Subject NOT available · Indian Gazettes

REGISTERED No. L. 8131

The Gazette of India

EXTRAORDINARY

PUBLISHED BY AUTHORITY

NEW DELHI , WEDNESDAY , DECEMBER 10 , 1947

GOVERNMENT OF INDIA

MINISTRY OF LAW

(Reforms)

NOTIFICATION

New Delhi , the 10th December 1947

No. G. G. O. 31. The following Order made by the Governor -General is published for general information : ---

THE INDIA ( ADAPTATION OF INCOME - TAX , PROFITS TAX AND REVENUE RECOVERY ACTS ) ORDER , 1947 .

In exercise of the powers conferred by section 9 of the Indian Independence Act , 1947 , and of all other powers enabling him in that behalf , the Governor- General is pleased to make the following Order : -

1. ( 1) This Order may be cited as the India (Adaptation of Income Tax , Profits Tax and Revenue Recovery Acts) Order , 1947 .

(2) It shall be deemed to have effect from the fifteenth day of August , 1947 .

2. In 1 r ännli 1 to the Dominion , of India and any part or pai "the Central Acts specified in the Schedule to this Order shall , as from the fifteenth day of August , 1947 , and until repealed or altered or amended by a competent Legislature , he sunject to the adaptations specified in the said Schedule .

3. The provisions of this Order shall have effect notwith- standing anything to the contrary contained in the India (Adaptation of Existing Indian Laws ) Order , 1947.

( 1329 )

1330 THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947

THE SCHEDULE .

(See Article 2)

I. THE INDIAN INCOME - TАХ АСТ , 1922 (XI OF 1922)

Section 1. In sub- section (2) , omit " British Baluchistan and " and " the Crown Representative or "

Section 2. After clause ( 3 ) , insert : -

'( 3A) " British India " means , as respects any period before the 15th day of August , 1947 , the terri- tories then referred to as British India but in- cluding Berar , and as respects any period after the 14th day of August , 1947 , the territories for the time being comprised in the Provinces of India;' .

Section 7. In sub - section (2 ) , omit " the Crown Repre- sentative or .

Section 23. In sub - section ( 5) , at the end of the second proviso to clause (a) , for " and substitute :-

" Provided also that if at the time of assessment of any partner of a registered firm , the Income- tax Officer is of opinion that the partner is residing in Pakistan , the partner's share of the income , profits and gains of the firm shall be assessed on the firm in the manner laid down in the preced- ing proviso and the sum so determined as pay- able shall be paid by the firm ; and " .

To section 46 , add : -

a "(8) For the purposes of this section , the expression " Collector " shall include Collector in Pakistan and the Income- tax Officer may for- ward a certificate under sub - section ( 2) to a Collector in Pakistan through the Central Board of Revenue of Pakistan, if the assessee has property in the district of that Collector.

(9 ) Where a Collector in British India receives through the Central Board of Revenue of India a certifi- cate under the signature of an Income - tax Officer in Pakistan , the Collector shall proceed to recover the amount specified therein in the manner in which he would proceed to recover the amount specified in a certificate received from an Income- tax Officer in British India , and shall remit any sum so recovered by him to the Income- tax Officer in Pakistan , after THE GAZETTE OF INDIA EXTRAORDINARY, DEC . 10, 1947 1331

deducting his expenses in connection with the recovery proceedings .

(10) The provisions of sub- sections ( 8 ) and (9) shall remain in force only so long as there are in force similar provisions in this Act as in force as part of the law of Pakistan or under any other similar Act forming part of the law of Pakistan, for the recovery of tax by a Collector in Pakistan on receipt of a certificate from an Income - tax Officer in British India ."

Section 49A . In sub- section (1) after "Dominion income- tax" insert " in one or more countries " , and in sub- section (2) for " other than the United Kingdom " substitute " including the United Kingdom" .

After section 49A , insert : -

" 49AA . Agreement for avoidance of double taxation in India and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of income , profits and gains under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ."

Section 54.- In sub- section (3 ) , in clause (i ) , after " 49 " insert " or section 49AA" .

Section 66 .--In sub - section (8 ) , omit clause (а ) .

Section 66A .-In sub - section ( 1 ) , omit the proviso .

