The Gazette of India
EXTRAORDINARY
PUBLISHED BY AUTHORITY
NEW DELHI, FRIDAY, NOVEMBER 19, 1948
GOVERNMENT OF INDIA
MINISTRY OF LAW
New Delhi, the l9th November 1948
ORDINANCE No. XXXV OF 1948
AN
ORDINANCE
further to amend the Taxation on Income (Investigation Commission) Act, 1947
WHEREAS an emergency has arisen which makes it necessary further to amend the Taxation on Income (Investigation Commission) Act, 1947 (XXX of 1947), for the purposes hereinafter appearing;
Now THEREFORE, in exercise of the powers conferred by section 42 of the Government of India Act, 1935 (26 Geo, 5, c. 2), the Governor-General is pleased to make and promulgate the following Ordinance: —
1. Short title and commencement.—(1) This Ordinance may be called the Taxation on Income (Investigation Commission) (Amendment) Ordinance, 1948.
(2) It shall come into force at once. 2. Amendment Of section 6, Act XXX Of 1947.— In section 6 of the Taxation on Income (Investigation Commission) Act, 1947 (hereinafter referred to as the said Act.)-—
(i) for sub-section (1), the following sub-section shall be substituted, name- ly:—
"(1) The Commission shall have power to require any person or banking or other company to prepare and furnish on or before a specified date written statements of accounts and affairs verified in such manner as may be prescribed by the Commission and, if so required by the Commis- sion, also duly verified by a qualified auditor, giving information on such points or matters as in the opinion of the Commission may, directly or in- directly, be useful for, or relevant to, any case referred to it; and any per- son or banking or other company so required shall bo bound, notwithstand- ing any law to the contrary, to comply with such requirement."; (it) after sub-section (3), the following sub-section shall be inserted, name- ly.—
"(3A) For the purpose of any investigation, 'the Commission may impound and retain in its custody, for such period as it thinks fit, any document produced before it'.";
1786 THE GAZETTE 0% INDIA EXTRAORDINARY, NOV. 10, 1948 (i-u) for sub-aeotion (7), the following sub-section shall be substituted, namely: — s"(7) Where in the opinion of the Commission any person or banking* or other oompany is likely to be in possession of any information or docu- ment which may, directly or indirectly, be useful for, or relevant to, airy case referred to it or any oaso likely to be reported by the Commission to the Central Government under the provisions of sub- seotion (4) of section 5, the Commission, ami subject bo the direction o'1 the Commission, any authorised official, niny make r;ucb enquiries in such manner aa it or he may deem fit ;ind obtain from such person or bankiuy or other company statements, on oath :iv otherwise, on suc-b points or matters as may be specified; and for tbu purpose of any such erujuiry, the Commission and tbe authorised official shall have all the powers con- ferred on them by sub-soctions (1), (2), (2A), (3) and (d,)."
3. Insertion ol new section 8A In Act XXX ol 1947,—After section 8 of the said Act, the following section shall be inserted, namely: —
"8A. Settlement of cases under invontif/ation.—(1) "Where any person concerned in any case referred to or pending before the Commission for in- vestigation applies to the Commission, at any time during such investiga- tion, to havo the caso or any part thereof settled in so far as it relates to, him, the Commission shall, if it is of opinion that the terms of the settle- ment contained in the application may be approved, refer the matter to the Central Government, and if the Central Government accepts the tennR of such settlement, the Commission shall havo the terms thereof recorded and thereupon the investigation, in so far as it, relates to matters covered by such settlement, shall be deemed to be closod.
(2) "for the purpose of enforcing the terms of any settlement arrived at in pursuance of mib-section (1), the Central Government may direct that euch proceedings as may be appropriate under the Tndian Income-tax Act, 1922 (XI of 1922), the Excess Profits Tax Act, 1940 (XV of 1940) or any other law may be taken against the person to whom the settlement relateR, and, in particular, the provisions of the second proviso to clause (a) of sub-section (£) of section 23, sootion 24B, the proviso to sub-section (2) of section 25A, the proviso to sub-section (S) of section 26 and sections 44 and 46 of the Indian Income-tax Act, 1022, shall be applicable to the recovery of any sum Rpcoifled in such settlement by the Income-tax. Officer having jurisdiction to assess the person by whom such sum is payable as if it were income-tax or an arrear of income-tax within the meaning of those provisions.
(3) Subject to the provisions nf sub-section (6) of Rcction ft, any settle- ment arrived at under this section shall be conclusive as to the matters stated therein, arid rio person whose case has been so settled shall be entitled to reopen in any proceeding for the recovery of any sum under this section or in any subsequent assessment or reassessment proceeding relating to taxation on income or in any other proceeding before any Court or other authority- any matter which forms part of such settlement.
(4) Nothing contained in this sect'on shall, unless otherwise expressly specified in the settlement, be a bar to the initiation of proceedings under section 84 of the Indian Inoome-tax Act, 1922."
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C, EAJAGOPALACHAET,