CENTRAL'S
LIBRARY
227
Government india .
REGISTERED No. D -28
of India The Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
NEW DELHI , FRIDAY , AUGUST 23 , 1949
GOVERNMENT OF INDIA
MINISTRY OF LAW
New Delhi , the 20th August , 1949
ORDINANCE NO XXI OF 1919
AN
ORDINANCE
to extend certain laws relating to laxation on income to certain areas adminio- tered as parts of Governors ' Provinces or as Chief Commissioner ' Provinces .
WHEREAS by Orders under section 200A of the Government of India Ack, 1935 (26 (Geo . 5 , c . 2) , provision has been made for the administration of certain arons cither as if they formed put of a Governor's Province or as if they were a Chief Commissioner's Province ;
AND WHEREAS an emergency has arisen which makes it necessary that certain laws relating to taxation on incomo should be extended to , and by virtue of such extension , be in force in , the said arcas ;
NOW , THEREFORE , in exercise of the powers conferred by section 42 of the said Act , the Governor -General is pleased to make and promu'gate the following Ordinance :--
1. Short title and commencement . ( 1 ) This Ordinance may be called the Taxation Laws ( Extensionto Merged States) Ordinance , 1949 .
(2) It shall come into force at once .
meant 2. Definition . In this Ordinance , the expression " merged States " all the States and parts of States which are administered by virtue of the States' Merger ( ( tovernors ' Provinces ) Order , 1949 , as if they formed part of a Govermors Province or administered by virtue of the States ' Merger ( Chiel Comimssioners' Provinces ) Order , 1949 , as if they were a Chief Commissioner ' Province ,
3. Extension of taxation laws to merged States . (1 ) The following Act namely :--
(i) the Indian Income - tax Act , 1922 (XI of 1922 ) ,
(1457) 1458 THE GAZETTE OF INDIA EXTRAORDINARY , AUGUST 26 , 1940
i) the Government Trading Taxation Act , 1926 ( III of 1926) ,
( ii ) the Business Profits Tax Act , 1947 ( XXI of 1947 ) ,
(iv ) the Taxation on Income (Investigation Commission ) Act , 1947 (XXX of 1947) ,
(1 ) the Indian Finance Act , 1949 (XIV of 1949 ) ,
( ni ) the Payment of Taxes (Transfer of Property) Act , 1949 ( XXII ( 1949 ) ,
and all rules and orders made thereunder which are in force immediately before the commencement of this Ordinance , are hereby extended to , and shall be in force in , all the merged States
(2) The Indian Income - tax Act , 1922 , the Business Profits Tax Act 1947, and the Indian Finance Act , 1949 , and ail rules and orders made there- under , shall operate as if they had been extended to , and brought into force in, all the merged States on the 1st day of April , 1949 .
4. Interpretation of laws as extended . In any Act , rule or order extended by section 3 to the merged States , notwithstanding anything contained in the General Clauses Act, 1897 (X of 1897 ) ,-
(a) any reference , by whatever form of words , to the Acceding States or the Indian States shall be construed as not inc'uding a reference to any of the merged States ;
(b) any reference , by whatever form of words , to British tubjects shall be deemed to include a reference to persons who , immediately befow the 1st day of August , 1949 , were subjects of any of the merged States ;
(c) any reference , by whatever forın of words , to any Governor's Province shall be construed as including a reference to those merged States which are now administered as if they formed part of that Province ; and
(d) any reference , by whatever form of words , to the Provinces gen- erally or to the Chief Commissioners ' Provinces generally shall be con- strued as including a reference to those merged States which are non ministered as if they were a Chief Commissioner's Province . d.
