the stage at which the proceeding stood at the time 'of such discontinuance or dissolution, a d all the provisions of this ;. Act shall, so far as may be, amly accordingly. , i I (3) The provisions of subsections '»(1) and (2) shall, [s- 41(2). Dirt mutatis mutandis and so far as may i ,' apply in relation "44 ,3)'*'''"] to any penalty or other sum ' rgeab, . under any provi- sion of this Act, as they apply _n relation to tax.
(4) Nothing in this section shall dﬂiect the provisions'[N°".'] of section 170 (2) [24B (1), portion limiting liability of legal representative to extent of estate.] 2 ' , D~Other provisions. ' ' A (1) Besides the provisions; contaizfpd in this Chapter, Sqct on :3;
the following are' the provisions of this 'Act specially r_ele- L"
vant in respect of ﬁrms-- C lions' Section 6, clause (2). . [4A (b)] relating to .rcsiQenoe:of ﬁrms.' Section 28 (ii) .. [xo(5A) part]1re1ating t9 'charge of compensation etc. for uumﬁing agenqy. . § ; ' ' i 40 (b) . . [IO (4.) (b)] xlating to 4' ' 'ssib'l'ty of fntercst, l 'V salary, comzission of -zemuxlieraiibn paid to a l partner. g ,1 j "
bections 76 & 77. . [24 (1) 2nd p K viso part,"' 2:4, (2) proviso (c) and '(d)' [24 A2) pg-ooh part] relati to loss f ga registered firm or an 3 unregistered treat Vpapt registered. = Section 78 . . ' [24 (1) 2nd proviso, pit; and _24. (2) misc (c) part] relating to loss of_ umcgtstered
1. Underlining of sections in" the list has not beenﬁnic, for facility of 0 ~ I .
218Clauses 197-198 s"°ti°"'79 (I) .. [24 (2) Prov. (e)] relati.ng.to set off of 1033;; in cases of change of C0l1Stltut10n in a ﬁrm.
3605011 I23 .. [10 (5A) part] relating to computation of tax on compensation etc. Section r38 clause(1) [3fm(1)] relating to information and returns by a Section 165 . . [23 (6)] relating to intimation of shares.
Section 280 (2) & 280 (4.) [28 (1) Proviso (d) and 28 (2)] relating to computa- tion of penalty in the case of ﬁrms and penalty for wrong apportionment of shares.
Section 320 (2) (a) .. ' !63] relating to service of notices in the case of Section 321 (2) . . [Newly added section in Misc. Chapter relating to service of notices in the case of dissolv ﬁrms.' (2) The list of provisions given in sub-section (1) is for convenience of reference only.
CHAPTER XVII SPECIAL PROVISIONS APPLICABLE TO COMPANIES i*?¢'ti°19 191? (1) The following provisions of this Act are specially si;'ns';p1;fl'i';';: relevant in' respect of companies, namely," - ble to comp. Section 6 clause (3) [4.A(c)] relating soresidencc of a company;
uues.
[New] Section 20 [8 Expln.] relating to deductions in the case of a banking company under the head «interest on securities";
Section 28 (ii) [10 (5A)] . relating to compensation etc., to a agent;
Section 4.7 (iii) [12B (1) relating to' transfe of capital assets to a shbsidir 2nd prov.] ry company ; ' ;
Sect'on 85(5) [15C (5) relating to non-applicability of section 85 5 _ to I I proﬁts andhdins to which section r :3 [sz3A ' Section :08 [56A] relating to exemption from tax of dividends from certain Indian companies; ' Section tog (2) [r 5B (r) relating to non-applicability of section 109 [1513] for 'xst prov]. super-tax in relation to companies;
Sections 113 to :20 [23A] relating to additional super-tax;
Section 123 (1) [1o(5A) . relating to computation of tax where total (income part] includes compensation esc.;
Section 126 [I7 (7)] relating to computation of tax where total income includes capital gains; ' Section 139 [39] relating to powers of the Income-tax Oﬁcer etc. to
-- examine registers;
' 'Provisions applicable" only to partners have not been included. 3.1 he list of sections has not been un¢1-lined, for facility of reading. ;
219Clauses 198-201
-Section 166 (5) [19A] gelating to information and return regarding divi-
ends;
_Section :67 ' [20] relating to ocrtiﬁcatesin respect of tax on divideo n ; '/ ' Section 203 [18 (3D)] relating to deduction)! super-tax from dividends;
Sehtion 254. (a) [30 (1) relating to appeal: against an order under section _ prov.] :13 [23A];
Section 320 (2)(b) [63] relating to setivice of notices.
(2) The list of provisions given in sub-section (1) is for convenience of reference only. :
CHAPTER XVIII» _ COLLECTION AND RECOVERY or TAX.
A--General.
(1) Notwithstanding that the regular assessment in res- Seciotr 199, pect of any income is to be made in a hter assessment year, uction at the tax on such income shall :be payable by' deduction at *0 cc '"15 source or by advance payment,'as the e may be, in accor- the 9"" dance with the provisions qf this Chap t_ . [N 1' (2) Nothing in this section shall rejudice the charye of tax on such income under the provisions of section 3(1) . 3 . M A [] (1) In the case of income in respe of which provision See 'on i 200. is not made under this Chapter? for de cting income-tax at PW' the time of payment, and in any case where income-tax has '[':° 9'] not been deducted in accordanqe with (he provisions of th' ' Chapter, income-tax shall be payable bI'¢the assessee direct.
(2) Save as provided in this Chapt 3 super-tax shall be [s. 38 (2)1 payable by the assessee direct. 3 L B--Deductiong at stmfce.
: « (1) Any person responsib for ' chargeable under the head "S aries" payment, deduct income-tax d su payable at a rate representing the av tax and average rate of super- , re A the ﬁnancial year in which p the estimated...' ....... ..income 0 the as for that ﬁnancial year. ' ' ing any income Sec on 201.
all, at the time of 5*' -
on the amount [". "-3 (2)' rate of income- mm ""1 vely, in force for t is made, on ée under this head 2 I (2) Any person responsibl§S£t>r lying any income [s. *'18 (23), chargeable under the head ~ ' '2 to a non-resident ml' Plfl] shall, at the time of payment, &duct....£.;.....tax on the esti- ? mated income of the assessee. ' ' cial year in accordance with [section 17(1)]. i .»z' 15--I Lew G_oIn.I58.
220Clauses 201-203 [s- _l8 (2), (3) ._. ..... ..The person responsible for making the pay-
P"°'"'°] ment referred to in sub-section (1) or (2) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deﬁciency arising out of any previous deduction or failure to deduct during the ﬁnancial year.
[New] (4) The trustees of a recognised provident fund, or any person authorised by the regulations of the fund to make payment of accumulated balances due to employees, shall in cases where section 297(1) [58G (3)] applies, at the time an accumulated balance due to an employee is paid,,make therefrom the deduction provided for in section 298 [58H].
[New] (5) Where any amount standing to the credit of an em- ployee in an approved superannuation fund is paid to the employee, income-tax on the amount so paid shall be deduct- ed by the trustees of the fund to the extent provided in section 313 [58S (2)]. ' {s. 18 (2A). (6) For the purposes of deduction of tax on salary pay- 1"'""P""] able in foreign currency, the value in rupees of such alary shall be calculated at the prescribed rate of exchangg.
Section 202. The person responsible for paying any income charge- ::c'§r"i°:i'es°" able under the head "Interest on securities" shall..;., ..... .., I,' 18 23) at the time of payrnent,--
main para] '
(a) unless otherwise prescribed in the case of any' secu- rity of the Central Government, .......... ..ded inc come-tax on the amount of the interest paya le at the maximum rate ; and , [s. _18 (3A), (b) also deduct super-tax on such amount, when paid min Para] to a non-resident--- ;
(i) in the case of a conipany, at the rate app]: able to a company which has not made the a nge- ments for deduction of super-tax referr to in section 203 [18(3l?)]; _ %
(ii) in the case of any pther person, in accorfance V wit]h the provisions! of section 124(1)(b) 17(1)
(b) - -
Section 203. The principal oﬁicer of an (Indian company or a com-
Di"'?§"d3'b pany which has made such effective arrangements as: may gin P5" 1)' be rescribed for the educt' of super-tax from divi ends ' sh 1, at the time of ying' if dividend to a share lder whom the principal A er ' ';no reason to believe 0 be
221. Clauses 203-205 a resident, deduct super-tax on the amount of such dividend as increased in accordance with the provisions of section 59 Section 16(2) main para, latter part], at the following rates :--
(i) if the shareholder is 1 company, at the rate appli- cable to a company which has not made the arrangements for deduction of super-tax from dividends referred to above;
(ii) if the shareholder is a person other than a com- pany, in accordance with the provisions of section 124(1) (b) [Section 17(1) (b)].
(1) Any person responsible for paying to a non-resi- Section 204.' dent .......... ..any .......... ..sum chargeable' under the provi- E3332? "lmfa sions of this Act, (not being income chargeable under the (3B)'°,':,a,n head "Salaries" or "Interest on securities". and not being para} a dividend) shall, at the time of payment, unless he is him- self liable to pay any income-tax and super-tax thereon as an agent. deduct on such sum-
(a) income-tax at the maximum rate, and
(b) super-tax-
(i) in the case of a company, at the rate applicable to a company which has not made the arrange- ments for the deduction of super-tax referred to_ in section 203 [18(3D)];
(ii) in the case of any other person, in accordance with the provisions of section 124(1) (b) [17(1)
(b)]; ' Provided .......... ..that nothing in this sub-section shall gs. 18 (3B), apply to any payment made in the course of transactions nd D_1'°V-J in respect of which a person responsible for the payment is deemed under section 173(1), Piaoviso [section 43, First Proviso] not to be an agent of the' payee.
(2) Where the person responsible for paying any such [s- 18 (3C)] sum .......... ..( other than interest) to a nan-resident considers, E that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Income-tax Oﬂicer to determine, by general or spe- cial order. the appropriate proportion} of such sum so chargeable, and upon such determination tax shall be deduc- ted under sub-section (1) only on that proportion of the sum which is so chargeable.
1 (1) Where. in the case of my income in respect of Sccti 11205 which income-tax or super-tax is required to be deducted Cm' t¢_ at the time of payment at a particular rate under' the pro- "'lg3':'r";';:': visions of sections 201 to 204 [Section 1B(2B) main para, 'sec 18 2 ' Section 18(3) main para. Sec, 8(3A f para, Section [min '$32 1_8(3B) main para or Section 3D) para], the In- [3 (3 ,'p,.,.. com'e-tags Oﬁicer is sq.tisﬁed- H V income at the ino,( )1 , Proviso; (3B), lst proviso, and (3D) , proviso;] [s. 18 (2B), prov, part] Section 206.
'1 ax dedu-
cted is inco-
me received.
[S- 18 (4)1 Section 207.
Credit for tax dcduclcd [S._ 18 (5).
main para, earlier half, part] [5- I3 (5) main para, latter half,pa-
rt, and ist prov.] [s. 18 (5)2nd prov., part] [s. 18(5), 3rd prov. part] Section 208.
Duty of per-
son deduct-
ing tax.
[S. 18 (6)] Section 209.
C0 en-
c-s of 'lure to deduct or P3)'-
222Clauses -205-209 total world income of the recipient justifies the deduction of income-tax or super-tax at any lower rate or no deduction of income-tax or super--ta:c, the Income--tax Oﬂicer shall, on an application made by the assessee in this behalf, give a certiﬁcate in writing to that eﬁect.
(2) .......... ..Wherc any such certiﬁcate is given, the person responsible for paying the income shall, until; such certiﬁcate is cancelled by the Income--tax Officer, deduct income-tax and super-'tax at the rates speciﬁed in such cer- tiﬁcate .......... ..or deduct no tax, as the case may be.
All sums deducted in accordance with the provisions of sections 201 to 204 [18(2) to 1.8(3D)] shall, for the purpose of computing the income of an assessee, be deemed ito be income received.
