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Income-tax Act, 1961 (Section 117 to 152)
117 . [Appointment of income-tax authorities.- [1] (1) The Central Government may appoint such persons as it thinks fit to be income-tax authorities.

(2) Without prejudice to the provisions of sub-section (1), and subject to the rules and orders of the Central Government regulating the conditions of service of persons in public services and posts, the Central Government may authorise the Board, or a Director-General, a Chief Commissioner or a Director or a Commissioner to appoint income-tax authorities below the rank of an Assistant Commissioner
[2] [or Deputy Commissioner].

(3) Subject to the rules and orders of the Central Government regulating the conditions of service of persons in public services and posts, an income-tax authority authorised in this behalf by the Board may appoint such executive or ministerial staff as may be necessary to assist it in the execution of its functions.]

 
FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988. Earlier, it was amended by the Finance Act, 1970, with effect from . 1-4-1970 and the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
2. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.

 


118 . Control of income-tax authorities.-
[1] [ The Board may, by notification in the Official Gazette, direct that any income-tax authority or authorities specified in the notification shall be subordinate to such other income-tax authority or authorities as may be specified in such notification.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988. Prior to its substitution, section 118 stood as under :

'118. Control of income-tax authorities-(1) Inspecting Assistant Commissioners shall be subordinate to the Commissioner within whose jurisdiction they perform their functions, and also to the Director of Inspection.

(2) Income-tax Officers shall be subordinate to the Commissioner and the Inspecting Assistant Commissioner within whose jurisdiction they perform their functions and also to the Director of Inspection.

(3) Inspectors of Income-tax shall be subordinate to the Income-tax Officer or other income-tax authority under whom they are appointed to work and to any other income-tax authority to whom the said officer or other authority is subordinate.

Explanation-For the purposes of sub-section (1), "Director of Inspection" does not include a Deputy Director of Inspection or an Assistant Director of Inspection; and for the purposes of sub-section (2), "Director of Inspection" does not include an Assistant Director of Inspection.'

 


119 . [1] [Instructions to subordinate authorities.- (1) The Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board :

Provided that no such orders, instructions or directions shall be issued-

(a)so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or

(b)so as to interfere with the discretion of the
[2] [* * *] [3] [Commissioner (Appeals)] in the exercise of his appellate functions.

(2) Without prejudice to the generality of the foregoing power,-

(a)the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of
[4] [sections 115P, 115S, 115WD, 115WE, 115WF, 115WG, 115WH, 115WJ, 115WK] [139,] 143, 144, 147, 148, 154, 155 [5] [, 158BFA], [6] [sub-section (1A) of section 201, sections 210, 211, 234A, 234B, 234C], 271 and 273 or otherwise), general or special orders in respect of [7] [any class of incomes or fringe benefits] or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information;

(b)the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise
[8] [any income-tax authority, not being a [9] [***] Commissioner (Appeals)] to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law;

[10] [(c)the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order for reasons to be specified therein, relax any requirement contained in any of the provisions of Chapter IV or Chapter -A, where the assessee has failed to comply with any requirement specified in such provision for claiming deduction thereunder, subject to the following conditions, namely:-

(i)the default in complying with such requirement was due to circumstances beyond the control of the assessee; and

(ii)the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed :

Provided that the Central Government shall cause every order issued under this clause to be laid before each House of Parliament.]

(3)
[11] [***]

 

FOOTNOTES:
 
1. Substituted by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971.
 
2. Words "Deputy Commissioner (Appeals) or the" omitted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner (Appeals)" was substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Inserted by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
4. Substituted for the words "sections 115P, 115S" by Finance Act, 2005, with effect from . 1-4-2006.
 
5. Inserted by the Finance Act, 2002, with effect from . 1-6-2002.
 
6. Substituted for "210, 234A, 234B" by the Finance (No. 2) Act, 1991, with effect from . 1-4-1991. Earlier "234A, 234B" were inserted by the Finance Act, 1990, with effect from . 1-4-1990.
 
7. Substituted for the words "any class of incomes" by Finance Act, 2005, with effect from . 1-4-2006.
 
8. Substituted for "the Commissioner or the Income-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
9. Words "Deputy Commissioner (Appeals) or the" omitted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
10. Inserted by the Finance (No. 2) Act, 1991, with effect from . 1-10-1991.
 
11. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988. Prior to its omission, sub-section (3) stood as under :

"(3) Every Income-tax Officer employed in the execution of this Act shall observe and follow such instructions as may be issued to him for his guidance by the Director of Inspection or by the Commissioner or by the Inspecting Assistant Commissioner within whose jurisdiction he performs his functions."

 


120 . [1] [Jurisdiction of income-tax authorities.- (1) Income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or, as the case may be, assigned to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities.

(2) The directions of the Board under sub-section (1) may authorise any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it.

(3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria, namely :-

(a)territorial area;

(b)persons or classes of persons;

(c)incomes or classes of income; and

(d)cases or classes of cases.

(4) Without prejudice to the provisions of sub-sections (1) and (2), the Board may, by general or special order, and subject to such conditions, restrictions or limitations as may be specified therein,-

(a)authorise any Director General or Director to perform such functions of any other income-tax authority as may be assigned to him by the Board;

(b)empower the Director General or Chief Commissioner or Commissioner to issue orders in writing that the powers and functions conferred on, or as the case may be, assigned to, the Assessing Officer by or under this Act in respect of any specified area or persons or classes of persons or incomes or classes of income or cases or classes of cases, shall be exercised or performed by a
[2] [Joint] Commissioner [3] [or a [4] [Joint] Director], and, where any order is made under this clause, references in any other provision of this Act, or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such [5] [Joint] Commissioner [6] [or [7] [Joint] Director] by whom the powers and functions are to be exercised or performed under such order, and any provision of this Act requiring approval or sanction of the [8] [Joint] Commissioner shall not apply.

(5) The directions and orders referred to in sub-sections (1) and (2) may, wherever considered necessary or appropriate for the proper management of the work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and functions in respect of any area or persons or classes of persons or incomes or classes of income or cases or classes of cases; and, where such powers and functions are exercised and performed concurrently by the Assessing Officers of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct, and, further, references in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such higher authority and any provision of this Act requiring approval or sanction of any such authority shall not apply.

(6) Notwithstanding anything contained in any direction or order issued under this section, or in section 124, the Board may, by notification in the Official Gazette, direct that for the purpose of furnishing of the return of income or the doing of any other act or thing under this Act or any rule made thereunder by any person or class of persons, the income-tax authority exercising and performing the powers and functions in relation to the said person or class of persons shall be such authority as may be specified in the notification.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
3. Inserted by the Finance (No. 2) Act, 1996, with effect from . 1-10-1996.
 
4. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
5. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
6. Inserted by the Finance (No. 2) Act, 1996, with effect from . 1-10-1996.
 
7. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
8. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.

 


121 . Omitted.-
[1] [*****]

 

FOOTNOTES:
 
1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


121A . Omitted.-
[1] [*****]

 

FOOTNOTES:
 
1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


122 . Omitted.-
[1] [*****]

 

FOOTNOTES:
 
1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


123 . Omitted.-
[1] [*****]

 

FOOTNOTES:
 
1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


124 . [1] [Jurisdiction of Assessing Officers.- (1) Where by virtue of any direction or order issued under sub-section (1) or sub-section (2) of section 120, the Assessing Officer has been vested with jurisdiction over any area, within the limits of such area, he shall have jurisdiction-

(a)in respect of any person carrying on a business or profession, if the place at which he carries on his business or profession is situate within the area, or where his business or profession is carried on in more places than one, if the principal place of his business or profession is situate within the area, and

(b)in respect of any other person residing within the area.

(2) Where a question arises under this section as to whether an Assessing Officer has jurisdiction to assess any person, the question shall be determined by the Director General or the Chief Commissioner or the Commissioner; or where the question is one relating to areas within the jurisdiction of different Director Generals or Chief Commissioners or Commissioners, by the Directors General or Chief Commissioners or Commissioners concerned or, if they are not in agreement, by the Board or by such Director General or Chief Commissioner or Commissioner as the Board may, by notification in the Official Gazette, specify.

(3) No person shall be entitled to call in question the jurisdiction of an Assessing Officer-

(a) where he has made a return
[2] [under sub-section (1) of section 115WD or under sub section (1) of section 139], after the expiry of one month from the date on which he was served with a notice under sub-section (1) of section 142 or [3] [sub-section (2) of section 115WE or sub-section (2) of section 143] or after the completion of the assessment, whichever is earlier;

(b)where he has made no such return, after the expiry of the time allowed by the notice under
[4] [sub-section (2) of section 115WD or sub-section (1) of section 142 or under sub-section (1) of section 115WH or under section 148 for the making of the return or by the notice under the first proviso to section 115WF or under the first proviso to section 144] to show cause why the assessment should not be completed to the best of the judgment of the Assessing Officer, whichever is earlier.

(4) Subject to the provisions of sub-section (3), where an assessee calls in question the jurisdiction of an Assessing Officer, then the Assessing Officer shall, if not satisfied with the correctness of the claim, refer the matter for determination under sub-section (2) before the assessment is made.

(5) Notwithstanding anything contained in this section or in any direction or order issued under section 120, every Assessing Officer shall have all the powers conferred by or under this Act on an Assessing Officer in respect of the income accruing or arising or received within the area, if any, over which he has been vested with jurisdiction by virtue of the directions or orders issued under sub-section (1) or sub-section (2) of section 120.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988. Prior to its substitution, section 124 was amended by the Finance (No. 2) Act, 1967, with effect from . 1-4-1967 and the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
2. Substituted for the words "under sub-section (1) of section 139" by Finance Act, 2005, with effect from . 1-4-2006.
 
3. Substituted for the words "sub-section (2) of section 143" by Finance Act, 2005, with effect from . 1-4-2006.
 
4. Substituted for the words "sub-section (1) of section 142 or under section 148 for the making of the return or by the notice under the first proviso to section 144" by Finance Act, 2005, with effect from . 1-4-2006.

 


125 . Powers of Commissioner respecting specified areas, cases, persons, etc.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]

 

FOOTNOTES:
 
1. Prior to its omission, section 125 was substituted by the Finance (No. 2) Act, 1967, with effect from . 1-4-1967 and later on amended by the Finance Act, 1972, with effect from . 1-4-1972, the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975 and the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.

 


125A . Concurrent jurisdiction of Inspecting Assistant Commissioner and Income-tax Officer.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Original section was inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.]

 

FOOTNOTES:
 
1. Prior to its omission, section 125A was amended by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.

 


126 . Powers of Board respecting specified area, classes of persons or incomes.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]

 

FOOTNOTES:
 
1. Prior to its omission, section 126 was amended by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.

 


127 . [1] [Power to transfer cases.- (1) The Director General or Chief Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from one or more Assessing Officers subordinate to him (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) also subordinate to him.

(2) Where the Assessing Officer or Assessing Officers from whom the case is to be transferred and the Assessing Officer or Assessing Officers to whom the case is to be transferred are not subordinate to the same Director General or Chief Commissioner or Commissioner,-

(a)where the Directors General or Chief Commissioners or Commis-sioners to whom such Assessing Officers are subordinate are in agreement, then the Director General or Chief Commissioner or Commissioner from whose jurisdiction the case is to be transferred may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, pass the order;

(b)where the Directors General or Chief Commissioners or Commis-sioners aforesaid are not in agreement, the order transferring the case may, similarly, be passed by the Board or any such Director General or Chief Commissioner or Commissioner as the Board may, by notification in the Official Gazette, authorise in this behalf.

(3) Nothing in sub-section (1) or sub-section (2) shall be deemed to require any such opportunity to be given where the transfer is from any Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) to any other Assessing Officer or Assessing Officers (whether with or without concurrent jurisdiction) and the offices of all such officers are situated in the same city, locality or place.

(4) The transfer of a case under sub-section (1) or sub-section (2) may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the Assessing Officer or Assessing Officers from whom the case is transferred.

Explanation-In section 120 and this section, the word "case", in relation to any person whose name is specified in any order or direction issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988. Prior to its substitution, section 127 was substituted by the Finance (No. 2) Act, 1967, with effect from . 1-4-1967 and amended by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.

 


128 . Functions of Inspectors of Income-tax.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988].

 

FOOTNOTES:
 
1. Prior to its omission, section 128 was substituted by the Finance (No. 2) Act, 1967, with effect from . 1-4-1967.

 


129 . Change of incumbent of an office.- Whenever in respect of any proceeding under this Act an income-tax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises jurisdiction, the income-tax authority so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor :

Provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order of assessment is passed against him, he be reheard.

130 . Commissioner competent to perform any function or functions.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]

 

FOOTNOTES:
 
1. Prior to its omission, section 130 was substituted by the Finance Act, 1970, with effect from . 1-4-1970 and amended by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984.

 


130A . Income-tax Officer competent to perform any function or functions.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Original section was inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.]

 

FOOTNOTES:
 
1. Prior to its omission, section 130A was amended by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.

 


131 . Power regarding discovery, production of evidence, etc.- (1) The
[1] [Assessing] Officer, [2] [Deputy Commissioner (Appeals)], [3] [Joint Commissioner] [4] [, Commissioner (Appeals)] and [5] [Chief Com-missioner or Commissioner] shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely :-

(a)discovery and inspection;

(b)enforcing the attendance of any person, including any officer of a banking company and examining him on oath;

(c)compelling the production of books of account and other documents; and

(d)issuing commissions.

