Subject NOT available

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX AND SURCHARGE ON INCOME-TAX

Paragraph A

Sub-Paragraph I

In the case of every individual or Hindu undivided family or un- registered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,—

Rates of income-lax

(1) where the total income

does not exceed Rs. 8,000

(2) where the total income exceeds Rs. 8,000 but does not exceed Rs 15,000

(3) where the total income exceeds Rs. 15,000 but does not exceed Rs. 20,000

(4) where the total income exceeds Rs. 20,000 but does not exceed Rs 25,000

(5) where the total income exceeds Rs 25,000 but does not exceed Rs 30,000

(6) where the total income exceeds Rs, 30,000 but does not exceed Rs, 50,000

(7) where the total income exceeds Rs. 50 000 but does not exceed Rs 70,000

(8) where the total income exceeds Rs 70,000 but does not exceed Rs, 1,00,000

(9) where the total income exceeds Rs. 1,00,000

15 per cent, of the amount by which the total income exceeds Rb 8,000;

Rs, 1,050 plus 18 per cent of the amount by which the total income exceeds Rs 15,000;

Rs. 1,950 plus 25 per cent of the amount by which the total income exceeds Rs 20,000;

Rs. 3,200 plus 30 per cent, of the amount by which the total income exceeds Rs. 25,000;

Rs. 4,700 plus 40 per cent of the amount bv which the total income exceeds Rs. 30,000;

Rs. 12,700 plus 50 per cent df the amount by which the total income exceeds Rs 50,000;

Rs. 22,700 plus 55 p-r cent of the amount by which the? total income exceeds Rs, 70,000; Rs. 39,200 plus 60 pr>r cent, of the amount bv which the total income exceeds Rs. 1,00,000

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposed of the Union calculated at the rate of ten per cent, of such income-tax,

Sub-Parugi aph II

In the case of every Hindu undivided family which ft any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day ox April, 11)77 exceeds Rs. 8,000 —

Rates of incorne-tax

(1) where the total Income Nil;

does not exceed Rs. 8,000

(2) where the total Income exceeds Rs. 8,000 but does not exceed Rs. 15,000

(3) where the total income exceeds Rs 15,000 but does not exceed Rs. 20,000

(4) where the total income exceeds Rs 20,000 but does not exceed Rs 25,000

(5) where thu total income exceeds Rs. 25,000 but does not exceed Rs 30,000

(6) where the total income exceeds Rs 30,000 but does not exceed Rs. 50,000

(7) where the total income exceeds Rs. 50.000 but does not exceed Rs. 70,000

(8) where the total income exceeds Rs 70,000

18 per cent, of the amount by which the total income exceeds Ks 8,000;

Rs r,2G0 plus 25 per cent of the amount by which the total income exceeds Rs 15,000,

Rs 2,510 plus 30 per cent, of the amount by which the total income exceeds Rs. 20,000;

Rs 4,010 plus 40 per cent of the amount by which the total income exceeds Rs. 25,000;

Rs. 6,010 plus 50 per cent, of the amount by which the total income exceeds R's. 30,000;

RR 16,010 plus 55 per cent of the amount by which the total income exceeds Rs 50,000;

Rs 27,010 plux 60 per cent of the amount by which the total income exceeds Rs 70,000

Surcharge cm income-tax

The amount of income-tax compute! in accordanc¹ with the preceding provisions of tins Sub-IParac^aph shnll bo increased by a surcharge for purposes o£ the Union calculated at Ihe rate of ten per cent of such income-tax.

Paragraph B

In the case of every co-operative society,—

Rati"t of income-tax

(1) where the total income does not exceed Rs. 10,000

(2) where thp total income exceeds Es 10.000 but does not oirceed Ri 20,000

(3) where the total income exceeds Rs. 20,000.

15 per cent of the total income;

Rs 1,500 plus 25 per cent of the amount by which the total income ("rceeds Rs. 10,000;

Rs 4,000 plus 40 per cent, of the amount bv which the total income exceeds Rs 20,000

SuTcharqe nn income-tax

Th? nmount of income-tax computed m nccordanco with the preced- ing provision" nf tlvn Paragraph shall be increased by a surcharge for

purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Paragraph C

Sub-Parayrnph I

In the case of cvciy registered firm, not being a case to which Sub-

Paragraph II of this Patagiaph applies,—

Ralet, of income-tax

(1) where the

Nil;

does not exceed RE

total income i 10,000

total income but does not (2) where the exceeds Rs. 10,000 exceed Its. 25,000

total income but does not (3) where the exceeds Its 25,000 exceed Rs. 50,000

total income but does not (4) where the exceeds Rs 50,000 exceed Rs 1,00,000

(5) where the total income

exceeds Rs ],00,000

5 per cent of the amount by which Ihe total income exceeds Rs 10,000,

of the income Rs 750 plus 7 per cent, amount by which the total exceeds Its. 25,000;

of the income Rs 2,500 plus 15 per cent. amount by which the total exceeds Rs. 50,000;

, of the- income Rs. 10,000 plus 24 per cent, amount by which the total exceeds Rs. 1,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Sub-Paragraph II

In the case of every registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent, of such total income,—*•

Rates of income-tax

Nilt

(1) where the total income does not exceed Rs. 10,000

(2) where the total income exceeds Rs 10,000 but ddes not exceed Rs 25,000

(3) where the total indonie exceeds Rs 25,000 but does not exceed Rs 50,030

(4) where the total income exceeds Rs. 50,000 but does not exceed Rs. 1,00,000

(6) where the total income exceeds Rs 1,00,000

4 per cent, of the amount by which the total income exceeds Ks. 10,000;

Rs 600 plus 7 per cent of the amount by which the total income exceeds Rs. 25,000;

Rs 2,350 plus 13 per cent, of the amount by which the total income exceeds Rs. 50,000;

Rs 8,850 plus 22 per cent of the amount by which the total income exceeds Rs. 1,00,000

Surcharge on income-tax

Thp amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for

purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Explanation.—For the purposes of this Paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income 50 per cent.

Surcharge on income-tax

The amount of income-tax computed at the iate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent of such income-tax.

Paragraph E

In the case of a company,—

Rates of income-tax

1 In the case of a domestic company,—

(1) where the company is a company in which the public are substantially interested,—•

(i) in a case where the total income does not exceed Rs. 1,00,000

(li) in a case where the total income exceeds Rs-. 1,00,000

(2) where the company is not a company in which the public are substantially interested,—

(i) in the case of an indus- trial company,—

(u) where the total income does not exceed Rs 2,00,000

(b) where the total income exceeds Rs. 2,00,000

(U) in any other case

Provided that—

45 per cent, of the total income;

55 per cent, of the total income;

55 per cent, of the total income;

60 per cent, of the total income;

65 per cent of the total income:

(i) the income-tax payable by a domestic company, being a com- pany in which the public are substantially interested, the total income of which exceeds Rs 1,00,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs. 1,00,000 (the income of Rs. 1,00,000 for this purpose being computed as if such income

included income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which its total income exceeds Rs 1,00,000;

(ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company qnd the total income of which exceeds Rs. 2,00,000, shall npt exceed the aggregate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs 2,00,000 (the income of ftsj 2,00,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which its total income exceeds Rs. 3,00,000.

II, in the case of a company other than e domestic pompany,-.

(t) on so much of the total

Income as consists of—

(a) royalties received from an Indian concern In pursu- ance of an agreement made by it with the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or

(b) fees for rendering tech- nical services received from an Indian concern in pursu- ance of an agreement made bv it with the Indian concern after the 29th day of "Febru- ary. 1964 but before the lat day of April, 1976,

50 per cent.;

and where such agreement has, in ei+her case been approved by the Central Government

70 per cent.

(ii) on the balance, if any, of

the total income

Surcharge on income-tax

The amount of income-tax computed m accordance with the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of five per cent of such income-tax.

PART II

Rates for deduction of tax at source in certain cases

In every caso in which under {he provisions of sections 193, 191, I94A, 194B,, 194D and 195 of the Income-tax Act tax is to Le deducted at th"

rates in force, deduction shall be made frpm the income subject to deduc- tion at the following rates: —

\. In the case of a person other than a company—

(a) where the person is resi- dent in India—

Incpme-tax

Rate of surpharge Rate of income-tax

10 per cent.

Nil;

(i) on income by way of interest other than "Interest on securities"

(U) on income by way of winnings from lotteries and crossword puzzles

4.5 per cent.;

30 per cent.

10 per cent.

Nil;

(iil) on income by way oi.

insurance commission

(iu) on any other income (excluding interest payable on a tax-free security)

(b) where the person ia not resident in India—

(i) on the whole income (excluding interest payable on a tax-free security)

(fa) on income by way of interest payable on a tax-free security

2. In the case of a company—

(a) where the company is a domestic company—

(i) on income by way of interest other than "Interest on securities"

(ii) on any other income (excluding interest payable on a tax-free security)

(b) where the company is not domestic company—

20 per cent.

3 per cent.;

incomel-tax at 30 per cent, and surcharge at 4.5 per cent, of the amount of the income,

or income-tax and surcharge on in- come-tax in respect of the income at the rates prescribed in Sub- Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income,

?her;

whichever is hij

15 per cent.

2 25 per cent.

20 per cent.

1 per cent.;

22 per cent.

1 per cent.;

25 per cent.

Nil;

(i) on income by way of dividends payable by any domestic company

Income-tax

Rate of income-tax

Rate of surcharge

Nil;

40 per cent.