Any deduction made ........ ....in accordance with the provisions of sections_201 to 204 [18(2) to 18(3D)]....', .... .. shall be treated as a payment of income-tax or super-ttix. as the case may be, on behalf of the person from whose income the deduction was made, or of the owner of the securﬁty or of the shareholder as the case may be, and credit sh ll be given to him for the amount so deducted (exclusive qf any portion of such tax for which he obtains, in accordance with the provisions of this Act, a refund,) on the prod ction of the certiﬁcate furnished under section 211 [sub-s tion (9) of section 18] ............. .., in the assessment, if any, ade for the immediately following assessment year unde this Act :
Provided .......... ..that where such person or owrler or share-holder is a person whose income is included nder the provisions of section 63 or 64 [clause (0) of sub-s ction (1) of section 16], section 67 [sub-section (3) of s ction 16]. section 96 [4413] or- section 97[44E] in the total income of another person, the payment shall be dee cl to have been made on_behalf of; and the credit shall be iven to, such other person .......... .. , Provided furtherthat where any security or shkre in a company is owned jointly ,b. two or more perso not constituting a partnership, one it in respect of t tax deducted .......... ..may be given to each such person the same proportion in which the interest on such secu ty or dividend on such share has been included in his total i ome.
Any person deducting an' sum in accordance wi the provisions of sections 201 to 4 [18(2) to 18(3D)] sha l pay within the prescribed time, the sum so deducted the credit of the Central 'Government or as the Central card of Revenue directs. ;
. (1) If any such person does not deduct or after d duct- mg fails to pay the as to 204 ns (2) to 18, (3D)] in section 203 [Sect' n 18( i 223 Clauses 209-212 the company of which he is the principal officer shall, [so I8 (7)1 without prejudice to any other consequences which he or it may incur, be deemed to be an assesee in default in res-
pect of the tax:
Provided that no interest shall be charged .under sec- tion 230 [Section 46 (l)] from such person, principal officer or company unless the Income-tax oﬂicer 1S satisﬁed that such person or principal oﬂicer, as the case may be, has wilfully failed to deduct and pay the tax.
(2) Where the tax has not been paid as aforesaid after [New] it is deducted, it shall be a first charge upon all the assets of the person, or the company, as the case may be', referred to in sub--section (1).
The power to levy by deduction under sections 201 to 5° 5°". *'°- 2o4 [section 18(2) to (3D)], shall be without prejudice to 2; "g;;§';m any other mode of recovery. dc by move. TY."
[sgis (3)] Every person deducting income-gtax or super-tax in Se¢Iti_°n 211- accordance with the provisions of sections 201 to 204 [Sub-- g'j{'g:':;:::'5 sections (2), (2B), (3), (3B), (3C), or' (3D), of section 18] [358 (9)] shall, at the time of payment pf the sum from which tax - has been deducted, furnish to the person to whom such payment is made, a certiﬁcate to the effect that income-.-tax or super-tax has been deducted, _and specifying the amount so deducted, the rate at which the taix has been deducted, ' and such other particulars aslmay bejprescribed.
For the purposes of sections 201 to 211 [All sections in- Section, 212. corporating any part of section 18] and section 166(1) Person respo- [20A] the expression "person responsible for paying" ".5eb1°f°'P"
yu .
meanS-- . [s 18 F.xpl.] _ (i) in the case of payments of income chargeable un- der the head "Salaries" 0t 1'! than payments by the Central Government or he Government of a State, the employer himself pr if the employer is a company, the company itsdlf including the prin-
cipal oﬁicer thereof ;'
(ii) in the case of payments of in ome chargeable un- der the head "Interest onjge, urities" other than 'payments made by br on Hehalf of the Central Government or the Government of a State, the local authority or company including the princi-- ' pal oﬂicer thereof ; 4.
(iii) in the caseﬁof payments of any other sum char- geable under the prdvisions -of this Act, not being income chargeable under ihe head "Interest on securities", the pay him, ' or -if the payer is a company, the co y i including the prin-; cipal officer thereo , 1 " ' ' 224 Clauses --2'1'3-217 sl'3°°"°" i?'i3;- ....... ..Where tax_is deductible at the source under sec- d§';cf'§fc'r':fa_ tions 201 to 204 [section 18(2), 18(2A), 18(3), 18(3A), 18(3B), nd 0,, as,,.,_.,. 18(.5C) or 18(3D)], the assessee,sha11 not be callediupon see to pay the tax himself unless he has received the income [3- 7, (1): 9nd without such deduction. proviso--ex-
t ded sfaxétionl 2:4. The provisions of section 207 [section re: credit for Saving regar tax deducted at source--i.e., parts of s. 18(5)] are without dlﬂ(gi:axh;i'fe- prejudice to those of section 246 [section re: tax deemed {,';'";,, Said fin to have been paid on dividends----existing s. 18(5), part and dividends. S. 49B]. ' ' [New] C----Advance payment: of tax.
Section 215. (1) Tax shall be payable in advance in accordance Advancetax with the provisions of sections 216 to 228 [All other sec- tions embodying any part of section 18A] in the case of in"?-mfg "2'of"i"°§i;4°Es'i§'c'i§§§is'°§§?§i§'§n§ §¢?Ju3'§f'°i%('i§'dfE sec 10 o , f,'.;,§,f'_f,'a,',;'£2? (2A), 18(2B). 13(3), 18(3A),_18(3B) and 18(3C)] for deduc- rlicr half pa- tion of income-tax at the time of payment and whibh is §t.»x§fg)]"""h not chargeable under the head "Capital gains".
[New] (2) Such income is hereinafter. in this Chapter 1iefer- red to as "income subject to advance taxf', and such tax is hereinafter in this Chapter referred to as "advance tax".
[NW] (3) The provisions of this section shall, in relation to any dividend which is to be increased under the provi- sions of section 59 [section 16(2), main para, part re' ard- ing increase of dividends], apply only for the purposes of 'super-tax. , 1 Advance tax shall be payable in the ﬁnancial year----
Section 2x6._ condition or (a) where the total income of the assessee referred to liability to ' in section 217 (a) (i) [18A (1) (a), main para,: ear-
pay advance lier half, part, as embodied in the draft sebtion relating to "computation of advance tax"] ..' .... ..
(a)ma;,, pm, exceeded the maximum amount not chargea e to earlier half, income-tax in his case by two thousand ﬁve, un- Partl dred rupees, or - 3 tax.
[s. 18A (1)
(b) where it is pa able b virtue of the provisions of section 220(3) s. 18A(g)].
Subjecteto the provisions of section 215(3), [sub-clause newly added re: advance tax on'dividends] the amount of Section 217.
Computation of advance ,,,_ advance was payable by an assessee in the ﬁnancial lyear [NW] shall be computed as follows:--- --
[" 38") (")' (a) (i) .... ..his tot ' inco ' iaf the latest previous 'year in respect of hich fhas been assessed by hall pu-t.] first be asc 'ﬂed.' '3 " .
2H ments in which the advance 225 Clauses 217-218
(ii) so much of such total income as consists of income which was or could have been subject to advance talx in that previous year shall next be ascertain- € ;
(iii) income-tax and supervtax shall then be calculated 5, 18A (1) on the last mentioned income at the average rate Ea). main of income-tax and the average rate of super-ta.'/: 'WC' respectively applicable in the ﬁnancial year to the ' pm') total income determined for the said previous year;
(iv) the sum total of income-tax and super-tax so calcu- lated shall, subject to the prcwisions of clauses (b) and (-c), be the advance tax payable;
(b) .... ..in cases where under the provisions of section [8- I8A(§) 124(2). or 124 (3) [section 17(1) 1st Proviso], the tax: ('L 1"?" payable by the assessce is to be determined with re- °' yference to his total world income, the advance tax payable by him shall_ bear to the total amount of income-tax and super-tax which would haveebeen ; payable on his total world income of the said pre-
vious year had it been his total income the same proportion as the amount of the income subject to advance tar: which is 'included therein bears to his total world income;
(c) in cases where an estimate is sent by the assessee [Néw.] under section 220(1) or 220(2) [18A(2)] or section J _220(3) [18A(3)], the total income so estimated _ j shall, for the purposes of calculation of tax under this section. be substituted for the total income re- ferred to in clauses (a) and 4(b), and the income subject to advance tax so estimated shall be subs- tituted for the income to be ascertained under item (ii) of clause (a).
V E.7c'planation.----- .... ..If the assessee is a partner of a_[;.£ 18A(1) registered ﬁrm and an assessment of the ﬁrm has been zmi Pr0V.] completed for a previous year later than the latest previous year. for which the assessee's .... ..asses$ment has been com- pleted, his share in the income oftltajﬁrm shall, for the , purposes of clauses (a) and (b), be included in his total & income on the basis of the said assessment of the ﬁrm. * (1) Where a person has been prqztously assessed uné se'ion 2:8. der this Act or under the Indim Income-taac Act, 1922, the u gof 1922. Income-tax Oﬂicer may, on or after the 1st day of April Or r 5)' in the ﬁnancial year, by order in writing require him to 7" °""' pay .... ..to the credit of the Central Government, advance ; " tax determined in accordance with the provisions of sec- ¥;"'8A(')'(') tions 215, 216 and 217 [s. 18A(1_) (.a) as embodied in other 6,, ,, "£.'i',--; sections]. . I pan] (2) The notice of dema is a _under section 163 (£')';' '3££i'l)' [29] in pursuance of such er the ' L 'fy the instalr _' , 1 is _ le under section pm.) 226 Clauses 218-220 219 [s. 18A(1), (a) earlier half, part and 1st Proviso and section 18A(1) (b), and newly added provision, as embodi- ed in the draft section relating to instalment].
[5, .sA(.) (3) ....... ..If afterthe making of an order by the Income (3). 3rd tax Oﬁicer under this section and before the 15th day of P'°'"] February of the ﬁnancial yearan assessment of the asses- see (or of the registered ﬁrm of which he is a partner) is completed in respect of a previous year later than that re- ferred to in the order of the Income-tax , Offi- cer, the Income-tax Oﬂicer 1 may make an amended order requiring the assessee to pay in one ins- talment on the speciﬁed date, or in equal instalments am the speciﬁed dates, if more than one, falling after the date of the amended order, the advance tax computed on t_ re- vised basis as reduced by the amount, if any, paid 1 ac- cordance with the original order; but if the amount already paid exceeds the advance tax determined on the revised basis, the excess shall be refunded. ' Section 219. (1) Subject to the provisions of this section and 0 sec- lnstalmcnts tion 220[18A(2) and l8A(3)], advance tax shall be pa able Of adVanC° in equal instalments on the 15th day of June, 15th da of """' September. 15th day of December and 15th day of Marph in [s(-8), *3£;:x)1 the ﬁnancial year:
para, earlier i half, part.] -
'[3- '3A(') Provided that, where the previous year of the assessee
(a), 1st Prov.] in respect of any source of in ome ends after the 31s day of December and before the §oth day of April, .... ..th ad- vance taac on that source of income shall, subject as ore- said, be payable in three equal; instalments on the 15t day of September, the 15th day of lDecember and the 15t day of March, respectively. 9 R5] I3A(I) (2) If the notice of demand issued under sectio 163 [29] in pursuance of the order under section 218 [se tion .
18A(1) (a), main para, earlier;-h,alf, part relating to» der of Income-tax Oﬂ'icer]jis serv after any of the dat on which the instalments tspeciﬁe therein are payable, the advance tax shall be payable ' equal instalments on ach of such of those dates 'as fall 'after the date of the se vice of the notice of demand, or in one sum on the 15th d of March if the notice is served after the 15th day of De em-
ber.