5. Amendment of Act XI of 1922. The amendments specified in the First Schedule shall be made in the Indian Income- tax Act , 1922 , and shall be deemed to have been made therein with effect from the 1st day of April , 1949
6. Amendment of Act XXI of 1947. The amendments specified in the Second Schedule shall be made in the Business Profits Tax Act , 1947 , and shall be deemed to have been made therein with effet from the ist day of April , 1940
7. Repeal of corresponding laws and savings .---( 7 ) 11, in mediately betore the compenecmem of this Ordinance , there is in tores in any of the merged Stateς την Jaw relating to income- tax , super - tax or business profits tax, that shall cease to have effect except for the purposes of the levy , assessment and coflechon of income - tax and supor - tax in respect of any period not included In the previous your for the purposes of assessment under the Indian Income - tax Ant, 1922 , extended to that Stote by this Ordinance , or , as the case may be , the levy , assessment and collection of business profits tax for any chargeable counting period ending on or before the 81st day of March , 1948 , and for any purposes connected with such levy , assessment or collection:
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Provided that any referenco m any such law to an officer , authority , tribunal or Court shall be construed as a reference to the corresponding officer , authority, iribunal or Court appointed or constituted by or under the Indian Income - tax Act , 1922 , or , as the case may be , the Business Profits Tax Act , 1947 , as ex- tended by this Ordinance to that merged State .
Provided further that if any question arises as to who such corresponding officer , authority , tribunal or Court is , the decision of the Central Government thereon shall be final .
( 2) Notwithstanding anything contained in any Order made by the Govern nent of any Province under the Extra - Provincial Jurisdiction Act , 1947 ( XLVII of 1947) applying the Indian Income - tax Act , 1922 or the Business Profits Tax Act , 1947 to any of the merged States now administered as part of that Province , and repealing the corresponding enactment , if any , of that merged State in force therein immediately before such application , that enactment shall be deemed to be a law in force in that merged State immediately before the commencement of this Ordinance, and the provisions of sub - section ( 1) of this section shall apply accordingly in relation to that law; and all references to the Indian Income - tax Act , 1922 and the Business Profits Tax Act , 1947 shall be omitted from and shall be deemed never to have been included in the said Order .
(3 ) If, immediately bofore the commercement of this Ordinance , there is in force in any of the merged States any law corresponding to the Government Frading Taxation Act , 1926 , the Taxation on Income (Investigation Commission) Act, 1947, or the Payment of Taxes ( Transfer of Property) Act , 1949 , whether by virtue of an order under the Extra - Provincial Jurisdiction Act , 1947 , or by virtue of any other legislative power, such corresponding law is hereby repealed:
Provided that section 6 of the General Clauses Act , 1897 , shall apply in re- lution to such repeal as if the corresponding law had been an enactment and this Ordinance had been a Central Act .
8. Removal of difficulties ,-If any difficulty arises in giving effect to the provisions of this Ordinance , the Central Government may by order make such provisions , or give such directions , as appear to it to be necessary for removal of the difficulty .
THE FIRST SCHEDULE
(See section 5)
Amendments to the Indian Income- tar Act 1922 ( A ) of 1922 )
1. In section 2 ,-
(a) to clause ( 34) , the following provisos shall be added , namely: --
" Provided that , is respects any period mcluded in the previous year for the purpose of making any assessment for the year ending on the 31st day of March , 1950 , or for any subsequent year, and as respects any period after the 31st day of March 1949 , for any of the purposos this Act , the merged States shall be deemed to be territories comprised in the Provinces of Indus
Provided further that , for the purposes of sections 44 and 4B , the merged States shall , as respects uny period whether before or after the 31st day of March 1949 be deetned to be territories comprised m British India
( b) m slause (74 ) , aitor the figures 1918 the words ' or a company tomed and registered under a law in force in any of the merged States' shall be inserted 230.
1460 THE GAZETTE OF INDIA , EXTRAORDINARY , AUGUST 26 , 1040
(1) after clause ( 8 ) , the following clause shan he inserted , namely : --
" ( 84) ' merged States' means all the States and parts of Stater which are admmunstered by virtue of the States' Merger ( Governors Provinces ) Order , 1949 , as if they formed part of a Governor's Pro- vince , or administered by virtue of the States' Merger ( Chief Com- missioners ' Provinces ) Order , 1949 , ns if they were a Chief Com- missioners Province;" .