II . THE EXCESS PROFITS TAX ACT , 1940 (XV OF 1940)

Section 2. After clause ( 4) , insert :-

" (4A) " British India" means , as respects any period before the 15th day of August , 1947 , the territories then referred to as British India , and as respects any period after the 14th day of 'August , 1947 , the territories for the time being comprised in the Provinces of India ; "

After section 11 , insert :

" 11A . Agreement for avoidance of double taxation in India and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in 1332 THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947

force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ."

Section 12. In sub- section ( 1 ) , after " section 11 " insert " or section 11A "

After section 21 , insert : -

" 21A. Application of Income- tax Act before 15th day of August , 1947 , with certain modification.- Any references in this Act to the Indian Income- tax Act , 1922 , shall , in relation to the profits of any chargeable accounting period and to the state of affairs and all the circumstances neces- sary to determine the charge to excess profits tax, mean the said Act as in force in the relevant period:

Provided that whatever be the relevant period, references to section 46 of the said Act shall be deemed to include references to sub- sections ( 8) , (9) and (10) of that section. "

III -THE BUSINESS PROFITS TAX ACT , 1947 ( XXI OF 1947)

Section 2. After clause ( 2) , insert : -

" ( 2A) ' British India ' means , as respects any period before the 15th day of August , 1947 , the terri- tories then referred to as British India , and as respects any period after the 14th day of August , 1947 , the territories for the time being compris- ed in the Provinces of India ; " .

After section 18 , insert :-

" 18A . Agreement for avoidance of double taxation in India and Pakistan .-The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in force in Pakistan, and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ."

Section 19. For " section 21 "" substitute " sections 21 and 21A" .

IV. THE REVENUE RECOVERY ACT , 1890 ( I OF 1890)

Section 1. For sub- section (2) , substitute : -

"(2) It extends to all the Provinces of India ." THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947 1333

Section 4. In sub- section ( 4) .-

before " Burma " where it occurs for the first and second times , insert " Pakistan or " ;

for " Burma " where it occurs for the third time , sub- stitute " Pakistan or Burma , as the case may be," ;

for " British India " substitute " a Province of India" .

Section 8.- Omit " or the Crown Representative"

For " British India " at both the places , substitute " the Provinces of India" .

It occurs . Section 9. In sub- section (1) , omit " British " wherever Add the following sub - section : ---

" ( 3 ) Sub- sections ( 1) and (2) shall apply in relation to Pakistan as they apply in relation to Burma".

Section 10. After " Collector in " insert " Pakistan or " .

MOUNTBATTEN OF BURMA ,

Governor-General .

K. V. K. SUNDARAM ,

Secretary.

1834 THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947

MINISTRY OF FINANCE ( REVENUE DIVISION )

NOTIFICATION

INCOME - TAX

New Delhi , the 10th December 1947

No. 28. In exercise of the powers conferred by section 49AA of the Indian Income - tax Act , 1922 ( XI of 1922) , Sec . 11A of the Excess Profits Tax Act 1940 ( XV of 1940) and sec . 18A of the Business Profits Tax Act , 1947 ( XXI of 1947) , as adapted by the India (Adaptation of Income Tax , Profits Tax and Revenue Recovery Acts ) Order , 1947 , the Central Government is pleased to direct that all provisions of the annexed Agreement for the avoidance of double taxation of income , profits and gains under the said Acts which has been concluded between India and Pakistan shall be given effect to in the Dominion of India .

Agreement for the avoidance of Double Taxation of income between the Gov- ernment of the Dominion of India and the Government of the Dominion of Pakistan .

Whereas the Government of the Dominion of India and the Government of the Dominion of Pakistan desire to conclude an Agreement for the avoidance of double taxation of income chargeable in the two Dominions in accordance with their respective laws :

Now , therefore , the said two Governments do hereby agree as follows :-

Article I. The taxes which are the subject of the present Agreement are the taxes imposed in the Dominions of India and Pakistan by the Indian Income- tax Act , 1922 ( XI of 1922 ) , the Excess Profits Tax Act , 1940 , (XV of 1940 ) , and the Business Profits Tax Act , 1947 (XXI of 1947) as adapted in the respec- tive Dominions .