(u) on income by way of loyalty payable by an Indian concern m pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting ot a licence) in respect o± copyright in any book on a subject referred to in the proviso to sub-section {1A) of section 115A of the Income-tax Act, to the Indian concern

(ui) on income by way of royalty [not being royalty of the nature referred to in. sub- item (b) (w)] payable by an Indian concern in pursuance of an agreement made by it with the Indian concern and which has been approved by the Central Government,—

50 per cent.

2 5 per cent.;

(A) where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

(B) where the agreement is made after the 31st day of March, 1976—

20 per cent.

Nil;

(l)on so much of the

amount of such income as consists of lump sum con- sideration for the transfer outside India of, or the imparting of information outside India in respect of, any data, documenta- tion, drawing or specifi- cation relating to any patent, invention, model, design, secret formula or process, or trade mark or

similar property

40 per cent.

Nil;

(2) on the balance, if

any, of such income

(iu) on income by way of fees for technical services payable by an Indian concern in pursuance of an agreement made by it with the Indian concern and which has been approved by the Central Gov- ernment—

50 per cent.

2.5 per cent (A) where the agreement is made after the 29th day

of February, 1964 but be- fore" the 1st day of April, 1976

Income-tax

Rate of income-tax

Rate of surcharge

40 per cent.

NIL;

(B) where the agreement is made after the 31st day of March, 1976

(v) on income by way of interest payable on a tax-free security

(vi) on any other income 44 per cent.

2.2 per cent.;

70 per cent.

3,5 per cent.

PART III

Rates for calculating or charging income-tax in certain cases, deducting

income-tax from, income chargeable under the head "Salaries" or any

payment referred to in sub-section (9) of section 80E and computing

"advance tax".

In cases in which income-tax has to be calculated under the first pro- viso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-sectiorx (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section &0E of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" (not being "advance tax" in respect of any income chargeable to tax under Chapter XII or section 164 of the Income-tax Act at the rates as specified m that Chapter or section), shall be so calculated, charged, deducted or computed at the following rate or rates: —

Paragraph A

Sub-Paragraph I

In the case of every individual or Hindu undivided family or unregis- tered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub- clause (mi) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Para- graph of this Part applies,—

Rates of income-tax

Nil;

(1) where the total income does not exceed Rs. 8,000

(2) where the total Income exceeds Rs. 8,000 but does not exceed Rs. 15,000

(3) where the total income exceeds Rs. 15,000 but does not exceed R". 20,000

(4) where me total income exceeds Rs. 20,000 but does not exceed Rs. 25,000

15 per cent, of the amount by which the total 'income exceeds Rs. 6,000;

Rs. 1,050 plus 18 per cent, of the amount by which the total income exceeds Rs. 15,000;

Rs. 1,950 plus 25 per cent, of the amount by which the total income exceeds Rs. 20,000;

(5) where the total income exceeds Rs. 25,000 but does not exceed Rs. 30;000

(6) where the total income exceeds Rs. 30,000 but does not exceed Rs. 50,000

(7) where the total income exceeds Rs. 50,000 but does not exceed Rs. 70,000

(8) where the total income exceeds Rs. 70,000 but does not exceed Rs. 1,00,000

(9) where the total income

exceeds Rs. 1,00,000

Rs. 3,200 plus 30 per cent, of the amount by which the total income exceeds Rs. 25;O00;

Rs. 4,700 plus 40 per cent, of the amount by which the total income exceeds Rs. 30,000;

Rs. 12,700 plus 50 per cent, of the amount by which the total income exceeds Rs. 50,000;

Rs. 22,700 plus 55 per cent, of the amount by which the total income exceeds Rs. 70,000;

Rs. 39,200 plua 60 per cent, of the amount by which the total 'income exceeds Rs. 1.00.000:

Provided that for the purposes of this Sub-Paragraph,—

(i) no income-tax shall be payable on a total income not exceed-

ing Rs. 10,000;

(h) where the total income exceeds Rs. 10,000 but does not exceed Rs. 10,540, the income-tax payable thereon shall not exceed seventy per cent of the amount by which the total income exceeds Rs. 10,000.

Surcharge on income-tax

The amount of income-tax computed in accordance With the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent, of such income-tax.

Sub-Paragraph II

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the pre- vious year relevant to the assessment year commencing on the 1st day of April, 1978 exceeds Rs. 10,000,—

Rates of income-tax

Nil;

• (1) where the total income

does not exceed Rs. 8,000

(2) where the total income exceeds Rs. 8,000 but does not exceed Rs. 15,000

(3) where the total income exceeds Rs. 15,000 but does not exceed Rs. 20,000

(4) where the total income exceeds Rs. 20,000 but does not exceed Rs. 25,000

(5) where the total income exceeds Ra. 25,000 but does not exceed Rs. 30,000

(6) where the total income exceeds Rs. 30,000 but does not exceed Rs. 50,000

18 per cent, of the amount by which theT;olal iflcome exceeds Rs. 8,000;

RS. 1,260 plus 25 per cent, of the amount by which the total income exceeds Rs. 15,000;

Rs. 2,510 plus 30 per cent, of- the amount by which the total income exceeds Rs. 20,000;

Rs. 4,010 plus 40 per cent, of the amount by which the total income exceeds Rs. 25,000;

Rs. 6,010 plus 50 per cent, of the amount by which the total income exceeds Rs. 30,000;

(7) where the total income exceeds Rs. 50,000 but does not exceed Rs. 70,000

(8) where the total income exceeds Rs. 70,000

Rs. 16,010 plus 55 per cent, of the amount by which the total income exceeds Ka. 50,000;

Rs. 27,010 plus 60 per cent, of the amount by which the total income exceeds Rs. 70.000:

Provided that for the purposes of this Sub-Paragraph,—

(0 no income-tax shall be payable on a total income not exceed- ing Rs. 10,000;

(n) where the total income exceeds Rs. 10,000 but does not exceed Rs. 10,690, the income-tax payable thereon shall not exceed seventy per cent, of the amount by which the total income exceeds Rs. 10,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at"the rate of fifteen per cent, of such income-tax.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

   (1)  where  the  total   income        15 per  cent,  of  the  total  income;
does  not  exceed  Rs.  10,000
   (2)  where  the  total   income        Rs.  1,500  plus  25  per  cent,  of  the
exceeds  Rs.  10,000  but  does  not      amount  by  which  the  total  income
exceed  Rs.  20,000                       exceeds  Rs.  10,000;
   (3)  where  the  total   income        Rs.  4,000  plus  40  per  cent,  of  the
exceeds  Rs.  20,000                      amount  by  which  the  total  income
                                          exceeds  Rs.  20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent of such income-tax.

Paragraph C

Sub-Paragraph 1

In the case of every registered firm, not being a case to which Sub- Paratrraph II of this Paragraph applies,—

Rates of

income-tax

Nil;

(1) where the total income does not exceed Rs. 10,000

(2) where the total Income exceeds Rs. 10,000 but does not exceed Rs. 25,000

(3) where the total income exceeds Rs. 25,000 but does not exceed Rs. 50.000

5 per cent, of the amount by which the total income exceeds Rs. 10,000;

Rs. 750 plus 1 per cent, of the amount by which the total income exceeds Rs. 25,000;

(4) where the total income exceeds Rs. 50,000 but docs not exceed Rs. 1,00,000

(5) where the total income exceeds Rs. 1,00,000

Rs. 2,500 plus 15 per cent, of the. amount by which the total income exceeds Rs. 50,000;

Rs. 10,000 plus 23 per cent, of the amount by which the total income exceeds Rs. 1,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent, of such, income-tax.

Sub-Paragraph II

In the case of every registered firm whose total income includes income derived from a profession carried on by it and the income go Included is not less than fifty-one per cent, of such total income,—

Rates of income-tax

Nil;

(1) where the total income does not exceed Rs. 10,000

(2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 25,000

(3) where the total income exceeds Rs. 25,000 but does not exceed Rs. 50,000

(4) where the total income exceeds Rs 50.000 but does not exceed Rs. 1,00,000

(5) where the total income exceeds Rs. 1,00,000

4 per cent, of the amount by which the total Income exceeds Rs. 10,000;

Rs. 600 plus 7 per cent, of the amount by which the total income exceeds Rs. 25,000;

Rs 2,350 plus 13 per cent, of the amount bv which the total income exceeds Rs. 50,000;

Rs. 8,850 plus 22 per cent, of the amount bv which the total income exceeds Rs 1,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the pre- ceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent, of such income-tax

Explanation.—For, the purposes of this Paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income 50 per cent.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent, of such income-tax.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,—

(1) where the company is a company fn which the public are substantially interested,—

(i) in a case where the total income does not exceed Rs. 1,00,000

(ii) in a case where the total income exceeds Rs. 1,00,000 45 per cent, of the total income;

55' per cent of the total income:

(2) where the company is not

a company in which the public

are substantially interested,—

(i) in the case of an in* dustrial company,—

(a) where the total in- come does not exceed Rs. 2,00,000

(b) where the total In' come exceeds Rs. 2,00,000

(11) in any other case 55 per gent, of the total income;

00 per cent, of the total incomej

65 per cent, of the total income:

Provided that—

(i) the income-tax payable by a domestic company, being a com- pany in which the public are substantially interested, the total income of which exceeds Rs. 1,00,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs. 1,00,000 (the income of Rs 1,00.000 for this purpose being computed as if such income Included income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which its total Income exceeds Rs. 1,00,000;

(n) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2,00,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs 2,00,000 (the income of Rs 2,00,000 for this purpose being computed as if such income in- cluded income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which iLa total income exceeds Rs. 2,00,000.