[6] [(1A) [7] [If the Director General or Director or [8] [Joint] Director or Assistant Director [9] [or Deputy Director], or the authorised officer referred to in sub-section (1) of section 132 before he takes action under clauses (i) to (v) of that sub-section,] has reason to suspect that any income has been concealed, or is likely to be concealed, by any person or class of persons, within his jurisdiction, then, for the purposes of making any enquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the income-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other income-tax authority.]

[10] (2) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]

(3) Subject to any rules made in this behalf, any authority referred to in sub-section (1)
[11] [or sub-section (1A)] may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this Act :

Provided that an
[12] [Assessing] Officer [13] [or an [14] [Assistant Director [15] [or Deputy Director]]] shall not-

(a)impound any books of account or other documents without recording his reasons for so doing, or

(b)retain in his custody any such books or documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of the
[16] [ [17] [Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be.]]

 

FOOTNOTES:
 
1. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commisisoner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
4. Inserted by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
5. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
7. Substituted for "If the Assistant Director of Inspection" by the Finance Act, 1988, with effect from . 1-6-1988.
 
8. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
9. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
10. Prior to its omission, sub-section (2) stood as under :

"(2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summons is issued either to attend to give evidence or produce books of account or other documents at a certain place and time, intentionally omits to attend or produce the books of account or documents at the place or time, the income-tax authority may impose upon him such fine not exceeding five hundred rupees as it thinks fit, and the fine so levied may be recovered in the manner provided in Chapter XVII-D."
 
11. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
12. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
13. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
14. Substituted for "Assistant Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
15. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
16. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
17. Substituted for "Chief Commissioner or Commissioner therefor" by the Finance Act, 1988, with effect from . 1-6-1988.

 


132 . Search and seizure.-
[1] [ (1) Where the [2] [Director General or Director] or the [3] [Chief Commis- sioner or Commissioner] [4] [or any such [5] [Joint Director] or [6] [Joint Commissioner] as may be empowered in this behalf by the Board], in consequence of information in his possession, has reason to believe that-

(a)any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922 (11 of 1922), or under sub-section (1) of section 131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or

(b)any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act, or

(c)any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property
[7] [which has not been, or would not be, disclosed] for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act (hereinafter in this section referred to as the undisclosed income or property),

[8] [then,-

(A)the
[9] [Director General or Director] or the [10] [Chief Commissioner or Commissioner], as the case may be, may authorise any [11] [Joint Director], [12] [Joint Commissioner], [13] [Assistant Director [14] [or Deputy Director]], [15] [Assistant Commissioner [16] [or Deputy Commissioner] or Income-tax Officer], or

(B)such
[17] [Joint Director], or [18] [Joint Commissioner], as the case may be, may authorise any [19] [Assistant Director [20] [or Deputy Director]], [21] [Assistant Commissioner [22] [or Deputy Commissioner] or Income-tax Officer],

(the officer so authorised in all cases being hereinafter referred to as the authorised officer) to-]

(i)enter and search any
[23] [building, place, vessel, vehicle or aircraft] where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept;

(ii)break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;

[24] [(iia) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account, other documents, money, bullion, jewellery or other valuable article or thing;]

[25] [(iib) require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorised officer the necessary facility to inspect such books of account or other documents;]

(iii)seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search:

[26] [Provided that bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, found as a result of such search shall not be seized but the authorised officer shall make a note or inventory of such stock-in-trade of the business;]

(iv)place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom;

(v)make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing :

[27] [ Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any [28] [Chief Commissioner or Commissioner], but such [29] [Chief Commissioner or Commissioner] has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c), then, notwithstanding anything contained in section [30] [120], it shall be competent for him to exercise the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the [31] [Chief Commissioner or Commissioner] having jurisdiction over such person may be prejudicial to the interests of the revenue :]

[32] [Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it, except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iii):]

[33] [Provided also that nothing contained in the second proviso shall apply in case of any valuable article or thing, being stock-in-trade of the business.]

[34] [(1A) Where any [35] [Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to suspect that any books of account, other documents, money, bullion, jewellery or other valuable article or thing in respect of which an officer has been authorised by the [36] [Director General or Director] or any other [37] [Chief Commissioner or Commissioner] or any such [38] [Joint Director] or [39] [Joint Commissioner] as may be empowered in this behalf by the Board to take action under clauses (i) to (v) of sub-section (1) are or is kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under sub-section (1), such [40] [Chief Commissioner or Commissioner] may, notwithstanding anything contained in section [41] [120], authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.]

(2) The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1)
[42] [or sub-section (1A)] and it shall be the duty of every such officer to comply with such requisition.

(3) The authorised officer may, where it is not practicable to seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing,
[43] [for reasons other than those mentioned in the second proviso to sub-section (1),] serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.

[44] [Explanation-For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iii) of sub-section (1).]

(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act.

[45] [Explanation-For the removal of doubts, it is hereby declared that the examination of any person under this sub-section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act.]

[46] [(4A) Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search, it may be presumed-

(i)that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person ;

(ii)that the contents of such books of account and other documents are true ; and

(iii)that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.]

(5)
[47] [***]

(6)
[48] [***]

(7)
[49] [***]

(8) The books of account or other documents seized under sub-section (1)
[50] [or sub-section (1A)] shall not be retained by the authorised officer for a period exceeding [51] [thirty days from the date of the order of assessment under [52] [section 153A or] clause (c) of section 158BC] unless the reasons for retaining the same are recorded by him in writing and the approval of the [53] [Chief Commissioner, Commissioner, Director General or Director] for such retention is obtained :

Provided that the
[54] [Chief Commissioner, Commissioner, Director General or Director] shall not authorise the retention of the books of account and other documents for a period exceeding thirty days after all the proceedings under the Indian Income-tax Act, 1922 (11 of 1922), or this Act in respect of the years for which the books of account or other documents are relevant are completed.

[55] [(8A) An order under sub-section (3) shall not be in force for a period exceeding sixty days from the date of the order.]

(9) The person from whose custody any books of account or other documents are seized under sub-section (1)
[56] [or sub-section (1A)] may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf, at such place and time as the authorised officer may appoint in this behalf.

[57] [(9A) Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents, or any money, bullion, jewellery or other valuable article or thing (hereafter in this section and in sections 132A and 132B referred to as the assets) seized under that sub-section shall be handed over by the authorised officer to the Assessing Officer having jurisdiction over such person within a period of sixty days from the date on which the last of the authorisations for search was executed and thereupon the powers exercisable by the authorised officer under sub-section (8) or sub-section (9) shall be exercisable by such Assessing Officer.]

(10) If a person legally entitled to the books of account or other documents seized under sub-section (1)
[58] [or sub-section (1A)] objects for any reason to the approval given by the [59] [Chief Commissioner, Commissioner, Director General or Director] under sub-section (8), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents [60] [and the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit].

(11)
[61] [***]

(11A)
[62] [***]

(12)
[63] [***]

[64] [(13) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure shall apply, so far as may be, to searches and seizure under sub-section (1) or sub-section (1A).]

(14) The Board may make rules in relation to any search or seizure under this section ; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer-

(i)for obtaining ingress into
[65] [any building, place, vessel, vehicle or aircraft] to be searched where free ingress thereto is not available ;

(ii)for ensuring safe custody of any books of account or other documents or assets seized.

[66] [Explanation 1-For the purposes of sub-section (9A), "execution of an authorisation for search" shall have the same meaning as assigned to it in Explanation 2 to section 158BE.]

Explanation 2-In this section, the word "proceeding" means any proceeding in respect of any year, whether under the Indian Income-tax Act, 1922 (11 of 1922), or this Act, which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year.]

 

FOOTNOTES:
 
1. Substituted by the Income-tax (Amendment) Act, 1965, with effect from . 12-3-1965. Earlier, section 132 was substituted by the Finance Act, 1964, with effect from . 1-4-1964. Section 6 of the Amendment Act, 1965 has made the following independent provision :

"Validation of certain searches made-Any search of a building or place by an Inspecting Assistant Commissioner or Income-tax Officer purported to have been made in pursuance of sub-section (1) of section 132 of the principal Act before the commencement of this Act shall be deemed to have been made in accordance with the provisions of that sub-section as amended by this Act as if those provisions were in force on the day the search was made and shall not be called in question before any court of law or any other authority merely on the ground-

(i)that the Inspecting Assistant Commissioner or the Income-tax Officer made such search with the assistance of any other person; or

(ii)that no proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or the principal Act was pending against the person concerned when the search was authorised under the said sub-section."
 
2. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
4. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
5. Substituted for "Deputy Director" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Director" was substituted for "Deputy Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "which has not been disclosed" by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
8. Substituted for "he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income-tax Officer (hereinafter referred to as the authorised officer) to-" by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
9. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
10. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
11. Substituted for "Deputy Director" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Director" was substituted for "Deputy Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
12. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
13. Substituted for "Assistant Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
14. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
15. Substituted for "or Income-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
16. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
17. Substituted for "Deputy Director" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Director" was substituted for "Deputy Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
18. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
19. Substituted for "Assistant Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
20. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
21. Substituted for "or Income-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
22. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
23. Substituted for "building or place" by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
24. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
25. Inserted by the Finance Act, 2002, with effect from . 1-6-2002.
 
26. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
27. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
28. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
29. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
30. Substituted for "121" by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
31. Substituted for "Commissioner", by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
32. Inserted by the Finance Act, 1988, with effect from . 1-4-1989.
 
33. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
34. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975
 
35. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
36. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
37. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
38. Substituted for "Deputy Director" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Director" was substituted for "Deputy Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
39. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
40. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
41. Substituted for "121" by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
42. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
43. Inserted by the Finance Act, 1988, with effect from . 1-4-1989.
 
44. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
45. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
46. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
47. Omitted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its omission, sub-section (5), as amended by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975, Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984, Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988, Finance Act, 1995, with effect from . 1-7-1995 and Finance (No. 2) Act, 1998, with effect from . 1-10-1998, read as under :

"(5) Where any money, bullion, jewellery or other valuable article or thing (hereafter in this section and in sections 132A and 132B referred to as the assets) is seized under sub-section (1) or sub-section (1A), as a result of a search initiated or requisition made before the 1st day of July, 1995, the Income-tax Officer, after affording a reasonable opportunity to the person concerned of being heard and making such enquiry as may be prescribed, shall, within one hundred and twenty days of the seizure, make an order, with the previous approval of the Joint Commissioner,-

(i)estimating the undisclosed income (including the income from the undisclosed property) in a summary manner to the best of his judgment on the basis of such materials as are available with him ;

(ii)calculating the amount of tax on the income so estimated in accordance with the provisions of the Indian Income-tax Act, 1922 (11 of 1922), or this Act ;

(iia)determining the amount of interest payable and the amount of penalty imposable in accordance with the provisions of the Indian Income-tax Act, 1922 (11 of 1922), or this Act, as if the order had been the order of regular assessment ;

(iii)specifying the amount that will be required to satisfy any existing liability under this Act and any one or more of the Acts specified in clause (a) of sub-section (1) of section 230A in respect of which such person is in default or is deemed to be in default,

and retain in his custody such assets/or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses (ii), (iia) and (iii) and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized :

Provided that if, after taking into account the materials available with him, the Income-tax Officer is of the view that it is not possible to ascertain to which particular previous year or years such income or any part thereof relates, he may calculate the tax on such income or part, as the case may be, as if such income or part were the total income chargeable to tax at the rates in force in the financial year in which the assets were seized and may also determine the interest or penalty, if any, payable or imposable accordingly :

Provided further that where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses (ii), (iia) and (iii) or any part thereof, the Income-tax Officer may, with the previous approval of the Chief Commissioner or Commissioner, release the assets or such part thereof as he may deem fit in the circumstances of the case."
 
48. Omitted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its omission, sub-section (6), as amended by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975, read as under :

"(6) The assets retained under sub-section (5) may be dealt with in accordance with the provisions of section 132B."
 
49. Omitted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its omission, sub-section (7) read as under :

"(7) If the Income-tax Officer is satisfied that the seized assets or any part thereof were held by such person, for or on behalf of any other person, the Income-tax Officer may proceed under sub-section (5) against such other person and all the provisions of this section shall apply accordingly."
 
50. Inserted by the Taxation Laws (Amendment) Act, 1975, w,e.f. 1-10-1975.
 
51. Substituted for "one hundred and eighty days from the date of the seizure" by the Finance Act, 2002, with effect from . 1-6-2002.
 
52. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
53. Substituted for "Chief Commissioner or Commissioner" by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier "Chief Commissioner or Commissioner" was substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
54. Substituted for "Chief Commissioner or Commissioner" by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier "Chief Commissioner or Commissioner" was substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
55. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its substitution, sub-section (8A), as inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989 and amended by the Finance (No. 2) Act, 1991, with effect from . 1-10-1991, read as under :

"(8A) An order under sub-section (3) shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to be recorded by him in writing, extends the period of operation of the order beyond sixty days, after obtaining the approval of the Director or, as the case may be, Commissioner for such extension :

Provided that the Director or, as the case may be, Commissioner shall not approve the extension of the period for any period beyond the expiry of thirty days after the completion of all the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant."
 
56. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
57. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its substitution, sub-section (9A), as inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975, read as under :

"(9A) Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents or assets seized under that sub-section shall be handed over by the authorised officer to the Income-tax Officer having jurisdiction over such person within a period of fifteen days of such seizure and thereupon the powers exercisable by the authorised officer under sub-section (8) or sub-section (9) shall be exercisable by such Income-tax Officer
 
58. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
59. Substituted for "Chief Commissioner or Commissioner" by the Finance Act, 1997, w.r.e.f. 1-10-1996. Earlier "Chief Commissioner or Commissioner" was substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
60. Inserted by the Finance Act, 2002, with effect from . 1-6-2002.
 
61. Omitted by the Finance Act, 2002, with effect from . 1-6-2002.. Prior to its omission, sub-section (11), as amended by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988, read as under :

"(11) If any person objects for any reason to an order made under sub-section (5), he may, within thirty days of the date of such order, make an application to the Chief Commissioner or Commissioner, stating therein the reasons for such objection and requesting for appropriate relief in the matter."
 
62. Omitted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its omission, sub-section (11A), as inserted by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984 and amended by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988, read as under :

"(11A) Every application referred to in sub-section (11) which is pending immediately before the 1st day of October, 1984, before an authority notified under that sub-section as it stood immediately before that day shall stand transferred on that day to the Chief Commissioner or Commissioner, and the Chief Commissioner or Commissioner may proceed with such application from the stage at which it was on that day :

Provided that the applicant may demand that before proceeding further with the application, he be reheard."
 
63. Omitted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its omission, sub-section (12), as amended by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988, read as under :

"(12) On receipt of the application under sub-section (10) the Board, or on receipt of the application under sub-section (11) the Chief Commissioner or Commissioner, may, after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit."
 
64. Substituted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
65. Substituted for "such building or place" by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
66. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its substitution Explanation 1, as amended by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989, read as under :

"Explanation 1-In computing the period referred to in sub-section (5) for the purposes of that sub-section, any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded."

 


132A . [1] [Powers to requisition books of account, etc.- (1) Where the [2] [Director General or Director] or the [3] [Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to believe that-

(a)any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922 (11 of 1922), or under sub-section (1) of section 131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents, as required by such summons or notice and the said books of account or other documents have been taken into custody by any officer or authority under any other law for the time being in force, or

(b)any books of account or other documents will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act and any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, such books of account or other documents on the return of such books of account or other documents by any officer or authority by whom or which such books of account or other documents have been taken into custody under any other law for the time being in force, or

(c)any assets represent either wholly or partly income or property which has not been, or would not have been, disclosed for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act by any person from whose possession or control such assets have been taken into custody by any officer or authority under any other law for the time being in force, then, the
[4] [Director General or Director] or the [5] [Chief Commissioner or Commissioner] may authorise any [6] [Joint Director], [7] [Joint Commissioner], [8] [Assistant Director [9] [or Deputy Director]], [10] [Assistant Commissioner [11] [or Deputy Commissioner] or Income-tax Officer] (hereafter in this section and in sub-section (2) of section 278D referred to as the requisitioning officer) to require the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, to deliver such books of account, other documents or assets to the requisitioning officer.

(2) On a requisition being made under sub-section (1), the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, of that sub-section shall deliver the books of account, other documents or assets to the requisitioning officer either forthwith or when such officer or authority is of the opinion that it is no longer necessary to retain the same in his or its custody.

(3) Where any books of account, other documents or assets have been delivered to the requisitioning officer, the provisions of sub-sections (4A) to (14) (both inclusive) of section 132 and section 132B shall, so far as may be, apply as if such books of account, other documents or assets had been seized under sub-section (1) of section 132 by the requisitioning officer from the custody of the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of this section and as if for the words "the authorised officer" occurring in any of the aforesaid sub-sections (4A) to (14), the words "the requisitioning officer" were substituted.]

 

FOOTNOTES:
 
1. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975.
 
2. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
4. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Deputy Director" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Director" was substituted for "Deputy Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
8. Substituted for "Assistant Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
9. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
10. Substituted for "or Income-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987 (as amended by the Finance Act, 1988), with effect from . 1-4-1988.
 
11. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.

 


132B . Application of seized or requisitioned assets.-
[1] [ (1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely:-

(i) the amount of any existing liability under this Act, the Wealth-tax Act, 1957 (27 of 1957), the Expenditure-tax Act, 1987 (35 of 1987), the Gift-tax Act, 1958 (18 of 1958) and the Interest-tax Act, 1974 (45 of 1974), and the amount of the liability determined on completion of the assessment
[2] [under section 153A and the assessment of the year relevant to the previous year in which search is initiated or requisition is made, or the amount of liability determined on completion of the assessment under Chapter XIV-B for the block period, as the case may be] (including any penalty levied or interest payable in connection with such assessment) and in respect of which such person is in default or is deemed to be in default, may be recovered out of such assets:

[3] [Provided that where the person concerned makes an application to the Assessing Officer within thirty days from the end of the month in which the asset was seized, for release of asset and the nature and source of acquisition of any such asset is explained] to the satisfaction of the Assessing Officer, the amount of any existing liability referred to in this clause may be recovered out of such asset and the remaining portion, if any, of the asset may be released, with the prior approval of the Chief Commissioner or Commissioner, to the person from whose custody the assets were seized:

Provided further that such asset or any portion thereof as is referred to in the first proviso shall be released within a period of one hundred and twenty days from the date on which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed;

(ii) if the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied;

(iii) the assets other than money may also be applied for the discharge of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer or, as the case may be, the Tax Recovery Officer under authorisation from the Chief Commissioner or Commissioner under sub-section (5) of section 226 and the Assessing Officer or, as the case may be, the Tax Recovery Officer may recover the amount of such liabilities by the sale of such assets and such sale shall be effected in the manner laid down in the Third Schedule.

(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of liabilities aforesaid by any other mode laid down in this Act.

(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from whose custody the assets were seized.

(4) (a) The Central Government shall pay simple interest at the rate of eight per cent per annum on the amount by which the aggregate amount of money seized under section 132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the amount required to meet the liabilities referred to in clause (i) of sub-section (1) of this section.

(b) Such interest shall run from the date immediately following the expiry of the period of one hundred and twenty days from the date on which the last of the authorisations for search under section 132 or requisition under section 132A was executed to the date of completion of the assessment
[4] [under section 153A or] under Chapter XIV-B.

Explanation-In this section,-

(i) "block period" shall have the meaning assigned to it in clause (a) of section 158B;

(ii) "execution of an authorisation for search or requisition" shall have the same meaning as assigned to it in Explanation 2 to section 158BE.]

 

FOOTNOTES:
 
1. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. See rule 112C. Prior to its substitution, section 132B, inserted as section 132A by the Income-tax (Amendment) Act, 1965, with effect from 12-3-1965 and renumbered as "132B" by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975, and later on amended by the Taxation Laws (Amendment) Act, 1967, with effect from . 1-10-1967, Finance Act, 1972, with effect from . 1-4-1972, Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988/1-4-1989, read as under:

"132B. Application of retained assets-(1) The assets retained under sub-section (5) of section 132 may be dealt with in the following manner, namely :-

(i)The amount of the existing liability referred to in clause (iii) of the said sub-section and the amount of the liability determined on completion of the regular assessment or reassessment for all the assessment years relevant to the previous years to which the income referred to in clause (i) of that sub-section relates (including any penalty levied or interest payable in connection with such assessment or reassessment) and in respect of which he is in default or is deemed to be in default may be recovered out of such assets.

(ii)If the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied.

(iii)The assets other than money may also be applied for the discharge of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer or, as the case may be, Tax Recovery Officer under authorisation from the Chief Commissioner or Commissioner under sub-section (5) of section 226 and the Assessing Officer or, as the case may be, Tax Recovery Officer may recover the amount of such liabilities by the sale of such assets and such sale shall be effected in the manner laid down in the Third Schedule.

(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of liabilities aforesaid by any other mode laid down in this Act.

(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from whose custody the assets were seized.

(4) (a) The Central Government shall pay simple interest at the rate of fifteen per cent per annum on the amount by which the aggregate of money retained under section 132 and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (iii) of sub-section (5) of that section exceeds the aggregate of the amounts required to meet the liabilities referred to in clause (i) of sub-section (1) of this section.

(b) Such interest shall run from the date immediately following the expiry of the period of six months from the date of the order under sub-section (5) of section 132 to the date of the regular assessment or reassessment referred to in clause (i) of sub-section (1) or, as the case may be, to the date of last of such assessments or reassessments."
 
2. Substituted for "under Chapter XIV-B for the block period" by the Finance Act, 2003, with effect from . 1-6-2003.
 
3. Substituted for "Provided that where the nature and source of acquisition of any such asset is explained" by the Finance Act, 2003, with effect from . 1-6-2003.
 
4. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.

 


133 . Power to call for information.- The
[1] [Assessing] Officer, the [2] [Deputy Commissioner (Appeals),] [3] [the [4] [Joint Commissioner] or the Commissioner (Appeals)] may, for the purposes of this Act,-

(1)require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares ;

(2)require any Hindu undivided family to furnish him with a return of the names and addresses of the manager and the members of the family ;

(3)require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of their addresses ;

(4)require any assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any previous year rent, interest, commission, royalty or brokerage, or any annuity, not being any annuity taxable under the head "Salaries" amounting to more than
[5] [one thousand rupees, or such higher amount as may be prescribed], together with particulars of all such payments made ;

(5)require any dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received any such sum, together with particulars of all such payments and receipts ;

(6)require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the
[6] [Assessing] Officer, the [7] [Deputy Commissioner (Appeals)] [8] [, the [9] [Joint Commissioner] or the Commissioner (Appeals)], giving information in relation to such points or matters as, in the opinion of the [10] [Assessing] Officer, the [11] [Deputy Commi-ssioner (Appeals)] [12] [, the [13] [Joint Commissioner] or the Commissioner (Appeals)], will be useful for, or relevant to, any [14] [enquiry or] proceeding under this Act :

[15] [Provided that the powers referred to in clause (6), may also be exercised by the Director-General, the Chief Commissioner, the Director and the Commissioner :]

[16] [Provided further that the power in respect of an inquiry, in a case where no proceeding is pending, shall not be exercised by any income-tax authority below the rank of Director or Commissioner without the prior approval of the Director or, as the case may be, the Commissioner.]

 

FOOTNOTES:
 
1. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "or the Inspecting Assistant Commissioner" by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
4. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "four hundred rupees" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
6. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
8. Substituted for "or the Inspecting Assistant Commissioner" by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
9. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
10. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
11. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
12. Substituted for "or the Inspecting Assistant Commissioner" by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
13. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
14. Inserted by the Finance Act, 1995, with effect from . 1-7-1995.
 
15. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
16. Inserted by the Finance Act, 1995, with effect from . 1-7-1995.

 


133A . [1] [Power of survey.- (1) Notwithstanding anything contained in any other provision of this Act, an income-tax authority may enter-

(a)any place within the limits of the area assigned to him, or

(b)any place occupied by any person in respect of whom he exercises jurisdiction,
[2] [or]

[3] [(c)any place in respect of which he is authorised for the purposes of this section by such income-tax authority, who is assigned the area within which such place is situated or who exercises jurisdiction in respect of any person occupying such place,]

at which a business or profession is carried on, whether such place be the principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession-

(i)to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place,

(ii)to afford him the necessary facility to check or verify the cash, stock or other valuable article or thing which may be found therein, and

(iii)to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act.

Explanation-For the purposes of this sub-section, a place where a business or profession is carried on shall also include any other place, whether any business or profession is carried on therein or not, in which the person carrying on the business or profession states that any of his books of account or other documents or any part of his cash or stock or other valuable article or thing relating to his business or profession are or is kept.

(2) An income-tax authority may enter any place of business or profession referred to in sub-section (1) only during the hours at which such place is open for the conduct of business or profession and, in the case of any other place, only after sunrise and before sunset.

(3) An income-tax authority acting under this section may,-

(i)if he so deems necessary, place marks of identification on the books of account or other documents inspected by him and make or cause to be made extracts or copies therefrom,

[4] [(ia)impound and retain in his custody for such period as he thinks fit any books of account or other documents inspected by him:

Provided that such income-tax authority shall not-

(a) impound any books of account or other documents except after recording his reasons for so doing; or

[5] [(b)retain in his custody any such books of account or other documents for a period exceeding ten days (exclusive of holidays) without obtaining the approval of the Chief Commissioner or Director General therefor, as the case may be,]]

(ii)make an inventory of any cash, stock or other valuable article or thing checked or verified by him,

(iii)record the statement of any person which may be useful for, or relevant to, any proceeding under this Act.

(4) An income-tax authority acting under this section shall, on no account, remove or cause to be removed from the place wherein he has entered,
[6] [***] any cash, stock or other valuable article or thing.

(5) Where, having regard to the nature and scale of expenditure incurred by an assessee, in connection with any function, ceremony or event, the income-tax authority is of the opinion that it is necessary or expedient so to do, he may, at any time after such function, ceremony or event, require the assessee by whom such expenditure has been incurred or any person who, in the opinion of the income-tax authority, is likely to possess information as respects the expenditure incurred, to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act and may have the statements of the assessee or any other person recorded and any statement so recorded may thereafter be used in evidence in any proceeding under this Act.

(6) If a person under this section is required to afford facility to the income-tax authority to inspect books of account or other documents or to check or verify any cash, stock or other valuable article or thing or to furnish any information or to have his statement recorded either refuses or evades to do so, the income-tax authority shall have all the powers under
[7] [sub-section (1) of section 131] for enforcing compliance with the requirement made :

[8] [Provided that no action under sub-section (1) shall be taken by an Assistant Director or a Deputy Director or an Assessing Officer or a Tax Recovery Officer or an Inspector of Income-tax without obtaining the approval of the Joint Director or the Joint Commissioner, as the case may be.]