Article II . Subject to the provisions of Article IX this Agreement shall continue in force so long as the basis of residence and the scope of the charg ing provisions in the aforesaid Acts as adapted remain unaltered in both the Dominions , and shall apply to the following assessments made under the said Acts in the two Dominions-

( i) Assessments made on or after the 15th day of August 1947 for the assessment year 1947-48 (or for the corresponding chargeable accounting pe- riod).

( ii) All other assessments made on or after the 1st day of April 1948 , ex- cepting excess profits tax assessments for chargeable accounting periods for which provisional assessments have been made before 1st April 1948 .

Article III . Save under the provisions of Section 34 of Income - tax Act , 1922 , and Section 15 of the Excess Profits Act , 1940 as adapted neither Dominion shall charge to tax any income of a person whose assessment (whether regular or provisional ) including such income had been completed before the 15th day of August , 1947 , or 1st day of April , 1948 , as the case may be by an Income- tax Officer or Excess Profits Tax Officer functioning respectively under the Indian Income - tax Act , 1922 , or the Excess Profits Act , 1940 or under those Acts as adapted and applied to any Areas or to either Dominion .

Article IV . Each Dominion shall make assessment in the ordinary way under its own laws ; and , where either Dominion under the operation of its laws: charges any income from the sources or categories of transactions speci- fied in column 1 of the schedule to this Agreement (hereinafter referred to as the Schedule) in excess of the amount calculated according to the percentage specified in columns 2 and 3 thereof, that Dominion shall allow an abatement 1335 THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947

equal to the lower amount of tax payable on such excess in their Dominion as provided for in Article VI .

Article V. Where any income accruing or arising without the territories of the Dominions is chargeable to tax in both the Dominions , each Dominion shall allow an abatement equalto one - half of the lower amount of tax payable in either Dominion on such doubly taxed incorne .

Article VI .-( a ) For the purposes of the abatement to be allowed under Arti- cles IV or V , the tax payable in each Dominion on the excess or the doubly taxed income , as the case may be , shall be such proportion of the tax payable in each Dominion as the excess or the doubly taxed income bears to the total income of the assessee in each Dominion .

(b) Where at the time of assessment in one Dominion , the tax payable on the total income in the other Dominion is not known , the first Dominion shall make a domand without allowing the abatement , but shall hold in abeyance for a period of one year (or such longer period as may be allowed by the Income- tax Officer in his discrotion) the collection of a portion of the demand equal to the estimated abatement . If the assessee produces a certificate of assessment in the other Dominion within the period of one year or any longer period allowed by the Income - tax Officer , the uncollected portion of the demand will be adjusted against the abatement allowable under this Agreement ; if no such certificate is produced , the abatement shall cease to be operative and the out- standing demand shall be collected forthwith .

Article VII .--( a) Nothing in this Agreement shall be construed as modifying or interpreting in any manner the provisions of relevant Taxation laws in force in either Dominion .

(b) If any question arises as to whether any income falls within any one of the items specified in the schedule and if so under which item the question shall be decided without any reference to the treatment of such income in the assessment made by the other Dominion.

Article VIII . The Schedule to this Agreement may be modified from time to time by agreement between the Central Boards of Revenue of the two Dominions and references to the Schedule in the foregoing Artices shall be read as references to the Schedule , as modified .

Article IX . Either of the Contracting Parties may , six months before the beginning of any financial year (beginning on the 1st day of April) give to the other Contracting Party , through diplomatic channels , notice of termination , and in such event this Agreement shall cease to have effect in relation to any assessment to income -tax for the financial year beginning with the 1st day of April next following and in relation to assessments to any other tax on the income of the corresponding chargeable accounting period .

THE SCHEDULE

(See Article IV )

Source of income or

Romarks Percentage of income which each Do- minion is entitled to charge, under the Agreement

nature of transaction from which income in derived

Nil by the other .

1. ( a) Salaries paid by employers other than Government .

100 por cont , by the Do- minion in which the salary is earned by service .

1336

THE GAZETTE OF INDIA EXTRAORDINARY , DEC . 10 , 1947

(b) Salaries paid by 100 per cent , by the Do- Government .

Nil by the other.

minion which pays the

salary.

2. (a) Interest on Govern- ment Securities .

100 per cent . by the Do Nil by the other . minion where the secu- rities are enfaced for payment of interest and principal .

Nil by the other .

100 per cent , by the Do- minion in which the Investment is used .

(b) Interest on ве- curities other than Government securities .

