FINANCE ACT, 2008
1. (1) This Act may be called the Finance Act, 2008.
(2) Save as otherwise provided in this Act, sections 2 to 67 shall be deemed to have come into force on the 1st day of April, 2008.
1[(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2009, income-tax shall be charged at the rates specified in Part 1 of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in each case in the manner provided therein.]
(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds one lakh ten thousand rupees, then,--
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first 2[one lakh fifty thousand
In section 2 of the Income-tax Act,--
(a) in clause (1A), after Explanation 2, the following Explanation shall be inserted with effect from the 1st day of April, 2009, namely:--
"Explanation 3.--For the purposes of this clause, any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income;";
(b) for clause (15), the following clause shall be substituted with effect from the 1st day of April, 2009, namely:--
'(15) "charitable purpose" includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility:
Provided that the advancement of any other object of general public utility shall not be a charitable purpos
In section 10 of the Income-tax Act,--
(a) after clause (26AA) as omitted by the Finance Act, 1997(26 of 1997), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1990, namely:--
'(26AAA) in case of an individual, being a Sikkimese, any income which accrues or arises to him--
(a) from any source in the State of Sikkim; or
(b) by way of dividend or interest on securities:
Provided that nothing contained in this clause shall apply to a Sikkimese woman who, on or after the 1st day of April, 2008, marries an individual who is not a Sikkimese.
Explanation.-For the purposes of this clause, "Sikkimes
In section 10A of the Income -tax Act, in sub-section (1), in the fourth proviso, for the figures "2010", the figures "2011" shall be substituted.
In section 10B of the Income -tax Act, in sub-section (1), in the third proviso, for the figures "2010", the figures "2011" shall be substituted.
In section 35 of the Income-tax Act, with effect from the 1st day of April, 2009,--
(a) in sub-section (1), after clause (ii), the following clause shall be inserted, namely:--
"(iia) an amount equal to one and one-fourth times of any sum paid to a company to be used by it for scientific research:
Provided that such company-
(A) is registered in India,
(B) has as its main object the scientific research and development,
(C) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner, and
(D) fulfils such other conditions as may be prescribed;";
&
In section 35D of the Income-tax Act, with effect from the 1st day of April, 2009,--
(a) for the words "industrial undertaking", wherever they occur, the word "undertaking" shall be substituted;
(b) for the words "industrial unit", wherever they occur, the word "unit" shall be substituted.
In section 36 of the Income-tax Act, in sub-section (1), after clause (xiv), the following clauses shall be inserted with effect from the 1st day of April, 2009, namely:--
'(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head "Profits and gains of business or profession.".
Explanation.--For the purposes of this clause, the expressions "securities transaction tax" and "taxable securities transaction" shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004(23 of 2004);
(xvi) an amount equal to th
In section 40 of the Income-tax Act, in clause (a),-
(a) in sub-clause (ia), with effect from the 1st day of April, 2005,-
(i) for the words, brackets and figures "has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200", the following words, brackets and figures shall be substituted and shall be deemed to have been substituted, namely:-
"has not been paid,-
(A) in a case where the tax was deductible and was so deducted during the last month of the previous year, on or before the due date specified in sub-section (1) of section 139; or
(B) in any other case, on or before the last day of the previous year";
In section 40A of the Income-tax Act, for sub-section (3), the following sub-sections shall be substituted, with effect from the 1st day of April, 2009, namely:--
"(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
(3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment s
In section 43 of the Income-tax Act, in clause (6), after Explanation 5, the following Explanation shall be inserted and shall be deemed to have been inserted, with effect from the 1st day of April, 2003, namely:--
"Explanation 6.--Where an assessee was not required to compute his total income for the purposes of this Act for any previous year or years preceding the previous year relevant to the assessment year under consideration,--
(a) the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account;
(b) the total amount of depreciation on such asset, provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the assessment year under consideration
In section 44AB of the Income -tax Act, in the Explanation, in clause (if), for the figures, letters and words "31st day of October", the figures, letters and words "30th day of September" shall be substituted.
In section 47 of the Income-tax Act,--
(a) after clause (x), the following clause shall be inserted, namely:--
"(xa) any transfer by way of conversion of bonds referred to in clause (a) of sub-section (1) of section 115AC into shares or debentures of any company;";
(b) after clause (xv), the following clause shall be inserted, namely:--
"(xvi) any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the Central Government.".
In section 49 of the Income-tax Act, for sub-section (2A), the following sub-section shall be substituted, namely:--
"(2A) Where the capital asset, being a share or debenture of a company, became the property of the assessee in consideration of a transfer referred to in clause (x) or clause (xa) of section 47, the cost of acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenture-stock, bond or deposit certificate in relation to which such asset is acquired by the assessee.".
In section 80C of the Income-tax Act,--
(a) in sub-section (2), after clause (xxii), the following clauses shall be inserted, namely:--
"(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004;
(xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.";
(b) after sub-section (6), the following sub-section shall be inserted, namely:--
"(6A) If any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of sub-section (2), before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of
For section 80D of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2009,--
'80D. Deduction in respect of health insurance premia.-(1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted such sum, as specified in sub-section (2) or sub-section (3), payment of which is made by any mode, other than cash, in the previous year out of his income chargeable to tax.
(2) Where the assessee is an individual, the sum referred to in sub-section (1) shall be the aggregate of the following, namely:--
(a) the whole of the amount paid to effect or to keep in force an insurance on the health of the assessee or his family as does not exceed in the aggregate fifteen thousand rupees; and
&nb
In section 80-IB of the Income-tax Act,--
(a) in sub-section (9), after the second proviso, the following proviso shall be inserted, namely:--
"Provided also that where such undertaking begins refining of mineral oil on or after the 1st day of April, 2009, no deduction under this section shall be allowed in respect of such undertaking unless such undertaking fulfils all the following conditions, namely :-
(i) it is wholly owned by a public sector company or any other company in which a public sector company or companies hold at least forty-nine per cent of the voting right;
(ii) it is notified by the Central Government in this behalf on or before the 31st day of Mat, 2008; and
(iii) it begins refining no
In section 80-ID of the Income-tax Act, with effect from the 1st day of April, 2009,--
(a) in sub-section (2), after clause (ii), the following clause shall be inserted, namely:--
"(iii) engaged in the business of hotel located in the specified district having a World Heritage Site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.";
(b) in sub-section (6), after clause (d), the following shall be inserted, namely: -'
'(e) "specified district having a World Heritage Site" means districts, specified in column (2) of the Table below, of the States, specified in the corresponding entry in column (3) of the said Table:
&nb
In section 88E of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted, namely:--
"(3) No deduction under this section shall be allowed in, or after, the assessment year beginning on the 1st day of April, 2009.".
