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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No 451] NEW DELHI, TUESDAY, SEPTEMBER 19, 1967/BHADRA 28, 1889

Separate paging is given to this Part in order that it may be filed as a separate compilation.

CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION

INCOME-TAX

New Delhi, the 18th September 1967

S.O. 3408.—In exercise of the powers conferred by clause (d) of sub-section (4) of section 2 of the Finance (No. 2) Act, 1967 (20 of 1967), and in supersession of the Income-tax (Determination of Export Profits) Rules, 1967 published with the Notification of the Government of India in the Ministry of Finance, Central Board of Direct Taxes, No. S.O. 2382 dated the 15th July, 1967 in the Gazette of India Extraordinary Part II—Section 3(ii) dated the 15th July, 1967, Central Board of Direct Taxes hereby makes the following rules, namely:—

1. Snort title and commencement.—(1) These Rules may be called the Income- tax (Determination of Export Profits) (No. 2) Rules, 1967.

(2) These rules shall be deemed to have come into force on the 1st day of April, 1967.

2. Computation of qualifying income.—(1) Where the total income of an assessee referred to in sub-clause (i) of clause (a) Of sub-section (4) of section 2 of the Finance (No. 2) Act. 1967 (20 of 1967) includes any profits and gains derived from the export. made before the 6th day of June, 1966. of any Roods or merchan- dise out of India, the amount, of such profits and gains in respect of which deduc- tion of income-tax is admissible under the said sub-clause (such profits and gains being hereafter referred to as the qualifying income) shall be computed in ac- cordance with the provisions of sub-rule (2) or sub-rule (3) or sub-rule (4), as the case may be. I562 THE CA7EJTE OF INDIA EVIRAORDINARY [PARI II-SFC, 3 (ii) ]

(2) Where in the opinion of the Income-tax Officer it is possible to ascertain the profits and gains on such exports, the qualifying income shall be taken to be the amount by which the profits and gains 30 ascertained in accordance with the provisions of the Income-tax Act, 1961 (43 of 1961), (hereinafter referred to as the Act) and included in the total income exceed the aggregate of the emount of any portion thereof on which income-tax is not payable and the amount in respect of which a deduction of income-tax has been granted under any of the provisions of the Act.

(3) Where in the opinion of the Income-tax Officer it is not possible to ascer- tain the profits and gains on such exports, the qualifying income shall be taken to be amount which bears to the profits and gains of the whole business of which such exports form a part and included in the total income (as reduced by the aggregate of the amount of any portion thereof on which income-tax is not pay- able and the amount in respect of which a deduction of Income-tax has been granted under any of the provisions of the Act), the same proportion as the value of the turnover in respect of such exports bears to the turnover of the business of which such exports form a part.

(4) Where in the opinion of the Income-tax Officer a computation of such profits and gains in the manner specified in sub-rule (3) presents exceptional difficulties, the qualifying income shall be taken to be the amount by which such profits and gains as ascertained by the Income-tax Officer on any other reason- able basis on the data available and included in the total income exceed the aggregate of the amount of any portion thereof on which income-tax is not pay- able and the amount in respect of which a deduction of income-tax has been granted under any of the provisions of the Act.

[No. 103/F.No.3(17)/67-TPL.]

HARIHAR LAL, Secy.

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