Section 220- (1) If any assesseel who is required to pay advanc tax Estimate by by an order under section 218) [s. 18A sub-section (1) (a), '-W¢95=¢- main para, earlier half, part re; Order by Income-tax ﬂi-
?[S-_ 18(2), cer] estimates at any time before the last instalment is due """" P3"-1 that his total income or income subject to advance t the period which wo'u1 be the. evious year for the { me- diately following assc , 'ye ', is l'ess'*than the tot in-' come on the basis of. _hich, L income on which, e is W , :adjust any excess or deﬁciency in respect of any 227 Clauses 220 required to pay such tax, as the case may be, and accord- ingly wishes to pay an amount less than the amount which 3% is so required to pay. he may send to the Income-tax ' cer--
(i) an estimate of the total income for that period,
(ii) an estimate of the income subject to advance tax for that period, and ((iii) an estimate of the advance tax payable by him cal-
\' culated in the manner laid down in section 217 [s. 18A(1) (a) main para, part, as embodied in section re: computation of tax%. He shall pay such amount as accords with his es imate in equal ins- talments on such of the dates' speciﬁed in section 219 [s. 18A(1) (a) main para, earlier half, part as embodied in draft section re: instalments] as have not expired or in one sum if ohly the last of such cdates has not expired. ' '(2) .... ..The assessee may send a revised estimate of [S4, 1 1815(2)', :'the advance tax payable by him beiore any one of the dates Prov'-l :speciﬁed in section 219 [s. 18A (1) (a),' main para, earlier half, as embodied in draft section re! instalments] anld insta -
ment already paid in a subsequent instalment or in subse- quent instalments.' ' ' ' (3) Any person who has not previobsly been assessed [S- ' under this Act or under the Indian Income-tax Act, 1922, u 0 shall, before the 15th day of arch in each ﬁnancial year, if his total income of the siod w ich would be the previous year for the immediately fol oiving assessment
-year is likely to exceed the ximumiaanount not charge- able to income-tax in his caseby two? thousand ﬁve hun-
.dred rupees, send to the Income-tax'Ofii¢er--
(i) an estimate of the totaljincome the said previous year; ,
(ii) an estimate of the income subgidct to advance tax, a of the said previous year; and * i(iii) an estimate of the adv nce taxi " able by him .... .. calculated in the ma per laid? bwn in section 217 [s. 18A(1) (a) main pira, ear' 1' half, part as em- bodies in .section ne: . co utation of' tax], and shall pay such amdunt as <§}o.rds with his esti- mate, on such of the dates sp ﬂed in section 219 [s. l8A(1) (a), main para, ear er half, as embodi- ed in section part re: i ment] as have not expired, by insta,I, ents ' may be revised according to sub-sec ' (2) _iso to s. 1815(2)], . ; e - r » «s A 4 ~.
- ;
2i :8A<a>1 '' 1922.
p and ,,tp,ov_] relates to income subject to 228 Clauses -220-223 [New]. 2 (4) Every estimate under this section shall be sent in the prescribed form and veriﬁed in the prescribed man- 71.81'.
Section 22:. Where part of the income subject to advance tax con-
commasgon sists of any income of the nature of commission which is.
receipts. receivable periodically and is not received or adjusted by [S. 18A(4).] the payer in the assessee's account before any of the quar-» terly instalments of advance tax become due, he may defer' payment of advance tax on that part of his income to the- date on which such income would be normally received or' adjusted, and if he does so he shall communicate to the- Incciome-tax Ofﬁcer thedate to which such payment is defer-V re 2 Provided that, if the advance tax of which the pay- ment is deferred is not paid within ﬁfteen days of the date' on which such incomeor part thereof is received oradjust-2 ed by the payer in the assessee's account, the advance tax shall be payable with ﬁour per cent. simple interest per annum from the date of such receipt or adjustment to the date of payment of the advance tax.
Section 222. (1) The Central Government shall pay simple in-- 2 Intcrcstpa.ya- terest .......... .. at four per cent. per annum .......... ..on the- NC by Gov- amount by which the aggregate sum of any instalments of ' °'"m°'"' advance tax paid during any ﬁnancial year in which they are [S-. '3A(5)» payable under sections 215 to 221 [All sections embodying' mm" Pam' any part of section 18A(1), 18A(2)', 18A(3) of 18A(4)] exceeds.
pan] the amount of the tax determined on regular assessm¢nt,...' from the 1st day 0 April next following the said ﬁnancial [S. x8A(5), year to the date 0 the regular assessment .......... .. for; the- 2"'! PFOV-] assessment year immediately following the said ﬁnancial' year.' (2) .... ..On any portion of such amount which is refund-
[S. 18A(5), ed under the provisions of sections 215 to 221 [sectio' 18A '5' PPOV-l (1) to (4)] interest shall be payable only up to the d e on which refund was made. 1 section _ (1) Where in any ﬁnancial year an assessee- I t "3 has paid advance tax under section 220(1) or 22(_)(2) [sub- a',;,:'°" Fag" section (2) of.s. 18A] or section 220(3) [sub--sect1on (3) of .,,.,,m, V s. 18A] on the basis of his own estimate, and the advance tax' so paid is less than eighty per _cent. of the tax determined 5;'. '3A(6)v on the. basis of the regular sessment, so far as such tax m Pam zzvance tax and so far as; it is. not due to variations in the rates of tax made by the Fi ance Act enacted for the year for which the regular asses nt is made, simple interest at the rate of four per cent,' per' annum from the 1st day of April next following the; said ﬁnancial year up to the date of the said regular assessment shall be payable by the assessee upon the amount by which. the advance tax so paid falls short of the said eighty per cent. ' '. See also alternative ' ft in'thc I' i on Clauses. _ g '. Existing section 18 A( , ut ' prescribes, the rate of four pf! cent-
as from tst April, 1952. , 3 p '£29 Clauses 223-225 (2) .... ..Where provisional assessment is made under [s. 18A (6) section 145 [23B],-- ﬁnd "W-l
(i) interest shall be calculated in accordance with the foregoing provision up to the date on which the tax as provisionally assessed is paid, and
(ii) thereafter interest shall be calculated at the rate aforesaid on the amount by which the tax as so assessed (in so far as it relates to income subject to advance tax) falls short of the said eighty per cent.
(3) ...Where as a result of an order under section 259 [s~d 13A (6)' [31] or section 272 [33A] or section 161 or 162 [35] or section 3' P'°"'] 263 [66], or section 269 [66A],.the amount on which inte- rest was payable under this section has been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of income-tax that is refundable.
(4)...In such cases and under such circumstances as may f., .3A (5),- be prescribed, the Income-tax Officer may reduce or waive 5th Prov.] . the interest payable by the assessee under this section.
Where, on making the regular assessment. the Income- Section 224.
tax Officer ﬁnds that any assessee has-- ' I'"°'°" Pa?' able by asses-
(a) under section 220(1) or 220(2) [s. 18A(2)] or section 5? in 0389 220(3), [s. 18A(3)] under estimated the advance tax ;'tn;'t"ld::'c'_°"' payable by him and thereby reduced the amount [s. 1 (7)], payable in any of the ﬂrst three instalments, or .
(b) under secion 221 [s. 18A(4)] wrongly deferred the payment of advance tax on a part of his income, he may direct that the assessee shall pay simple interest at four per cent, per annum-----
(i) in the case referred to in clause (a), for the period during which the payment was deficient on the difference between the amountipaid in each such instalment and the amo nt which should have been paid having regard to he aggregate advance tax actually paid ....... ..during the year, and
(ii) in the case referred to 'm clause (b), for the period during which the payment of advance tax was .... .. so deferred.
Explanati.on.--. . .For the purposes of this section, any in- stalment due before the expiry of six months from the com- mencement of the previous year in re ect of which it is to be paid shall be deemed to have beco 4 due ﬁfteen days after the expiry of the said six months.
(1) Where, on making the regular assessment, the In- S°<=ti°n M5- come-tax Officer ﬁnds that no» yrnentl 'advance tax has "" ' 'ﬁg: been 'madein accordance wit the' p . 'sions of sections mu, 'mg, 215 to 220 [s. 18A(1), 18A(2), I (3)], ' nest calculated in [s. : (8)1 230 Clauses" 225-229 the manner laid down in section 223(1) and 223(2) [s. 18A(6), main para, and 1st Proviso and 2nd proviso] shall be added to tire tax as determined on the basis of the regular assess- men .
7[NeW] (2) The provisions of section 223(3) [s.«18A(6), 3rd Prov.] and of section 223(4) [s. 18A(6), 5th Prov.] shall apply to interest payable under this section as they apply to interest payable under section 223 [s. 18A(6) ].
:51: _ ( 1) If any assessee does not pay _on the speciﬁed date any Em deemed instalment of advance tax that he is required to pay under to be in def" section 218 [section 18A(1)] and does not, before thepdate on ult.. which any such instalment as is not paid becomes d e, send [I8A(I0)] under section 220(1) or section 220(2) [s. 18A(2)] n esti- mate or a revised estimate of the advance tax pay;ble by him, he shall be deemed to be an assessee in default, in res- pect of such instalment or instalments.
(2) If any assessee has sent under section 220(1) or 220(2) 7 [18A(2)] or section 220(3) [18A(3)] an estimate or a grevised estimate of the advance tax payable by him, but does not pay any instalment in accordance therewith on the ' ate or dates speciﬁed in section 219 [s. 18A(1) (a), main pa a, ear- lier half, part embodied in section re : instalmen ], he shall be deemed to be an assessee in default in re ect of such instalment or instalments : * Provided that the assessee shall not, under sub-section (1) 'or this sub-section, be deemedfto be in default in re ect of any amount of which the payment is deferred under ection 221 .[s. 18A(4)] until after the date communicated _V him to the Income-tax Oiﬁcer under section 221 [s. 18 |(4)]. '5€C'i9n 227- Any sum, other than a penalty or interest, pai by or jfgﬁggcc ti': recovered from an assessee in pursuance of the pr_ isions '[s_ ,gA (")1 of sections 215 to 226 [all sections embodying any art of section 18A(1) to 18_A(10)] shall be treated as a pay ent of tax in respect of the" income' of the period which w uld be the previous year for an assessment for the assessme t year next following the Aﬁnancialyear in which it was yable, and credit therefor shall be given to the assessee in t regu- _lar assessment. ' ' "
'5°°'l°". 923-f. Any income chargeable under the head "Capitalzgains" §;';i',';i'°;'ai:s shall not be taken into account for any of the_ pur ses of
-[s. ,gA (,2)] sections 215 to 227 .[All other sections embodying a 1,): part of section 18A]; and the emresstons total zncom and "total world income" occurriitg in any of those sectio s shall accordingly be construed as not including such inco e.
'Section 229. ' When tax D--Collection and Recovery 2 1'fi;'§§."'.§.-.?§L'.l ' (1) Any amoun speci ' ' as payable tin a n ice of déemcd in demand under .... .. tion 1 29.].....j.shallz'~be;. paid ithin 'd°f"'"'«' ~ the time, at the pla e.and' V ' ' '_ in the 231 Clauses 229-230 notice ........... ....., or if a time is not so mentioned, then on or [5, 45, mam before the exp ry of a period of forty-ﬁve days from the date para. Part] of the service of the notice. ' (2) On an application made by the assessee before the expiry of the due date under sub-section (1), the Income- tax Oﬂicer may extend the time for payment or allow pay- ment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case.
[New] (3) If the amount is not paid within the time limited [, under sub-section (1) or extended under sub-section (2), as the case may be, at the place and to'the person men- tioned in the said notice, the assessee ....... ..shall be deeme:l A . 4.5, main, para, part] 'to be in default.
(4) I f, in a case where payment by instalments is allow- [New] ed under sub-section (2), the assessee commits default in. paying any one of the instalments within the time ﬁxed under that sub-section. the asséssee shall be deemed to be in de ault as to the whole of the amount then outstanding, and t e other instalment or instalments shall be deemed to have been due on the same date as the" instalment actually in default. .