In section 111A of the Income-tax Act, in sub-section (1), in clause (i), for the words "ten per cent.", the words "fifteen per cent." shall be substituted with effect from the 1st day of April, 2009.
In section 115AD of the Income-tax Act, in sub-section (1), in the proviso, for the words "ten per cent.", the words "fifteen per cent." shall be substituted with effect from the 1st day of April, 2009.
In section 115JB of the Income-tax Act, after sub-section (2),--
(a) the Explanation shall be numbered as Explanation 1 and in Explanation 1 as so numbered, after clause (g), for the portion beginning with the words "if any amount referred "and ending with the words "as reduced by--", the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2001, namely:--
"(h) the amount of deferred tax and the provision there for, if any amount referred to in clauses (a) to (h) is debited to the profit and loss account, and as reduced by--";
(b) in Explanation 1 as so numbered, after clause (vii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2001, namely:-
&
In section 115-O of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The amount referred to in sub-section (1) shall be reduced by the amount of dividend, if any, received by the domestic company during the financial year, if-
(a) such dividend is received from its subsidiary;
(b) the subsidiary has paid tax under this section on such dividend; and
(c) the domestic company is not a subsidiary of any other company:
Provided that the same amount of dividend shall not be taken into account for reduction more than once.
Explanation.-For the purposes of this sub-section, a company shall be a subsidiary of anothe
In section 115WB of the Income-tax Act,--
(a) in sub-section (1), in the Explanation to clause (d), in clause (i), for the words "and includes employees' stock option", the words "and, where employees' stock option has been granted under any plan or scheme therefor, includes the securities offered under such plan or scheme" shall be substituted;
(b) in sub-section (2), with effect from the 1st day of April, 2009,--
(I) in clause (B), after sub-clause (ii), the following sub-clause shall be inserted, namely:--
"(iii) any expenditure on or payment through non-transferable pre-paid electronic meal card usable only at eating joints or outlets and which fulfils such other conditions as may be prescribed;";
(II
In section 115WC of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2009 --
(i) in clause (c), for the words, brackets and letters "clauses (A) to (K)", the words, brackets and letters "clauses (A) to (L)" shall be substituted;
(ii) in clause (d), for the words, brackets and letters "clauses (L) to (P)", the words, brackets and letters "clauses (M) to (P)" shall be substituted.
In section 115WD of the Income-tax Act, in sub-section (1), in the Explanation, in clause (a), for the figures, letters and words "31st day of October", the figures, letters and words "30th day of September" shall be substituted.
In section 115WE of the Income-tax Act,-
(A) for sub-section (1), the following sub-sections shall be substituted, namely:--
'(1) Where a return has been made under section 115WD, such return shall be processed in the following manner, namely:--
(a) the value of fringe benefits shall be computed after making the following adjustments, namely:--
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is apparent from any information in the return;
(b) the tax and interest, if any, shall be computed on the basis of the value of fringe benefits computed under clause (a);
(c) the
After section 115WKA of the Income-tax Act, the following section shall be inserted, namely:--
"115WKB. Deemed payment of tax by employee. (1) Where an employer has paid any fringe benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in clause (d) of sub-section (1) of section 115WB, and has recovered such tax subsequently from an employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof relates to the value of the fringe benefit provided to such employee, as determined under clause (ba) of sub-section (1) of section 115WC.
(2) Notwithstanding anything contained in any other provisions of this Act, where the fringe benefit tax rec
In section 139 of the Income-tax Act,--
(a) in sub-section (1), in Explanation 2, in clause (a), for the figures, letters and words "31st day of October", the figures, letters and words "30th day of September" shall be substituted;
(b) in sub-section (9), in the Explanation, in clause (c), in sub-clause (i), the words, figures and letters "before the 1st day of April, 2008" shall be omitted.
In section 142 of the Income-tax Act, in sub-section (2C), in the proviso, for the words "on an application", the words "suo motu, or on an application" shall be substituted.
In section 143 of the Income-tax Act,--
(a) for sub-section (1), the following sub-sections shall be substituted, namely:--
'(1) Where a return has been made under section 139, or in response to a notice under subsection (1) of section 142, such return shall be processed in the following manner, namely:--
(a) the total income or loss shall be computed after making the following adjustments, namely:--
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is apparent from any information in the return;
(b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a);
&n
In section 147 of the Income-tax Act, after the proviso, the following proviso shall be inserted, namely:--
''Provided further that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.".
In section 151 of the Income-tax Act, after sub-section (2), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1998, namely:--
''Explanation.--For the removal of doubts, it is hereby declared that the Joint Commissioner, the Commissioner or the Chief Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself.".