Explanation-In this section,-

[9] [(a)"income-tax authority" means a Commissioner, a Joint Commissioner, a Director, a Joint Director, an Assistant Director or a Deputy Director or an Assessing Officer, or a Tax Recovery Officer, and for the purposes of clause (i) of sub-section (1), clause (i) of sub-section (3) and sub-section (5), includes an Inspector of Income-tax.]

(b)"proceeding" means any proceeding under this Act in respect of any year which may be pending on the date on which the powers under this section are exercised or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year.]

 

FOOTNOTES:
 
1. Substituted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-10-1975. Original section was inserted by the Finance Act, 1964, with effect from . 1-4-1964.
 
2. Inserted by the Finance Act, 1995, with effect from . 1-7-1995.
 
3. Inserted by the Finance Act, 1995, with effect from . 1-7-1995.
 
4. Inserted by the Finance Act, 2002, with effect from . 1-6-2002.
 
5. Substituted by the Finance Act, 2003, with effect from . 1-6-2003. Prior to its substitution, clause (b) read as under :

"(b)retain in his custody any such books of account or other documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of the Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be,"
 
6. Words "any books of account or other documents or" omitted by the Finance Act, 2002, with effect from . 1-6-2002.
 
7. Substituted for "sub-sections (1) and (2) of section 131" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
8. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
9. Substituted by the Finance Act, 2003, with effect from . 1-6-2003. Prior to its substitution, clause (a), as amended by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988/1-4-1989, Finance Act, 1995, with effect from . 1-7-1995 and Finance (No. 2) Act, 1998, with effect from . 1-10-1998, read as under :

'(a)"income-tax authority" means a Commissioner, a Joint Commissioner, a Director, a Joint Director, an Assistant Director or Deputy Director or an Assessing Officer, and for the purposes of clause (i) of sub-section (1), clause (i) of sub-section (3) and sub-section (5), includes an Inspector of Income-tax, if so authorised by any such authority.'

 


133B . [1] [Power to collect certain information.- (1) Notwithstanding anything contained in any other provision of this Act, an income-tax authority may, for the purpose of collecting any information which may be useful for, or relevant to, the purposes of this Act, enter-

(a)any building or place within the limits of the area assigned to such authority ; or

(b)any building or place occupied by any person in respect of whom he exercises jurisdiction,

at which a business or profession is carried on, whether such place be the principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession to furnish such information as may be prescribed.

(2) An income-tax authority may enter any place of business or profession referred to in sub-section (1) only during the hours at which such place is open for the conduct of business or profession.

(3) For the removal of doubts, it is hereby declared that an income-tax authority acting under this section shall, on no account, remove or cause to be removed from the building or place wherein he has entered, any books of account or other documents or any cash, stock or other valuable article or thing.

Explanation-In this section, "income-tax authority" means a
[2] [Joint Commissioner], an [3] [Assistant Director] [4] [or Deputy Director] or an [5] [Assessing] Officer, and includes an Inspector of Income-tax who has been authorised by the [6] [Assessing] Officer to exercise the powers conferred under this section in relation to the area in respect of which the [7] [Assessing] Officer exercises jurisdiction or part thereof.]

 

FOOTNOTES:
 
1. Inserted by the Finance Act, 1986, with effect from . 13-5-1986.
 
2. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "Assistant Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
4. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
5. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


134 . Power to inspect registers of companies.- The
[1] [Assessing] Officer, the [2] [Deputy Commissioner (Appeals)], [3] [the [4] [Joint Commissioner] or the Commissioner (Appeals)], or any person subordinate to him authorised in writing in this behalf by the [5] [Assessing] Officer, the [6] [Deputy Commissioner (Appeals)], [7] [the [8] [Joint Commissioner] or the Commissioner (Appeals)], may inspect, and if necessary, take copies, or cause copies to be taken, of any register of the members, debenture holders or mortgagees of any company or of any entry in such register.

 

FOOTNOTES:
 
1. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "or the Inspecting Assistant Commissioner" by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
4. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Appellate Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "or the Inspecting Assistant Commissioner" by the Finance (No. 2) Act, 1977, with effect from . 10-7-1978.
 
8. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


135 . Power of [1] [Director General or Director], [2] [Chief Commissioner or Commissioner] and [3] [Joint Commissioner].- The [4] [Director General or Director], the [5] [Chief Commissioner or Com- missioner] and the [6] [Joint Commissioner] shall be competent to make any enquiry under this Act, and for this purpose shall have all the powers that an [7] [Assessing] Officer has under this Act in relation to the making of enquiries.

 

FOOTNOTES:
 
1. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
4. Substituted for "Director of Inspection" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.

 


136 . Proceedings before income-tax authorities to be judicial proceedings.- Any proceeding under this Act before an income-tax authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860)
[1] [and every income-tax authority shall be deemed to be a Civil Court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].

 

FOOTNOTES:
 
1. Inserted by the Finance Act, 1985, w.r.e.f. 1-4-1974.

 


137 . Disclosure of information prohibited.- [Omitted by the Finance Act, 1964, w.e.f. 1-4-1964.]

138 . [1] [Disclosure of information respecting assessees.- [2] [(1)(a) The Board or any other income-tax authority specified by it by a general or special order in this behalf may furnish or cause to be furnished to-

(i)any officer, authority or body performing any functions under any law relating to the imposition of any tax, duty or cess, or to dealings in foreign exchange as defined in section 2(d) of the Foreign Exchange Regulation Act, 1947 (7 of 1947) ; or

(ii)such officer, authority or body performing functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest, specify by notification in the Official Gazette in this behalf,

any such information
[3] [received or obtained by any income-tax authority in the performance of his functions under this Act], as may, in the opinion of the Board or other income-tax authority, be necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law.

(b) Where a person makes an application to the
[4] [Chief Commissioner or Commissioner] in the prescribed form for any information relating to any assessee [5] [received or obtained by any income-tax authority in the performance of his functions under this Act], the [6] [Chief Commissioner or Commissioner] may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for [7] [***] and his decision in this behalf shall be final and shall not be called in question in any court of law.]

(2) Notwithstanding anything contained in sub-section (1) or any other law for the time being in force, the Central Government may, having regard to the practices and usages customary or any other relevant factors, by order notified in the Official Gazette, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such class of assessees or except to such authorities as may be specified in the order.]

 

FOOTNOTES:
 
1. Substituted by the Finance Act, 1964, with effect from . 1-4-1964.
 
2. Substituted by the Finance (No. 2) Act, 1967, with effect from . 1-4-1967.
 
3. Substituted for "relating to any assessee in respect of any assessment made under this Act or the Indian Income-tax Act, 1922 (11 of 1922)" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
4. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "in respect of any assessment made under this Act or the Indian Income-tax Act, 1922 (11 of 1922), on or after the 1st day of April, 1960" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
6. Substituted for "Commissioner", by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. "in respect of that assessment only" omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.

 


 

CHAPTER XIV
PROCEDURE FOR ASSESSMENT


139 . Return of income.-
[1] [(1) Every person,-

(a) being a
[2] [company or a firm]; or

(b) being a person
[3] [other than a company or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,

shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who
[4] [during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during, the previous year] fulfils any one of the following conditions, namely:-

(i)is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii)is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii)
[5] [*****]

(iv)has incurred expenditure for himself or any other person on travel to any foreign country; or

(v)is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or

(vi)is a member of a club where entrance fee charged is twenty-five thousand rupees or more,

shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

Provided further that the Central Government may, by notification in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply:

Provided also that every
[6] [company or a firm] shall furnish on or before the due date the return in respect of its income or loss in every previous year.

[7] [Provided also that every person, being an individual or, a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.]

Explanation 1-For the purposes of this sub-section, the expression "motor vehicle" shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

Explanation 2-In this sub-section, "due date" means,-

(a)where the assessee is-

(i)a company; or

(ii)a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or

(iii)a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force,

the 31st day of October of the assessment year;

(b)in the case of a person other than a company, referred to in the first proviso to this sub-section, the 31st day of October of the assessment year;

(c)in the case of any other assessee, the 31st day of July of the assessment year.

Explanation 3-For the purposes of this sub-section, the expression "travel to any foreign country" does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.]

[8] [(1A) Without prejudice to the provisions of sub-section (1), any person, being an individual who is in receipt of income chargeable under the head "Salaries" may, at his option, furnish a return of his income for any previous year to his employer, in accordance with such scheme as may be specified by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified therein, and such employer shall furnish all returns of income received by him on or before the due date, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and manner as may be specified in that scheme, and in such case, any employee who has filed a return of his income to his employer shall be deemed to have furnished a return of income under sub-section (1), and the provisions of this Act shall apply accordingly.]

[9] [***]]

[10] [(1B) Without prejudice to the provisions of sub-section (1), any person, being a company or being a person other than a company, required to furnish a return of income under sub-section (1), may, at his option, on or before the due date, furnish a return of his income for any previous year in accordance with such scheme as may be specified by the Board in this behalf by notification in the Official Gazette and subject to such conditions as may be specified therein, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and in the manner as may be specified in that scheme, and in such case, the return of income furnished under such scheme shall be deemed to be a return furnished under sub-section (1), and the provisions of this Act shall apply accordingly.]

[11] [***]

(3) If any person who
[12] [***] has sustained a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Capital gains" and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) [13] [or sub-section (3)] of section 74, [14] [or sub-section (3) of section 74A], he may furnish, within the time allowed under sub-section (1) [15] [***], a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1).

[16] [(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :

Provided that where the return relates to a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]

[17] [ [18] [(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]]

[19] [(4B) The chief executive officer (whether such chief executive officer is known as Secretary or by any other designation) of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]

[20] [(4C) Every-

(a) scientific research association referred to in clause (21) of section 10;

(b) news agency referred to in clause (22B) of section 10;

(c) association or institution referred to in clause (23A) of section 10;

(d) institution referred to in clause (23B) of section 10;

(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10;

(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10,

shall, if the total income in respect of which such scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]

[21] [(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :

Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.]

[22] [(6) The prescribed form of the returns referred to [23] [in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142] shall, in such cases as may be prescribed, require the assessee to furnish the particulars of income exempt from tax, assets of the prescribed nature [24] [, value and belonging to him, his bank account and credit card held by him], expenditure exceeding the prescribed limits incurred by him under prescribed heads and such other outgoings as may be prescribed.

(6A) Without prejudice to the provisions of sub-section (6), the prescribed form of the returns referred to
[25] [in [26] [***] this section, and in clause (i) of sub-section (1) of section 142] shall, in the case of an assessee engaged in any business or profession, also require him to furnish [27] [the report of any audit [28] [referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report], the] particulars of the location and style of the principal place where he carries on the business or profession and all the branches thereof, the names and addresses of his partners, if any, in such business or profession and, if he is a member of an association or body of individuals, the names of the other members of the association or the body of individuals and the extent of the share of the assessee and the shares of all such partners or the members, as the case may be, in the profits of the business or profession and any branches thereof.]

(7)
[29] [***]

[30] [ (8)(a) [31] [Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then [whether or not the [32] [Assessing] Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2)], the assessee shall be liable to pay simple interest at [33] [fifteen] per cent per annum, reckoned from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source :

Provided that the
[34] [Assessing] Officer may, in such cases and under such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section.

Explanation 1-For the purposes of this sub-section, "specified date", in relation to a return for an assessment year, means,-

(a)in the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year or the 30th day of June of the assessment year, whichever is later;

(b)in the case of every other assessee, the 30th day of June of the assessment year.]

[35] [Explanation 2-Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section.]

[36] [(b) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 [37] [or an order of the Settlement Commission under sub-section (4) of section 245D], the amount of tax on which interest was payable under this sub-section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and-

(i)in a case where the interest is increased, the
[38] [Assessing] Officer shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly;

(ii)in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.]]

[39] [(c) The provisions of this sub-section shall apply in respect of the assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references therein to the other provisions of this Act shall be construed as references to the said provisions as they were applicable to the relevant assessment year.]

[40] [(9) Where the [41] [Assessing] Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the [42] [Assessing] Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return :

Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the
[43] [Assessing] Officer may condone the delay and treat the return as a valid return.

Explanation-For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely:-

(a)the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in;

(b)the return is accompanied by a statement showing the computation of the tax payable on the basis of the return;

[44] [(bb)the return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report;]

(c)the return is accompanied by proof of-

(i)the tax, if any, claimed to have been
[45] [deducted at source [46] [before the 1st day of April, 2006] and] the advance tax and tax on self-assessment, if any, claimed to have been paid :

[47] [Provided that where the return is not accompanied by proof of the tax, if any, claimed to have been deducted at source, the return of income shall not be regarded as defective if-

(a) a certificate for tax deducted was not furnished under section 203 to the person furnishing his return of income;

(b) such certificate is produced within a period of two years specified under sub-section (14) of section 155;]

(ii)the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974);

(d)where regular books of account are maintained by the assessee, the return is accompanied by copies of-

(i)manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet;

(ii)in the case of a proprietary business or profession, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals;

(e)where the accounts of the assessee have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditor's report
[48] [and, where an audit of cost accounts of the assessee has been conducted, under section 233B of the Companies Act, 1956 (1 of 1956), also the report under that section];

(f)where regular books of account are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.]