II. In the case of a company other than a domestic company,—

(i) on so much of the total

income as consists of—

(a) royalties received from an Indian concern in pursu- ance of an agreement made by it with the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or

(b) fees for rendering tech- nical services received from an Indian concern in pursu- ance of an agreement made by it with the Indian concern after the 29th day of Feb- ruary, 1964 but before the 1st day of April, 1976,

and vh^re such agreement has, 50 per cent.; in either case, been approved by the Central Government

(n) on the balance, if any, 70 per cent,

of the total income

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of five per cent, of such Income-tax.

PART IV

[See section 2(7) (e)]

RULES FOR COMPUTATION OP NET AGRICULTURAL INCOME

Rule 1 —Agricultural income of the nature referred to in sub-clause (a) of clause (1) of section 2 of the Income-tax Act shall be computed aa if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of section 58 shall apply subject tc the modification that the reference to section 40A therein shall be con- strued as not including a reference to sub-sections (3) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kmd referred to in the said sub-clause (c)] shall be computed as If it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 34, 36, 37, 38, 40, 40A [othsr than sub- sections (3) and (4) thereof], 41, 43, and 43A of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (I) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of

the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as If It were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of the said section 23 shall apply sub- ject to the modifications that the references to "total income" therein ahjaill be construed as references to net agricultural income and that the words, figures and letter "and before making any deduction under Chapter VIA" shall be omitted.

Rule 4—Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed In accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent, of such income shall be regarded as the agricultural in^ come of the assessee.

Rule 5.—Where the assessee Is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said section 183 and which in the previous year has either no income charge- able to tax under the Income-tax Act or has total income not exceed- ing the maximum amount not chargeable to tax in the case of an un- registered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance w^th these rules and his share In the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act and the share so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—Where the assessee is a member of an association of perrons or a body of individuals (other than a Hindu undivided family, a com- pany or a firm) which in the previous year has either no income charge- able to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of Individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural in.com", then, th* agricultural inc"me or less of the association or body shall be cflMi- puted m accordance with these rules and th" share of the ass"sse" in the agricultural Intome or loss so "©mputed shall be regarded as the agricultural income or loss of the assessee.

Rule 7—Where the result of the computation for the previous year in respect of any source of agricultural income Is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of section 183 of the Income-tax Act or is a member of- an association of persons or body of individuals and the share of the assessee in the agri- cultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 8.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be de- ducted in computing the agricultural income.

Rule 9.— (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1977, any agri- cultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1974 or the 1st day of April, 1975 or the 1st day of April, 1976, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—

(t) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1974, to the ex- tent, if any, such loss has not been set off against the agricultural in- come for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1975 or the 1st day of April, 1976,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1975, to the ex- tent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1976, and

(iti) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976,

shall be set off against the agricultural income of the assessee for the pre- vious year relevant to the assessment year commencing on the 1st day of April, 1977.

(2) Where the assessee has, in the previous year relevant to the as- sessment year commencing on the 1st day of April, 1978 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computa- tion o£ the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1974 or the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977, is a loss, then, for the purposes of sub- section (6) of section 2 of this Act,—

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1974, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1975 or the 1st day of April, 1978 or the 1st day of April, 1977,

(ii) the loss so computed for the previous year relevant to th" assessment year commencing on the 1st day of April, 1975, to the ex- tent, if any, such loss has not been set off against the agricultural in- come for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1976, or the 1st day of April, 1977,

(in) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, to the

extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1977, and

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1978 or the period aforesaid.

(3) Where a change has occurred m the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner com- puted in the manner laid down in sub-section (I), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in the firm, or' entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not apportionable to him.

(4) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

20 of 1974. 25 of 1975. 66 of 1976.

(5) Notwithstanding anything contained in this rule, no loss which has not been determined by the Income-tax Officer under the provisions of these rules, or the rules contained in Part IV of the First Schedule to the Finance Act, 1974, or of the First Schedule to the Finance Act, 1975, or of the First Schedule to the,Finance Act, 1976, shall be set off under sub^rule (1) or, as the case may be, sub-rule (2).

Rule 10.—Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 11.—The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply In relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 12. For the purposes of computing the net agricultural income of the assessee, the Income-tax Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

THE SECOND SCHEDULE

(See section 31)

PART I

In the First Schedule to the Customs Tariff Act,—

(i) in sub-heading No. (3) of Heading No. 37 01/08, for the entry in column (3), the entry "40% ad valorem" shall be subs- tituted;

(h) in Heading No. 51.01/03, for the entry in column (3), the

entry "100% plus Rs. 30 per kilogram" shall be substituted;

(tk) in sub-heading No. (2) of Heading No. 53.01/05, for the entry In column (3), the entry "60%" shall be substituted;

(w) tn Heading No. 56.01/04, for the entry in column (3), the

entry "140%" shall be substituted;

(v) in Heading No. 56.05/06, lor the entry in column (3), the

entry "100% plus Rs 30 per kilogram" shall be substituted;

(vi) in Heading No. 69.09, for the entry in column (3), the entry "100%/' shall be substituted;

(mi) in sub-heading No. (2) of Heading No. 76.03/04, for the entry in column (3), the entry "1100%" shall be substituted;

(viii) in sub-heading No. (1) of Heading No. 84.51/55, for the entry in column (3), the entry "100%" shall be substituted;

(ix) in Heading No. 85 01—

(1) in sub-heading No. (2), for the entry in column (3), the entry "100%" shall be, substituted;

(2) in sub-heading No (3), for the entry in column (3), the entry "100%" shall be substituted;

(x) in Heading No. 85.13, for the entry in column (3), the entry "100%" shall be substituted;

(xi) in Heading No. 85.14, for the entry in column (3), the entry "100%," shall be substituted;

(xii) In sub-heading No. (1) of Heading No. 85.15, for the entry in column (3), the¹ entry "100%" shall be substituted;

(otiii) in Heading No. 85 18/27,—

(1) in sub-heading No. (1), for the entry in column (3), the entry "100%" shall be substituted;

PART II

Rate of duty

ig Sub-heading No. and description of article Standard U.K.

Headii No.

Duration when rates of duty are protective

Other Preferen- tial Areas

(3)

(4)

(6)

(5)

( I)

GO

In the First Schedule to the Customs Tariff Act,—

(i) for Heading No. 85.02, the following Heading shall be sub-

stituted, namely: —

"85.02 Electro-magnets; perma- nent magnets and articles ot special materials for permanent magnets, being blanks of such magnets; electromagnetic and per- manent magnet chucks, clamps, vices and similar work holders, electromag- netic clutches and coup- lings; electromagnetic brakes; electr ^magnetic lifting heads:

—

40%

(1) Not elsewhere specified

—

i, _

(2l) Ferrite permanent mag ;- 1009 nets and articles of ferrite fo: r permanent magnets, beini g blanks of such magnets

(n) for Heading No 90 29, the following Heading shall be substituted, namely: —

"90. 29

L-

e

L-

l,

3

Parts or accessories suil able for use solely or prin cipally with one or mor of the articles failing with in Heading No. 90.23, 90 & 90 26. 90.2T or 90.28: Not elsewhere specified

(1)

Rate of duty applicabl< to the mam article o: f which they are parts o; accessories.

L- 100% _ _ r

i-

c r

(2) Parts or accessories, con taming thermionic valves o transistors or similar semi-con ductor devices or electroni microcircuits or capacitors othe than paper capacitors

THE THIRD SCHEDULE

(See section 32^

PART I

In the First Schedule to the Central Excises Act,—

(i) in Item No. 1A, for the entry in the second column against

sub-item (1), the entry "Chewing gums" shall be substituted;

(ii) in Item No. 1C, for the entry m the second column against sub-Item (2), the entry "Butter, whether pasteurised or not." shall be substituted;

(Hi) in Item No. 4,—

(a) under "I. Unmanufactured tobacco—", for each of the entries in the third column against sub-Items (1), (3) and (4), the entry "Twenty rupees " shall be substituted,

(b) under "II. Manufactured tobacco—", for the entries in the third column against sub-Items (1), (2), (3) (1), (3) (ii) and (4), the entries "One hundred and seventy per cent ad valorem ", "Two hundred and seventy per cent, ad valorem.", "Four rupees and sixty paise per thousand ", "One rupee and sixty palse per thousand." and "Two hundred and twenty per cent, ad valorem " shall, respectively, be substituted,

(iv) in Item. No. 14C, for the entry in the third column, the entry

"Fifteen per cent, ad valorem." shall be substituted;

(v) in Item No 14D, for the entry m the third column, the entry

"Thirty per cent ad valorem " shall be substituted;

(vi) in Item No. 14DD, for the entry in the third column, the

entry "Twenty-five per cent, ad valorem." shall be substituted;

(vM) in Item No 14F, fov the entry in the third column, the entry

"Sixty per cent ad imlorem " shall be substituted;

(vhi) in Item No 16A, for the entries in the' third column against sub-Items (1), (2), (3) and (4), the entries "Fifty per cent, ad valorem.", "Thirty-six per cent, ad valorem", "Twenty-four per cent, ad valorem." and "Twenty-four per cent ad valorem." shall, respectively, be substituted,