In section 153 of the Income-tax Act, after sub-section (3),--
(a) the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2003, namely:--
''(4) Notwithstanding anything contained in the foregoing provisions of this section, sub-section (2) of section 153A and sub-section (1) of section 153B, the order of assessment or reassessment, relating to any assessment year, which stands revived under sub-section (2) of section 153A, shall be made within one year from the end of the month of such revival or within the period specified in this section or sub-section (1) of section 153B, whichever is later.";
(b) in Explanation 1, after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with eff
Section 153A of the Income-tax Act shall be renumbered as sub-section (1) thereof and,--
(a) in sub-section (1) as so renumbered, in the second proviso, for the words "referred to in this section", the words "referred to in this sub-section" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2003;
(b) after sub-section (1) as so renumbered and before the Explanation, the following shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2003, namely:--
''(2) If any proceeding initiated or any order of assessment or reassessment made under subsection (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment
In section 153B of the Income-tax Act, in sub-section (1), with effect from the 1st day of June, 2003,--
(i) in clause (a), for the word, figures and letter "section 153A", the words, brackets, figures and letter "sub-section (1) of section 153A" shall be substituted and shall be deemed to have been substituted;
(ii) in the Explanation,--
(A) after clause (vi) and before the words "shall be excluded", the following clause shall be inserted and shall be deemed to have been inserted, namely:--
''(vii) the period commencing from the date of annulment of a proceeding or order of assessment or reassessment referred to in sub-section (2) of section 153A till the date of the receipt of the order setting aside the order of such annulment, by the Commissione
In section 153C of the Income-tax Act, in sub-section (1), in the proviso, for the word, figures and letter "section 153A", the words, brackets, figures and letter "sub-section (1) of section 153A" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2003.
In section 153D of the Income-tax Act, for the word, figures and letter "section 153A", the words, brackets, figures and letter "sub-section (1) of section 153A" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2003.
In section 156 of the Income-tax Act, the following proviso shall be inserted, namely:--
''Provided that where any sum is determined to be payable by the assessee under sub-section (1) of section 143, the intimation under that sub-section shall be deemed to be a notice of demand for the purposes of this section.".
In section 191 of the Income-tax Act, for the Explanation, the following Explanation shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2003, namely:--
''Explanation.-For the removal of doubts, it is hereby declared that if any person, including the principal officer of a company,--
(a) who is required to deduct any sum in accordance with the provisions of this Act; or
(b) referred to in sub-section (1A) of section 192, being an employer,
does not deduct, or after so deducting fails to pay, or does not pay, the whole or any part of the tax, as required by or under this Act, and where the assessee has also failed to pay such tax directly, then, such person shall, without prejudice to any other con
In section 193 of the Income-tax Act, in the proviso, after clause (viii) and before the Explanation, the following clause shall be inserted with effect from the 1st day of June, 2008, namely:--
''(ix) any interest payable on any security issued by a company, where such security is in dematerialised form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956(42 of 1956) and the rules made thereunder.".
In section 194C of the Income-tax Act, in sub-section (1), after clause (K), after the words "Hindu undivided family", the words "or an association of persons of a body of individuals, whether incorporated or not, other than those falling under any of the proceeding clauses" shall be inserted with effect from the 1st day of June, 2008.
In section 195 of the Income-tax Act, after sub-section (5), the following sub-section shall be inserted, namely:--
''(6) The person referred to in sub-section (1) shall furnish the information relating to payment of any sum in such form and manner as may be prescribed by the Board.".
For section 199 of the Income-tax Act, the following section shall be substituted, namely:--
"199.Credit for tax deducted.- (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be.
(2) Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made.
(3) The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in term
In section 201 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2002, namely:--
''(1) Where any person, including the principal officer of a company,--
(a) who is required to deduct any sum in accordance with the provisions of this Act; or
(b) referred to in sub-section (1A) of section 192, being an employer,
does not deduct, or does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of such tax:
In section 203 of the Income-tax Act, in sub-section (3), for the figures, letters and words "1st day of April, 2008", the figures, letters and words "1st day of April, 2010" shall be substituted.
In section 206C of the Income-tax Act,--
(a) for sub-section (4), the following sub-section shall be substituted, namely:--
''(4) Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person for the amount so collected in a particular assessment year in accordance with the rules as may be prescribed by the Board from time to time.";
(b) in sub-section (5), in the first proviso, for the figures, letters and words "1st day of April, 2008", the figures, letters and words "1st day of April, 2010" shall be substituted.
In section 251 of the Income -tax Act, in sub-section (1), after clause (a), the following clause shall be inserted, namely:--
"(aa) in an appeal against the order of assessment in respect of which the proceeding before the Settlement Commission abates under section 245HA, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceeding before it and such other material as may be brought on his record, confirm, reduce, enhance or annual the assessment;".
In section 254 of the Income-tax Act, in sub-section (2A), for the third proviso, the following proviso shall be substituted with effect from the 1st day of October, 2008, namely:--
''Provided also that if such appeal is not so disposed of within the period allowed under the first proviso or the period or periods extended or allowed under the second proviso, which shall not, in any case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee.".
After section 268 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1999, namely:--
"268A.Filing of appeal or application for references by income-tax authority.-(1) The Board may, from time to time, issue orders, instructions or directions to other income-tax authorities, fixing such monetary limits as it may deem fit, for the purpose of regulating filing of appeal or application for reference by any income-tax authority under the provisions of this Chapter.
(2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), an income-tax authority has not filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, it shall not preclude such authority from filing an
In section 271 of the Income-tax Act, after sub-section (1A), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely:--
''(1B) Where any amount is added or disallowed in computing the total income or loss of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under clause (c)".
After section 273A of the Income-tax Act, the following section shall be inserted, namely:--
"273AA.Power of Commissioner of grant immunity from penalty.- (1) A person may make an application to the Commissioner for granting immunity from penalty, if--
(a) he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 245HA; and
(b) the penalty proceedings have been initiated under this Act.
(2) The application to the Commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement.
(3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the impositio
After section 278AA of the Income-tax Act, the following section shall be inserted, namely:--
"278AB. Power of Commissioner to grant immunity from prosecution.-(1) A person may make an application to the Commissioner for granting immunity from prosecution, if he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 245HA.
(2) The application to the Commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement.
(3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this Act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in t
After section 282 of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2008, namely:--
"282A. Authentication of notice and other documents.-(1) Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed in manuscript by that authority.
(2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon.
(3) For the purposes of this section, a designated income-tax authority shall mean any income-tax authority authorised by the Board to issue, serve or give such notice or
After section 292B of the Income-tax Act, the following section shall be inserted, namely:--
"292BB. Notice deemed to be valid in certain Circumstance.-Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was--
(a) not served upon him; or
(b) not served upon him in time; or
(c) served upon him in an improper manner.