(10)
[49] [Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.]

 

FOOTNOTES:
 
1. Substituted by the Finance Act, 2001, with effect from . 1-4-2001. Prior to its substitution, sub-section (1), as amended by the Finance Act, 1963, w.r.e.f. 1-4-1962, Taxation Laws (Amendment) Act, 1967, with effect from . 1-10-1967, Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971, Finance Act, 1972, with effect from . 1-4-1972, Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989, Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989, Finance Act, 1990, with effect from . 1-4-1991, Finance Act, 1992, with effect from . 1-4-1993, Finance Act, 1994, with effect from . 1-4-1994, Finance (No. 2) Act, 1996, with effect from . 1-4-1997, Finance Act, 1997, with effect from . 1-4-1997, Finance (No. 2) Act, 1998, with effect from . 1-8-1998 and Finance Act, 1999, with effect from . 1-6-1999, read as under :

'(1) Every person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

Provided that a person, not furnishing return under this sub-section and residing in such area as may be specified by the Board in this behalf by a notification in the Official Gazette, and who at any time during the previous year fulfils any one of the following conditions, namely:-

(i)is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii)is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii)is a subscriber to a telephone; or

(iv)has incurred expenditure for himself or any other person on travel to any foreign country;

(v)is the holder of the credit card, not being an "add-on" card, issued by any bank or institution; or

(vi)is a member of a club where entrance fee charged is twenty-five thousand rupees or more,

shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

Provided further that the Central Government may, by notification in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply.

Explanation 1-In this sub-section, "due date" means-

(a)where the assessee is a company, the 30th day of November of the assessment year;

(b)where the assessee is a person, other than a company,-

(i)in a case where the accounts of the assessee are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under section 80HHC or section 80HHD or where the prescribed certificate is required to be furnished under section 80R or section 80RR or sub-section (1) of section 80RRA, or in the case of a co-operative society or in the case of a working partner of a firm whose accounts are required under this Act or any other law to be audited, the 31st day of October of the assessment year ;

(ii)in a case where the total income referred to in this sub-section includes any income from business or profession, not being a case falling under sub-clause (i), the 31st day of August of the assessment year;

(iii)in any other case, the 30th day of June of the assessment year.

Explanation 2-For the purposes of sub-clause (i) of clause (b) of Explanation 1, the expression "working partner" shall have the meaning assigned to it in Explanation 4 of clause (b) of section 40.

Explanation 3-For the purposes of this sub-section, the expression "motor vehicle" shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

Explanation 4-For the purposes of this sub-section, the expression "travel to any foreign country" does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.'
 
2. Substituted for the word "company" by Finance Act, 2005, with effect from . 1-4-2006.
 
3. Substituted for the word "other than a company" by Finance Act, 2005, with effect from . 1-4-2006.
 
4. Substituted for the word "at any time during the previous year" by Finance Act, 2005, with effect from . 1-4-2006.
 
5. Omitted by Finance Act, 2005, with effect from . 1-4-2006. Prior to Omission it was read as: (iii)is a subscriber to a (Substituted for "telephone" by the Finance Act, 2002, with effect from . 1-4-2002.)[cellular telephone not being a wireless in local loop telephone]; or
 
6. Substituted for the word "company" by Finance Act, 2005, with effect from . 1-4-2006.
 
7. Inserted by Finance Act, 2005, with effect from . 1-4-2006.
 
8. Inserted by the Finance Act, 2002, with effect from . 1-4-2002. Earlier sub-section (1A) was amended by the Finance Act, 1963, w.r.e.f. 1-4-1962, the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971, the Finance Act, 1974, with effect from . 1-4-1975, the Finance Act, 1982, with effect from . 1-4-1983, the Taxation Laws (Amendment) Act, 1984, with effect from . 1-4-1985 and the Finance Act, 1985, with effect from . 1-4-1986 and later on omitted by the Finance Act, 1992, with effect from . 1-4-1993. Prior to omission sub-section (1A) read as under :

'(1A) Notwithstanding anything contained in sub-section (1), no person need furnish under that sub-section a return of his income or the income of any other person in respect of whose total income he is assessable under this Act, if his income or, as the case may be, the income of such other person during the previous year consisted only of income chargeable under the head "Salaries" or of income chargeable under that head and also income of the nature referred to in any one or more of clauses (i) to (ix) of sub-section (1) of section 80L and the following conditions are fulfilled, namely :-

(a)where he or such other person was employed during the previous year by a company, he or such other person was at no time during the previous year a director of the company or a beneficial owner of shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) carrying not less than twenty per cent of the voting power;

(b)his income or the income of such other person under the head "Salaries", exclusive of the value of all benefits or amenities not provided for by way of monetary payment, does not exceed twenty-four thousand rupees;

(c)the amount of income of the nature referred to in clauses (i) to (ix) of sub-section (1) of section 80L, if any, does not, in the aggregate, exceed the maximum amount allowable as deduction in his case under that section; and

(d)the tax deductible at source under section 192 from the income chargeable under the head "Salaries" has been deducted from that income.'
 
9. Explanation omitted by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-4-1985. Omitted Explanation read as under :

'Explanation- For the purposes of this sub-section, "salary" shall have the meaning assigned to it in clause (1) of section 17.'
 
10. Inserted by the Finance Act, 2003, with effect from . 1-4-2003.
 
11. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its omission, sub-section (2), as amended by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971, Finance Act, 1972, with effect from . 1-4-1972 and Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976, stood as under :

"(2) In the case of any person who, in the Assessing Officer's opinion, is assessable under this Act, whether on his own total income or on the total income of any other person during the previous year, the Assessing Officer may, before the end of the relevant assessment year, issue a notice to him and serve the same upon him requiring him to furnish, within thirty days from the date of service of the notice, a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :

Provided that, on an application made in the prescribed manner, the Assessing Officer may, in his discretion, extend the date for furnishing the return, and, notwithstanding that the date is so extended, interest shall be chargeable in accordance with the provisions of sub-section (8)."
 
12. "has not been served with a notice under sub-section (2)," omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
13. Inserted by the Finance Act, 1987, with effect from . 1-4-1988.
 
14. Inserted by the Finance Act, 1974, with effect from . 1-4-1975.
 
15. "or by the thirty-first day of July of the assessment year relevant to the previous year during which the loss was sustained" omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its omission, the said expression was substituted for "within such further time which, on an application made in the prescribed manner, the Income-tax Officer may, in his discretion allow" by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, with effect from . 1-4-1987. Original expression was inserted by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971.
 
16. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, sub-section (4), as substituted by the Finance Act, 1968, with effect from . 1-4-1968 and amended by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971, stood as under :

"(4)(a) Any person who has not furnished a return within the time allowed to him under sub-section (1) or sub-section (2) may, before the assessment is made, furnish the return for any previous year at any time before the end of the period specified in clause (b), and the provisions of sub-section (8) shall apply in every such case.

(b)The period referred to in clause (a) shall be-

(i)where the return relates to a previous year relevant to any assessment year commencing on or before the 1st day of April, 1967, four years from the end of such assessment year;

(ii)where the return relates to a previous year relevant to the assessment year commencing on the 1st day of April, 1968, three years from the end of the assessment year;

(iii)where the return relates to a previous year relevant to any other assessment year, two years from the end of such assessment year."
 
17. Restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989. Earlier it was substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.
 
18. Substituted by the Finance Act, 1972, with effect from . 1-4-1973. Original sub-section was inserted by the Finance Act, 1970, with effect from . 1-4-1971.
 
19. Inserted by the Taxation Laws (Amendment) Act, 1978, with effect from . 1-4-1979.
 
20. Inserted by the Finance Act, 2002, with effect from . 1-4-2003.
 
21. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, sub-section (5) stood as under :

"(5) If any person having furnished a return under sub-section (1) or sub-section (2), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the assessment is made."
 
22. Substituted for sub-section (6) by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
23. Substituted for "in sub-sections (1), (2) and (3)" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
24. Substituted for "and value and belonging to him" by the Finance Act, 1999, with effect from . 1-6-1999.
 
25. Substituted for "in sub-sections (1), (2) and (3)" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
26. Words "sub-sections (1) and (3) of" omitted by the Finance Act, 1995, with effect from . 1-7-1995.
 
27. Inserted by the Finance Act, 1988, with effect from . 1-4-1989.
 
28. Substituted for "obtained under section 44AB" by the Finance Act, 1995, with effect from . 1-7-1995.
 
29. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its omission, sub-section (7) stood as under :

"(7) No return under sub-section (1) need be furnished by any person for any previous year if he has already furnished a return of income for such year in accordance with the provisions of sub-section (2)."
 
30. Substituted by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971. Original sub-section was inserted by the Finance Act, 1963, with effect from . 28-4-1963.
 
31. Substituted for portion beginning with "Where the return" and ending with "under this sub-section" by the Finance Act, 1972, with effect from . 1-4-1972.
 
32. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
33. Substituted for "twelve" by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984. Section 84 of the Amendment Act has clarified that the increase in the rate of interest will apply in respect of any period falling after 30-9-1984, also in those cases where the interest became chargeable or payable from an earlier date.
 
34. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
35. Substituted for the following Explanation, which was numbered as Explanation 2 by the Finance Act, 1972, with effect from . 1-4-1972, by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-4-1985 :

"Explanation 2-For the purposes of this sub-section, where the assessee is a registered firm or an unregistered firm which has been assessed under clause (b) of section 138, the tax payable on the total income shall be the amount of tax which would have been payable if the firm had been assessed as an unregistered firm."
 
36. Substituted by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-4-1985.
 
37. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
38. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
39. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
40. Inserted by the Finance (No. 2) Act, 1980, with effect from . 1-9-1980.
 
41. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
42. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
43. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
44. Substituted by the Finance Act, 1995, with effect from . 1-7-1995. Prior to its substitution, clause (bb), as inserted by the Finance Act, 1988, with effect from . 1-4-1989, read as under :

"(bb) the return is accompanied by the report of the audit obtained under section 44AB;"
 
45. Substituted by the Finance (No.2 Act, 2004, with effect from the 1st day of April, 2005
 
46. Substituted for the word "before the 1st day of April, 2005" by Finance Act, 2005.
 
47. Inserted by the Finance Act, 2002, with effect from . 1-6-2002.
 
48. Inserted by the Finance Act, 1985, with effect from . 1-4-1985.
 
49. Prior to omission sub-section (10), as amended by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, with effect from . 1-4-1986, Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989, Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989 and Finance Act, 1990, with effect from . 1-4-1990, read as under :

"(10) Notwithstanding anything contained in any other provision of this Act, a return of income which shows the total income below the maximum amount which is not chargeable to tax shall be deemed never to have been furnished :

Provided that nothing hereinbefore contained shall apply to,-

(a)a return furnished in response to a notice under sub-section (2) of section 148;

(b)a return of a firm or a partner of a firm;

(c)a return of loss which has been furnished in accordance with the provisions of sub-section (3);

(d)a return of a person who has claimed exemption of income from property held for charitable or religious purposes;

(e)a return furnished under sub-section (4B) in respect of a political party; and

(f)a return furnished in support of a claim for refund under section 237."

 


139A . Permanent account number.-
[1] [ (1) Every person,-

(i) if his total income or the total income of any other person in respect of which he is assessable under this Act during any previous year exceeded the maximum amount which is not chargeable to income-tax; or

(ii) carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed
[2] [five lakh] rupees in any previous year; or

(iii) who is required to furnish a return of income under
[3] [sub-section (4A) of section 139; or

(iv) being an employer, who is required to furnish a return of fringe benefits under section 115WD,]

and who has not been allotted a permanent account number shall, within such time, as may be prescribed, apply to the Assessing Officer for the allotment of a permanent account number.

[4] [(1A) Notwithstanding anything contained in sub-section (1), the Central Government may, by notification in the Official Gazette, specify, any class or classes of persons by whom tax is payable under this Act or any tax or duty is payable under any other law for the time being in force including importers and exporters whether any tax is payable by them or not and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number.]

(2) The Assessing Officer may also allot to any other person by whom tax is payable, a permanent account number.

(3) Any person, not falling under sub-section (1) or sub-section (2), may apply to the Assessing Officer for the allotment of a permanent account number and, thereupon, the Assessing Officer shall allot a permanent account number to such person forthwith.

(4) For the purpose of allotment of permanent account numbers under the new series, the Board may, by notification in the Official Gazette, specify the date from which the persons referred to in sub-sections (1) and (2) and other persons who have been allotted permanent account numbers and residing in a place to be specified in such notification, shall, within such time as may be specified, apply to the Assessing Officer for the allotment of a permanent account number under the new series and upon allotment of such permanent account number to a person, the permanent account number, if any, allotted to him earlier shall cease to have effect :

Provided that the persons to whom permanent account number under the new series has already been allotted shall not apply for such number again.

(5) Every person shall-

(a)quote such number in all his returns to, or correspondence with, any income-tax authority;

(b)quote such number in all challans for the payment of any sum due under this Act;

(c)quote such number in all documents pertaining to such transactions as may be prescribed by the Board in the interests of the revenue, and entered into by him:

Provided that the Board may prescribe different dates for different transactions or class of transactions or for different class of persons:

[5] [Provided further that a person shall quote General Index Register Number till such time Permanent Account Number is allotted to such person;]

(d)intimate the Assessing Officer any change in his address or in the name and nature of his business on the basis of which the permanent account number was allotted to him.