(ix) in Item No 16AA, for the entry in the third column, the

entry "Five per cent ad valorem " shall be substituted;

(x) in Itefri No 16B, for the entry in the third column against sub-Item (ii), the entry "Twenty-seven and half per cent, ad valorem." shall be substituted;

(xi) in Item No 17, for the entry in the third column against sub-Item (2), the entry "Forty per cent ad valorem" shall be substituted;

(xii) in Item No. 23, for the entry in the third column against sub-Item (2), the entry "Forty per cent, ad valorem" shall be substituted;

(orth) in Item No. 26, for the entry in the third column, the entry "Three hundred and fifty rupees per metric tonne." shall be substituted;

(xiv) in Item No 26A, for the entries in the third column against sub-Items (1), (la), (2) and (3), the entries "Five thousand six hundred rupees per metric tonne.", "Five thousand six hundred rupees per metric tonne.", "Six thousand three hundred rupees per metric tonne." and "Twenty-eight per cent, ad valorem." shall, respectively, be substituted;

(xv)\ in Item No. 26AA, for the entries in the! third column against sub-Items (i), (M) , (li), (tii), (iv) and (v), the entries "Three hundred and fifty rupees per metric tonne", "Three hundred and fifty rupees per metric tonne.", "One thousand three hundred and fifty rupees per metric tonne.", "One thousand three hundred and fifty rupees per metric tonne.", "One thousand rupees per metric tonne plus the excise duty for the t*me being leviable on pig iron or steel ingots, as the case may be." and "Seven hundred and fifty rupees per metric tonne." shall, respectively, be substituted;

(xvi) in Item No. 26B, for the entries in the third column against sub-Items (1), (2) and (3), the entries "Two thousand six hundred and twenty-five rupees per metric tonne.", "Three thousand one hundred and fifty rupees per metric tonne " and "Thirty-five per cent, ad valorem." shall, respectively, be substituted;

(xvii) in Item No. 27,—

(a) for the entry in the second column against sub-Item (b), the following entry shall be substituted, namely: —

"Manufactures, the following, namely, plates, sheets, circle, strips, shapes and sections, in any form or size, not otherwise specified",

(b) for each of the entries in the third column against sub-Items (a) (i), (a) ("), (b), (c), (d), (e) and (/), the entry "Fifty per cent ad valorem plus two thousand rupees per metric tonne." shall be substituted;

(xviii) in Item No 33A,—

(a) in the second column, for the words and brackets "AND TAPE RECORDERS (INCLUDING CASSETTE RECORDERS AND TAPE DECKS)", the words and brackets " , TAPE RECORDERS (INCLUDING CASSETTE RECORDERS AND TAPE DECKS) AND TAPE PLAYERS (INCLUDING CASSETTE PLAYERS)" shall be substituted,

(b) for the entry in the second column against sub-Item (3) the entry "Radioerams (including radio or transistor sets with extra space in cabinet for fitting in record players or record changers)." shall be substituted,

(c) for each of the entries in the third column against sub-, Items (2), (3) and (4), the entry "Thirty-five per cent, ad valorem."'shall be substituted;

(xix) Item No 47 shall be omitted;

(xx) Item No. 59 shall be omitted;

(xxi) in Item No. 68, for the entry In the third column, the entry

"Two per cent, ad valorem." shall be substituted.

PART II

%

Iten No.

Description of goods Rate of duty

(2) (1)

(3)

In the First Schedule to thei Central Excises Act,—

(i) for Item No. ID, the following Item shall be substituted,

namely: —

"ID AERATED WATERS, WHETHER OR NOT FLAVOURED OR SWEET- ENED AND WHETHER OR NOT CONTAINING VEGETABLE OR FRUIT JUICE OR FRUIT P U L P-

(1) Aerated waters which are only charged with carbon di- oxide gas under jpressure and which contain no other added ingredient.

(2) All others.

Twenty-five per cent, ad valorem.

Fifty-five per cent, ad valorem.";

(ii) for Item No. 14, the following Item shall be substituted,

namely: —

"14 PIGMENTS, COLOURS, PAINTS, ENAMELS, VARNISHES, BLACKS AND CELLULOSE LAC- QUERS—

I. (1) Pigments, colours, paints and enamels—

i) Aluminium paste. ( (it) Pigments and colours, not otherwise specified.

(2) Water paints—

(i) Dry distemper including cement based water paints. (ii) Oil-bound distemper. (in) Water pigment finishes for leather.

iv) Plastic emulsion paints (

(3) Oil paints and

1

enamels— (i) Tinting paste (Blue). (ii) Stiff paints.

Ten per cent ad valorem

Five per cent, ad valorem.

Ten per cent, ad valorem.

Fifteen per cent, ad valorem

Ten p_ei* cent, ad valorem.

Fifteen per cent, ad valorem.

Ten per cent, ad valorem. Fifteen per cent ad valorem

Description of goods Rate oi duty

Item No.

(2) (1)

[in) Ready-mixed paints and ( imels.

em

(4) Dispersed organic pig- ments ordinarily used for the printing of textiles, whether in the form of powder, paste, or in emulsion.

(5) Paints and enamels, not otherwise speci- fied.

Tarnishes and blacks—

II. T

(i) Varnishes,

bl

(ii) Bituminous and coal-tar acks.

Cellulose lacquers—

III.

(i) Nitrocellulose lacquers, clear and pigmented and nitro- cellulose ancillaries In liquid, semisolid or pasty form.

(ii) Cellulose lacquers, not otherwise specified.

(3)

Fifteen per cent ad valorem.

Ten per cent, ad valorem.

Fifteen per cent, ad valorem.

Fifteen per cent, ad valorem.

Five per cent, ad valorem.

Fifteen per cent, ad valorem.

Fifteen per cent, ad valorem.

Explanation,—This Item does not include carbon black.";

(iit) for Item No. 14H, the following Item shall be substituted,

namely: —

"14H. GASES, INCLUDING LIQUEFIED OR SOLIDI- FIED GASES, THE FOL- LOWING, NAMELY: —

(i) Oxygen.

(Ii) Chlorine.

(tit) Ammonia.

(iv) Carbonic acid (Carbon dioxide).

(v) Refrigerant gases, not otherwise specified, such as sulphur dioxide and freon.

(vv) Acetylene (whether in dissolved condition or not).

Twelve per cent, ad valorem.

Twelve per cent, ad valorem.

Twelve per cent, ad valorem.

Rupee one and twenty paise per kilogram.

Twenty-four per cent, ad valorem.

Twelve per cent, ad valorem.";

Description of goods Rate of duty

Item No.

(2)

-

(3)

(it>) for Item No. 15A, the following Item shall be substituted,

namely: —

'ISA. ARTIFICIAL OR SYN-

THETIC RESINS AND PLASTIC MATERIALS AND CELLULOSE ES- TERS AND ETHERS, AND ARTICLES THEREOF—

Fifty per cent, ad valorem.

(1) The following artificial or synthetic resins and plastic materials, and cellulose esters and ethers, in any form, whether solid, liquid or pasty, or as powder, granules or flakes, or in the form of moulding powders, namely: —

(1) Condensation, Polycon- densation and Polyaddition products, whether or not mo- dified or polymerised, and whether or not linear such as Phenoplasts, Aminoplasts, Alkyds, Polyamides, Super- Polyamides, Polyesters, Poly- allyl enters, Polycarbonates, Polyethers. Polyethylene imines, Polyurethanes, Epo- xide resins and Silicones;

(ii) Polymerisation and Co- polymerisation products such as Polyethylene, Polytetraha- loethylenes, Polyisobutylene, Polystyrene, Polyvinyl chlo- ride, Polyvinyl acetate, Poly- vinyl chloroacetate and other polyvinyl derivatives, Polya- crylic and Polymethacrylic derivatives and Coumarone— lndene Resins; and

(Hi) Cellulose acetate (in- cluding Cellulose diacetate or Cellulose triacetate), Cellulose acetate butyrate and Cellulose propionate, Cellulose acetate propionate, Ethylcellulose and Benzylcellulose, whether plas- ticised or not, and plasticised Cellulose nitrate.

Fifty per cent ad valorem.

(2) Articles made of pla-stics, all sorts, including tubes, iods, sheets, foils, sticks, other rectan- gular or profile shapes, whether laminated or notj and whether

Item

No. Description of goc

>ds Rate of duty

(3)

(1)

(2)

rigid or flexible, including lay- flat tubings, and polyvinyl chloride sheets, not otherwise specified.

Seventy per cent, ad valorem.

(3) Polyurethane foam.

Seventy per cent, ad valorem.

(4) Articles made of polyure-

thane foam.

Eocplanatwn.—For the purpose of sub-Item (2), "plastics" means the various artificial or synthetic resins or plastic materials or cellulose esters and others included in sub-Item (1):';

(v) after Item No. 15C, the following Item shall be inserted, namely: —

Ten per cent, ad valorem.

"15D. POLISHES AND CREAMS FOR FOOTWEAR, FURNI- TURE, FLOORS, LEA- THER, METALS, MOTOR VEHICLES AND GLASS; SCOURING POWDERS AND PASTES.

Explanation.—This Item does not include French Polish.";

(w) for Item No. 18, the following Item shall be substituted, namely: —

'18. I. MAN-MADE FIBRES, OTHER THAN MINERAL FIBRES—

(i) Non-cellulosic

Eighty-five rupees per kilogram.

(ii) Cellulosic.