Provided tha
Section 292C of the Income-tax Act shall be renumbered as sub-section (1) thereof and-
(a) in sub-section (1) as so renumbered, after the words and figures "search under section 132", the words, figures and letter "or survey under section 133A" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2002;
(b) after sub-section (1) as so renumbered, the following sub-section shall be inserted, and shall be deemed to have been inserted with effect from the 1st day of October, 1975 namely:--
''(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 132A, then, the provisions of sub-section (1) shall apply as if such books of account, other documents or assets
In section 295 of the Income-tax Act, in sub-section (2), after clause (f), the following clause shall be inserted, namely:--
''(fa) the form and manner in which the information relating to payment of any sum may be furnished under sub-section (6) of section 195;".
In the Fourth Schedule to the Income-tax Act, in Part A, in rule 3, in sub-rule (1), in the first proviso, for the figures, letters and words "31st day of March, 2008", the figures, letters and words "31st day of March, 2009" shall be substituted.
In section 17 of the Wealth-tax Act,--
(a) in sub-section (1), after the second proviso, the following proviso shall be inserted, namely:--
''Provided also that the Assessing Officer may assess or reassess such net wealth, other than the net wealth which is the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.";
(b) in sub-section (1B), after clause (b), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1998, namely:--
''Explanation.--For the removal of doubts, it is hereby declared that the Joint Commissioner, the Commissioner or the Chief Commissioner, as the case may be, being satisfied on the reasons recorded by
In section 17A of the Wealth-tax Act, after sub-section (4), in Explanation 1, after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2007, namely:--
''Provided further that where a proceeding before the Settlement Commission abates under section 22HA, the period of limitation referred to in this section available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, shall, after the exclusion of the period under sub-section (4) of section 22HA, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year.".
In section 18 of the Wealth-tax Act, after sub-section (1), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely:--
''(1A) Where any amount is added or disallowed in computing the net wealth of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under sub-section (1).".
After section 18B of the Wealth-tax Act, the following section shall be inserted, namely:--
"18BA. Power of Commissioner to grant immunity from penalty.(1) A person may make an application to the Commissioner for granting immunity from penalty, if-
(a) he has made an application for settlement under section 22C and the proceedings for settlement have abated under section 22HA; and
(b) the penalty proceedings have been initiated under this Act.
(2) The application to the Commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement.
(3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of a
In section 23A of the Wealth-tax Act, after sub-section (9), the following subsection shall be inserted, namely:--
"(9A) In disposing of an appeal against the order of assessment, in respect of which the proceeding before the Settlement Commission abates under section 22HA, he may, after taking into consideration all the material and other information produced by the assessee before, or the results of the inquiry held or evidence recorded by, the Settlement Commission, in the course of the proceedings before it and such other material as may be brought on his record, confirm, reduce, enhance or annul the assessment.".
After section 35G of the Wealth-tax Act, the following section shall be inserted, namely:--
"35GA. Power of Commissioner to grant immunity from prosecution (1) A person may make an application to the Commissioner for granting immunity from prosecution, if he has made an application for settlement under section 22C and the proceedings for settlement have abated under section 22HA.
(2) The application to the Commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement.
(3) The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this Act, if he is satisfied that the person has, after the abatement, co-operated with the wealth-tax authority in the pro
After section 41 of the Wealth-tax Act, the following section shall be inserted, namely:--
"42.Notice deemed to be valid in certain circumstances.-Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was--
(a) not served upon him; or
(b) not served upon him in time; or
(c) served upon him in an improper manner.
Provided that not
Section 42D of the Wealth-tax Act shall be renumbered as sub-section (1) thereof and after subsection (1) as so renumbered, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day October, 1975, namely:--
''(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 37B, then, the provisions of subsection (1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 37B, had been found in the possession or control of that person in the course of a search under section 37A.".
In section 28B of the Customs Act, 1962(52 to 1962) (hereinafter referred to as the Customs Act),--
(i) after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) Every person who has collected any amount in excess of the duty assessed or determined or paid on any goods or has collected any amount as representing duty of customs on any goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government.";
(ii) in sub-section (2), for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) or sub-section (1A), as the case may be," shall be substituted;
(iii) in su
In section 108 of the Customs Act, in sub-section (1), the words "duly empowered by the Central Government in this behalf," shall be omitted and shall be deemed to have been omitted with effect from the 13th July, 2006.
In section 117 of the Customs Act, for the words "ten thousand rupees", the words "one lakh rupees" shall be substituted.
In section 129A of the Customs Act, in sub-section (2), the following proviso and Explanation shall be inserted at the end, namely:--
'Provided that where the Committee of Commissioners of Customs differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional Chief Commissioner of Customs who shall, after considering the facts of the order, if is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct the proper officer to appeal to the Appellate Tribunal against such order.
Explanation.--For the purposes of this sub-section, "jurisdictional Chief Commissioner" means the Chief Commissioner of Customs having jurisdiction over the adjudicating authority in the matter.'.
In section 129D of the Customs Act,--
(i) in sub-section (1), the following proviso shall be inserted at the end, namely:--
"Provided that where the Committee of Chief Commissioners of Customs differs in its opinion as to the legality or propriety of the decision or order of the Commissioner of Customs, it shall state the point or points on which it differs and make a reference to the Board which, after considering the facts of the decision or order passed by the Commissioner of Customs, if is of the opinion that the decision or order passed by the Commissioner of Customs is not legal or proper, may, by order, direct such Commissioner or any other Commissioner to apply to the Appellate Tribunal for the determination of such points arising out of the decision or order, as may be specified in its order.";
&
After section 129E of the Customs Act, the following section shall be inserted, namely:--
Interest on delayed refund of amount deposit under the Proviso to Section 129E
"129EE. Where an amount deposited by the appellant in pursuance of an order passed by the Commissioner (Appeals) or the Appellate Tribunal (hereinafter referred to as appellate authority), under the first proviso to section 129E, is required to be refunded consequent upon the order of the appellate authority and such amount is not refunded within three months from the date of communication of such order to the adjudicating authority, unless the operation of the order of the appellate authority is stayed by a superior court or tribunal, there shall be paid to the appellant interest at the rate specified in section 27A after the expiry of three months from the date of comm
Section 141 of the Customs Act shall be numbered as sub-section (1) thereof and, after subsection (1) as so numbered, the following sub-section shall be inserted, namely:--
"(2) The imported or export goods may be received, stored, delivered, dispatched or otherwise handled in a customs area in such manner as may be prescribed and the responsibilities of persons engaged in the aforesaid activities shall be such as may be prescribed.".