(5) ....... ..Where an assessee has presented an appeal [s. under section 254 [30], the Inoome-tax») Oﬁicer may, in his Pro'?- discretion, and subject to such conditions as he may think ' fit to impose in the circumstanees of thecase, treat the as- sessee as not being in default. in respect of the amount in dispute in the appeal, even though the 'time for payment has expired, as long as such aappeal remains undisposed of.
5: I 3t?
F (6) ....... ..Where an assesseeehas be assessed in respect [s. 5, '_2lld't of income arising outside 'slndia a country the Pt laws of which prohibit or restrict the remittance of money i to India, the Income-tax Oﬂicen shall nbt: treat the assessee ' as in default in respect of that part of the tax which is due ; in respect of that amount of his income.,which, by reason of = such prohibition or restriction, cannpt be brought into India, and shall continue to ﬁreat the" assessee as not in . default in respect of such part 'of the until the prohibi- ?
s tion or restriction is removed.' * Explanation.---=For the p oses of-litllis section, income [3, 45, Expl.-]; shall be deemed to have been brought: into India if it has - been utilised or could have been util' for the purposes of any expenditure actually incurred 'the assessee with- out India or if the income, whpther ltalised or not, has been brought into India in any? form. . ' (1) When an assessee is in default or is deemed to be Section 230-, in default in making a payme , ' of tax' shall, in addition' {:1 . ' 9"" to the amount of -«the arrears'. I Ha _ 3 pay, by w§y'oi;,¢ ,;,&"h°''_,.''
- ' (Ina! 232 ' Clauses 230-232 penalty, simple interest from the date of default to the_date of payment at the rate of ten« per cent. per annum on the amount of arrears.
(2) If the arrears of tax are paid within three months from the due date, the interest. by way of penalty levied o-r leviable thereon under sub-section (1) shall be remitted.
(3) No interest shall be charged under sub-section (1) in respect of any period for which the assessee is, by virtue of any provision of this Act, treated as not in default.
Scictifén 23:. (1) When an assessee is in default or is deemed to be in '° default in making a payment of ta.7c,_ the Income-ta); pfﬁcer It 46(2)] may forward to the Collector a--cert1ﬁcate under h1s fs1vgna- ture specxfymg the amount of arrears due from the assessee, and the Collector, on receipt of such certiﬁcate, shall proceed to recover from such assessee' the amount speciﬁed therein by one or more of the modes men- tionﬁd gelow, }rL1c§o'£'dance with the' procedure laid down inte econd ceue-- '
(a) attachment and sale of the assessee's movable pro- perty; . y ' _
(b) attachment and sale of the assessee's immovable property; _
(c) arrest of the assessee and his detention in prison;
(d) appointing a receiver for the management of the assessee's movable and immovable properties, ls-45(7),Expl. (2) The Income-tax Oﬂicer may issue a certificate under 'am' ha" sub-section (1) notwithstanding that dproceedings for treco- Pm] very of the arrears by any other mo e have been ta en.
Section 232. (1) The Income-tax Oﬂicer may forward the certhicate S:'gr°:'°:cn';3 referred to in section 231 [46(2), main para] to-
.ﬁ°3'¢ 'S '° 56 (a) the Collector within whose jurisdiction the as' ssee carries on his business, profession or meat' n or within whose jurisdiction the principal place Yf his business, profession or vacation is situate, or 2
(b) the Collector within whose jurisdiction t Z as- sessee resides or any -movable or immovable; pro- perty of the assessee is situate. 2 (2) If the Collector to whom a certificate is sent ' an Income-tax Oﬂicer is not able to recover the entire a ount by sale of the property, movable and immovable, but information that the assessee has property in a district within the jurisdict' of a , her Collector, he may end the certificate to such her (gqﬁctor or to a Collector ,'th- .,in whose jurisdiction ',the -ass" ,ee resides. and ther pan 233 Clauses 232-234 that Collector shall proceed to recover the' amount under this «Chapter as if the certiﬁcate was sent to.' him by the Income- tax: Oﬁicer. ' Explanation.--In this section, "Collector" means a Col- .lector of a district in any part of India, and includes an Additional Collector of any such district.
(1) When the Income-tax Oﬁicer sends a certiﬁcate to S<='=t_i°_n 233- a Collector under section 231 [46(2) main para] it shall not 2::'l§'c';'tc °f be open to the assessee to dispute before the Collector the and; ,m,',,d. correctness of the assessrruent, and no objection to the mcntthcrcof. '-certiﬁcate on any ground shall be entertained by the Col- [New] lector.
(2) An assessee objecting to the issue of any certiﬁcate, on any ground open to him. other than the correctness of the assessment, may apply to the Income-tax Oﬁicer for withdrawal or cancellation of the certiﬁ.'t'-"he, and the In- come-tax Officer shall, after giving the assessee a reasonable gpportunity of being heard, pass such orders as he thinks t. ' (3) Notwithstanding the issue of a certiﬁcate to a Col- lector, the Income-tax Officer shall have power to correct any clerical or arithmetical mistake in the certiﬁcate by sending an intimation to the'Collector.
(4) The Income-tax Oﬂicer shall intimate to the Collec- tor any orders withdrawing or cancellingj a 'certiﬁcate pass- ed by him under sub-section (2). or any;correction made by him under sub-section (3) or any amendment made under section 234(4) [sub-section in newly added section providing for amendment of certiﬁcate on reduction etc. in any pro- ceeding under the Act]. * (1) Notwithstanding that a, certiﬁcate has been issued Scctirn 234- to the Collector for the recovery of any tax, the Income- 01, g;':°c:f1_ tax Oﬂicer may grant time for the payment of the tax and man; '0, thereupon the Collector shall stay the proceedings until the with walof _ expiry of the time so granted. . 'mi '°-
[Ne (2) Where a certiﬁcate for the recovery of tax has been issued, the Income-tax Officer shall Ice 3 the Collector in- formed of any tax paid or time ' anted dr payment. subse- quent to the issue of/such c ﬁcate. I ' _ (3) Where the order giving ' e to a demand of tax for which a certiﬁcate for recov has been issued has been reduced in appeal or other proceeding under this Act but is the subject-matter of further proceeding, the Income-tax Oﬂicer shall stay the recovery of such pdrt of the amount of the certiﬁcate as pertains to he sai eduction, for the period for which the appeal' other _, eeding remains pending. : 'V H 3 ' ' 234 Clauses 234-235 _ (4) Where a certiﬁcate or the recovery of tax has been issued and subsequently t amount of the outstanding demand is reduced as a result of an a eal or. other pro- ceeding under this Act, the Income-tax er shall, when. the order which was the sulzject-matter of such appeal or other proceeding has become ﬁnal and conclusive, amend. the certiﬁcate or withdraw it, as the case may be.
gﬂgnmgggé (1) Notwithstanding the issue a certiﬁcate to the Col-
of move" lector under section 2331 [46(2) main para], the Income-tax [L 45, EXPL, Oyfﬁcer may recover the tax by any one or more of the latter] half modes provided in this section.
part.
[s. 46 (_=,)] (2) If any assessee is in receipt of any income charge- able under the head "Salaries", the Income-tax Olﬁcer may require any person paying the same to deduct from any payment subsequent to the date of such requisiti any arrears due from such assessee, and such person sha(l)lbcom- ply with any such requisiticm and shall pay the sum so deducted to the credit of the Central Government, 'or as the Central Board of Revenue directs.
Salary exempt from attachment in execution . of a decree of a civil court under section 60 of the Code oﬂ Civil:
5 of I908. Procedure, 1908, shall be exempt from any requisitiongmader under this sub-section. ' 5 i [s. 46 (5A), (3) (i) The Income-tax Oﬂicer may, at any time on from "it Para' time to time, by notice in writing ....... .., require any rson P" '1 from whom money 15 due or may become due to t e as-
sessee or any person who holds or may subsequentl hold money for or on account of the assessee, to pay to t e In- come-tax Oﬂicer either forthwith upon the money om- ing due or being held or at or within the time speci _ in the notice (not being before the money becomes due or is held) so much of the money' as is sufficient to pay the amount due by the assessee in "respect of arrears ..... ..,'.....or the whole of the money whm it is equal to or less? than that amount.
[.. 4'6 (5A), (ii) A copy of the notice shall be forwarded to t 15' t-1 Para» sessee at his last address known to the Income-tax O cer. par .
[5, 45 (5,3), (iii) Where a person to whom a notice under thi sub-
6th pa-ra~] section is sent objects to it on the ground that t sum demanded or any part thereoil is not due to the asses e or that he does not hold% any for or on account the assessee, then, nothing conta' e in this sub-section shall be deemed to require such erson to pay any suc or part thereof, as the case m y be...._....., if the Inc Oﬁicer is satisﬁed about the correctness of such obje [s- 46 (5A)» (iv) The Income-tax Oﬁicer may at any time or :,flT)l_Tt 2'" p"""] time -to time amend revo . ny notice issued und this sub-section or extend ' or making any paqm it in pursuance of such no 'ca * * ..4 235 Clauses 235-238 . (_v) The Income--ta.7_c Officer shall grant a receipt for any [5, -45 (5A),- amount paid in compliance with a notice issued under this 3fd para} sub-section, and the person so paying 'shall be.- fully dis- ' charged from his liability to the assessee to the extent of the amount so paid. ~ .
(vi) Any person discharging any liability to the assessee [s. 4.6 (5A), after receipt of a notice under this sub'-section shall be per- 4th para] V sonally liable to the,Income-tax Oﬁicer to the extent of his own liability to the assessee so discharged or to the extent of the assesee's liability .... ..f<xr tax, interest and penalties, whichever is less. . '
(vii) If the person to whom a notice under this sub- [s.:46 (5A),' section is sent fails to make payment in pursuance thereof 5"' P3"-1 to the Income-tax Officer, further proceedingsmay be taken against him for the realisation of thefiamount as if it were an arrear of tar due from him, in the manner provided in sections 231 to 234 [S. 46(2)], and the notice shall have the same effect as an attachment of a debt by the Collector in exercise of his powers under section. 231 [46(2)]. ' (4) The Income-tax Oﬂicer may 'apply to the court in [New] whose custody there is money belonging to the assessee for payment to him of the entire amount «of such money, or, if it is more than the tax due, an amount sufficient to dis- charge the tax.
(5) The Income-tax Oﬂicer may, if so authorised by [s.:4.5(3) and the Commissioner, proceed to recover the tax by distraint (421 and sale of the movable pr erty of the assessee in the manner laid in the Third Sc edule.
. \ If the recovery of tax in any area has been entrusted to Section 236.
a State Government under article '258(1) of the Constitu-- R$'°°V¢'3S' tion, the State Government may direct with respect to that-afﬂmgize area or any part thereof, that tax shallbe recovered there- 6 (-6)] . in with, and as an addition to, any municipal tax or local [" 4 rate, by the same person and in the same manner as the municipal tax or local rate is recovered.
For the purposes of sect(i§)n 231 [il6(2)], the expression senion 237. "Collector" shall include a , llectorein Pakistan, and the R' _V°'¥2 Income-tax Ofﬁcer may forward a 'certiﬁcate under that g""1'::'c9t*.(')r- . iii section to a Collector in Pakistan through the Central 2%,, Board of Revenue of -Pakistan, if thefgassessee has property 3 4:;(:;'] in the district of that Collector; ' 1 Where a Collector in India receives through the 'Central S<=Fti°n 2331; Board of Revenue of India a certiﬁcate under theﬁsignature 1],' of an Income-tax Ofﬁcer in Pakistan,:jthe Collector shall , 6 ( )1 ' proceed to recover the amount speciﬁed therein in the [574 9 manner in which he would proceed to recover the amount ' speciﬁed in a certiﬁcate received from an Income-tax Officer in India, and shall remit any sum SQ Ilecovered by him to the Income-tax Officer in Pa istan, r deducting'-liisex-' penses in connection with t «reco . _preceeding'b.=' - vf' 16-1 Law Coin./58 ' ' i V ¥ Section 239.
- Condition for recovery of Indian tax in Pakistan or of Pakistan tax in India.