Four rupees per kilogram.

II. MAN-MADE FILAMENT YARNS—

(i) Non-cellulosic—

(a) other than textured. Eighty-five rupees per Tdlogranv.

(b) textured Ninety-five rupees per kilogram.

Explanation.—"Textured Yarn" means yarn that has been processed to introduce crimps, coils, loops or curls along the length of the fila- ments and shall include bulked yarn and stretch yarn.

Twenty rupees per kilogram.

(w) Cellulosic.

Eighty-five rupees per kilogram.

(tii) Metallized

Item

No. Description of goods Rate of duty

(1)

(2)

(3)

III. CELLULOSIC SPUN YARN—

Yarn, in which man-made fibre of cellulosic origin predo- minates in weight and, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power—

5 5 paise per count per kilogram.

(1) not containing, or con- taining not more than one- sixth by weight of non-cellu- losic fibre calculated on the total fibre content.

Eighteen rupees per kilogram.

(ii) containing more than one-sixth by weight of non- cellulosic fibre calculated on the total fibre content.

Explanation I.—"Count" means the size of grey yarn (excluding any sizing material) expressed in English Count

Explanation II —For multiple fold yarn, "count" means the count of the basic single yarn.

Explanation III—Where¹ two or more of the following fibres, that is to say,—

(a) man-made fibre of cellulosic origin;

(b) cotton;

(c) wool or acrylic fibre, or both;

(d) silk (including silk noil);

(e) jute (including Bimlipatam jute or

mesta fibre);

(f) man-made fibre of non-cellulosic

origin, other than acrylic fibre;

(9) flax;

(h) ramie,

in any yarn are equal in weight, then, such one of those fibres, the predominance of which would render such yarn fall under that sub-Item or Item (hereafter in this Explanation referred to as the applicable sub-Item or Ite!m), among the sub-Items and Items Nos 18III, 18A, 18B, 18C, 18D, 18E, 18FI and 18FIX, which, read with the relevant notification, if any, for the time being in force issued under the Central Excise Rules, 1944, involves the highest amount of duty, shall be dee/med to be predominant in such yarn and accordingly such yarn shall be deemed to fall under the applicable sub-Item or Item, as the case may be.';

Item

No. Description of go<

>ds Rate of duty

(3)

(1) <2)

wing Item shall be substituted.

(wi) for Item No. 18A, the folio

namely: —

'18A. COTTON YARN, ALL

SOKTS—

Yarn, in which cotton pre- dominates in weight and, in or in relation to the manu- facture of which any process is ordinarily carried on with the aid of power—

5.5 paise per count per kilogram.

(i) not containing, or con- taining not more than one- sixth by weight of non-cellu- losic fibre calculated on the total fibre content.

Eighteen rupees per kilogram.

(it) containing more than one-sbcth by weight of non- cellulosic fibre calculated on the total fibre content.

Explanation.—

(1) "Cotton yarn" shall include cotton twist and thread. (2) Cotton yarn, twist or thread, all sorts, whether sized or unsized, in all forms including skeins, hanks, cops, cones, bobbins, pirns, spools, reels, cheeses, balls or on warp beams shall be deemed to be included under this Item.

(3) Explanations I, II and HI under sub-Item III of Item No. 18 ( shall, so far as may be, apply m relation to this Item as they apply in relation to that Item.';

(vih) for Item No. 18B, the following Item shall be substituted, namely: —

"18B. WOOLLEN AND ACRYLIC SPUN YARN—

Yarn, in which wool or acrylic fibre or both predominates or predominate in weight and, in or in relation to the manufac- ture of which any procera Is ordinarily carried on with the aid of power—

(i) not containing or con- Twenty rupees per kilogranv

tainlng not more than one- sixth by weight of non-cellu- losic fibre (other than acrylic fibre) calculated on the total fibre content.

Eighteen rupees per kilogram.

(li) containing more than one-sixth by weight of non- cellulosic fibre (other than ac- rylic fibre) calculated on the total fibre content.

Item No.

Description of g oods Rate of duty

(3)

(2)

(1)

Explanation I.—Woollen and acrylic spun yarn shall be deemed to

include woollen and acrylic knitting yarn.

Explanation II.—Explanation III under sub-Item III of Item No. 18 shall, so far as may be, apply in relation to this Item as it applies in relation to that Item.";

(tec) for Item No. 18C, the following Item shall be substituted,

namely: —

"18C. SILK YARN, ALL SORTS—

Yarn, in which silk (includ- ing silk noil) predominates in weight and, in or in relation to the manufacture of which any process is ordinarily car- ried on with the aid of power—

Twenty per cent, ad valorem.

(i) not containing or con- taining not more than one- sixth by weight of non-cellu- losic fibre calculated on the total fibre content.

Eighteen rupees per kilogram.

(U) containing more than one-sixth by weight of non- cellulosic fibre calculated on the total fibre content.

Explanation.—Explanation III under sub-Item III of Item No. 18 shall, so far as may be, apply in relation to this Item as it applies in relation to that Item.";

(x) for Item No. 18D, the following Item shall be substituted,

namely: —

BD. JUTE YARN, ALL SORTS—

Rupees six hundred per metric tonne.

Yarn, in which jute (includ- ing Bknlipatam jute or mesta fibre) predominates in weight and, in or fn relation to the manufacture of which any pro- cess is ordinarily carried on with the aid of power.

Explanation I.—"Jute yarn" shall include jute twist, thread, rope and twine.

Explanation II.—Explanation III under sub-Item III of Item No. 18 shall, so far as may be, apply in relation to this Item as it applies in relation to that Item.';

Item

ods Rate of duty

No. Description of go<

(3)

(1)

(2)

llowing Item shall be substituted, (xi) for Item No. 18E, the fo.

namely: —

"18E. NON-CELLULOSIC SPUN

Twenty-four rupees per kilogram.

YARN— Spun (discontinuous) yarn, in which man-made fibres of non-eelluloslc origin, other than acrylic fibre, predomi- nate In weight and, in or in relation to the manufacture of which any process is ordi- narily carried on with the aid of power.

Explanation.—Explanation III under sub-Item III of Item No. 18 shall, so far as may be, apply In relation to this Item as it applies in relation to that Item.";

(xii) after Item No. 18E, the following Item shall be Inserted, namely: —

"18F. I. FLAX YARN—

Yarn, in which flax predomi- nates in weight and, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power—

5 5 paise per count per kilogram.

(i) not containing or con- taining not more than one- sixth by weight of non-cellu- losic fibre calculated on the total fibre content.

Eighteen rupees per kilogram.

(ii) containing more than one-sixth by weight of non- cellulosic fibre calculated on the total fibre content.

II. RAMIE YARN—

Eighteen rupees per kilogram.

Yarn, in which ramie predo- minates in weight and, in or in relation to the manufacture of which any process Is ordinarily carried on with the aid of power

Explanation.—Explanations I, II and III under sub-Item III of Item No. 18 shall, so far as may be, apply in relation to this Item as they apply in relation to that Item";

Item

JSo Description of goo

ds Rate of duty

(3)

(1)

(2)

(xw) m Item No. 19,—

(a) in column (2), for the portion beginning with the words ' "Cotton fabrics" means all varieties of fabrics' and ending with the words "which are embroidered or impregnated, coated or laminated, as the case may be—", the following shall be substitut. ed, namely: —

' "Cotton fabrics" means all varieties of fabrics manufac- tured either wholly or partly irom cotton and includes d ho ties, sarees chadders, bed- sheets, bed-spreads, counter- panes, table-cloths, embroi- dery in the piece, in strips or in motifs and fabrics impreg- nated, coated or laminated with preparations of cellulose derivatives or of other artifi- cial plastic materials, if (i) in such fabrics cotton predo- minates in weight, or (ii) such fabrics contain more than 40 per cent, by weight of cotton and 50 per cent, or more by weight of non-cellu- loslc fibres or yarn or both:

Provided fhat in the case of embroidery m the piece, in strips, or in motifs and fabrics impregnated, coated or lami- nated with preparations of cel- lulose derivatives or of other artificial plastic materials, such predominance or percentages, as the case may be, shall be in relation to the base fabrics which are embroidered or im- pregnated, coated or laminated, as the case may be—';

(b) for sub-Item I, the following sub-Item shall be substi- tuted, namely: —

Twenty per cent ad valorem.",

"I Cotton fabrics other than (i) embroidery in the piece, in strips or in motifs, and (h) fab- rics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials.