In section 158 of the Customs Act, in sub-section (2), for clause (ii), the following clause shall be substituted, namely:--
"(ii) that any person who contravenes any provision of a rule or regulation or abets such contravention or who fails to comply with any provision of a rule or regulation with which it was his duty to comply, shall be liable to a penalty which may extend to fifty thousand rupees.".
In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 277(E), dated the 1st April, 2003 which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, the condition No. 7, as inserted vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 673(E), dated the 17th November, 2005 which provides "that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said certificate", shall be deemed to have, and always to have for all purposes validly, come into force on and from the 4th day of June, 2005 at all material times.
Explanation.-- For the removal of doubts, it is hereby declared that no act or omissio
In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act),--
(i) in section 9A, for sub-section (2A), the following sub-section shall be substituted, namely:-
'(2A) Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under sub-section (1) or any anti-dumping duty imposed under sub-section (2), shall not apply to articles imported by a hundred per cent export-oriented undertaking unless,-
(i) specifically made applicable in such notifications or such impositions, as the case may be; or
(ii) the article imported is either cleared as such into the domestic tariff area or used in the manufacture of any goods that are cleared into the domestic tariff area, and in such cases anti-du
In section 2 of the Central Excise Act, 1944(1 of 1944 ) (hereinafter referred to as the Central Excise Act), after clause (d), the following Explanation shall be inserted, namely:--
'Explanation.-- For the purposes of this clause, "goods" includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.'.
After section 3 of the Central Excise Act, the following section shall be inserted, namely:--
''3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods-
(1) Notwithstanding anything contained in section 3, where the Central Government, having regard to the nature of the process of manufacture or production of excisable goods of any specified description, the extent of evasion of duty in regard to such goods or such other factors as may be relevant, is of the opinion that it is necessary to safeguard the interest of revenue, specify, by notification in the Official Gazette, such goods as notified goods and there shall be levied and collected duty of excise on such goods in accordance with the provisions of this section.
(2) Wher
In section 11B of the Central Excise Act,--
(i) in sub-section (1),--
(a) for the words "duty of excise", wherever they occur, the words "duty of excise and interest, if any, paid on such duty" shall be substituted;
(b) for the word "duty", wherever it occurs, the words "duty and interest, if any, paid on such duty" shall be substituted;
(ii) in sub-section (2), except in clauses (a) and (c) of the first proviso,--
(a) for the words "duty of excise", wherever they occur, the words "duty of excise and interest, if any, paid on such duty" shall be substituted;
(b) for the word "duty", wherever it occurs, the words "duty and interest, if any, paid on such duty" sh
In section 11D of the Central Excise Act,--
(i) after sub-section (1), the following sub-section shall be inserted, namely:--
''(1A) Every person, who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods or has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government.";
(ii) in sub-section (2), for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub-section (1) or sub-section (1A), as the case may be," shall be substituted;
(iii) in sub-section (4),--
&n
In section 11DD of the Central Excise Act, in sub-section (1), for the words "buyer of such goods, the person", the words "buyer of such goods or from any person or where a person has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty, the person" shall be substituted.
In section 35B of the Central Excise Act, in sub-section (2), the following proviso and Explanation shall be inserted at the end, namely:--
'Provided that where the Committee of Commissioners of Central Excise differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall state the point or points on which it differs and make a reference to the jurisdictional Chief Commissioner of Central Excise who shall, after considering the facts of the order, if is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct any Central Excise Officer to appeal to the Appellate Tribunal against such order.
Explanation.--For the purposes of this sub-section, "jurisdictional Chief Commissioner" means the Chief Commissioner of Central Excise having jurisdiction over the adjudic
In section 35E of the Central Excise Act,--
(i) in sub-section (1), the following proviso shall be inserted at the end, namely:--
''Provided that where the Committee of Chief Commissioners of Central Excise differs in its opinion as to the legality or propriety of the decision or order of the Commissioner of Central Excise, it shall state the point or points on which it differs and make a reference to the Board which, after considering the facts of the decision or order, if is of the opinion that the decision or order passed by the Commissioner of Central Excise is not legal or proper, may, by order, direct such Commissioner or any other Commissioner to apply to the Appellate Tribunal for the determination of such points arising out of the decision or order, as may be specified in its order.";
After section 35F of the Central Excise Act, the following section shall be inserted, namely:--
"35FF. Interest on delayed refund of amount deposited under the proviso to section 35F- Where an amount deposited by the appellant in pursuance of an order passed by the Commissioner (Appeals) or the Appellate Tribunal (hereinafter referred to as the appellate authority), under the first proviso to section 35F, is required to be refunded consequent upon the order of the appellate authority and such amount is not refunded within three months from the date of communication of such order to the adjudicating authority, unless the operation of the order of the appellate authority is stayed by a superior court or tribunal, there shall be paid to the appellant interest at the rate specified in section 11BB after the expiry of three months from the date of communication of the order of the appe
(1) In the Central Excise Rules, 1944, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, rule 12, as substituted by rule 2 of the Central Excise (Eleventh Amendment) Rules, 1994 published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue), number. G.S.R. 699(E), dated the 22nd September, 1994 shall stand amended and shall be deemed to have been amended retrospectively in the manner specified in column (2) of the Fourth Schedule on and from the corresponding date specified in column (3) of that Schedule against the rule specified in column (1) of that Schedule.