8. Income from property 100 per cent , by the Do- Nil by the other .

minion in which the property is situated .

Nil by the other .

4. Income from profess- ion or vocation .

100 per cent , by the Do minion in which pro- fessional service rendered . ів

5. Income from " Busi- девя " ог " Other Sources " .

(a) Rent or royalty from lease renting or hire of property .

100 per cent , by the Do- Nil by the other .

minion in which the property is situated .

(b) Rent or royalty or license fees or any like consideration from rights conceded in respect of property .

( 0) Rent or royalty or any like considera- tion from any interest inproperty.

Nil by the other .

100 per cent , by the Do- minion in which the property is situated .

(d) Profits or gains from dealings in property growing out ofthe ownership or use of or interest in such property.

Nil by the other .

100 per cent , by the Do- minion in which the assot is used ,

( e) Rent or royalty for the use of or for the privilege of using pa- tents, copyrights goodwill , trade memarks and other like pro- perty .

Nil by the other .

100 per cent , by the Do minion into which the money is brought .

at (f) Income derived from any money lent interest and brought into a Dominion in cash or in kind .

THE G

( g) Transport Ships Air Road .

NARY . DEC. 10. 1947

1337

Nil by the other .

100 per cent , by the Do- minion in which the traffic originates .

6. Capital gains : -

Nil by the other .

100 per cent , by the Do- minion in which the capital asset is situated .

(a) From sale, ex- change or transfer of an immovable capital asset and any rights pertaining thereto .

(b) from the sale , ex- change or transfer of other assets .

Nil by the other .

the or 100 per cent , by the Do- minion in which sale exchange transfer take place .

the other . 90 per cent by .

100 per cent . of the profits by the Dominion in which goods are pur- chased provided there is a branch or regular purchasing agency in the Dominion .

7. ( a) Goods purchased in one Dominion and sold in the other in the same condition with- out any manufacturing process so as to change the identity of the goods .

If there is no regu- lar purchasing agency , 100 per cent . shall be chargeable by the Dominion in which goods are sold and Nil by the other .

Nil by the other .

100 % by the Dominion inwhich the goods are manufactured.

(b) Goods merchandise or commodities ma- nufactured in one Do- minion and delivered by the manufacturer to a buyer in the same Dominion .

25 % by the Domini- on in which goods are sold .

75% by the Dominion in which goods are manufactured .

( c ) Goods merchandiso or commodities ma- nufactured in one Do- minion and sold by the manufacturer in the other without any fur- ther process and with. out having a selling stablishment or regu- lar agency in the latter Dominion .

50 % by the Domini- on in which goods are sold .

50 % by the Dominion inwhich goods are ma- nufactured .

(d) Goods merchandise or commodities ma- nufactured in one Do- aninion and sold by the manufacturer in the other through a selling establishment or a re- gular agency .

50 % of the profits by each Dominion .

50 % ofthe profits by each Dominion .

of (e) Goods merchandise commodities ma- nufactured by the asse- ssees partly in one Do- ninion and partly in the other .

Nil by the other .

100 % by the Dominion in which the minerals are extracted .

(f ) Metal ores , minerals , mineral oils and forest produce extracted in one Dominion and de- livered by the extract- or to a buyer in the same Dominion .

1338

THE GAZETTE OF INDIA .

25 % by the Domini- on in which goods are sold .

75 % of the profits by the Dominion in which mi nerals are extracted .

(g) Metal ores , minerals , mineral oils and forest product extracted in one Dominion and sold in the other with uut any further manufac- turing process and without selling estah- lishment or a regular agency .

50 % of the profits by the Dominion in which minerals are extracted .

7. (4 ) As above but sold in the other Dominion through a branch or selling establishment or regular agency .

8. Dividends

50 % of the profits by the Dominion inwhich goods are sold .

( As in precedingco- lumn) .

By each Durminion im pro- portion to the profits of the company charge- able by each Dominion under this Agreement .

Relief un respect of any excess incometax dee- med to be paid by the share- holder shall be allowed by each Dominion proportin in to the profit of the company charg- eable by each under this ag- reement .

Nil by the other .

100 % by the Dominion in which the income actually accrues or ari- ses .

9. Any income derived from a source or category of transactions not men- tioned in any of the fore- going items ofthis Sche- dule.

