REGISTERED No. D. 221
The Gazette of India
EXTRAORDINARY PART II-Section 1 PUBLISHED BY AUTHORITY
No. 15] NEW DELHI, TUESDAY, MAY 12 , 1964/VAISAKHA 22, 1886
Separate paging is given to this Part in order that it may be filed as a separate compilation
MINISTRY OF LAW (Legislative Department) New Delhi, the 12th May, 1964/Vaisakha 22, 1886 (Saka)
The following Act of Parliament received the assent of the Pre- sident on the 12th May, 1964, and is hereby published for general information: —
THE TAXATION LAWS (CONTINUATION AND VALI- DATION OF RECOVERY PROCEEDINGS) ACT, 1964
No. 11 OF 1964
[12th May, 1964]
An Act to provide for the continuation and validation of pro- ceedings in relation to Government dues and for matters connected therewith.
BE it enacted by Parliament in the Fifteenth Year of the Republic of India as follows:—
Short title.
1. This Act may be called the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964.
2. In this Act, unless the context otherwise requires,— Definitions
(a) "assessee", in relation to—
15 of 1940. 21 of 1947.
(i) the Excess Profits Tax Act, 1940, or the Business Profits Tax Act, 1947, means a person by whom the tax or any other sum is payable under that Act;
(ii) the Estate Duty Act, 1953, means a person account- 34 of 1953
able or an accountable person as denned in that Act;
(iii) any other scheduled Act, means an assessee as defined in that Act;
(155)
156 THE GAZETTE OF INDIA EXTRAORDINABY [PART II(b) "Government dues", in relation to any scheduled Act, means any tax, duty, penalty, fine, Interest, annuity deposit or any other sum payable to the Government by an assessee under that Act;
(c) "scheduled Act" means an Act specified In the Schedule; (d) "Taxing Authority", in relation to any scheduled Act, means an officer (by whatever name called) empowered to serve upon an assessee a notice of demand in respect of any Govern- ment dues under that Act;
(e) "Tax Recovery Officer", in relation to any scheduled Act, means a Tax Recovery Officer as denned in that Act and where there is no such definition, means an officer (by what- ever name called) to whom a certificate for the recovery of arrears of Government dues may be Issued under that Act.
3. (1) Where any notice of demand in respect of any Govern- ment dues is served upon an assessee by a Taxing Authority under any scheduled Act, and any appeal or other proceeding is filed or taken in respect of such Government dues, then,—
Continua- tion and validation of certain proceed- ing!,
(a) where such Government dues are enhanced in such appeal or proceeding, the Taxing Authority shall serve upon the assessee another notice of demand only in respect of the amount by which such Government dues are enhanced and any proceed- ings in relation to such Government dues as are covered by the notice or notices of demand served upon him before the disposal of such appeal or proceeding may, without the.service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal;
(b) where such Government dues are reduced in such ap- peal or proceeding,—
(i) it shall not be necessary for the Taxing Authority to serve upon the assessee a fresh notice of demand;
(ii) the Taxing Authority shall give intimation of the fact of such reduction to the assessee, and where a certifi- cate has been issued to the Tax Recovery Officer for the recovery of such amount, also to that officer;
(Hi) any proceedings initiated on thd basis of the notice or notices of demand served upon the assessee before the disposal of such appeal or proceeding may be continued in relation to the amount so reduced from the stage at which . such proceedings stood immediately before such disposal;
(c) no proceedings in relation to such ^Government dues (including the imposition of p.enalty or charging of interest)
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 157shall be invalid by reason only that no fresh notice of demand was served upon the assessee after the disposal of such appeal or proceeding or that such Government dues have been enhanced or reduced in such appeal or proceeding:
Provided that if as a result of any final order such Govern- ment dues (other than annuity deposit) have been reduced and the penalty imposed on the assessee for default in payment there- of exceeds the amount so reduced, the excess shall not be re- covered and if it has already been recovered, it shall be refund- ed to the assessee on an application made by him to the Taxing Authority within such time and in such manner as may be pres- cribed by rules made under this Act:
Provided further that if the amount of penalty imposed on the assessee for failure to make any annuity deposit exceeds one- half of the amount of the annuity deposit required to be made as a result of such order, the excess shall not be recovered, and if it has already been recovered, shall be refunded to the assessee on an application made by him to the Taxing Authority within such time and in such manner as may be prescribed by rules made under this Act:
Provided further that where any Government dues are re- duced in such appeal or proceeding and the assessee' is entitled to any refund thereof, such refund shall be made in accordance with the provisions of that Act.
(2) For the removal of doubts, It is hereby declared that no fresh notice of demand shall be necessary In any case where the amount of Government dues is not varied as a result of any order passed IM any appeal or other proceeding under any scheduled Act-
(3) The provisions of this section shall have effect notwithstand- ing any judgment, decree or order of any court, tribunal or other authori ty.
Power to amend the Schedule.
4. The Central Government may, by notification in the Official Gazette, add the name of any Central Act providing for the imposi- tion or levy of any tax or duty in the Schedule and on the issue of any such notification, the Act so added shall be deemed to be an Act specified in the Schedule within the meaning of clause (r) of section 2.
Act to have re- trospectivi effect.
5. The provisions of this Act shall apply and shall be deemed always to have applied, in relation to every notice of demand served upon an assessee by any Taxing -Authority under any scheduled Act whether such notice was or is scived before or after the commence- ment of this Act.
l5 8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 1]Power to remove difficulties
6. IJ! any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published In the Official Gazette, make such provisions not inconsistent with the purposes of this Act, as appear to it to be necessary or expedient for removing the difficulty.
7. (1) The Central Government may make rules for carrying out the purposes of this Act.
Power to make rules.
(2) Every rule made under this Act 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 be comprised in one session or in two successive sessions, and, if before the expiry of the session in which it is so laid or the session immediately follow- ing both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, that rule shall there- after have effect, only in such modified form ox be of no effect, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
THE SCHEDULE
[See section 2(c)]
1. The Indian Income-tax Act, 1922 (11 of 1922).
2. The Excess Profits Tax Act, 1940 (15 of 1940).
3. The Business Profits Tax Act, 1947 (21 of 1947).
4. The Estate Duty Act, 1953 (34 of 1953).
5. The Wealth-tax Act, 1957 (27 of 1957).
6. The Expenditure-tax Act, 1957 (29 of 1957).
7. The Gift-tax Act, 1958 (18 of 1958).
8. The Income-tax Act, 1961 (43 of 1961).
9. The Super Profits Tax Act, 1963 (14 of 1963).
R. C. S. SARKAR, Secy, to the Govt, of India.