(2) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any tim
(1) In the Central Excise (No. 2) Rules, 2001, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, rule 18 thereof as published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue), number G.S.R. 444(E), dated the 21st June, 2001 shall stand amended and shall be deemed to have been amended retrospectively in the manner specified in column (2) of the Fifth Schedule on and from the corresponding date specified in column (3) of that Schedule against the rule specified in column (1) of that Schedule.
(2) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of July, 2001
(1) In the Central Excise Rules, 2002, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, rule 18 thereof as published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue), number G.S.R. 143(E), dated the 1st March, 2002 shall stand amended and shall be deemed to have been amended retrospectively in the manner specified in column (2) of the Sixth Schedule on and from the corresponding date specified in column (3) of that Schedule against the rule specified in column (1) of that Schedule.
(2) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of March, 2002 and end
The First Schedule to the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act) shall be amended in the manner specified in the Seventh Schedule.
In the Finance Act, 1994,--
(A) in section 65, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,--
(1) after clause (7a), the following clause shall be inserted, namely:--
'(7b) "associated enterprise" has the meaning assigned to it in section 92A of the Income-tax Act, 1961(43 of 1961);';
(2) in clause (12),--
(a) in sub-clause (a), for item (iv), the following item shall be substituted, namely:--
''(iv) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;";
(b) for sub-clause (b), the following
(1) This Scheme may be called the Service Tax Dispute Resolution Scheme, 2008.
(2) It shall come into force on the 1st day of July, 2008.
In this Scheme, unless the context otherwise requires,--
(a) "Chapter" means Chapter V of the Finance Act, 1994(32 of 1994);
(b) "designated authority" means an officer not below the rank of Assistant Commissioner of Central Excise as notified by the Commissioner of Central Excise for the purposes of this Scheme;
(c) "person" means any person against whom any tax arrear is pending;
(d) "prescribed" means prescribed by rules made under this Scheme;
(e) "tax arrear" means service tax, cess, interest or penalty due or payable or leviable under the Chapter but not paid as on the 1st day of March, 2008, in respect of which,--
(i) an order has been passed under the C
This Scheme shall not be applicable to a decision, an order of determination, a demand notice or, as the case may be, show cause notice,--
(i) relating to a tax arrear which includes service tax, and such service tax amount is in excess of twenty-five thousand rupees; or
(ii) where such order or notice has been made or issued under section 73A of the Finance Act, 1994(32 of 1994.).
Subject to the provisions of this Scheme, where any person makes, on or after the 1st day of July, 2008, but on or before the 30th day of September, 2008, a declaration to the designated authority in accordance with the provisions of section 90 in respect of tax arrear, then notwithstanding anything contained in the Chapter, the amount payable under this Scheme by the declarant shall be determined at the rates specified hereunder, namely:--
(a) where the tax arrear has arisen due to determination, assessment or, as the case may be, order of an adjudicating authority,--
(i) such tax arrear includes the amount of service tax not exceeding twenty-five thousand rupees, at the rate of fifty per cent. of service tax amount;
(ii) such tax arrear consists of only interest payable, or penalty levied or
A declaration under section 89 shall be made to the designated authority and shall be in such form and shall be verified in such manner as may be prescribed.
(1) Within fifteen days from the date of receipt of the declaration under section 89, the designated authority shall, by order, determine the amount payable by the declarant in accordance with the provisions of this Scheme:
Provided that where any material particular furnished in the declaration is found to be false, by the designated authority at any stage, it shall be deemed never to have been made and all the pending proceeding under the Chapter shall be deemed to have been revived.
(2) The declarant shall pay, the sum determined by the designated authority within thirty days of the order by the designated authority under sub-section (1) and intimate the fact of such payment to the designated authority along with proof thereof and the designated authority shall thereupon issue a certificate to the declarant in such form as may be pres
No appellate authority shall proceed to decide any issue relating to the tax arrear specified in the declaration and in respect of which an order has been made under section 91 by the designated authority.
Any amount paid in pursuance of a declaration made under section 89 shall not be refundable under any circumstances.
For the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (3) of section 96, nothing contained in this Scheme shall be constructed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to which the declaration has been made.
(1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Scheme come into force.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely : -
(a) The form in which a declaration may be made under section 95 and the manner in which such declaration may be verified;
(b) The form of certificate which may be issued under sub-section (2) of section 96;
(c) Any other matter which is to be, or be, prescribed, or in respect of which Provision is to made, by rules.
(3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as may be after it is made, bef
(1) This Chapter extends to the whole of India.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
(3) It shall apply to taxable commodities transactions entered into on or after the commencement of this Chapter.
In this Chapter, unless the context otherwise requires,--
(1) "Appellate Tribunal" means the Appellate Tribunal constituted under section 252 of the Income-tax Act, 1961;
(2) "Assessing Officer" means the Income-tax Officer or Assistant Commissioner of Income-tax or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Chapter;
(3) "commodities transaction tax" means tax leviable on the taxable commodities transactions under the provisions of this Chapter;
(4) "prescribed" means prescribed by rules made under this Chapter;
&nb
On and from the date of commencement of this Chapter, there shall be charged a commodities transaction tax in respect of every taxable commodities transaction specified in column (2) of the Table below, at the rates specified in the corresponding entry in column (3) of the said Table, on the value of such transaction and such tax shall be payable by the seller or the purchaser, as the case may be, specified in the corresponding entry in column (4) of the said Table:
Table
Sl. No. Taxable commodities transaction Rate Payable by
(1) (2) (3) (4)
1. Sale of an option in goods or an option in commodity derivative 0.017 per cent. Seller
2. Sale of an option in goods or an option in commodity derivative, where o
The value of a taxable commodities transaction specified under column (2) of the Table in section 99 shall, with reference to such transactions--
(a) against serial number 1, be the option premium;
(b) against serial number 2, be the settlement price of the option in goods or option in commodity derivative, as the case may be;
(c) against serial number 3, be the price at which the commodity derivative is sold.