K. R. K. Menon , Addl . Secy .

GOVERNMENT OF INDIA

MINISTRY OF LAW

(Reforms)

NOTIFICATION

New Delhi , the 10th December 1947

No. G. G. O. 31. The following Order made by the Governor- General is published for general information :-

THE INDIA ( ADAPTATION OF INCOME- TТАХ, PROFITS TAX AND REVENUE RECOVERY ACTS ) ORDER , 1947 .

In exercise of the powers conferred by section 9 of the Indian Independence Act , 1947, and of all other powers enabling him in that behalf , the Governor- General is pleased to make the following Order : -

1. (1) This Order may be cited as the India (Adaptation of Income Tax , Profits Tax and Revenue Recovery Acts) Order , 1947 .

(2) It shall be deemed to have effect from the fifteenth day of August , 1947 .

2. In their application to the Dominion of India and any part or parts thereof , the Central Acts specified in the Schedule to this Order shall , as from the fifteenth day of August , 1947 , and until repealed or altered or amended by a competent Legislature , he subject to the adaptations specified in the said Schedule .

3. The provisions of this Order shall have effect notwith- standing anything to the contrary contained in the India (Adaptation of Existing Indian Laws ) Order , 1947 .

THE SCHEDULE .

(See Article 2)

I. THE INDIAN INCOME - TAX ACT , 1922 (XI OF 192

Section 1. In sub- section (2) , omit " British Baluchistan and" and " the Crown Representative or " .

Section 2. After clause ( 3 ) , insert : -

the 14th day of August , 1947 , the territories for the time being comprised in the Provinces of India :' .

Section 7. In sub - section ( 2) . omit " the Crown Repre- sentative or" .

Section 23 .-- In sub - section ( 5 ) , at the end of the second proviso to clause ( a) , for " and substitute : -

"Provided also that if at the time of assessment of any partner of a registered firm , the Income - tax Officer is of opinion that the partner is residing in Pakistan , the partuer's share of the income , profits and gains of the firm shall be assessed on the firm in the manner jaid down in the preced- ing proviso and the suun so determined as pay- able shall be paid by the firm; and "

To section 46 , add : --

a " ( 8 ) For the purposes of this section , the expression " Collector " sball include Collector in Pakistan and the Income- tax Officer may for- ward a certificate under sub - section (2) to は Collector in Pakistan through the Central Board of Revenue of Pakistan , if the assessee has property in the district of that Collector .

(9 ) Where a Collector in British India receives through the Central Board of Revenue of India a certifi- cate under the signature of an Income - tax Officer in Pakistan , the Collector shall proceed to recover the amount specified therein in the manner in which he would proceed to recover the amount specified in a certificate received from an Income - tax Officer in British India , and shall remit any sum so recovered by him to the Income - tax Officer in Pakistan , after deducting his expenses in connection with the recovery proceedings .

( 10) The provisions of sub - sections ( 8 ) and (9 ) shall remain in force only so long as there are in force similar provisions in this Act as in force as part of the law of Pakistan or under any other similar Act forming part of the law of Pakistan , for the recovery of tax by a Collector in Pakistan on receipt of a certificate from an Income - tax Officer in British India .".

Section 49A. In sub - section ( 1) after " Dominion income- ax " insert " in one or more countries ' , and in sub- section ( 2) for " other than the United Kingdom " substitute " including he United Kingdom " .

After section 49A , insert :

49AA . A greement for avoidance of double taxation in India and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of income , profits and gains under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement . "

Seccion 54. In sub section ( 3 ) , in clause ( i ) , after " 49 " ansert " or section 49AA " .

Section 66. In sub - section ( 8 ) . omit clause ( a )

Section 66A. -In sub- section ( 1 ) , omit the proviso

II . THE EXCESS PROFITS TAX ACT , 1940 ( XV OF 1940)

Section 2. After clause ( 4 ) . insert :-

" (4A) " British India " means , as respects any period before the 15th day of August , 1947 , the territories then referred to as British India . and as respects any period after the 14th day of August , 1947. the territories for the time being comprised in the Provinces of India : "

After section 11 , insert :-

" 11A . Agreement for avoidance of double taxation in India and Pakistan .- The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in force in Pakistan, and may, by notification in the official Gazette , make such provision as may be necessary for implementing the agreement . " Section 12. In sub - section ( 1) , after " section 11 " insert " or section 11A "

After section 21 , insert :--

" 21A . Application of Income- tax Act before 15th day of August , 1947 ; with certain modification.- Any references in this Act to the Indian Income- tax Act . 1922. shall , in relation to the profits of 4

any chargeable accounting period and to un state of affairs and all the circumstances neces sary to determine the charge to excess profita tax , mean the said Act as in force in the relevant period :

Provided that whatever be the relevant period , references to section 46 of the said Act shall be deemed to include references to sub- sections (8 ) . (9) and ( 10) of that section.