2. In sub- section ( 1 ) of section 4 , Explanation shall be inserted , namely :- after Explanation 3 the to lowing
" Explanation 1. For the purposes of sub - clause ( ii) of cause ( b ) of sub - setton ( 1 ) , income , profits and gams accruing , or arising , in any of the merged States before the begining of a previous year and after the 1st day of April , 1933 , shal be deemed to be brought into , or received in , British India during such year it and only if , they are brought into , or received in , any part of British Ind'a other than that merged State during such year . "
3. In sub - section ( 7 ) of section 22 , for the words " Provided that the folow- ing shall be substituted , namely :-
"Provided that the noticeto be given under this section im respect of the merged States in the year 1949 sha'l be given on or before the 1st day of October , 1949 :
Provided further that " ,
4 After section 60 , the following section shall be inserted , namely: -
" 60A . Power to make exemption , etc. , in relation to merged States.- If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly , or removing any ditlicu ty , that may arise as a result of the extension of this Act to the merged States , the Central Goverurnent may , by general or special order , make an exemp- tion , reduction in rate or other modification in respect of income - tax in favour of any class of income , or in regard to the whole or any part of the income of any person or class of persons . "
5. In sub - c'ause (a) of clause ( iv) of sub - section (2) of section 61 , after the figures " 1938 " the words and figures " in British India , or before the 1st day of April , 1949, in any of the merged States shall be inserted.
6. For sub - section ( 8 ) of section 66 , the following sub- section shal be sub- stituted , namely :-
( 8 ) For the purposes of this section , ' tho High Court means- " that Province ; (a) in relation to any Governor's Province, the High Court of
(b) in relation to the Chief Commissioners' Provinces of Delhi Himachal Pradesh and Bilaspur , the High Court of East Punjab ;
(c) in relation to the Chief Commissioners ' Provinces of Ajmer- Merwara , Panth Piploda and Rampur , the High Court at Al'ahabad.
(d) in relationto the Chief Commissioner's Province of Coorg , the High Court at Madras ;
(e) in relation to the Chief Commissioner's Province of the Anda- man and Nicobar Islands the High Court at Calcutta;
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(f) in relation to the Chief Commissioner's Province of Kutch, the High Court at Bombay ; and
(g) in relation to the Chief Commissioner's Province of Bhopal , the High Court at Nagpur. "
THE SECOND SCHEDULE
(See section 6)
Amendments to the Business Profits Tax Act , 1947 (XXI of 1947) .
1. In section 2,-
(a) to clause (2.1) the following proviso shail be added , namely-
"Provided that , as respeets any accounting period whether falling wholly within, or partly within and partly without, the year ending on the 31st day of March , 1949 , for the purpose of making any assess- ment under this Act, and as respects any period after the 31st day of March , 1949 , for any of the purposes of this Act , the merged States shall be deemed to be territories comprised in the Provinces of India . " ;
(b) in clause (5), after the figures " 1913 " the words " or a company formed and registered under a law in force in any of the merged States' shall be inserted ; and
(c) after clause ( 12 ) , the following clause shall be inserted , namely : ---
"(124) 'merged States' means all the States and parts of States which are administered by virtue of the States Merger ( Governors Provinces) Order, 1949 , as if they formed part of a Governor's Pro- wince, or administered by virtue of the States Merger ( Chief Com- missioners' Provinces) Order, 1949 , as if they were a Chief Com- missioner's Province . "
2. After section 23 , the following section shall be inserted , namely:-
23A. Power to make exemption , etc. , in relation to merged Stotes-If the Central Government considers it necessary or expedient so to do , for avoiding any hardship or anomaly, or removing any difficulty , that may arise as a result of the extension of this Act to the merged States, the Central Goverument may , by general or special order , make an exemption , reduction in rate or other modification in respect of business profits tax in favour of any class of profits , or in regard to the whole or any part of the profits of any person or class of persons ."
C. RAJAGOPALACHARI , Governor- General .
K. V. K. SUNDARAM , Secy. to theGovt . of India .
PUBLISHED BY THE MANAGER OF PUBLICATIONS , DELHI , INDIA PRINTED BY THE MANACER , GOVERNMENT OF INDIA PRESS . NEW DELHI . INDE