[6] [(5A) Every person receiving any sum or income or amount from which tax has been deducted under the provisions of Chapter XVIIB, shall intimate his permanent account number to the person responsible for deducting such tax under that Chapter :

[7]

Provided further that a person referred to in this sub-section shall intimate the General Index Register Number till such time permanent account number is allotted to such person.

(5B) Where any sum or income or amount has been paid after deducting tax under Chapter XVIIB, every person deducting tax under that Chapter shall quote the permanent account number of the person to whom such sum or income or amount has been paid by him-

(i)in the statement furnished in accordance with the provisions of sub-section (2C) of section 192;

(ii)in all certificates furnished in accordance with the provisions of section 203;

(iii)in all returns prepared and delivered or caused to be delivered in accordance with the provisions of section 206 to any income-tax authority:

Provided that the Central Government may, by notification in the Official Gazette, specify different dates from which the provisions of this sub-section shall apply in respect of any class or classes of persons:

Provided further that nothing contained in sub-sections (5A) and (5B) shall apply in case of a person whose total income is not chargeable to income-tax or who is not required to obtain permanent account number under any provision of this Act if such person furnishes to the person responsible for deducting tax, a declaration referred to in section 197A in the form and manner prescribed thereunder to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.

(5C) Every
[8] [buyer or licensee or lessee] referred to in section 206C shall intimate his permanent account number to the seller referred to in that section.

(5D) Every seller collecting tax in accordance with the provisions of section 206C shall quote the permanent account number of every
[9] [buyer or licensee or lessee] referred to in that section-

(i)in all certificates furnished in accordance with the provisions of sub-section (5) of section 206C;

(ii)in all returns prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of section 206C to an income-tax authority.]

(6) Every person receiving any document relating to a transaction prescribed under clause (c) of sub-section (5) shall ensure that the Permanent Account Number
[10] [or the General Index Register Number] has been duly quoted in the document.

(7) No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.

[11] [Explanation:-For the removal of doubts, it is hereby declared that any person, who has been allotted a permanent account number under any clause other than clause (iv) of sub-section (1), shall not be required to obtain another permanent account number and the permanent account number already allotted to him shall be deemed to be the permanent account number in relation to fringe benefit tax.]

(8) The Board may make rules providing for-

(a)the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain;

(b)the categories of transactions in relation to which Permanent Account Numbers
[12] [or the General Index Register Number] shall be quoted by every person in the documents pertaining to such transactions;

(c)the categories of documents pertaining to business or profession in which such numbers shall be quoted by every person;

[13] [(d)class or classes of persons to whom the provisions of this section shall not apply;

(e)the form and the manner in which the person who has not been allotted a Permanent Account Number or who does not have General Index Register Number shall make his declaration;

(f)the manner in which the Permanent Account Number or the General Index Register Number shall be quoted in respect of the categories of transactions referred to in clause (c);

(g)the time and the manner in which the transactions referred to in clause (c)* shall be intimated to the prescribed authority.]

Explanation-For the purposes of this section,-

(a)"Assessing Officer" includes an income-tax authority who is assigned the duty of allotting permanent account numbers;

(b)"permanent account number" means a number which the Assessing Officer may allot to any person for the purpose of identification and includes a permanent account number allotted under the new series;

(c)"permanent account number under the new series" means a permanent account number having ten alphanumeric characters and issued in the form of a laminated card;]

[14] [(d)"General Index Register Number" means a number given by an Assessing Officer to an assessee in the General Index Register maintained by him and containing the designation and particulars of the ward or circle or range of the Assessing Officer.]

 

FOOTNOTES:
 
1. Substituted by the Finance Act, 1995, with effect from . 1-7-1995. Prior to its substitution, section 139A, as inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976 and later amended by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988/1-4-1989 and the Finance Act, 1990, with effect from . 1-4-1990, read as under :

'139A. Permanent account numbers-(1) Every person, if his total income or the total income of any other person in respect of which he is assessable under this Act during any previous year exceeded the maximum amount which is not chargeable to income-tax and he has not been allotted any permanent account number, shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a permanent account number.

(2) Notwithstanding anything contained in sub-section (1), every person not falling under that sub-section, but-

(i)carrying on any business whose total sales, turnover or gross receipts are or is likely to exceed fifty thousand rupees in any previous year; or

(ii)who is required to furnish a return of income under sub-section (4A) of section 139, and who has not been allotted any permanent account number, shall, within such time as may be prescribed apply to the Assessing Officer for the allotment of a permanent account number.

(3) The Assessing Officer may also allot to any other person by whom tax is payable, a permanent account number.

(4) All permanent account numbers allotted to assessees before the commencement of the Taxation Laws (Amendment) Act, 1975 (41 of 1975), shall, with effect from such date as the Board may, by notification in the Official Gazette, specify, be deemed to have been allotted to them under the provisions of this section.

(5) Where a permanent account number has been allotted or is deemed to have been allotted to any person under this section, he shall-

(a)quote such number in all his returns to, or correspondence with, any income-tax authority;

(b)quote such number in all challans for the payment of any sum due under this Act;

(c)quote such number in all documents pertaining to such transactions as may be prescribed by the Board in the interests of the revenue, and entered into by him;

(d)intimate the Assessing Officer any change in his address or in the name and nature of his business.

(6) The Board may make rules providing for-

(a)the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain ;

(b)the categories of transactions in relation to which permanent account numbers shall be quoted by the persons to whom such numbers have been allotted, in the documents pertaining to such transactions ;

(c)the categories of documents pertaining to business or profession of the persons to whom permanent account numbers have been allotted, in which such numbers shall be quoted by them.

Explanation- In this section,-

(a)[***]

(b)"permanent account number" means a number which the Assessing Officer may allot to any person for the purpose of identification.'
 
2. Substituted for "fifty thousand" by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.
 
3. Substituted for the word "sub-section (4A) of section 139" by Finance Act, 2005.
 
4. Inserted by the Finance Act, 2000, with effect from . 1-6-2000.
 
5. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.
 
6. Sub-sections (5A) to (5D) inserted by the Finance Act, 2001, with effect from . 1-6-2001.
 
7. Omitted by the Finance (No.2) Act, 2004, with effect from the 1st day of April, 2005. Prior to its omission read as under :

Provided that nothing contained in this sub-section shall apply to a non-resident referred to in sub-section (4) of section 115AC, or sub-section (2) of section 115BBA, or to a non-resident Indian referred to in section 115G:
 
8. Substituted by the Finance (No.2) Act, 2004, with effect from the 1st day of October, 2004, for the word "buyer"
 
9. Substituted by the Finance (No.2) Act, 2004, with effect from the 1st day of October, 2004 ,for the word "buyer"
 
10. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.
 
11. Inserted by Finance Act, 2005
 
12. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.
 
13. Clauses (d) to (g) inserted by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.
 
14. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-8-1998.

 


140 . Return by whom to be signed.- The return
[1] [under section 115WD or section 139] shall be signed and verified-

[2] [(a)in the case of an individual,-

(i)by the individual himself;

(ii)where he is absent from India, by the individual himself or by some person duly authorised by him in this behalf;

(iii)where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf; and

(iv)where, for any other reason, it is not possible for the individual to sign the return, by any person duly authorised by him in this behalf:

Provided that in a case referred to in sub-clause (ii) or sub-clause (iv), the person signing the return holds a valid power of attorney from the individual to do so, which shall be attached to the return;]

(b)in the case of a Hindu undivided family, by the karta, and, where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family;

[3] [(c)in the case of a company, by the managing director thereof, or where for any unavoidable reason such managing director is not able to sign and verify the return, or where there is no managing director, by any director thereof :

[4] [Provided that where the company is not resident in India, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so, which shall be attached to the return :

Provided further that,-

(a)where the company is being wound up, whether under the orders of a court or otherwise, or where any person has been appointed as the receiver of any assets of the company, the return shall be signed and verified by the liquidator referred to in sub-section (1) of section 178;

(b)where the management of the company has been taken over by the Central Government or any State Government under any law, the return of the company shall be signed and verified by the principal officer thereof;]

(cc)in the case of a firm, by the managing partner thereof, or where for any unavoidable reason such managing partner is not able to sign and verify the return, or where there is no managing partner as such, by any partner thereof, not being a minor;

(d)in the case of a local authority, by the principal officer thereof;]

[5] [(dd)in the case of a political party referred to in sub-section (4B) of section 139, by the chief executive officer of such party (whether such chief executive officer is known as secretary or by any other designation);]

(e)in the case of any other association, by any member of the association or the principal officer thereof; and

(f)in the case of any other person, by that person or by some person competent to act on his behalf.

 

FOOTNOTES:
 
1. Substituted for the word "under section 139" by Finance Act, 2005, with effect from . 1-4-2006
 
2. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, clause (a) stood as under :

"(a)in the case of an individual by the individual himself; where the individual is absent from India, by the individual concerned or by some person duly authorised by him in this behalf; and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;"
 
3. Substituted for clauses (c) and (d) by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
4. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
5. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.

 


140A . [1] [Self-assessment.- [2] [(1) Where any tax is payable on the basis of any return required to be furnished under [3] [ [4] [section 115WD or section 115WH or section 139] or section 142 [5] [or section 148 or [6] [section 153A or], as the case may be, section 158BC]], after taking into account the amount of tax, if any, already paid under any provision of this Act, [7] [the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest.]

[8] [Explanation-Where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable.]

[9] [ [10] [(1A) For the purposes of sub-section (1), interest payable,

(i) under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source;

(ii) under section 115WK shall be computed on the amount of tax on the value of the fringe benefits as declared in the return as reduced by the advance tax, paid, if any.]

(1B) For the purposes of sub-section (1), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax.

Explanation-For the purposes of this sub-section, "assessed tax" means the tax on the total income as declared in the return as reduced by the amount of tax deducted or collected at source, in accordance with the provisions of Chapter XVII, on any income which is subject to such deduction or collection and which is taken into account in computing such total income.]

(2) After a regular assessment under
[11] [section 115WE or section 115WF or section 143] or section 144 [12] [or an assessment under [13] [section 153A or] section 158BC] has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards such regular assessment [14] [or assessment, as the case may be].

[15] [(3) If any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid, and all the provisions of this Act shall apply accordingly.]

[16] [(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]

 

FOOTNOTES:
 
1. Substituted by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971. Original section was inserted by the Finance Act, 1964, with effect from . 1-4-1964.
 
2. Substituted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
3. Substituted for "section 139 or section 148" by the Finance (No. 2) Act, 1991, with effect from . 27-9-1991.
 
4. Substituted for the word "section 139" by Finance Act, 2005, with effect from . 1-4-2006
 
5. Substituted for "or, as the case may be, section 148" by the Finance Act, 1999, with effect from . 1-6-1999.
 
6. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
7. Substituted for "the assessee shall be liable to pay such tax before furnishing the return and the return shall be accompanied by proof of payment of such tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
8. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
9. Sub-sections (1A) and (1B) inserted by the Finance Act, 2001, w.r.e.f. 1-4-1989.
 
10. Substituted by Finance Act, 2005, with effect from . 1-4-2006. Prior to substitution it was read as: (1A) For the purposes of sub-section (1), interest payable under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source.
 
11. Substituted for the word "section 143" by Finance Act, 2005, with effect from . 1-4-2006
 
12. Inserted by the Finance Act, 1999, with effect from . 1-6-1999.
 
13. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
14. Inserted by the Finance Act, 1999, with effect from . 1-6-1999.
 
15. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, sub-section (3), as substituted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976, stood as under :

"(3) If any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), the Assessing Officer may direct that a sum equal to two per cent of such tax or part thereof, as the case may be, shall be recovered from him by way of penalty for every month during which the default continues :

Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard."
 
16. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989.

 


141 . Provisional assessment.- [Omitted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.]

141A . Provisional assessment for refund.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Section 141A was inserted by the Finance Act, 1968, w.e.f. 1-4-1968. Original section was inserted by the Finance Act, 1963, w.e.f. 1-4-1963 and omitted by the Finance Act, 1964, w.e.f. 1-4-1964.]

 

FOOTNOTES:
 
1. Prior to its omission, section 141A was amended by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971, Finance Act, 1974, with effect from . 1-4-1975, Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976, Finance Act, 1976, with effect from . 1-4-1976 and the Finance Act, 1988, with effect from . 1-4-1988.

 


142 . Inquiry before assessment.- (1) For the purpose of making an assessment under this Act, the
[1] [Assessing] Officer may serve on any person who has made a return [2] [under section 115WD [3] [or section 139 or in whose case the time allowed under sub-section (1) of section 139] for furnishing the return has expired] a notice requiring him, on a date to be therein specified,-

[4] [(i)where such person has not made a return [5] [within the time allowed under sub-section (1) of section 139], to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or]

[6] [(ii)]to produce, or cause to be produced, such accounts or documents as the [7] [Assessing] Officer may require, or

[8] [(iii)] to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the [9] [Assessing] Officer may require :

Provided that-

(a)the previous approval of the
[10] [Joint Commissioner] shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts ;

(b)the
[11] [Assessing] Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.

(2) For the purpose of obtaining full information in respect of the income or loss of any person, the
[12] [Assessing] Officer may make such inquiry as he considers necessary.