ΠΙ .- THE BUSINESS PROFITS TAX ACT , 1947 (ХХІ OF 1947)

Section 2. After clause ( 2) , insert : -

" (2A) ' British India' means , as respects any period before the 15th day of August , 1947 , the terri- tories then referred to as British India, and as respects any period after the 14th day of August , 1947, the territories for the time being compris- ed in the Provinces of India : "

After section 18 , insert :-

" 18A . Agreement for avoidance of double taxation in India and Pakistan.- The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ." Section 19.-For " section 21 " substituto " sections 21 and 21A" .

IV . THE REVENUE RECOVERY ACT , 1890 ( I of 1890) Section 1. For sub- section (2) , substitute :-

"(2) It extends to all the Provinces of India ." Section 4.-In sub- section (4) .—

before " Burma " where it occurs for the first and second times , insert " Pakistan or " ;

for "Burma" where it occurs for the third time , sub- stitute " Pakistan or Burma , as the case máy be,";

for "British India " substitute " a Province of India" .

Section 8.- Omit " or the Crown Representative" .

For "British India " at both the places , substitute " the Provinces of India" .

Section 9 .-- In sub -section ( 1 ) , omit " British " wherever it occurs .

Add the following sub - section : ---

" ( 3 ) Sub - sections ( 1 ) and ( 2) shall apply in relation to Pakistan as they apply in relation to Burma " .

Section 10.-After " Collector in " insert " Pakistan or " .

MOUNTBATTEN OF BURMA ,

Governor-General

K. V. K. SUNDARAM ,

Secretary .

GIPD - L906M of L- 10-12-47-600 .

GOVERNMENT OF INDIA

MINISTRY OF LAW

(Reforms)

NOTIFICATION

New Delhi , the 10th December 1947

No. G. G. O. 31. The following Order made by the Governor- General is published for general information : - THE INDIA ( ADAPTATION OF INCOME- ТАХ , PROFITS TAX AND REVENUE RECOVERY ACTS ) ORDER , 1947 .

1. (1 ) This Order may be cited as the India (Adaptation of Income Tax , Profits Tax and Revenue Recovery Acts ) Order , 1947 .

(2) It shall be deemed to have effect from the fifteenth day of August , 1947 .

2. In their application to the Dominion of India and any part or parts thereof , the Central Acts specified in the Schedule to this Order shall, as from the fifteenth day of August , 1947 , and until repealed or altered or amended by a competent Legislature, he subject to the adaptations specified in the said Schedule .

3. The provisions of this Order shall have effect notwith- standing anything to the contrary contained in the India (Adaptation of Existing Indian Laws ) Order , 1947 .

THE SCHEDULE .

(See Article 2)

I. THE INDIAN INCOME - TAX ACT , 1922 (XI OF 1922)

Section 1. In sub- section (2 ) , omit " British Baluchistan and" and " the Crown Representative or" .

Section 2. After clause ( 3 ) , insert :-

the 14th day of August , 1947 , the territories for the time heing comprised in the Provinces of India:' .

Section 7 .-- lu sub- section ( 2), omit the Crown Repre- sentative or" .

Section 23.-1In sub - section ( 5 ) , at the end of the second proviso to clause ( a) , for " and " substitute :-

"Provided also that if at the time of assessment of any partner of a registered firm , the Income- tax Officer is of opinion that the partner is residing in Pakistan , the partner's share of the income , profits and gams of the firm shall be assessed on the firm in the manner land down in the preced- ing proviso and the sum so determined as pay- able shall be paid by the firm : and .

To section 46. add :-

a "(8 ) For the purposes of this section , the expression " Collector " shall include Collector in Pakistan and the Income- tax Officer may for- ward a certificate under sub- section (2) to a Collector un Pakistan through the Central Board of Revenue of Pakistan , if the assessee has property in the district of that Collector .