Item

Rate of duty

No. Description of goods

(3)

(1)

(2)

(c) for Explanation II, the following Explanation shall be substituted, namely: —

"Explanation II.—Where two or more of the following fibres, that is to say,

(a) man-made fibre of cellulosic origin;

(fa) cotton;

(c) wool;

(d) silk (including ailk noil);

(e) jute (including Bimlipatam jute or mesta fibre);

(f) man-made fibre of non-cellulosic origin;

(9) flax;

(h) ramie,

in any fabric are equal in weight, then, such one of those fibres the predominance of which would render such fabric fall under that Item (hereafter in this Explanation referred to as the applicable Item) among the Items Nos. 19, 20, 21, 22, 22A and 22AA, which, read with the relevant notification, if any, for the time being in force issued under the Central Excise Rules, 1944, involves th" highest amount of duty, shall be deemed to be predominant in such fabric and accordingly such fabric shall be deemed¹ to fall under the applica- ble Item.";

(d) Explanation III shall be omitted;

(xiv) in Item No. 20,—

(a) in column (2), for the portion beginning with the words "but does not include any such fabric—" and ending with the words "shall be in relation to the base fabrics which are em- broidered—", tke following shall be substituted, namely: —

", in each of which silk (in- cluding silk noil) predominates in weight and which is not ma- nufactured on handloom:

Provided that in the case of embroidery In the piece, in strips or in motifs, such predo- minance shall be in relation to the base fabrics which are em- broidered—";

Item

No. Description of goods

Rate of duty

(3)

(1) (2)

(b) the Explanation shall be numbered as Explanation I and after that Eocplanatkm as so numbered the following Explanation shall be inserted, namely: —

''Explanation II.—Explanation II under Item No. 19 shall, so far as may be, apply in relation to this Item as it applies in relation to that Item.";

(xv) in Item No. 21,—

(a) in column (2), for the portion beginning with the words "manufactured wholly of wool" and ending with the words "m relation to the base fabrics which are embroidered—", the following shall be substituted, namely: —

"in which wool predomi- nates in weight or which con- tain more than 30 per cent, of wool and 50 per cent, or more of non-cellulosic fibre or yarn or both:

Provided that in the case of embroidery in the piece, in strips or in motifs, such predomi- nance or percentages, as the case may be, shall be in relation to the base fabrics which are em- broidered—";

(b) the Explanation shall be numbered as Explanation I and after that Explanation as so numbered the following Expla- nation shall be inserted, namely: —

"Explanation II.—Explanation II under Item No. 19 shall, so far as may be, apply in relation to this Item as it applies in relation to that Item.";

(xx) for Item No 30, the following Item shall be substituted namely: —

'22. MAN-MADE FABRICS—

"Man-made fabrics" means all varieties of fabrics manufac- tured either wholly or partly from man-made fibres or yarn and includes embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other

Item

No. Description of goods

(1) (2)

artificial plastic materials, in each of which man-made 0) cellulosic fibre or yarn, or (n) non-cellulosic fibre or predominates in weight: Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or lami- nated with preparations of cellulose derivatives or of other artificial plastic mate- rials, such predominance shall be m relation to the base fabrics which are embroider- ed or impregnated, coated or laminated, as the case may- be—

(1) Man-made fabrics other than (i) embroidery in the piece, m strips or in motifs, and (it) fabrics im- pregnated, coated or lami- nated with preparations of cellulose derivatives or of other artificial plastic mate- rials.

(2) Embroidery in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power.

(3) Fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other arti- ficial plastic materials.

Rate of duty

(3)

Twenty per cent, ad valorem plus rupees five per square metre.

The duty for the time being levi- able on the base fabrics, if not already paid, plus twenty per cent, ad valorem.

The duty for the time being levi- able on the base fabrics, if not already paid, plus twenty per cent, ad valorem.

Explanation I.—"Base fabrics" means fabrics falling under sub-Item (1) of this Item which are subjected to the process of embroidery or which are impregnated, coated or laminated with preparations of cellu- lose derivatives or of other plastic materials.

Explanation II.—This Item does not include glass fabrics or fabrics

falling under Item No. 10 or Item No, 21.

Explanation III.—Explanation II under Item No. 19 shall, so far as

may be, apply in relation to this Item as it applies in relation to that Item.';

Item

;oods Rate of duty

No. Description of g

(3)

U)

(2)

(xvu) in Item No. 22A—

(a) in column (2), for tl ic words, brackets and figures "BUT

EXCLUDING ANY SUCH MANUFACTURE—

(1) if it contains 40 per cent or more by weight of wool; or

(u) if it contains no wool or less than 40 per cent by weight of wool and less than 50 per cent, by weight of jut-e (including Bimlipatam jute or mesta fibre)—", the words and brackets,

", IN WHICH JUTE (IN- CLUDING BIMLIPATAM JUTE OR MESTA FIBRE) PREDOMINATES IN WEIGHT—"

shall be substituted;

(b) for the entry in the third column against sub-Item (2), the entry "Six hundred rupees per metric tonne." shall be substi- tuted;

(c) the following Explanation shall be inserted at the end,

namely: —

"Explanation.—Explanation II under Item No. 19 shall, so

far as may be, apply in relation to this Item as it applies in relation to that Item.";

(xvih) for Item No. 22AA, the following Item shall be substi-

tuted, namely: —

Fifteen per cent, ad valorem.

"22AA. (0 FLAX FABRIC, in which flax predomi- nates m weight.

Fifteen per cent, ad valorem.

(w) RAMIE FABRIC, in which ramie predomi- nates in weight.

Explanation.—Explanation II under Item No. 19 shall, so far as may

be, apply in relation to this Item as it applies in relation to that Item.';

{xix) for Item No. 28, the following Item shall be substituted,

namely: —

One thousand seven hundred and fifty rupees per metric tonne.

"28. TIN PLATE AND TINNED, LACQUERED OR VARNI- SHED SHEETS INCLUDING TIN TAGGERS AND CUT- TINGS OF SUCH PLATES, SHEETS OR TAGGERS— (1) Tin plate and tinned sheets including tin taggers and cuttings of such plates, sheets or taggers.

Item

No. Description of gc

ods Rate of duty

(3)

(1)

(2)

One thousand two hundred and fifty rupees per metric tonne.";

(2) Lacquered sheets, varnish- ed sheets, including cuttings of lacquered sheets and varnished sheets.

(xx) for Item No. 30, the fo!

llowing Item shall be substituted.

namely: —

"30. ELECTRIC MOTORS, ALL SORTS; AND PARTS

THEREOF, NAMELY—

A. Motors which operate on alter-

nating current—

1. Single phase motors.

Twenty per cent, ad valorem.

2. Three phase motors—

Fifteen per cent, ad valorem.

(i) for rated output not ex- ceeding 7.5 Kw continuous ra- ting or, in the case of short time or intermittent rated mo. tors, its equivalent contmuous rating,

Ten per cent ad valorem.

(it) for rated output ex- ceeding 7.5 Kw continuous rat- ing or, in the case of short time or intermittent rated motors, its equivalent conti- nuous rating.

B. Motors which operate on direct

current—

(i) with rated output not ex- Twenty per cent, ad valorem.

ceeding 7.5 Kw.

(li) with rated output ex- Ten per cent, ad valorem.

ceeding 7.5 Kw.

Twenty per cent, ad valorem.

C. Motors which are capable of operating on alternating cur- rent or on direct current.

D. Parts of electric motors.

Twenty per cent, ad valorem.

Explanation I.—In the case of any multi-speed motor, the highest rated output of the motor shall be deemed to be the rated output of the motor.

Explanation II.—This Item does not include motors specially designed for use in gramophones or record players and all parts of such motors.";

(xxi) for Item No. 33, the following Item shall be substituted,

namely:—

"33. ELECTRIC FANS INCLUD- ING REGULATORS FOR ELECTRIC FANS, ATX SORTS—

Fifteen per cent, ad valorem.

(1) Table, cabin, carriage, pe- destal and air circulator fans, of a> diameter not exceeding 40.6 centimetres and regulators therefor.

Item

No. Description of goods Rate of duty

(3)

(1)

(2)

Fifteen per cent, ad valorem.

(2) Electric fans, designed for use in an industrial system as parts indispensable for its °Pe~ ration and have been given for that purpose some special shape or quality which would not be essential for their use for any other purpose, and regulators therefor.

Twenty per cent, ad valorem";

(3) Electric fans, not other- wise specified, and regulators therefor.

(xxii) after Item No. 33E, the following Item shall be inserted,

namely: —

J'33F. MUSICAL SYSTEMS COM- MERCIALLY KNOWN AS STEREO OR HI-FI SYS- TEMS, NAMELY: —

Thirty-five per cent, ad valorem. Thirty-five per cent, ad valorem";

(1) Stereo or hi-fi amplifiers. (2) Speakers and speaker systems housed in acoustically designed enclosures which are ordinarily used as attachments with stereo or hi-fi systems, or with radios (including transistor sets), tuners, radiograms, gra- mophones (including record players) and tape recorders or players (including oassette re- cordeis or players) having in- built stereo devices.

(xocih) for Item No. 34, the following Item shall be substituted,

namely: —

•'34. MOTOR VEHICLES AND

TRACTORS— I. Motor vehicles—

"Motor vehicles" means all mechanically propelled vehicles other than tractors, designed for use upon roads—

(1) Two-wheeled and three-

wheeled motor vehicles.

Twelve and half per cent, ad valo- rem.

(2) Motor vehicles of engine capacity not exceeding 2500 •cubic centimetres—

(t) Motor vehicles with

body.

Seventeen and half per cent. ad valorem. Twenty per cent, ad valorem.

Seventeen and half per cent, ad valorem.

(ii) Other motor vehicles (including chassis whether or not with cab). (3) Motor vehicles of engine capacity exceeding 2500 cubic centimetres.

II. Tractors, including agricultu- Fifteen per cent, ad valorem.

ral tractors.

Item

No. Description of g

(1)

(2) oods Rate of duty

(3)

Explanation I.—"Motor vehicles" and "Tractors, including agricul- tural tractors" shall include a chassis and a trailer; taut shall not include a vehicle running upon fixed rails.