[13] [(2A) If, at any stage of the proceedings before him, the [14] [Assessing] Officer, having regard to the nature and complexity of the accounts of the assessee and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the [15] [Chief Commissioner or Commissioner], direct the assessee to get the accounts audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, nominated by the [16] [Chief Commissioner or Commissioner] in this behalf and to furnish a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed and such other particulars as the [17] [Assessing] Officer may require.

(2B) The provisions of sub-section (2A) shall have effect notwithstanding that the accounts of the assessee have been audited under any other law for the time being in force or otherwise.

(2C) Every report under sub-section (2A) shall be furnished by the assessee to the
[18] [Assessing] Officer within such period as may be specified by the [19] [Assessing] Officer :

Provided that the
[20] [Assessing] Officer may, on an application made in this behalf by the assessee and for any good and sufficient reason, extend the said period by such further period or periods as he thinks fit ; so, however, that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed one hundred and eighty days from the date on which the direction under sub-section (2A) is received by the assessee.

(2D) The expenses of, and incidental to, any audit under sub-section (2A) (including the remuneration of the accountant) shall be determined by the
[21] [Chief Commissioner or Commissioner] (which determination shall be final) and paid by the assessee and in default of such payment, shall be recoverable from the assessee in the manner provided in Chapter XVII-D for the recovery of arrears of tax.]

(3) The assessee shall, except where the assessment is made under section 144, be given an opportunity of being heard in respect of any material gathered on the basis of any inquiry under sub-section (2)
[22] [or any audit under sub-section (2A)] and proposed to be utilised for the purposes of the assessment.

[23] [(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]

 

FOOTNOTES:
 
1. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
2. Substituted for the word "under section 139 or in whose case the time allowed under sub-section (1) of that section" by Finance Act, 2005, with effect from . 1-4-2006
 
3. Substituted for "or to whom a notice has been issued under sub-section (2) of section 139 (whether a return has been made or not)" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Earlier, the italicised words were substituted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
4. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
5. Substituted for "before the end of the relevant assessment year" by the Finance Act, 1990, with effect from . 1-4-1990.
 
6. Renumbered by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
7. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
8. Renumbered by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
9. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
10. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
11. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
12. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
13. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
14. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
15. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
16. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
17. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
18. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
19. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
20. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
21. Substituted for "Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
22. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
23. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989.

 


142A . [1] Estimate by Valuation Officer in certain cases.- (1) For the purposes of making an assessment or re-assessment under this Act, where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him.

(2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957).

(3) On receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, take into account such report in making such assessment or re-assessment:

Provided that nothing contained in this section shall apply in respect of an assessment made on or before the 30th day of September, 2004, and where such assessment has become final and conclusive on or before that date, except in cases where a reassessment is required to be made in accordance with the provisions of section 153A.

Explanation-In this section, "Valuation Officer" has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).]

 

FOOTNOTES:
 
1. Inserted by the Finance (No.2) Act, 2004, and shall be deemed to have been inserted with effect from the 15th day of November, 1972

 


143 . Assessment.-
[1] [ [2] [(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,-

(i)if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and

(ii)if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee :

Provided that except as otherwise provided in this sub-section, the acknowledgement of the return shall be deemed to be an intimation under this sub-section where either no sum is payable by the assessee or no refund is due to him :

Provided further that no intimation under this sub-section shall be sent after the expiry of
[3] [one year from the end of the financial year in which the return is made:]

[4] [Provided also that where the return made is in respect of the income first assessable in the assessment year commencing on the 1st day of April, 1999, such intimation may be sent at any time up to the 31st day of March, 2002.]

(1A)
[5] [Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]

(1B)
[6] [Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]

[7] [(2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer shall,-

(i) where he has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the assessee may rely, in support of such claim:

[8] [Provided that no notice under this clause shall be served on the assessee on or after the 1st day of June, 2003;]

(ii) notwithstanding anything contained in clause (i), if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return:

Provided that no notice under
[9] [clause (ii)] shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.]

[10] [(3) On the day specified in the notice,-

(i) issued under clause (i) of sub-section (2), or as soon afterwards as may be, after hearing such evidence and after taking into account such particulars as the assessee may produce, the Assessing Officer shall, by an order in writing, allow or reject the claim or claims specified in such notice and make an assessment determining the total income or loss accordingly, and determine the sum payable by the assessee on the basis of such assessment;

(ii) issued under clause (ii) of sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment:]

[11] [Provided that in the case of a-

(a) scientific research association referred to in clause (21) of section 10;

(b) news agency referred to in clause (22B) of section 10;

(c) association or institution referred to in clause (23A) of section 10;

(d) institution referred to in clause (23B) of section 10;

(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10,

which is required to furnish the return of income under sub-section (4C) of section 139, no order making an assessment of the total income or loss of such scientific research association, news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, shall be made by the Assessing Officer, without giving effect to the provisions of section 10, unless-

(i) the Assessing Officer has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be, by such scientific research association, news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, where in his view such contravention has taken place; and

(ii) the approval granted to such scientific research association or other association or institution or university or other educational institution or hospital or other medical institution has been withdrawn or notification issued in respect of such news agency or fund or trust or institution has been rescinded.]

[12] [(4) Where a regular assessment under sub-section (3) of this section or section 144 is made,-

(a)any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment ;

(b)if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly.

(5)
[13] [Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]]

[14] [* * *]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Section 143, as substituted by the Taxation Laws (Amendment) Act, 1970, with effect from . 1-4-1971 and later on amended by the Finance Act, 1974, with effect from . 1-4-1975, Finance Act, 1976, with effect from . 1-4-1976, Finance (No. 2) Act, 1980, with effect from . 1-4-1980 and Finance Act, 1987, with effect from . 1-4-1988, stood as under :

'143. Assessment- (1) (a) Where a return has been made under section 139, the Assessing Officer may, without requiring the presence of the assessee or the production by him of any evidence in support of the return, make an assessment of the total income or loss of the assessee after making such adjustments to the income or loss declared in the return as are required to be made under clause (b), with reference to the return and the accounts and documents, if any, accompanying it, and for the purposes of the adjustments referred to in sub-clause (iv) of clause (b), also with reference to the record of the assessments, if any, of past years, and determine the sum payable by the assessee or refundable to him on the basis of such assessment.

(b) In making an assessment of the total income or loss of the assessee under clause (a), the Assessing Officer shall make the following adjustments to the income or loss declared in the return, that is to say, he shall,-

(i)rectify any arithmetical errors in the return, accounts and documents, referred to in clause (a) ;

(ii)[* * *]

(iii)[* * *]

(iv)give due effect to the allowance referred to in sub-section (2) of section 32, the deduction referred to in clause (ii) of sub-section (3) of section 32A or clause (ii) of sub-section (2) of section 33 or clause (ii) of sub-section (2) of section 33A or clause (i) of sub-section (2) of section 35 or sub-section (1) of section 35A or sub-section (1) of section 35D or sub-section (1) of section 35E or the first proviso to clause (ix) of sub-section (1) of section 36, any loss carried forward under sub-section (1) of section 72 or sub-section (2) of section 73 or sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A and the deficiency referred to in sub-section (3) of section 80J, as computed, in each case, in the regular assessment, if any, for the earlier assessment year or years.

(2) Where a return has been made under section 139, and-

(a)an assessment having been made under sub-section (1), the assessee makes within one month from the date of service of the notice of demand issued in consequence of such assessment, an application to the Assessing Officer objecting to the assessment, or

(b)whether or not an assessment has been made under sub-section (1), the Assessing Officer considers it necessary or expedient to verify the correctness and completeness of the return by requiring the presence of the assessee or the production of evidence in this behalf,

the Assessing Officer shall serve on the assessee a notice requiring him, on a date to be therein specified, either to attend at the Assessing Officer's office or to produce, or to cause to be there produced, any evidence on which the assessee may rely in support of the return :

Provided that, in a case, where an assessment has been made under sub-section (1), the notice under this sub-section except where such notice is in pursuance of an application by the assessee under clause (a) shall not be issued by the Assessing Officer unless the previous approval of the Deputy Commissioner has been obtained to the issue of such notice :

Provided further that in a case where the assessment made under sub-section (1) is objected to by the assessee by an application under clause (a), the assessee shall not be deemed to be in default in respect of the whole or any part of the amount of the tax demanded in pursuance of the assessment under that sub-section, which is disputed by the assessee, in so far as such amount does not relate to any adjustment referred to in sub-clause (i) of clause (b) of sub-section (1), and further no interest shall be chargeable under sub-section (2) of section 220 in respect of such disputed amount.

(3) On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered,-

(a)in a case where no assessment has been made under sub-section (1), the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refundable to him on the basis of such assessment ;

(b)in a case where an assessment has been made under sub-section (1), if either such assessment has been objected to by the assessee by an application under clause (a) of sub-section (2) or the Assessing Officer is of opinion that such assessment is incorrect, inadequate or incomplete in any material respect, the Assessing Officer shall, by an order in writing, make a fresh assessment of the total income or loss of the assessee, and determine the sum payable by him or refundable to him on the basis of such assessment.

Explanation-For the purposes of this section,-

(1)an assessment under sub-section (1) shall be deemed to be incorrect, inadequate or incomplete in a material respect, if-

(a)the amount of the total income as determined under sub-section (1) is greater or smaller than the amount of the total income on which the assessee is properly chargeable under this Act to tax ; or

(b)the amount of the tax payable as determined under sub-section (1) is greater or smaller than the amount of the tax properly payable under this Act by the assessee ; or

(c)the amount of any loss as determined under sub-section (1) is greater or smaller than the amount of the loss, if any, determinable under this Act on a proper computation ; or

(d)the amount of any depreciation allowance, development rebate or any other allowance or deduction as determined under sub-section (1) is greater or smaller than the amount of the depreciation allowance, development rebate or, as the case may be, other allowance or deduction properly allowable under this Act ; or

(e)the amount of the refund as determined under sub-section (1) is greater or smaller than the amount of the refund, if any, due under this Act on a proper computation ; or

(f)the status in which the assessee has been assessed under sub-section (1) is different from the status in which the assessee is properly assessable under this Act ;

(2)"status", in relation to an assessee, means the classification of the assessee as an individual, a Hindu undivided family, or any other category of persons referred to in clause (31) of section 2, and where the assessee is a firm, its classification as a registered firm or an unregistered firm.'
 
2. Substituted by the Finance Act, 1999, with effect from . 1-6-1999. Prior to its substitution, sub-section (1), as amended by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989, Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989, Finance Act, 1992, with effect from . 1-4-1993 and Finance Act, 1997, with effect from . 1-4-1998, read as under :

"(1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,-

(i)if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly ; and

(ii)if any refund is due on the basis of such return, it shall be granted to the assessee:

Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments shall be made in the income or loss declared in the return, namely:-

(i)any arithmetical errors in the return, accounts or documents accompanying it shall be rectified ;

(ii)any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed;

(iii)any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed :

Provided further that an intimation shall be sent to the assessee whether or not any adjustment has been made under the first proviso and notwithstanding that no tax or interest is due from him :

Provided also that an intimation under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the income was first assessable.

(b) Where as a result of an order made under sub-section (3) of this section or section 144 or section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of section 245D relating to any earlier assessment year and passed subsequent to the filing of the return referred to in clause (a), there is any variation in the carry forward loss, deduction, allowance or relief claimed in the return, and as a result of which,-

(i)if any tax or interest is found due, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly, and

(ii)if any refund is due, it shall be granted to the assessee :

Provided that an intimation for any tax or interest due under this clause shall not be sent after the expiry of four years from the end of the financial year in which any such order was passed.

(c) Where the assessee is a member of an association of persons or body of individuals and as a result of the adjustments made under the first proviso to clause (a) of sub-section (1) in the income or loss declared in the return made by the association or body, as the case may be, or as a result of an order made under sub-section (3) of this section or section 144 or section 147 or section 154 or section 155 or sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5) of section 185 or sub-section (1) or sub-section (2) of section 186 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of section 245D, passed subsequent to the filing of the return referred to in clause (a), there is any variation in his share in the income or loss of the association or body, as the case may be, or in the manner of inclusion of his share in the returned income, then,-

(i)if any tax or interest is found due, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly, and

(ii)if any refund is due, it shall be granted to the assessee :

Provided that an intimation for any tax or interest due under this clause shall not be sent after the expiry of four years from the end of the financial year in which any such adjustments were made or any such order was passed."
 
3. Substituted for "two years from the end of the assessment year in which the income was first assessable" by the Finance Act, 2001, with effect from . 1-6-2001.
 
4. Third proviso inserted by the Finance Act, 2001, with effect from . 1-6-2001.
 
5. Prior to its omission, sub-section (1A), as inserted by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989, and later on amended by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989, Finance Act, 1992, w.r.e.f. 1-4-1989 and Finance Act, 1993, w.r.e.f. 1-4-1989, read as under :

"(1A) (a) Where as a result of the adjustments made under the first proviso to clause (a) of sub-section (1),-

(i)the income declared by any person in the return is increased ; or

(ii)the loss declared by such person in the return is reduced or is converted into income,

the Assessing Officer shall,-

(A)in a case where the increase in income under sub-clause (i) of this clause has increased the total income of such person, further increase the amount of tax payable under sub-section (1) by an additional income-tax calculated at the rate of twenty per cent on the difference between the tax on the total income so increased and the tax that would have been chargeable had such total income been reduced by the amount of adjustments and specify the additional income-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1);

(B)in a case where the loss so declared is reduced under sub-clause (ii) of this clause or the aforesaid adjustments have the effect of converting that loss into income, calculate a sum (hereinafter referred to as additional income-tax) equal to twenty per cent of the tax that would have been chargeable on the amount of the adjustments as if it had been the total income of such person and specify the additional income-tax so calculated in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1);

(C)where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional income-tax calculated under sub-clause (A) or sub-clause (B), as the case may be.