(9) Where a Collector in British India receives through the Central Board of Revenue of India a certifi- cate under the signature of an Income - tax Officer in Pakistan , the Collector shall proceed to recover the amount specified therein in the manner in which he would proceed to recover the amount specified in a certificate received from an Income- tax Officer in British India , and shall remit any sum so recovered by him to the Income- tax Officer in Pakistan , after deducting his expenses in connection with the recovery proceedings .

(10) The provisions of sub- sections (8) and (9 ) shall remain in force only so long as there are in force similar provisions in this Act as in force as part of the law of Pakistan or under any other similar Act forming part of the law of Pakistan , for the recovery of tax by a Collector in Pakistan on receipt of a certificate from an Income - tax Officer in British India . ".

Section 49A . In sub- section ( 1 ) after " Dominion income- tax " insert " in one or more countries " , and in sub - section ( 2) for " other than the United Kingdom " substitute " including the United Kingdom " .

After section 49A , insert-

" 49AA . Agreement for avoidance of double taxation in India, and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of income , profits and gains under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ...

Section 54. In sub - section ( 3 ) , in clause ( i ) , after " 49 " usert or section 49AA " .

Section 66. In sub - section ( 8) , omit clause ( a ;

Section 66A . In sub - section ( 1 ) , omit the proviso

IJ - THE EXCESS PROFITS TAX ACT , 1940 ( XV OF 1940)

Section 2. After clause ( 4) , insert:

" (4A) " British India " means , as respects any period before the 15th day of August , 1947 , the territories then referred to as British India . and as respects any period after the 14th day of August , 1947 , the territories for the time heing comprised in the Provinces of India :"

After section 11 , insert :-

" 11A. Agreement for aroidance of double taxation in India and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement ."

Section 12. In sub - section ( 1 ) , after " section 11 " insert " or section 11A" .

After section 21 , insert :--

" 21A . Application of Income- tax Act before 15th day of August , 1947 , with certain modification.- Any references in this Act to the Indian Income- tax Act . 1922 , shall . in relation to the profits of 4

any chargeable accounting period and to the state of affairs and all the circumstances neces- sary to determine the charge to excess profits tax , mean the said Act as in force in the relevant period :

Provided that whatever be the relevant period , references to section 46 of the said Act shall be deemed to include references to sub - sections (8 ) . (9) and ( 10) of that section . "

III .- THE BUSINESS PROFITS TAX ACT , 1947 (XXI OF 1947)

Section 2.-After clause ( 2) , insert : -

" (2A) ' British India' means , as respects any period before the 15th day of August , 1947 , the terri- tories then referred to as British India , and as respects any period after the 14th day of August , 1947 , the territories for the time being compris- ed in the Provinces of India ; " .

After section 18 , insert :

" 18A . Agreement for avoidance of double taxation in India and Pakistan . The Central Government may enter into an agreement with Pakistan for the avoidance of double taxation of profits under this Act and under the corresponding law in force in Pakistan , and may , by notification in the official Gazette , make such provision as may be necessary for implementing the agreement." Section 19.- For " section 21 " substitute " sections 21 and 21A" .

IV . THE REVENUE RECOVERY ACT, 1890 ( 1 of 1890 )

Section 1. For sub- section (2) , substitute :-

"(2) It extends to all the Provinces of India . "

Section 4. In sub - section (4) .-

before " Burma " where it occurs for the first and second times , insert " Pakistan or " ;

for "Burma" where it occurs for the third time, sub- stitute " Pakistan or Burma , as the case may, be,";

for "British India " substitute " a Province of India" .

Section 8.- Omit "or the Crown Representative" .

For " British India" at both the places , substitute " the Provinces of India" .

Section 9. In sub- section ( 1 ) , omit " British " wherever it occurs .

Add the following sub - section : --

" ( 3 ) Sub - sections ( 1 ) and ( 2 ) shall apply in relation to Pakistan as they apply in relation to Burma " .

Section 10.-After " Collector in " insert " Pakistan or " .

MOUNTBATTEN OF BURMA ,

Governor-General

K. V. K. SUNDARAM ,

Secretary .

GIPD - L906M of L- 10-12-47-600 .