Explanation II.—For the purpose of this Item, where a motor vehicle is mounted, fitted or fixed with any weight lifting or other specialised material handling equipment, then, such equipment shall not be taken into account.';

(xxiv) in Item No. 34A, for the words "PARTS AND ACCESSOR- IES OP MOTOR VEHICLES, NOT OTHERWISE SPECIFIED.", the words and brackets "PARTS AND ACCESSORIES OF MOTOR VEHICLES AND TRACTORS (INCLUDING AGRICULTURAL TRACTORS), NOT OTHERWISE SPECIFIED " shall be substitu- ted;

(xxv) for Item No. 37, the following Item shall be substituted, and shall be deemed to have been substituted, with effect from the 18th day of June, 1977, namely: —

"37. CINEMATOGRAPH FILMS— I. Unexposed. II. Exposed—

(i) News-reels and shorts not exceeding 500 metres.

(ii) Feature films—

(a) made wholly in black and white.

(b) made wholly or partly in colour.

(lii) Advertisement shorts and films not otherwise specified—

(a) made wholly in black and white,

(b) made wholly or partly in colour.

metre.

Two paise per

Fifty paise pei • metre.

luty for films •e of a length Rate of c which ai

exceeding 4000 metres. Fifteen thou- sand rupees per print. Twanty-two not exceeding 4000 metres. Twelve thou- sand rupees per print. Eighteen thousand rupees per print.

thousand and five hundred rupees per print

:r metre,

Four rupees pt

Six rupees per metre.";

(xxvi) for Item No. 37AA, the following Item shall be substitut-

ed, namely: —

"37AA TAPE RECORDERS (IN- CLUDING CASSETTE RECOR- DERS AND TAPE DECKS) AND TAPE PLAYERS (IN- CLUDING CASSETTE PLAY- ERS).

Thirty per cen1t. ad valorem.";

Item

goods Rate of duty

No. Description of |

(3)

(1)

(2)

(xxvii) after Item No, 43, the following Items shall be Inserted,

namely: —

Ten per cent, ad valorem.

"44. WATCHES, CLOCKS AND TIME-PIECES, PRIMARILY DESIGNED TO SHOW THE TIME OF DAY.

Ten per cent, ad valorem.

45. MACHINERY AND APPLI- ANCES FOR DETERMINA- TION OF WEIGHT INCLUD- ING PARTS OF WEIGH-BRID- GES.

Explanation.—This Item does not Include scales navmg arms "", equal length which determine weight by balancing the object against weight.";

(xxviii) for Item No. 51A, the following Item shall be substi-

tuted, namely: —

Ten per cent, ad valorem";

"51A. TOOLS, THE FOLLOW- ING, NAMELY: —

(i) Hand tools, the follow-

ing:

Pliers (including cuttmg pliers), spanners, wrenches, files and rasps, screw drivers (including ratchet types);

(ii) Tools for working In the hand, pneumatic or with self-contained non-electric or electric motor;

(in) Tools designed to be fitted into hand tools, machine tools or tools falling under sub-Item (ix), including dies for wire drawing, extrusion dies for metals and rock dril- ling bits;

(iv) Industrial knives and blades for hand" or madhine saws.

(xxix) after Item No. 60, the following Item shall be inserted,

namely:—

"61. ELECTRIC LIGHTING FIT- Ten per cent, ad valorem.

TINGS, NAMELY: —

SWITCHES, PLUGS AND SOCKETS, ALL KINDS; CHOKES AND STARTERS FOR FLUORESCENT TUBES.

Description of goods

Rate of duty

Item No.

(2)

(3)

(1)

THE FOURTH SCHEDULE

(See section 33)

PART I

In the Additional Duties of Excise Act,—

(a) in clause (c) of section 2, for the words 'and "rayon or artificial silk fabrics" ', the words 'and "man-made fabrics"' shall be substituted;

(b) in sub-section (1) of section 3, for the words "rayon or artificial silk fabrics", the words "man-made fabrics" shall be substituted.

PART II

In the First Schedule to the Additional Duties of Excise Act,—

(i) in Item No. 4, under "II. Manufactured tobacco—", for the entries in the third column against bub-Items , (3) (i) and (3) (ii), the entries "One rupee per thousand" and "Forty paise per thousand" shall, respec- tively, be substituted;

(it) in Item No. 19, for sub-Item I, the following sub-Item shall be substituted, namely: —

"I. Cotton fabrics other than Five per cent ad valorem.";

(i) embroidery, in the piece, in strips or in motifs and (it) fab- rics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials.

(Hi) in Item No. 22,—

(a) for the entry "RAYON OR ARTIFICIAL SILK FABRICS—", the entry "MAN-MADE FABRICS—" shall be substituted;

(b) in sub-Item (1), in the second column, for the words "Rayon or artificial silk fabrics", the words "Man-made fabrics" shall be substituted.

THE FIFTH SCHEDULE

(See section 39)

PART I

AMENDMENTS IN THE INCOME-TAX ACT

1. Section 2.—After clause (16), insert—

'(16A) "Commissioner (Appeals)" means a person appointed to be a Commissioner of Income-tax (Appeals) under sub-section (1> of section 117;'.

2 Section 107A, sub-section (9).—For "Appellate Assistant Commis- sioner", substitute "Commissioner (Appeals)"

3. Section 116, clause (c) and section 117, sub-section (1).—After "Commissioners of Income-tax", insert " , Commissioners of Income-tax (Appeals)".

4. Sections 119, 154, 177, 189, 267, 271, 271A, 275 and 295—After "the Appellate Assistant Commissioner", wherever it occurs, insert "or the •Commissioner (Appeals)".

5 After section 121, insert—

"121A (1) Commissioners (Appeals) shall perform their functions in respect of such areas or of such persons or classes of persons or of such incomes or classes of income as the Board may direct

Jurisdic- tion of Commn- siontrs (Appeals;, (2) Where any directions issued under sub-section (1) have assigned to two or more Commissioners (Appeals), the same area or the same persons or classes of persons or the same incomes or classes of income, they shall perform their functions in accordance with any orders which the Board may make for the distribution and allocation of the work to be performed ".

6 Section. 125.—

(a) in sub-section (I), in clause (a), omit "and the Appellate Assis-

tant Commissioner" and "and the Commissioner respectively";

(b) in sub-section (2), for clause (a), substitute—

" (a) where such order is made under clause (a) of the said sub-section (1), references in this Act or in any rule made there- under to the Income-tax Officer shall be deemed to be references tc the Inspecting Assistant Commissioner and any provision of this Act requiring approval or sanction of the Inspecting Assistant Commis- sioner shall not apply;".

7. Section 125A.—For sub-section (4), substitute—

"(4) Where an order is made under sub-section (1) and the Inspect- ing Assistant Commissioner exercises the powers or performs the func- tions of an Income-tax Officer in relation to any area, or persons or classes of persons, or incomes or classes of income, or cases or classes of cases, references in this Act or in any rule made thereunder to the Income-tax Officer shall be construed as references to the Inspecting Assistant Com- missioner and any provision of this Act requiring approval or sanction of the Inspecting Assistant Commissioner shall not apply."

8. Section 126.—

(Appeals),";

(a) after "empower Commissioners,", insert "Commissioners ,

(b) after "section 121,", insert "section 121A,".

9 Section 131, sub-section (1)—For "and Commissioner", substitute Commissioner (Appeals) and Commissioner".

10. Sections 133 and 134.—For "or the Inspecting Assistant Commis- iloner", wherever it occurs, substitute " , the Inspecting Assistant Com- missioner or the Commissioner (Appeals)".

11. Section 245.—For "or Commissioner", substitute ", Commissioner (Appeals) or Commissioner".

12. Section 245A, clause (b).—After "a Commissioner,", insert "a Commissioner (Appeals),".

13. Chapter XX, in the sub-heading before section 246, after "Appellate Assistant Commissioner", insert "and Commissioner (Appeals)",

14. Section 246.—

(a) renumber the section as sub-section (1) of the section and in the sub-section as so numbered,

(i) in the opening portion, for "Any assessee aggrieved by any of the following orders", substitute "Subject to the provi- sions of sub-section (2), any assessee aggrieved by any of the following orders";

(ii) omit clause (a) and the Explanation;

(b) after the sub-section as so numbered, insert—

'(2) Notwithstanding anything contained in sub-section (1), any assessee aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against such order—

(a) an order against the assessee, being a company, under section 104;

(b) an order specified in clauses (c) to (o) (both inclusive) of sub-section (1) where such order is made by the Inspecting Assistant Commissioner in exercise of the powers or functions conferred on or assigned to him under section 125 or section 125A;

(c) an order made by the Inspecting Assistant Com- missioner imposing a fine under sub-section (2) of section 131;

(d) an order against the assessee, being a foreign com- pany, where the assessee denies its liability to be assessed under this Act or any order of assessment under sub-sec- tion (3) of section 143 or section 144, and the assessee objects to the amount of income assessed or to the amount of tax determined or to the amount of loss computed or to the status under which it is assessed;

(e) an order against the assessee, being a domestic company, where the assessee denies its liability to Be assessed under this Act or any order of assessment under sub-section (3) of section 143 or section 144, and the assessee objects to the amount of income assessed or to the amount of tax determined or to the amount of loss computed or to the status under which it is assessed, and the amount of

income so assessed or the amount of loss so computed ex-- ceeds five lakh rupees;

Cf) an order of assessment under sub-section (3) of section 143 or section 144 made on the basis of directions issued by the Inspecting Assistant Commissioner under sec- tion 144B;

(0) an order imposing a penalty under clause (c) of sub-section (1) of section 271 where such penalty has been imposed with the previous approval of the Inspecting Assis- tant Commissioner under the proviso to clause (lii) of sub- section (1) of that section;

0i) an order made by an Inspecting A2E¹sfpnt Com- missioner imposing a penalty under section 272A;

(1) an order made by an Income-tax Officer under the provisions of tills Act in the case of such persons or classes of persons as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct (3) Every appeal against an order specified in sub-section (2) which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which Is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day :

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be reopened or that he be re- heard.

