REGISTERED NO, D, 221 रजिस्ट्री सं ० डी० 221
भारत को राजपत्र
The Gazette of India
प्रसाधारण
EXTRAORDINARY
भाग II-- खण्ड 2
PART II- Section 2
प्राधिकार में प्रकाशि
PUBLISHED BY AUTHORITY
. 62] नई दिल्ला, शुक्रवार, दिसम्बर 18 , 1970/ अग्रहायण 27, 1892
No. 62) NEW DELHI, FRIDAY, DECEMBER 18 , 1970 / AGRAHAYANA 27 , 1892
इस भाव में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलम के रूप में रखा जा सकें ।
Separate paging is given to this Part in order that it may be filed as a separate compilation.
LOK SABНА
Phe following Bill was introduced in Lok Sabha on the 18th Decem- 1970:-
BILL NO . 134 OF 1970
A bill to provide for validation of certain proceedings in relation to direct taxes and for matters connected therewith
BE it enacted by Parliament in the Twenty- first Year of the Republic Short of India as follows:-
title.
1. This Act may be called the Central Board of Direct Taxes ( Valida- Valida- tion of Proceedings ) Act , 1970 .
tion of certain proceed-
54 of 1963 .
34 of 1958.
2. Notwithstanding any judgment , decree or order of any court or any other authority , no approval, declaration, determination, recognition , direc- ings , tion, instruction, notification , order or rule , or other thing or action given, made , granted , issued , done or taken or purporting to have been given , made , granted , issued , done or taken by the Central Board of Direct Taxes , constituted under the Central Boards of Revenue Act , 1963 , in the exer- cise of the power ; or the performance of the duties entrusted to it by the Central Government or by or under any law ( not being the Estate Duty Act, 1953) shall be deemed to be invalid or ever to have been invalid by reason only of the fact that such approval , declaration , determination , recognition, direction , instruction, notification, order , rule , thing or action was given, made , granted , issued , done or taken by any member of the said Board to whom the powers or duties in that behalf had not beep
1401 ) THE GAZETTE OF INDIA EXTRAORDINARY
[PART - 1402
validly entrusted in accordance with the provisions of the aforesaid 1963 Act or the rules made thereunder ; and accordingly.-
(a) all acts , proceedings or things done or taken in pursuance of such approval , declaration, determination , recognition , direction , instruction, notification, order , rule, thing or action shall , for all pur- poses , be deemed to be , and to have always been done or taken in accordance with law; and
(b) no suit or other proceeding shall be instituted or continued against the Government or any person or authority whatsoever on the ground that any such act , proceeding or thing was not done or taken in accordance with law .
SEC. 21
THE GAZETTE OF INDIA EXTRAORDINARY
1403
STATEMENT OF OBJECTS AND REASONS
Recently in the case of Shri R. Dalmia v . Union of India and others , the High Court of Delhi heid that the notices issued to the petitioners under section 148 of the Income- tax Act , 1961 , for the re - assessment of income which had escaped assessment , were null and void as the sanction of the Central Board of Direct Taxes to the issue of such notices , as re- quired by section 151 of the Income - tax Act , was granted by a Member of the Board to whom this work had not been validly allocated with the previous approval of the Central Government as envisaged by rule 4 of the Central Board of Direct Taxes (Regulation of Transaction of Busi- ness) Rules , 1964. During the period from June, 1964 , till about July, 1969 , distribution of work among the Chairman and Members of the Cen- tral Board of Direct Taxes had been made from time to time without making it clear on the face of the order that such distribution had been made with the prior approval of the Central Government . Accordingto the decision of the Delhi High Court , various actions taken by the Chair- man and Members of the Board in pursuance of those orders of distribu- tion of work are liable to be regarded as invalid and without jurisdiction .
2. Under the provisions of the Income - tax Act , and other enactments relating to direct taxes , the functions of the Board cover a very wide range and include the declaration of foreign associations to be companies for purposes of taxation, distribution of jurisdiction amongst Income - tax authorities , approval to the waiver or reduction of minimum penalty im- posable in cases of voluntary disclosure of escaped income orwealth, besides grant of approval to re-opening of assessments for the assessment or re - assessment of escaped income . The effect on revenue if these actions of the Chairman and Members of the Board are held to be invalid-due to the absence of the previous approval of the Central Government to the distribution of work amongst them- would be very considerable and it is not practicable even to hazard an estimate in this behalf. It is , there- fore , necessary to validate all such actions , taken in the past in pursuance of schemes for distribution of work amongst the Chairman and Members obtaining from time to time . The Bill seeksto give effect to this object .
NEW DELHI;
Y. B. CHAVAN .
The 8th December . 1970 .
S. L. SHAKDHER , Secretary.
PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS , DELHI , 1971