(b) Where as a result of an order under sub-section (3) of this section or section 154 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount on which additional income-tax is payable under clause (a) has been increased or reduced, as the case may be, the additional income-tax shall be increased or reduced accordingly, and,-

(i)in a case where the additional income-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 156 ;

(ii)in a case where the additional income-tax is reduced, the excess amount paid, if any, shall be refunded."
 
6. Prior to its omission, sub-section (1B), as inserted by the Finance Act, 1990, w.r.e.f. 1-4-1989, read as under :

"(1B) Where an assessee furnishes a revised return under sub-section (5) of section 139 after the issue of an intimation, or the grant of refund, if any, under sub-section (1) of this section, the provisions of sub-sections (1) and (1A) of this section shall apply in relation to such revised return and-

(i)the intimation already sent for any income-tax, additional income-tax or interest shall be amended on the basis of the said revised return and where any amount payable by way of income-tax, additional income-tax or interest specified in the said intimation has already been paid by the assessee then, if any such amendment has the effect of-

(a)enhancing the amount already paid, the intimation amended under this clause shall be sent to the assessee specifying the excess amount payable by him and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly;

(b)reducing the amount already paid, the excess amount paid shall be refunded to the assessee ;

(ii)the amount of the refund already granted shall be enhanced or reduced on the basis of the said revised return and where the amount of refund already granted is-

(a)enhanced, only the excess amount of refund due to the assessee shall be paid to him ;

(b)reduced, the excess amount so refunded shall be deemed to be the tax payable by the assessee and an intimation shall be sent to the assessee specifying the amount so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly :

Provided that an assessee, who has furnished a revised return under sub-section (5) of section 139 after the service upon him of the intimation under sub-section (1) of this section, shall be liable to pay additional income-tax in relation to the adjustments made under the first proviso to clause (a) of sub-section (1) and specified in the said intimation, whether or not he has made the said adjustments in the revised return."
 
7. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its substitution, sub-section (2), as amended by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989 and Finance (No. 2) Act, 1991, with effect from . 1-10-1991, read as under:

"(2) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer shall, if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced there, any evidence on which the assessee may rely in support of the return :

Provided that no notice under this sub-section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished."
 
8. Inserted by the Finance Act, 2003, with effect from . 1-6-2003.
 
9. Substituted for "this sub-section" by the Finance Act, 2003, with effect from . 1-6-2003.
 
10. Substituted by the Finance Act, 2002, with effect from . 1-6-2002. Prior to its substitution, sub-section (3), as inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998, read as under:

"(3) On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment."
 
11. Inserted by the Finance Act, 2002, with effect from . 1-4-2003.
 
12. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989.
 
13. Prior to its omission, sub-section (5), as inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989, read as under :

"(5) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year."
 
14. Omitted by the Finance Act, 1999, with effect from . 1-6-1999. Prior to its omission, Explanation, as inserted by the Finance (No. 2) Act, 1991, with effect from . 1-10-1991 and later on amended by the Finance Act, 1994, with effect from . 1-6-1994, read as under :

"Explanation-An intimation sent to the assessee under sub-section (1) or sub-section (1B) shall be deemed to be an order for the purposes of sections 246 and 264."

 


144 . Best judgment assessment.-
[1] [(1)] If any person-

(a)fails to make the return required
[2] [under sub-section (1) of section 139] and has not made a return or a revised return under sub-section (4) or sub-section (5) of that section, or

(b)fails to comply with all the terms of a notice issued under sub-section (1) of section 142
[3] [or fails to comply with a direction issued under sub-section (2A) of that section], or

(c)having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of section 143,

the
[4] [Assessing] Officer, after taking into account all relevant material which the [5] [Assessing] Officer has gathered, [6] [shall, after giving the assessee an oppor-tunity of being heard, make the assessment] of the total income or loss to the best of his judgment and determine the sum payable by the assessee [7] [* * *] on the basis of such assessment :

[8] [Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgment :

Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section (1) of section 142 has been issued prior to the making of an assessment under this section.]

[9] [(2) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]

 

FOOTNOTES:
 
1. Renumbered by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989.
 
2. Substituted for "by any notice given under sub-section (2) of section 139" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
3. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
4. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "shall make the assessment" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
7. Words "or refundable to the assessee" omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
8. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
9. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989.

 


144A . [1] [Power of [2] [Joint Commissioner] to issue directions in certain cases.- [3] [* * *] A [4] [Joint Commissioner] may, on his own motion or on a reference being made to him by the [5] [Assessing] Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the [6] [Assessing] Officer to enable him to complete the assessment and such directions shall be binding on the [7] [Assessing] Officer :

Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee to be heard.

Explanation-For the purposes of this
[8] [section] no direction as to the lines on which an investigation connected with the assessment should be made, shall be deemed to be a direction prejudicial to the assessee.

[9] (2)[* * *]]

 

FOOTNOTES:
 
1. Inserted by the Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976.
 
2. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. "(1)" omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.
 
4. Substituted for "Deputy Commissioner" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998. Earlier "Deputy Commissioner" was substituted for "Inspecting Assistant Commissioner" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
5. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
6. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
7. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
8. Substituted for "sub-section" by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989.
 
9. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its omission, sub-section (2) stood as under :

"(2) The provisions of this section shall be in addition to, and not in derogation of, the provisions contained in sub-section (3) of section 119."

 


144B . Reference to Deputy Commissioner in certain cases.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Original section 144B was inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.]

 

FOOTNOTES:
 
1. Prior to its omission, section 144B was amended by the Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984.

 


145 . Method of accounting.-
[1] [ (1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.

(2) The Central Government may notify in the Official Gazette from time to time accounting standards to be followed by any class of assessees or in respect of any class of income.

(3) Where the Assessing Officer is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144.]

 

FOOTNOTES:
 
1. Substituted by the Finance Act, 1995, with effect from . 1-4-1997. Prior to its substitution, section 145, as amended by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988/1-4-1989 and the Finance Act, 1990, w.r.e.f. 1-4-1989, read as under :

'145. Method of accounting-(1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall be computed in accordance with the method of accounting regularly employed by the assessee:

Provided that in any case where the accounts are correct and complete to the satisfaction of the Assessing Officer but the method employed is such that, in the opinion of the Assessing Officer, the income cannot properly be deduced therefrom, then the computation shall be made upon such basis and in such manner as the Assessing Officer may determine :

Provided further that where no method of accounting is regularly employed by the assessee, any income by way of interest on securities shall be chargeable to tax as the income of the previous year in which such interest is due to the assessee:

Provided also that nothing contained in this sub-section shall preclude an assessee from being charged to income-tax in respect of any interest on securities received by him in a previous year if such interest had not been charged to income-tax for any earlier previous year.

(2)Where the Assessing Officer is not satisfied about the correctness or the completeness of the accounts of the assessee, or where no method of accounting has been regularly employed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144.'

 


145A . [1] [Method of accounting in certain cases.- Notwithstanding anything to the contrary contained in section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be-

(a)in accordance with the method of accounting regularly employed by the assessee; and

(b)further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation.

Explanation- For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment.]

 

FOOTNOTES:
 
1. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-4-1999.

 


146 . Reopening of assessment at the instance of the assessee.-
[1] [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]

 

FOOTNOTES:
 
1. Prior to its omission, section 146 was amended by the Finance Act, 1963, with effect from . 28-4-1963, Taxation Laws (Amendment) Act, 1975, with effect from . 1-4-1976 and Taxation Laws (Amendment) Act, 1984, with effect from . 1-10-1984.

 


147 . Income escaping assessment.-
[1] [ If the [2] [Assessing] Officer [3] [has reason to believe] that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) :

Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year.

Explanation 1-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso.

Explanation 2-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :-

(a)where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax ;

(b)where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ;

(c)where an assessment has been made, but-

(i)income chargeable to tax has been under-assessed ; or

(ii)such income has been assessed at too low a rate ; or

(iii)such income has been made the subject of excessive relief under this Act ; or

(iv)excessive loss or depreciation allowance or any other allowance under this Act has been computed.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, section 147 stood as under:

"If-

(a)the Assessing Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under section 139 for any assessment year to the Assessing Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or

(b)notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Assessing Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year,

he may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance, as the case may be, for the assessment year concerned (hereafter in sections 148 to 153 referred to as the relevant assessment year).

Explanation 1-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :-

(a)where income chargeable to tax has been under-assessed ; or

(b)where such income has been assessed at too low a rate ; or

(c)where such income has been made the subject of excessive relief under this Act or under the Indian Income-tax Act, 1922 (11 of 1922) ; or

(d)where excessive loss or depreciation allowance has been computed.

Explanation 2-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of this section."
 
2. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1988.
 
3. Substituted for ", for reasons to be recorded by him in writing, is of the opinion" by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989.

 


148 . Issue of notice where income has escaped assessment.-
[1] [ [2] [(1)] Before making the assessment, reassessment or re-computation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, [3] [* * *] as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139.]

[4] [(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.]

 

FOOTNOTES:
 
1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989. Prior to its substitution, section 148 stood as under :

"(1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 139 ; and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section.

(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so."
 
2. Inserted by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989.
 
3. Words "not being less than thirty days," omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1989.
 
4. Inserted by the Direct Tax Laws (Amendment) Act, 1989, with effect from . 1-4-1989.

 


149 . Time limit for notice.-
[1] [(1) No notice under section 148 shall be issued for the relevant assessment year,-

[2] [(a)if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

(b)if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.]

Explanation-In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section.]

(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.

(3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or re-computation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year.

 

FOOTNOTES:
 
1. Substituted for the following sub-section (1) by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989 :

"(1) No notice under section 148 shall be issued,

(a)in cases falling under clause (a) of section 147-

(i)for the relevant assessment year, if eight years have elapsed from the end of that year, unless the case falls under sub-clause (ii) ;

(ii)for the relevant assessment year, where eight years, but not more than sixteen years, have elapsed from the end of that year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year ;

(b)in cases falling under clause (b) of section 147, at any time after the expiry of four years from the end of the relevant assessment year."
 
2. Clauses (a) and (b) substituted by the Finance Act, 2001, with effect from . 1-6-2001. Prior to their substitution, clauses (a) and (b), as amended by the Direct Tax Laws (Second Amendment) Act, 1989, with effect from . 1-4-1989, read as under :

"(a)in a case where an assessment under sub-section (3) of section 143 or section 147 has been made for such assessment year,-

(i)if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub-clause (ii) or sub-clause (iii) ;

(ii)if four years, but not more than seven years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year;

(iii)if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees one lakh or more for that year ;

(b)in any other case,-

(i)if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub-clause (ii) or sub-clause (iii) ;

(ii)if four years, but not more than seven years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees twenty-five thousand or more for that year ;

(iii)if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year."

 


150 . Provision for cases where assessment is in pursuance of an order on appeal, etc.- (1)Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision
[1] [or by a Court in any proceeding under any other law].

(2)The provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, reassessment or recomputation could not have been made at the time the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made by reason of any other provision limiting the time within which any action for assessment, reassessment or recomputation may be taken.

 

FOOTNOTES:
 
1. Inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.

 


151 . Sanction for issue of notice.-
[1] [(1)In a case where an assessment under sub-section (3) of section 143 or section 147 has been made for the relevant assessment year, no notice shall be issued under section 148 [2] [by an Assessing Officer, who is below the rank of Assistant Commissioner [3] [or Deputy Commissioner], unless the [4] [Joint] Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice] :

Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice.

(2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of
[5] [Joint] Commissioner, after the expiry of four years from the end of the relevant assessment year, unless the [6] [Joint] Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.]

 

FOOTNOTES:
 
1. Substituted for the following section by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989 :

"(1) No notice shall be issued under section 148 after the expiry of eight years from the end of the relevant assessment year, unless the Board is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for the issue of such notice.

(2) No notice shall be issued under section 148 after the expiry of four years from the end of the relevant assessment year, unless the Chief Commissioner or Commissioner is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for the issue of such notice."
 
2. Substituted for "except by an Assessing Officer of the rank of Assistant Commissioner or Deputy Commissioner" by the Finance Act, 1990, with effect from . 1-4-1990.
 
3. Inserted by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
4. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
5. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.
 
6. Substituted for "Deputy" by the Finance (No. 2) Act, 1998, with effect from . 1-10-1998.

 


152 . Other provisions.- (1) In an assessment, reassessment or recomputation made under section 147, the tax shall be chargeable at the rate or rates at which it would have been charged had the income not escaped assessment.

(2) Where an assessment is reopened
[1] [under section 147], the assessee may, if he has not impugned any part of the original assessment order for that year either under sections 246 to 248 or under section 264, claim that the proceedings under section 147 shall be dropped on his showing that he had been assessed on an amount or to a sum not lower than what he would be rightly liable for even if the income alleged to have escaped assessment had been taken into account, or the assessment or computation had been properly made :

Provided that in so doing he shall not be entitled to reopen matters concluded by an order under section 154, 155, 260, 262, or 263.

 

FOOTNOTES:
 
1. Substituted for "in circumstances falling under clause (b) of section 147" by the Direct Tax Laws (Amendment) Act, 1987, with effect from . 1-4-1989.



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