[s. 4.6 (xo)] Section 24.0.
Recovery of penalties, interest and other sums.
15- 47] Section 24.1.
Tax Clear-
ance Certi-
ﬁcate.
[8- 45A (1)1 15 of 1940 21 of 1947 u'_of 1922]"
[s. 46A (2), main para] 236 (ﬂauses 239-241 The provisions of sections 237 and 238 [Section 46(8) and (9)] shall remain in force only so long as there are in ' force similar provisions in the Indian Income-tax Act, 1922, as in force as part of the law of Pakistan or under any other similar Act forming part of the law of Pakistan for "the recovery of tax by a Collector in Paksitan on receipt of a certiﬁcate from an Income-tax Oﬁicer in India.
Any sum imposed by way of penalty under the provi- sions of section 282 [Sub-section (9) of section 18A], sec- tion 281 [Sub-section (2),of 25], section 280 [Section 28], or section 279 [Sub-section -(6) of Section 44E], or payable under section 230 [Sub-section (1) of section 46], and any interest payable under the provisions of sections 221, 223, 224 and 225 [Sub-section (4), (6), (7) or (8) of section 18A] and any other sum payable under the provisions of this Act, shall be recoverable in the manner provided in this Chapter for the recovery of arrear of tax.
(1) Subject to such exceptions as may be made by the Central Government, no person who is not domiciled in India, or who, even if domiciled in India at the time of his departure, has, in the opinion of an Income-tax autho- rity, no intention of returning to India, shall leave the terri- tory of India by land, sea or air unless he ﬁrst obtains from such authority as may be appointed by the Central Gov- ernment in this behalf (hereinafter in the section referred to as the "competent authority") a certiﬁcate stating that he has no liabilities under this Act, the Excess Proﬁts Tax Act, 1940, or the Business Proﬁts Tax Act, 194-7, or the Indian Income-tax Act, 1922, or that satisfactory arrange- ments have been made for the payment of all or any of such taxes which are or. may become payable by that per- son :
Provided that if the competenfauthority is satisﬁed that such person intendsto. return to India, he may issue an exemption certiﬁcate either in respect of a single journey or in respect of all journeys to- be undertaken by that per- son within such period as may be speciﬁed in the certiﬁcate.
(2) If the owner or charterer of any ship or aircraft carrying persons from any place in the territory of India to any place outside India allows any person to whom sub- section (1) applies, to travel by such ship or aircraft without 5 ﬁrst satisfying himself that such person is in possession of [S- 45A (3)1 a certiﬁcate as required by that sub-section, he shall be personally liable to pay the whole or any part of the amount of tax, if any, payable by such person as the Income-tax Oﬁicer may, having regard to the circumstances of the case, determine. , (3) In respect of any sum payable by the owner or charterer of' any ship aircraﬂ; ;under sub-section (2),'the owner or charterer, 380516 case may be, shall be deeme to 1' :
237Clauses 241-242 be an assessee in default for such sum, and such sum shall be recoverable from him in the manner provided in sections 230 to 240 [all sections, including sec: for interest, relat- ing to recovery] as if it were an arrear of tax.
(4) The owner or charterer of every ship or aircraft, [New] which takes passengers on board on any port or place in India for any place outside India, shall, within one month from the departure «of the ship or the aircraft from that port or place, furnish to the Commissioner having jurisdiction over the area in which that port or place is situated, a list in the prescribed form showing the name and last known address in India of every person (other than members of the crew and the staff of the ship :or aircraft) who travelled on the ship or aircraft and the particulars of the certiﬁcate or the exemption certificate presented by such person under this section.
(5) No proceedings shall be commenced for enforcing [New] the liability under sub-section (2) after the expiry of two years from the date on which the list required to be filed under sub-section (4) is ﬁled.
(6) The Central Government may make rules for regu- [9, 46A (4)] lating any matter necessary for, or incidental to, the pur- pose of carrying out the provisions of this section.
Explanation.--For the purposes of this section, the ex- [s. 46A (2), pressions "owner" and "charterer" include any represen-- EXPI-l tative, agent or employee empowered by the owner or charterer to allow persons to travel by the ship or aircraft.
Save in accordance with the provisions of section 183 Section 242. [Section 42(1)] or 229(6) [second proviso to section 45], Period for '-and except as otherwise provided in section 241(5) [new commencing sub-section in section 46A, laying down a limit of 2 years], '°°°"°cfjX no proceedings for the recovery of an sum payable under P'°°° "'8" this Act shall be commenced after t e expiration of one [546 gag] year from the last day of the ﬁnancial year in which the mamp demand is made, or, in the case of a person who is deemed ;to be an assessee in default under any provision of this Act, after the expiration of one year from the last day of the ﬁnancial year in which the Income-tax Oﬂicer sends an intimation in writing to such person to the effect that he is deemed to be an assessee in default: » Provided that the period of one year ............. ..referred f,_ 45 (7) 1,: to above shall be _r_'eckoned--- Prom]
(i) where an assessee has been treated as not being in default under section 229(5) [Sec. 45, 1st proviso] as long as his appeal ' ' 'undis sjed of, .......... ..from the last day of the fi ncial ar in which the ap- peal is disposed of; 5 4 ' [s- 46 (7).
Expl., earlier half] Section 243.
Recovery by suit or under other law [s. 4.6 Expl.
latter half, part] Section 244.
Recovery of tax payable under provi-
sional assess-
ment.
[S- 2313 (5)] Section 24.5.
Tax paid by deduction or advance pay-
mcnt.
[S- 233 (5)1 238 Clauses 242-245
(ii) where recovery proceedings in any case have been stayed by any order of a court, .......... .. from the last day of the ﬁnancial year in which the order is I withdrawn;
(iii) where the date of payment of tax has been extend- ed by an Income-tazx authority to another date, from the last day of the ﬁnancial year in which such other date falls; ' where the sum payable is allowed to be paid by instalments, from the last day of the ﬁnancial year in which the last of such instalments is due.
(iv) Explanation.----A proceeding for the recovery of 2 any sum shall be deemed to have commenced within the mean- ing of this section, if some action is taken to recover the whole or any part of the sum within the period herein-« before referred to ................... ..
The several modes of recovery speciﬁed in this Chapw ter shall not affect in any way-
(a) any other law for the time being in force relating to the recovery of debts due to Government ., ..... ..
- or .~ . . . . . . . . . ..,
(b) the right of the _Government, to institute a suit for the recovery of the arrears due from the assessee;
and it shall be lawful for the Income-tax Officer ...... or the Government, as the case may be, to have recpurse to any such law or suit notwithstanding that the tart due is being recovered from the assessee by any .......... .. mode speciﬁed in this Chapter. E E--Ta.x payable under provisional assessment.
For the avoidance of doubt, it is hereby declared that the provisions of section 229, [all sections embodyin any part of section 45] except section 229(5) [45, 1st Prov. , and sections 230 to 239 [all sections embodying any pa, of section 46] apply in relation to any tax payable in ' rsu- ance of a provisional assessment made under sections 45(1) and 145(2), [s. 23B(1)] as if it were a regular asses ent made under section 147 or 148 [23(1) to (5)].
Tax paid or deemed to have been paid under sections 201 to.213 [all sections embodying any part of section 18] or sections 215 to 228 [alltsections embodying any part of section 18A] in reqrect of any income provisionally as- sessed under sections. 145(1) and 145(2) [section 23?(1)], shall be deemed to . E e beenjipaid towards the provi ional.
assessment. g ,1; i 239 Clause 246 CHAPTER XIX TAX DEEMED TO HAVE BEEN PAID ON DIVIDENDS S°°"°" 246' Tax deemed to have been (1) ............. .. Any sum by which a dividend has been §::$s°" d""' increased under section 59 [section 16(2), main para, latter '8 half] shall be treated as a payment hf income--tax (exclu- ELM' pag) sive of super-tax) ............. .. by the shareholder ............. ..;ear1;er 1,315, and credit shall be given to him therefor on the produce Part] tion of the certificate furnished under section 167 [20], [s._ :8 (5), in the assessment. if any, made for the assessment year ml" Pam referred to in clause (b) of sub-section (2) : ha"
Provided that, where such shareholder is a person [s. 18 .(5) whose income is included under the provisions of section '4" P'°"S°» 63 or 64 [clause (C) of sub-section (1) of section 16], section 67 [ S. 16(3)], section 96 [4413] or section 97 [44E] in the total income of another person, the payment shall be deem- ed to have been made by, and the credit shall be given to, such other person :
[s. 18 (5) 3rd Provided further that where any share in a company is pm" pm] owned jointly by two -or more persons not constituting a partnership, the credit ............. .. may be given to each such person in the same proportion in which the .......... .. divi- dend on such sharethas been included in his total income:
Provided further that where any share in a company is [Ncw] owned by two or more persons constituting a partnership , and the firm is a registered ﬁrm or an unregistered ﬁrm assessed under the provisions of section 190(b) [23(5)
(b)], the credit may be given to each such person in the proportion in which the pro-ﬁts of the firm are shared by him. V (2) The provisions of sub-section ( 1) shall not apply unless the following conditions are fulﬁlled :-- a
(a) the company ....... .. is assessed to income-tax [F 493 (r), in India or elsewhere; and ' P l
(b) ....... .. the dividend is included in the total income of the shareholder or other person to whom credit is to be given, as assessed for the assessment year immediately following the previous year of which the dividend is deemed to be. the income, (3) For the purposes of sub-section (1). income-tax [S- 493(2)] shall be deemed to include agricultural income-tax as- sessed on a company by any State Government, and where any shareholder proves that the company has been so as- sessed to agricultural income-tax. he shall be entitled to the reduction from the tax yﬁyable ltys him under this Act of a sum equal to---- 3 4 2 240 Clauses _ 246-249
(a) the appropriate agricultural income-tax (reduced by the amount of refund, if any, allowed to him by the State Government), or
(b) the appropriate Indian Income-tax on the amount of the dividend which has not been increased under section 59, [Section 16(2), main para, latter half] whichever is the less.
Explanation.--In this sub-section,-
(a) "appropriate agricultural income-tax" means such proportion of the agricultural income-tax as the amount of dividend which has not been increased under section 59 [S. 16(2), main para, latter half] 4 bears to the total proﬁts of the company assessed to agricultural income-tax; and \
(b) "appropriate Indian Income--tax" means such pro- portion of the income-tax payable by the share- holder under this Act as the amount of dividend which has not been increased under section 59 [S. 16(2) main para, latter half] bears to the total in- come of the shareholder.
CHAPTER XX REFUNDS section 24% If any person ............. .. satisﬁes the lncome-tax Officer Refunds .................................................................................... .. [s- 48 (1)) .................................................................................... .. that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly charge- able under this Act, for that year. he shall beentitledfto a refund of the excess. .
Section 248, Person emi_ (1) Where income of one person is included under, any tledw claim provision of this Act in the total income of any Other refund in cer- person, the latter alone shall be entitled to a refund under tain special this Chapter in respect of such income.
cases.
[s- 48 (3)1 , _ _ [5, 49 F] (2) Where through death, incapacity, bankruptcy, liqui- dation or other cause, a person ............. .. is unable to claim or receive any refund due to him, his executor, administra- tor or other legal representative, or the trustee or guardian or receiver, as the case may be, shall be entitled to claim - or receive such refund .......... ..for the beneﬁt of such per-
Section 249. son or his estate.
£3: (1) Every claim for refund under this Chapter shall be manner. ' refund and made in the prescribed form and veriﬁed in the prescﬁbed [New] :
i 241 Clauses g49--254 (2) No such claim ........ .. .......... ..shall be allowed, un- [05 Rules less it is made within four ears from the -last day of the 3637]' assessment year in which t e income in respect of which [5- 5° the claim is made was assessable. m'''"' P"'''] Where, as a result of an order passed in appeal or Section 250 other proceeding under this ct, refund of an amount be- :'°f":fi tc°" comes due to the assessee, the Income- %;[ﬁcer shall, we ° ' except as otherwise provided in this Act. refund the amount [s' 48 (2)1 without any application by the assessee.