(1) Every recognised association (hereinafter in this Chapter referred to as assessee) shall collect the commodities transaction tax from the seller or the purchaser, as the case may be, who enters into a taxable commodities transaction in that recognised association, at the rates specified in section 99.
(2) The commodities transaction tax collected during any calendar month in accordance with the provisions of sub-section (1) shall be paid by every assessee to the credit of the Central Government by the seventh day of the month immediately following the said calendar month.
(3) Any assessee who fails to collect the tax in accordance with the provisions of sub-section (1) shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (2).
(1) Every assessee shall, within the prescribed time-limit after the end of each financial year, prepare and deliver or cause to be delivered to the Assessing Officer or to any other authority or agency authorised by the Board in this behalf, a return in such form, verified in such manner and setting forth such particulars as may be prescribed, in respect of all taxable commodities transactions entered into during such financial year in that recognised association.
(2) Where any assessee fails to furnish the return under sub-section (1) within the prescribed time limit, the Assessing Officer may issue a notice to such assessee and serve it upon him, requiring him to furnish the return in the prescribed form and verified in the prescribed manner setting forth such particulars within such time as may be prescribed.
(3) An assessee who has
(1) For the purposes of making an assessment under this Chapter, the Assessing Officer may serve on any assessee, who has furnished a return under section 102 or upon whom a notice has been served under sub-section (2) of that section, whether a return has been furnished or not, a notice requiring him to produce or cause to be produced on a date to be specified therein such accounts or documents or other evidence as the Assessing Officer may require for the purposes of this Chapter and may, from time to time, serve further notices requiring the production of such further accounts or documents or other evidence as he may require.
(2) The Assessing Officer, after considering such accounts, documents or other evidence, if any, as he has obtained under sub-section (1) and after taking into account any other relevant material which he has gathered, shall, by an order in writing, assess
(1) With a view to rectifying any mistake apparent from the record, the Assessing Officer may amend any order passed by him under the provisions of this Chapter within one year from the end of the financial year in which the order sought to be amended was passed.
(2) Where any matter has been considered and decided in any proceeding by way of appeal relating to an order referred to in sub-section (1), the Assessing Officer passing such order may, notwithstanding anything contained in any other law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(3) Subject to the other provisions of this section, the Assessing Officer may make an amendment under sub-section (1), either suo motu or on any mistake brought to his notice by the asses
Every assessee, who fails to credit the commodities transaction tax or any part thereof as required under section 101 to the account of the Central Government within the period specified in that section, shall pay simple interest at the rate of one per cent. of such tax for every month or part of a month by which such crediting of the tax or any part thereof is delayed.
Any assessee who--
(a) fails to collect the whole or any part of the commodities transaction tax as required under section 101; or
(b) having collected the commodities transaction tax, fails to pay such tax to the credit of the Central Government in accordance with the provisions of sub-section (2) of that section, shall be liable to pay,--
(i) in the case referred to in clause (a), in addition to paying the tax in accordance with the provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions of section 105, by way of penalty, a sum equal to the amount of commodities transaction tax that he failed to collect; and
(ii) in the case referred to in clause (b), in addition to paying the tax in accordance with th
Where an assessee fails to furnish the return within the time-limits prescribed under subsection (1) or sub-section (2) of section 102, it shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which the failure continues.
If the Assessing Officer in the course of any proceedings under this Chapter is satisfied that the assessee has failed to comply with a notice under sub-section (1) of section 103, he may direct that such assessee shall pay, by way of penalty, in addition to any commodities transaction tax and interest, if any, payable by him, a sum of ten thousand rupees for each day during which the failure continues.
(1) Notwithstanding anything contained in section 106 or section 107 or section 108, no penalty shall be imposable for any failure referred to in the said sections, if the assessee proves to the satisfaction of the Assessing Officer that there was reasonable cause for the said failure.
(2) No order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard.
The provisions of sections 120, 131, 133A, 156, 178, 220 to 227, 229, 232, 260A, 261, 262, 265 to 269, 278B, 282 and 288 to 293 of the Income-tax Act, 1961(43 of 1961), shall apply, so far as may be, in relation to commodities transaction tax.
(1) An assessee aggrieved by any assessment order made by the Assessing Officer under section 103 or any order under section 104, or denying his liability to be assessed under this Chapter, or by an order imposing penalty under this Chapter, may appeal to the Commissioner of Income-tax (Appeals) within thirty days from the date of receipt of the order of the Assessing Officer.
(2) An appeal under sub-section (1) shall be in such form and shall be verified in such manner as may be prescribed and shall be accompanied by a fee of one thousand rupees.
(3) Where an appeal has been filed under sub-section (1), the provisions of sections 249 to 251 of the Income-tax Act, 1961(43 of 1961), shall, as far as may be, apply to such appeal.
(1) An assessee aggrieved by an order made by a Commissioner of Income-tax (Appeals) under section 111 may appeal to the Appellate Tribunal against such order.
(2) The Commissioner of Income-tax may, if he objects to any order passed by the Commissioner of Income-tax (Appeals) under section 111, direct the Assessing Officer to appeal to the Appellate Tribunal against such order.
(3) An appeal under sub-section (1) or sub-section (2) shall be filed within sixty days from the date on which the order sought to be appealed against is received by the assessee or by the Commissioner of Income-tax, as the case may be.
(4) An appeal under sub-section (1) or sub-section (2) shall be in such form and verified in such manner as may be prescribed and, in the case of an appeal filed under sub-section (1),
(1) If a person makes a false statement in any verification under this Chapter or any rule made thereunder, or delivers an account or statement, which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to three years and with fine.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), an offence punishable under sub-section (1) shall be deemed to be non-cognizable within the meaning of that Code.
No prosecution shall be instituted against any person for any offence under section 113 except with the previous sanction of the Chief Commissioner of Income-tax.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the time-limits within which and the form and the manner in which the return shall be delivered or caused to be delivered or furnished under section 102; and
(b) the form in which an appeal may be filed and the manner in which it may be verified under sections 111 and 112.