In a claim under this Chapter, it shall not be open to Section 25! the assessee to question the correctness of any assessment c;.°"°°"'°" or other matter decided which has become ﬁnal and conclu- :o,a"°,:,'m°{,'; sive ............. .. or ask for a review of the same, and the Qjlestioned. assessee shall not be entitled to any relief on such claim [s_ 43 (4)1 except refund of tax wrongly paid or paid in excess.
If, within a period of three months from the date on Section 252 which a claim for refund is made under this Chapter, the I'"°'°3t- Income-tax Officer does not pass an order thereon, the Cen- [New] tral Government shall pay the claimant simple interest at the rate of two per cent. per annum on the amount directed to be refunded from the date on which the claim is made to the date of the order directing the refund.
Where under any of the provisions of this Act, a re- section 253 fund is found to be due to any person. the Income-tax Set off Officer, Appellate Assistant Commissioner or Commis- Of _ refund! sioner, as the case may be, may, in lieu of payment of the :9:l""i' 33" refund, set off the amount to be refunded or any part of p';'y:b1§'_'"g that amount, against the tax, interest or penalty, if any, 5? 9 E] remaining payable by the person to whom the refund is du F 4 after giving an intimation in writing to such person of the action proposed to be taken under this section.
CHAPTER XXI APPEALS AND REVISION A. Appeals to the Appellate Assistant Commissioner.
Any assessee aggrieved by any of the following orders of an Income-tax Ojﬁcer may appeal to the Appellate Assis- tant Commissioner against such order---- Sc" 1011 254.
(a) an order against the assessee, being a company, Appcmblc under section 113, [23A(1) main 'para, operative orders.
Part]; [s. _ '30 (It),
(b) an order of assessment under section 147 or 148 ""'" P""'] [sections 23(1) to (5)], ........... .. where the as-
sessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed;
'As the section hasbeen broken ﬂute n erous clauses, reference I0 pro-
: _ en visign has not been given foreach cl , and, verbal changes have not itali- cis ' ' a 242 A Clause 254 1' (c) "an order under section 151 [27] refusing to' reopen an. assessment made under section 148 [23(4) mam para, part authorising best judgment assessment] ;
(d) an order under section 161 or 162 [section'35], where the assessee -objects to the amendment made or refused thereunder;
(8) an order adverse to the assessee, where the assessee denies his liability to be assessed under this Act;
(f) an order under; section 180(2) or 180(3) [section 26(2) Proviso];
(g) an order under section 181 [25A];
(h) an order refusing to register a ﬁrm under section 192(1)(b) [section in the Chapter on Firms relating to refusal of registration because there was no genuine ﬁrm in existence in the previous year] or under section 192(6) [section 23(4) main para, latter part relating to refusal to register a [ﬁrm because of failure to ﬁle return etc. leading to best judgment assessment];
(i) an order cancelling the registration of a ﬁrm under section 193(1) [section .in the Chapter on Firms au--
thorising cancellation of registration because there .
was no genuine ﬁrm] or under section 193(2) [sec- tion in the Chapter on Firms corresponding to section 23(4). main para, part. authorising §can- cellation on such failure. as leads to best judgment assessment];
(j) an order levying interest under section 224[18A(7)];
(k) on order under section 229(5) [s. 45, 1st Prov.];
(I) an order under section -233(2) [new section ire : withdrawal of certiﬁcate];
(m) an order under section 247 [48(1)];
(n) an order imposing penalty under-
(i) section 279 [44E(6)], or
(ii) section 280 [28(1) & '(2)], or
(iii) section 281 [25(2), latter part], or
(iv) section 2821 [%18A(9)],Q "
.; 2 G .
243Clauses "254-258 _ Explanation.--For the purposes of clause (b) an objec- ~ tion_ to any interest charged under section 223 [18A(6)] or section 225 [18A(8)] .shall be treated as an objection to the
-amount of income assessed.
.......... .. Where the partners of a ﬁrm are individually Section 255. assessable on their shares in the total income of the ﬁrm, Appcal by 3113' Such Partner may appeal to the Appellate Assistant partner. Commissioner against any order of an Income-tax Officer [s. 'go (1)
-determining the amount of the total income or the loss of 2nd PFOV-l the ﬁrm or the apportionment thereof between the several partners, but he cannot agitate such matters ............. ..in any appeal preferred against an order of assessment deter- mining his own total income or loss.
Any person having in accordance with the provisions of Section 256- section 208 [ub--section (6) of section 18] read with APP°a1d bl' section 208 [sub-section (6) of section 18] deducted and paid tax in respect of any sum chargeable under this Act to deduct other than interest, who denies his liability to make such tax. ' deduction may appeal to the Appellate Assistant Commis- [s_ 30 (IAN sioner to be declared not liable to make such deduction.
(1) The appeal shall be in the prescribed form and shall S°°'i°" 257-
be veriﬁed in the prescribed manner. Form of ap- peal? and . litnilation.
' (2) The appeal shall. ordinarily be presented within B' 3° (3)1 thirty days of the following date, that 'L8 to say,-- 5' '3° <2)' part]
(a) where the appeal relates to any tax deducted under section 204(1) [18(3B)], the date of payment of the Q 5 tax, or ' , '2
(b) where the appeal relates to any assessment. interest or penalty, the date of receipt of the notice of de- mand relating to the assessment. interest or pen- alty, or
(c) in any other case, the date on which intimation of , the order sought to be appealed against is received ' (3) .......... .. The Appellate Assistant Commissioner may [s. lo (2), admit an appeal after the expiration otf the said period if Pa" he is satisﬁed that the appellant had, sufficient cause for not presenting it within that period. A (1) The Appellate Assistant Commissioner shall ﬁ)_( a§::;';;'ur:5ﬁ; day and place for the hearing of the appeal, and shall give appm1_ notice of the same to the appellant and to the Income--tax [S :31 (1) Officer against whose order the appeal is preferred. .,;,,i.:, pm] ' (2) The following slhall have the right to be heard at [s.d §3) the hearing of the appea -- 4- A , . 9" 0"-
(a) the appellant either i-nlperson $11 by an authorised, /representative; * ' 244 Clauses 258-259
(b) the Income-tax Officer, either in person 'or by a representative.
[-8- 3! (I). (3) The Appellate Assistant Commissioner shall have 13"°'Pa"] the power ............. ..to adjourn the hearing of the appeal'.
from time to time.
[s. 31 (2)1 (4) The Appellate Assistant Commissioner may. before' disposing of any appeal, make such further inquiry as he thinks ﬁt, or may direct the Income-tax Oﬁicer to mal<':e fur- ther enquiry and report the result of the same to the Ap- pellate Assistant Commissioner.
[s- 31 (2A)] (5) The Appellate Assistant Commissioner may, at the hearing of an appeal, allow the'appellant to go into any ground of appeal not speciﬁed in the grounds of appeal, if the Appellate Assistant Commissioner is satisﬁed that the omission of that ground from the form of appeal was not wilful or unreasonable.
[New] (6) The order of the Appellate Assistant Commissioner disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision, and the relief, if any, to which the "appellant is entitled.
B' 3' (5)1 (7) On the disposal of the appeal, the Appellate Assis-
tant Commissioner shall ............. ..communicate the order passed by him to the assessee and to the Commissioner.
56<=ti0n 259- (1) In disposing of an appeal, the Appellate Assistant Powers of the Commissioner shall have the following powers- Appellate As-
sistant Com- (a) in an appeal against an order of assessment, he may missioneh conﬁrm, reduce, enhance or annul the assessment; £:h31'(§)l;C;']F" or he may set aside the assessment and refer [,_ g 343), the case back to the Income-tax Oﬁicer for making main para, a fresh assessment in accordance with the directions C1«(a)l given by the Appellate Assistant Commissioner [5-. 31(3), and after making such further enquiry as may be "('b)]pa'a' necessary, and the Income-tax Oﬁicer shall there-
upon proceed to make such fresh assessment and determine, where necessary, the amount of tax payableion the basis of such fresh assessment;
[s. 31(3), (b) in an appeakéigainst an order imposing a penalty, main Para, he may con m or cancel such order or va it so C" (01 as either to enhance or to reduce the pena ty;
[s. 31(3), (c) in any other case, he may pass such orders in the main Para. appeal as he thinks ﬁt.
CL (c), (d).
(6), (8) and E91" ) N (2) .......... ..The Appellate Assistant Commissioner -shall p;.,3§,_f ' not enhance an assessment on a penalty unless the ap llant has had a reasonable opportunity of showing cause gainst such enhancement.- , ' ' - l 245 Clauses 259-261 Explanation.--In disposing of an appeal, the Appellate [New] Assistant Commissioner may consider and decide any mat- ter determined by the Income-tax Oﬂ'i_cer in the course of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised laefore the Appellate Assistant Commissioner by the appel- ant.
B----'-Appeals to the High Court.
(1) Subject to the provisions of sub-section (3), any Section 260.. assessee aggrieved by any of the following orders mayAppea1ab1c~ appeal to the High Court ............. ..against such order---- <[ardm. ( ) S. I ,
(a) an order passed by an Appellate Assistant Commis-1653"] (I) sioner under section .......... ..280 .......... ..[28(1) and PM 33 "
(2)1 ;
(b) an order passed by an Appellate Assistant Commis- [s. 33(1),.
sioner under section 259 [31(3) embodied in sec- Part] tion dealing ,with powers of Appellate_ Assistant Commissioner] ;
(c) any order passed by the Appellate Assistant Com- [New]
-missioner rejecting or dismissing an appeal without . a decision on the merits;
(d) .......... ..an order passed by the Commissioner under [s. 338(3),. section 271(1) [S. 33B(1)]. p . Part] (2) Subject to the provisions of sub-section (3), the [s. 33(2),car-. Commissioner may, if he objects to any order passed_by an 11°F Part] Appellate Assistant Commissioner under section 259 [31 (3) as embodied in section for powers of Appellate Assis- tant Commissioner], appeal to the High Court against such order .......... ..
(3) Where the amount or value of the subject matter [New] in dispute in appeal to the High Court is rupees seven thousand ﬁve hundred -or more, an appeal shall lie under this section both on a question of fact and on a question of law; but where the amount. or value of the subject mat- ter in dispute in such appeal is below rupees seven thousand five hundred, the appeal shall lie only on a question of law. - ' (1) The appeal to the High Court shall be ﬁled within Section 26: sixty days of the date on which the order sought to be Limitatio . appealed against is communicated to the assessee or to the [s- 33(1)- Commissioner, as the case may be. am_»r"- 31l'>)$_)t»,.
~ ;.-2.). .2 1 main , t] (2) The High Court may admit, _an appeal after the ex- in PZIEQA piry of the sixty days referred; to in spb-section (1) it it .nd'(;l53s(7A, is satisﬁed that there was sufﬁciént cauq for not presenting - it within that period. 7 1 .
1' t 246 Clauses 262-268 Scfction 262. The appeal to the High Court shall be in such form F0" 0' 'P' and shall be veriﬁed in such manner as may be prescribed Egg' 3§(33g by the Supreme Court by rules made under this Chapter.
§l:)c}ig:n]263. Subject to such rules as may be made bylthe Supreme Powers and Court in this behalf, the powers to be exercised and the P"'°"d"gE- procedure to be followed by the High Court in respect of }[,:;,,] (5)' appeals under this Chapter shall be the same as those appli-
cable in respect of appeals to the High Court against the original decrees of courts subordinate to it.
semen 25+ (1) ....... ..The appeal shall be heard by a Bench of not Hearing by less than two Judges of the High Court and shall be decid-
Iéench-66A ed in accordance with the opinion of such Judges or of m'ain pang'), the majority, if any, of such Judges.
[3, 55A(,) (2) .......... ..Where there is no such majority, the Judges Pi-ov.] shall state the point .......... ..upon which they differ, and the case shall then be heard upon that point only by one or more of the -other Judges of the High Court. and such 'point shall be decided according 'to the opinion of the majority hf the Judges who have heard the case. including those who ﬁrst heard it.
Section _255. A copy of the judgment of the High Court shall be t(.3°m":f""'°§' sent to the Commissioner. to the Appellate Assistant Com- i:l°;'p;,ea','_' '3' missioner and to the assessee; and the Commissioner shall [5, 55(5), cause such steps to be taken as may be necessary to give part effect thereto.
.......... ..The costs of the appeal shall be in the discre- [ Er;-(6)1 tion of the High Court. a ' ' s. _ Section 267. (1) Notwithstanding that an appeal has been pneferred Refund cons- under this Chapter to the High Court, the refund,:if any, "'l"°"1"a1 °" due to the assessee shall be made, unless the High Court makes an order authorising the postponement of the pay- ment of the refund until disposal of the appeal.
(2) If, as a result of the appeal to the High Court, the Section 266.
[5, 66(7), PIOVISO-1 amount of an assessment is reduced .......... .., the amount-
over-paid shall be refunded with such interest as the High Court may ﬁx, unless the High Court, on intimatio given by the Commissioner within thirty days of the repeipt -of the result of such appeal that he intends to ask for leave to appeal to the Supreme Court, makes an order authorising the Commissioner to postpone payment of suchil refund until the disposal of the appeal by the Supreme Court or the rejection of the application for leave to appeal, as the case may be. ' C----Appeals to the Supreme Court.
Section 268. An appeal sh 1 lie t gig Supreme Court f In any '_A alable judgment of the ' h Co , livered on an appea prefer- 1" "'°'"- red under section 60 [66(l)§main para, part' emb , led in ' 247 Clauses 268-271 section for appealable order] in any case which the High [s. 66A(2)] _ gourt certiﬁes to be a ﬁt one for appeal to the %upreme ' ourt.
(1) The provisions of the Code of Civil Procedure, l908, Section 269 relating to appeals to the Supreme Court shall, so far as He Minus may be, apply in the case of appeals under section 268 b::';':'g;:r'f [S. 66A(2)] in the like manner as they apply in the caselgoflgw ' of appeals from decrees of a High Court: [s. . 66A(3), Provided that nothing in this section shall be deemed In %;i;rXi3), to affect the provisions of section 263 or 265 [S. 66(5)] or 1st Prov. .......... ..section 273 [66(7), main para]. Part] (2) The costs of the appeal shall be in the discretion [New] of the Supreme Court.
(3) Where the judgment of the High Court is varied [s_55A(4)_] or reversed in the appeal,...._ ...... ..eiTect shall be given to the order of the Supreme Court in the manner provided in section 265 [S. 66, sub-section (5)] and section 267 [S. 66(7) Prov.] in the case of a judgment of the High Court.
D----Appeals to the Central Board of Revenue.
(1) Any employer objecting to an order of the Com- Section 270 missioner refusing to recognise or an order withdrawing APP!=-313 to recognition from a provident fund ma appeal to the Cen- gm .dC':."{{"1 tral Board of Revenue in accordance with the provisions of °" ° c' section 301 [58B(4)]. ~ E§';§fj (2) Any person in respect of whom a direction disquali- fying him for representing an assessee ' made under section 324(4) [S. 61(3), main para, latter haliﬁ may appeal to the Central Board of Revenue in accordance with the provi-
sions of section 324(4), Proviso [S. 61(3), Prov. (b)].
E--Revision by the Commissioner.
(1) The Commissioner may call for and examine the sec;_io_n 27; record of any proceeding under this Act, and if he con» Re 131°" ,0' siders that any order passed therein by the Income-tax Offiéggc '15 't';°{:_' cer is erroneous in so far as it is prejudicial to the interests V, e_ of the revenue, he may, after giving the assessee an oppor- [s. 3B(:)] tunity of being heard and after making or causing to be , made such inquiry as he deems necessary; pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the' assessment, or can- celling the assessment and directing a fresh assessment.
(2) No order shall be made under sub-section (1)-
(a) to revise an order of ' re-assessment made under [ .33B(2)] the provisions of section 152 [34(1), (a) (b) power to reopen], or
(b) after the expiry of t years ﬁfiiom the date of the 5 order sought to be rev ed. ' '~ ' _ is Section 272 Revision of other orders.
[s-_ 33A(I)» main para, 1' _ 33A(2):
mam para,
- part] [N ew] i[s- 33A(I)' Prov., (c)] [8- 33A(2)»
- inain para, part] Is- 33A 0)» Prov. (a),part, ands.33A(2);
rst Prov. (a), part.] I!» 33A(I)» Prov.(a),part, and s.33A(2);
ist Prov. (a), part] [8- 33A(I), Prov.(b),part and s.33A(2), Ist Prov. (b)] [s- 33A(I)» Prov. (b), part and s.33A(2), Ist Prov. (c)] [=- 33A(3)] 248 Clause 272 (1) In the case of any order other than an order to which section 271 [33B(1) and (2)] applies passed by an authority subordinate to him, \ the Commissioner may. either of his own motion or on an application by the assessee for revision, .......... ..call for the record of any proceeding under this Actin which any such order has been passed .......... .., and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks ﬁt.
(2) Where an application for revision was made by the assessee, he shall be given an opportunity of being heard before the application is disposed of.
(3) The Commissioner shall not of his own motion re- vise any order under this section if .......... ..the order has been made more than one year previously.
(4) In the case of an application for revision under this section by the assessee, the application must be made with» in one year from the date on which the order in question was communicated to him or on which he otherwise came to know of it, whichever is earlier:
Provided that the Commissioner may, if he is satisﬁed that the assessee Was prevented by sufﬁcient cause from making the application within that period, admit an appli- cation made after the expiry of that period.
(5) The Commissioner shall not revise any order under this section in the following cases-
(a) Where an appeal against the order lies to the Appellate Assistant Commissioner .......... ..but has not been made and the time within which such appeal may be made has not expired;
(b) where an appeal against the order lies to the High Court but has not been made, and neither the time within which such appeal may be made has expired nor the assessee has waived his right of appeal;
(c) where the order is pending on an appeal before the Appellate Assistant Commissioner .......... ..;
(d) where the order has been made the subject of an appeal to the High Court, and the appeal is pend- ing or has been disposed of on the merits.
(6) Every application by an assessee for revision under this section shall be accompanied by a fee of twenty-ﬁve rupees. A '1
-249 Clauses 272-277 Explanation 1.--An order by the Commissioner declin- [8-3s_A(2)2ud ing to interfere shall, for the purposes of this section, be P'°""°3 deemed not to be an order prejudicial _to the assesses.
Explanation 2.------For the purposes of this section, the [s_ 33AM, Appellate Assistant Commissioner shall be deemed to be Expl.] an authority subordinate to the Commissioner.
F--General section 273 Notwithstanding that an appeal has been preferred n':tw.3: under this Chapter to the High Court or to the Supreme sanding a;,p_ Court, tax shall be payable in accordance with the assess--ea1s. ment made in the case, unless the High Court or the [5-55(7),main Supreme Court, as the case may be, grants stay of the Wm' and 3' collection of the tax pending the disposal of the appeal. l;>€¢§v(i3§l§,$zt] Section 2 .......... ..The High Court may, on petition made for the Execution fl:
-execution of the order of the Supreme Court in respect of §°*'53Wa!d¢d any costs awarded thereby, transmit the order for execu- C"'m'°;'"P'""° tion to any court subordinate to the High Court. [s.66A(3),2nd
- rroviso.
Where as the result of an appeal to the Appellate SCCME175 Assistant Commissioner, the High Court or the Supreme Amendmcnt 'CON-TlF'--' of msessmcnt on appeal.
(a) any change is made in the assessment of a ﬁrm or [,_3,(,,) and an association of persons or a new assessment of 33(5), modi- a firm or an association of persons is order- ed to be made, or
(b) any alteration in any assessment has to be made, .......... ..the Income-tax Officer shall, whether or not a direc- tion is given by the appellate authority, make an amend- ment of the assessment so as to carry out the order of the appellate authority, including, where necessary, an amend-
ment of any assessment made on any partner of the ﬁrm or any member of the association.
In computing the period of limitation prescribed for Section 276 an appeal or an application under this Act, ............. ..the Exclaim of day on which the order complained of was'made, and, if time rate.-nfor the assessee was not furnished a copy of the order when °°PY- ' the notice of the order was served upon him, the time [I-57Al' ruleqgliislite for obtaining a copy of such order, shall be ex-
1: u e .
The Supreme Court may make rules, not inconsistent Scction 277 with the provisions of this Act, on all or any of the follow- ':6' "'° ing matters, namely--- ~ C0',',',,_
(a) the powers to be exercised and the procedure to [NW1 be followed in appeals to the High Court under this Chapter ; '
(b) any other matter which to be or ma be pres- cribed by the Supreme Court underfhﬁs _ pter. » » 250 Clauses 2278-280 Scctim 273 In this Chapter,---
Deﬁnitions.
[S- 55(8)] (a) 'the High Court' means,----
(i) in relation to any State, the High Court for that State ;
(ii) in relation to the Union territories of Delhi and Himachal Pradesh, the High Court of Punjab;
(iii) in relation to the Union territories of Manipur and Tripura, the High Court of Assam;
(iv) in relation to the Union territory of the Anda- man and Nicobar islands, the High Court at Calcutta ; and
(v) in relation to the Union territory of the Lacca- dive, Minicoy and 'Amindivi islands. the High Court of Kerala;
[New] (b) "status" means the category under which the asses- see is assessed, with reference to the Finance Act applicable to the case, as "individual", "Hindu undivided family" and so on.
CHAPTER XXII PENALTIES IMPOSABLE BY INCOME-TAX AUTHORITIES Section 279 .... ..If any person without reasonable excuse fails to Failure to comply with a notice issued under section 97 (7) [s. §44E(6), furnish info" earlier half] the Income-tax Ofﬁcer may direct that such """i°" '°g"' erson shall' a a nalt not exceedin ﬁve hundred {}§';im?°°""' igupees and a Iiuiytherpgenally of the like agnount for every [s. "E 6 day after the inﬂiction of such penalty during which the lane, hair] ' failure continues.
3°°'i°" 98° (1) If the Income-tax Officer, or the Appellate Atsistant Ef°n°°?1:;¢"* Commissioner ........... .., in the course of any proceedings in me - - - _ or improper under this Act, 1S satisﬁed that any person-- ; distribution of proﬁts etc. [s.28(x),ma.in para]
(a) has without reasonable cause failed to furnish the return of his total income which he was required to furnish ....... .. under section 143 (1) [22(1)] or by "notice given under section 143 (2) [sublsection (2) of section 22] or section 154 [34 (1) (a) (b')] or has without reasonable cause failed to furnish it within the time allowed and in the man.ner re- quired by section 1 (1) [22 (1)] .or by.such notice, as the case ntay be, a i _ . I 2 4
-- 17-1 Law Com.I58 251 Clause 280
(b) has without reasonable cause failed to comply with a notice under section 146 (1) Esub-section (4) of section 22] or section. 147(2) sub-section (2) of section 23], or
(c) has concealed the particulars of his income or de1i-
berately furnished inaccurate particulars of such income, he .......... ..may direct that such, person shall pay by way of penalty,--- '
(i) in the case referred to in clause (a), in addition to' the amount of the tax, if any, payable by him, a sum not exceeding one and a half times that am- ount, and
(ii) in the cases referred to in clauses (b) and (c), in addition to any tax payable by him, a sum not exceeding one and a half times the amount of the tax, if any, which would have been avoided if the income as returned by such person had been accept- ed as the correct income. ~ (2) When the person liable to penalty is a registered [5,28(;),Prov.