(3) Every rule made under this Chapter shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may
(1) If any difficulty arises in giving effect to the provisions of this Chapter, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Chapter come into force.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
1[Nothing contained in this Chapter shall apply to, or in relation to, the taxable commodities transaction entered on or after the 1st day of April, 2009.]
___________________________
1. Inserted by the Finance (No. 2) Act, 2009.
The Seventh Schedule to the Finance Act, 2001 shall be amended in the manner specified in the Eighth Schedule.
In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in sub-section (1), for the words "for a period of five years computed from the appointed day", the words, figures and letters "for the period beginning on the appointed day and ending on the 31st day of March, 2009" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of February, 2008.
In the Finance (No. 2) Act, 2004, with effect from the 1st day of June, 2008,--
(i) in section 98, in the Table, for serial number 4 and the entries relating thereto, the following serial number and the entries shall respectively be substituted, namely:--
Sl. No. Taxable securities transaction Rate Payable by
(1) (2) (3) (4)
"4 (a) Sale of an option in securities 0.017 per cent. Seller
(b) Sale of an option in securities, where option is exercised 0.125 per cent. Purchaser
(c) Sale of a futures in securities 0.017 per cent. Seller";
(ii) in section 99, for clause (a), the following clause shall be substituted, na
In the Finance Act, 2005,--
(i) in section 95, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2009, namely:--
"(3) Notwithstanding anything contained in sub-section (1), no banking cash transaction tax shall be charged in respect of any taxable banking transaction entered into on or after the 1st day of April, 2009.";
(ii) the Seventh Schedule shall be amended in the manner specified in the Ninth Schedule.
THE FIRST SCHEDULE
(See section 2)
1[PART I
Income-tax
Paragraph A
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in subclause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,-
Rates of income-tax
(1) where the total income does not Nil;
exceed Rs. 1,50,000
THE FIRST SCHEDULE
(See section 2)
1[PART I
Income-tax
Paragraph A
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in subclause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,-
Rates of income-tax
(1) where the total income does not Nil;
exceed Rs. 1,50,000
THE THIRD SCHEDULE
See section 72(ii)]
In the Second Schedule to the Customs Tariff Act -
(i) against heading No. 12, for the entry in column (3), the entry "Rs. 3000 per tonne" shall substituted ;
(ii) After heading No. 26 and the entries relating thereto, the following shall be inserted, namely :-
"27. Pig iron and spiegeleisen in pigs, blocks or other primary forms 20%
28. Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms: iron having minimum purity by weight of 99.94%, in lumps, pellets or similar forms 20%
29. Ferrous waste and scrap,
THE FOURTH SCHEDULE
(See section 81)
Provisions of the Central Excise Rules, 1944, to be amended Amendment Period of effect of amendment
(1) (2) (3)
Rule 12 of the Central Excise Rules, 1944 as substituted by notification number G.S.R. 699(E), dated the 22nd September, 1994. In the Central Excise Rules, 1944, in rule 12, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-- 8th day of July, 1999 to the 30th day of June, 2001 (both days inclusive).
"Provided further that the rebate of duty paid on excisable goods cleared from factory
THE FIFTH SCHEDULE
(See section 82)
Provisions of the Central Excise (No. 2) Rules, 2001, to be amended Amendment Period of effect of amendment
(1) (2) (3)
Rule 18 of the Central Excise (No. 2) Rules, 2001 as published vide notification number G.S.R. 444(E), dated the 21st June, 2001. In the Central Excise (No. 2) Rules, 2001, in rule 18, before the Explanation, the following proviso shall be inserted, namely:-- 1st day of July, 2001 to 28th day of February, 2002 (both days inclusive).
"Provided that the rebate of duty paid on excisable goods cleared from factory f
THE SIXTH SCHEDULE
(See section 83)
Provisions of the Central Excise Rules, 2002, to be amended Amendment Period of effect of amendment
(1) (2) (3)
Rule 18 of the Central Excise Rules, 2002 as published vide notification number G.S.R. 143(E), dated the 1st March, 2002. In the Central Excise Rules, 2002, in rule 18, before the Explanation, the following proviso shall be inserted, namely:-- 1st day of March, 2002 to 7th day of December, 2006 (both days inclusive).
"Provided that the rebate of duty paid on excisable goods cleared from factory for export shall also be
THE SEVENTH SCHEDULE
(See section 89)
In the First Schedule to the Central Excise Tariff Act,-
(1) in Chapter 24,-
(i) in tariff item 2402 20 10, for the entry in column (4), the entry "Rs 659 per thousand" shall be substituted;
(ii) in tariff item 2402 20 20, for the entry in column (4), the entry "Rs 1068 per thousand" shall be substituted;
(2) in Chapter 25,-
(i) in tariff item 2523 10 00, for the entry in column (4), the entry "Rs 450 per tonne" shall be substituted;
(ii) in tariff item 2523 29 10, 2523 29 20, 2523 29 30, 2523 29 40 and 2523 29 90, for the entry in col
THE EIGHTH SCHEDULE
(See section 122)
In the Seventh Schedule to the Finance Act, 2001 (14 of 2001),--
(1) in tariff item 2402 20 10, for the entry in column (4), the entry "Rs. 90 per thousand" shall be substituted;
(2) in tariff item 2402 20 20, for the entry in column (4), the entry "Rs. 145 per thousand" shall be substituted;
(3) after tariff item 2709 00 00 and the entries relating thereto, the following tariff items and entries shall be inserted, namely:--
Tariff item Description of goods Unit Rate of duty
(1) (2) (3)
THE NINTH SCHEDULE
[See section 120(ii)]
In the Seventh Schedule to the Finance Act, 2005 (18 of 2005),--
(1) in tariff item 2402 20 10, for the entry in column (4), the entry "Rs. 70 per thousand" shall be substituted;
(2) in tariff item 2402 20 20, for the entry in column (4), the entry "Rs. 110 per thousand" shall be substituted.
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