ﬁrm or an unregistered ﬁrm which has been assessed under (d)] j section 190 (b) [23 (5) (b)], then, notwiﬂistanding anything ' contained in the other provisions of th ._Act, the penalty imposable under sub-section X1) shal be a. sum not eacceeding--- » ' 1 4
(i) in the case referred to %in cla.uaeA(a) of subsection (1), one and a half times the giamount of the tax .......... ..payable by an; unregistered ﬁrm on an income equal to the ﬁrm's total income, and
(ii) in the cases referred to in clauses (b) and (c) of sub-sect1'.on (1), .......... ..one andfgas half times the difference between thegamountrof the tax .......... .. payable by an unregisteijed ﬁrmgon an income equal to the ﬁrm's total income and :the amount of the tag: .......... ..payable by $13 unr istered firm on an income e ual to the in me of he ﬁrm as actually returned y it. ' . I (3) (a) .... ..No penaltyyfor failure tot of his total income under secti 143 ( imposed under sub-section (1) income does not exceed the able to tax in his case by one t ' l[22 (1)] shall" be 3)] see whose total» 'mum' mount not charge- 5 e hundred rupees.
(b) Where a person has failed to comply with a notice [,_,3(-,), under section 143 (2) [sub-section (2) of section 22] or r;ov.qb)} section 154 [section 34(1) (a)( )] and roves that he has = no income liable to tax, the pe_ alty ' ble under sub- section (1) shall not exceed ty-ii V _pees.
ish the return Es.28(' ),Pi-ov'. . 4 252 Clauses 280-282 [s.28(1),Prov. (c) No penalty shall be imposed under sub-section (1) (C)l upon any person assessable under section 169(1) (i) read with section 170 [42 (1) main para, latter half, part regard-' ing liability of agent to be assessed as representing non- resident] as the agent of a non-resident for failure to fur-
nish the return .......... ..under section 143 (1) [22 (1)]. [,,23(2>] (4) If the Income-tax Ofﬁcer, or the Appellate Assistant Commissioner, .......... ..in the course of any proceedings under this Act, is satisﬁed that the proﬁts of a registered ﬁrm have been distributed otherwise than in accordance with the shares of the partners as shown in the instrument of partnership on the basis «of which the firm has been' registered under this Act, .......... ..and that any partner has thereby returned his income below its real amount. he ....... .. may direct that such partner shall, in addition to the tax. if any, payable by him, pay by way of penalty a sum not exceeding one and a half times the amount of tax which has been avoided, or would have been avoided if the in- come returned by such partner had been accepted fasihis correct income ; and no refund or other adjustment shall be claimable by any other partner by reason of such direc- tions.
section 23,_ ...... ..Where any person fails to give the notice of Fail," to discontinuance of his business profession or vocation re- Eivconoticc of fcquiredﬁ by sectio3_18i(3)l £25 (t) earilieiil' gait], the lgcgme. 130 n muan- ax o cer may irec a a sum s a e recovere rom °°- him by way of penalty not exceeding the amount of tax [5-25(2):1*"'°' Subsequently assessed on him in respect of any income Pm] .......... ..of the business, profession or vocation up to the date of its discontinuance.
s.,c,;.,,, ,3, If the Income-tax Ofﬁcer, in the course of any pro-
I,-am c5,;ma_ ceedings in connection with the regular _ assessment, is te oforfailume satisﬁed that any assesse-- ' d -
hoe: Va (a) has furnished under section 220 [sub--secti n (2) [s. "r 18A(9), or sub-section (3) of section 18A] an esti te of main para] the advance tax payable by him which he: knew or had reason to believe to be untrue, or
(b) has without reasonable cause failed to furnish an estimate of the advance tax payable by im in accordance with the provisions 'of section , 20 (3) [sub-section (3) of section 18A], ' l 'he may direct that such person shall,_ in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum not exceeding-
[3, 18A(9), (i) ....... ..in the case referred to in clause (a , one Prov.] and a half times the. amount by which e tax actually paid_ during ifthe ﬁnancial year immediately i 3 253 ' Clauses 282-285 preceding the "assessment year, uhder the provi- sions of sections 215 t0 228 [s. 18A] falls short of---
(1) eighty per cent. of the ta':c regularly assessed, ' as modiﬁed under the provisions of section 223 [18A (6)], or (2) where a notice under section 218 [18A (1) (a), main para, part as embodied in section regard- mg order of Income--tax Oﬁicer] was issued to the assessee, the amount payable" thereunder, whichever is the less; and
(ii) in the case referred to in clause'(b), one and a half ' times the amount on which interest under section 223 [sL 18A(6)].
is payable (1) No order imposing a penalty -under this Chapter s¢c.;o,, 233 shall be made ............. ..unless the assessee or the partner Procedure or the other person on whom the penalty is sought to be [s. 28(3)] 'imposed, as the case may be, has been heard, or has been given a reasonable opportunity of being heard.
(2) The Income-tax Officer shall not impose an _ under section'.28Q [s. 28(1) or (2)(] or section 282 [18A(9)] without the previous approval of the Inspecting Assistant Commissioner.
(3) An Appellate Assistant , Commissioner, on making an order under section 280 [28(1) or (2)], shall forthwith send a copy of the same to the Income-tax Oﬂicer.
No prosecution for an offence against this Act shall be Scclion_2'8f agams uccution.
[8- 53(4)] instituted in respect of the same facts on which a penalty has been imposed under this Chapter.
CHAPTER XXIII / OFFENCES AND PROSECUTIONS If a person fails without reasonable cause or excuse----
(a) to grant inspection or :allow copies to be taken in accordance with the pnovisions: oif section 139 [39]; V"
(b) to furnish in due time any of t e returns mentioned in section 166(4) [Section 19 ], 166(1) [section section 22] or 138 [section 38];
(c) to produce, or cause to be produced, on or before [s. 5x(d)] the date mentionedin any n, tice under section 146(1) [Sub-section (4)3 of secti Ii 22] such accounts and documents as are' referr , 51:0 in the notice;
Bar pl'0l [=- 28(5)] H13 01' O!' Y Penalty [s. 28(6)] pee on.
20A], 166(2) [section 21] 143(2) [sub--section (2) of uj-8~']i'x;cs°P'.'"' [s. §i(c [s. 51 (c i ii _ withdrawal [s- 5r(a)] [5- 51(5)] [s- 51.
last part] Section 286 False state-
ment in declaration.
[s- 52] Section 287 Prosecution to be at insta-
nce of Inspec-
ting Assistant Commissio-
IICF.
[s- 53] Section 288 Disclosure of particulars by public serva-
nts.
[5~ 54-(2) :
latter part] [s- 54(5)] Section 289_ According & of . recogni-
tion.
[I. 58B(x).] 254 Clauses 285-289
(d) to deduct and pay tax as required by sections 201 to 204 [all sections embodying section 18] or under , section 235(2) [Sub-section (5) of section 46]; or
(e) to furnish a certificate required by section 211 [sub- section (9) of section 18] or by section 167 [Section 20] to be furnished;
he shall, on conviction before a Magistrate, be punishable with ﬁne which may extend to ten rupees for every day during which the default continues.
If a person makes a statement in any verification under this Act which is false, and which he either knows r be- lieves to be false, or does not believe to be true, he ﬂail, ._ ......... .., on conviction before a Magistrate. be puni able with simple imprisonment which may extend to six m nths, or with ﬁne which may extend to one thousand rup s. or with both.
(1) A person shall not he proceeded against for an offence under section 285 [51] or section 286 [52] exc pt at the instance of the Inspecting Assistant Commissio gr.
(2) The Inspecting Assistant Commissioner may either before or after the institution of proceedings compound any such offence. , (1) If a public servant discloses any particulars, t i dis- closure of which is prohibited b section 141(2) [S. (2), earlier part, as incorporated in Cliapter on Income-ta Au- thorities], he shall, 'on conviction before a Magistra e, be punishable with imprisonment which may extend 0 six months, and shall also be liable to ﬁne. ;
(2) No prosecution shall be instituted under th'i sec- tion except with the previous sanction of the Commisgoner.
CHAPTER xxnf RECOGNISED PRQVIDENT FUNDS Recognition ' (1) The Commissioner....,.... may accord reco 'tion to any provident fund which, in his opinion, satisﬁ the . conditions prescribed in section 290 [58C. embodied i sec-.
tion for conditions] and the rules made thereunder}, and may, at any time, withdraw such recognition if, in h' opi- riiion, the provident fund cojiizravenes any of thos con-
itions: ' - ea s I' .
Q' a ,...........4...
z.---« ., l-_ .._;, * r" "yr . 58(»C) (1) (g) latter part], satisfy the, conditions set out by .
255', Clauses 289-290 Provided that the Commissioner may,--
(a) subject to such conditions; if any, as he may con- sider necessary. accord recognition to any provi- dent fund maintained by an enterprise which has been exempted from any or all of the provisions of any scheme framed under the Employees' Pro- vident Funds Act, 1952, notwithstanding that any 19 of 1952. of the conditions menstioned in section 290 [58C embodied insection regarding conditions] are not satisﬁed ; and .
(b) withdraw such recognition if, in his opinion, the provident fund contravenes any of the conditions subject to which recognition» was accorded by him.
(2) An order according recognition shall take effect [s. 58B(2).] on such date as the Commissioner may ﬁx in accordance with any rules the Central Board of Revenue may make in this behalf, such date not being later than the last day of the ﬁnancial year in which the onder is made.
(3) An order withdrawing recognition shall take effect [s. ;8B(3).] from the date on which it is made. 3 (4) An order according 'recognition to a provident [s. $813 (3A)] fund shallgnot, unless' the Commissioner otherwise directs, * be affected by the fact that the fund is subsequently amal- gamated with another provident fund bn the occurrence of an' amalgamation of the undertakings, in connection with which the two funds are maintained, or fthat it subsequent- ly absorbs the whole or a pant of anqther provident fund belonging to an undertaking which is wholly or in part transferred to or merged in the undertaking of the em- ployer maintaining the first mentioned fund. -
In order that a provident fund mayreceive and I'e'ta1n.Scciion 290 recognition, it shall, subject to the provisions of section Conditions to 291 [s. 58C(l) Provisos to cls; (a), (b), (d). 58J (4), 58(D),bc satisﬁed below and any other conditions which Tithe Central Govern- 1-33° ment may, by rules, prescribe--- ' [s. 583(1) 0135 1118
(a) All employees shall be employpd in India, or shall [s. be employed by an employer ; whose principal (3). min place of business is inrlndia. P"'',-] a: » at 1 as =
(b) The contributions of ' an e loyee in any year [s. 3580(1)' shall be a deﬁnite proportion of his salary for that (b).% main _ year, and shall be' dedt1cted.b3i the employer from P'-"+1 the employee's salary in that proportion, at each l periodical payment 0 such fry in that year, I and credited to the Individual account» in the fund. ' 256 Clauses 290-291 3 u g 530") (c) ...The contributions of an employer to the in- ' dividual account of an employee in any year shall not exceed the amount of the contributions of the employee in that year, and shall be credited to the employee's individual account at intervals not exceeding one year.
[s- 5800,) (d) The fund shall consist of contributions as above ('$31 "W" speciﬁed and of donations, if any, received by the P " trustees, of accumulations thereof, and of interest (simple and compound), credited in respect of such contributions, donations and accumulations, and of securities purchased therewith and of any ca- pital gains arising from the sale, exchange or transfer of capital assets of the fund, and of no other sums.
* ¥ 3 %:'H58(°) (0 (e) The fund shall be vested in two or more trustees or in the Official Trustee under a trust which shall not be revocable save with the consent of all ,the beneﬁciaries. . .
580(1) (f) The employer shall not be entitled to recoveij any ' sum whatsoever from the fund, sav! in cases where the employee is dismissed for misconduct or voluntarily leaves his employment otherwise than on account of ill-health or other unavoidable cause before the expiration of the term of service speciﬁed in this behalf in the regulations of. the fund.