Explanation—For the purposes of this section,—

(a) "appointed day" means the date appointed under section 39 of the Finance (No 2) Act, 1977;

(b) "domestic company" and "foreign company" shall have the same meanings as in section 80B;

(c) "status" means the category under which the assessee is as- sessed as "individual", "Hindu undivided family" and so on.'.

15. Sections 247, 248, 249, 250, 251 and 287—After "Appellate Assistant Commissioner", wherever it occurs, insert "or, as the case may be, the Commissioner (Appeals)".

16. Section 253 —

(a) in clause (b) of sub-section (1), omit "or section 272A" and in that sub-section and sub-section (2), for "an Appellate Assistant Commissioner", substitute "an Appellate Assistant Commissioner or, as the case may be, a Commissioner (Appeals)";

(b) in sub-section (4), for "the Appellate Assistant Commis- sioner", at both the places where it occurs, substitute "the Appellate Assistant Commissioner or, as the case may be, the Commissioner (Appeals)".

17 Section 264, sub-section (4) —

(a) in clause (a), after "Appellate Assistant Commissioner", insert "or to the Commissioner (Appeals)" and after "in the case of an appeal", insert "to the Commissioner (Appeals) or";

(b) in clause (c), after "subject of an appeal", insert "to the

Commissioner (Appeals) or".

18. Section 272A —

(a) in sub-section (1), after "Inspecting Assistant Commissioner or", at both the places where it occurs, insert "a Commissioner (Appeals) or",

(b) in sub-section (3), after "the Commissioner", at both the

places where it occurs, insert "or the Commissioner (Appeals)",

19. Section 274, sub-section (3) —After "An Appellate Assistant Com-

missioner", insert "or a Commissioner (Appeals)".

PART II

AMENDMENTS IN THE WEALTH-TAX ACT, 1957

1 Section 2—After clause (

'(99) "Commissioner (Appeals)" means a person empowered to exercise the functions of a Commissioner of Wealth-tax (Appeals) under section 9A,'

2 Section 8AA —For sub-section (4), substitute—

"(4) Where an order is made under sub-section (1) and the Ins- pecting Assistant Commissioner exercises the powers or performs the functions of a Wealth-tax Officer in respect of any case or person or proceeding, references in this Act or in any rule made thereunder to the Wealth-tax Officer shall be construed as references to the Ins- pecting Assistant Commissioner and any provision of this Act requir ing approval or sanction of the Inspecting Assistant Commissioner shall not apply "

3 After section 9, insert—

Comtnia- sioners of Wealth tax (Appeals)

[i9A The Board may empower as many persons as it thinks tit to exercise under this Act the functions of a Commissioner of Wealth- tax (Appeals), and on being so empowered the Commissioners (Appeals) shall perform their functions in respect of such areas or such persons or such classes of persons as the Board may direct, and where such directions have assigned to two or more Commissioners (Appeals') the same area or the same persons or the same classes of persons they shall perform their functions in accordance with such orders as the Board may make for the distribution and allocation of the work to be performed."

4 Section 13, sub-section (1) —For "Appellate Assistant Commis- sioner of Wealth-tax", substitute "Appellate Assistant Commissioner or the Commissioner (Appeals)"

5 Section 18 —

(a) m sub-section (1),—

(i) in the opening portion, after "Appellate Assistant Com- missioner,", insert "Commissioner (Appeals),";

(11) in Explanation 2 (A) and Explanation 3, after 'Appellate Assistant Commissioner", insert "or the Commissioner (Appeals)";

(b) in sub-section (4), after "Appellate Assistant Commissioner,", insert "a Commissioner (Appeals),";

(c) in sub-section (5), after "Appellate Assistant Commissionei", at both the places where it occurs, insert "or Commissioner (Ap^ peals)"

6. Section 18A.—After "an Inspecting Assistant Commissioner", wher- ever It occurs, Insert "or a Commissioner (Appeals)".

7. Section 22A, clause (b).—After "a Commissioner,", insert "a Com- missioner (Appeals),".

8 Section 23 —

(a) in sub-section (1), for "Any person", substitute "Subject to the provisions of sub-section (1A), any person",

(b) after sub-section (1), insert—

'(IA) Notwithstanding anything contained in sub-section (I), any person,—

(a) objecting to the amount of net wealth determined under this Act or objecting to the amount of wealth-tax determined as payable by him under this Act or denying his liability to be assessed under this Act, where the net wealth determined on assessment made under section 16 ex- ceeds fifteen lakh rupees; or

(b) objecting to any penalty imposed under clause (c) of sub-section (I) of section 18 where the penalty has been imposed with the previous approval of the Inspecting Assist- ant Commissioner under sub-section (3) of section 18; or

(c) objecting to any assessment or order referred to m clauses (a) to (h) (both inclusive) or clause (1) of sub-section (1), where such assessment or order has been made by the Inspecting Assistant Commissioner in exercise of the powers or functions conferred on or assigned to him under section 8AA; or

(d) objecting to any penalty imposed by an Inspecting Assistant Commissioner under section 18A; or

(e) objecting to an order made by a Wealth-tax Officer in the case of such persons or classes of persons as the Board

may, having regard to the nature of the cases, the complexi- ties involved and other relevant considerations, direct,

may appeal to the Commissioner (Appeals) against the assess- ment or order, as the case may be, In the prescribed form and verified in the prescribed manner.

(IB) Every appeal against any assessment or order refer- red to in sub-section (1A) which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred, on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with the appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before pro- ceeding further with the appeal or matter the previous pro- ceeding or any part thereof be reopened or that he be re-heard.

Explanation.—In this sub-section, "appointed day" means the

date appointed under section 39 of the Finance (No. 2) Act, 1977.'; (t) in sub-sections (2), (2A), (3), (4), (5), (5A), (5B) and (6), after "Appellate Assistant Commissioner", wherever it occurs, insert "or, as the case may be, the Commissioner (Appeals)";

(d) in sub-section (3A) —

(t) after "sub-section (1)", insert "or of sub-section (1A)"; (u) after "the Appellate Assistant Commissioner" insert

"or, as the case may be, the Commissioner (Appeals)".

9. Section 24.—

(a) In sub-section (1), after "the Appellate Assistant Commis- sioner", insert "or the Commissioner (Appeals)" and in the Game sub-section, omit ", or to an order passed by the Inspecting Assistant Commissioner under section 18A,";

(b) In sub-section (2), after "Appellate Assistant Commissioner",

Insert "or a Commissioner (Appeals)";

(c) in sub-section (2A), after "Appellate Assistant Commis- sioner,", at both the places where it occurs, insert "or the Commis- sioner (Appeals)".

10. Section 25, proviso to sub-section (1).—-

(a) in clause (a), after "Appellate Assistant Commissioner", insert "or to the Commissioner (Appeals)" and after "in the case of an appeal", insert "to the Commissioner (Appeals) or";

(b) in clause (b), after "Appellate Assistant Commissioner", insert

"or the Commissioner (Appeals)".

11. Section 34A, sub-section (5).—After "Appellate Assistant Commis-

sioner", Insert ", Commissioner (Appeals)".

12. Sections 35 and 46.—After "the Appellate Assistant Commissioner" Wherever it occurs, insert "or the Commissioner (Appeals)".

13. Section 35K, sub-section (2) —For "in sections '8, 9", substitute "in sections 8, 9, 9A".

14. Section 37, sub-section (1).—After "Appellate Assistant Commis- sioner,", insert "Commissioner (Appeals),".

15. Section 42A, sub-section (2).—After "the Appellate Assistant Commissioner", insert "or, as the case may be, the Commissioner (Appeals)"

PART III

AMENDMENTS IN THE GIFT-TAX ACT, 1958

1. Section 2—After clause (vi), insert—

'(via) "Commissioner (Appeals)" means a person empowered to exercise the powers of a Commissioner of Gift-tax (Appeals) under section ft A;'.

2. Section 7AA.—For sub-section (4), substitute—

"(4) Where an order is made under sub-section (1) and the Ins- pecting Assistant Commissioner exercises the powers or performs the Junctions of a Gift-tax Officer in respect of any case or person or pro- ceeding under this Act, references in this Act or in any rule made thereunder to the Gift-tax Officer shall be construed as references to the Inspecting Assistant Commissioner and any provision 01 this Act requiring approval or sanction of the Inspecting Assistant Com- missionei shall not apply.".

3 After section 8, insert—

Commla- sioners of Gift-tax (Appeals).

"8A. The Board may empower as many persons as it thinks fit to exercise under this Act the functions of a Commissioner of Gift-tax (Appeals), and on being so empowered the Commissioners (Appeals) shall peifurm their functions in respect of such areas or such persons or such classes of persons as the Board rnay direct, and where such directions have assigned to two or more Commissioners (Appeals) the same areas or the same persons or the same classes of peisons they shall perform their functions in accordance with such oiders as the Board may make for the distribution and allocation of the w ork to be performed ".

4 Section 12, sub-section (1).—For "the Appellate Assistant Commis- sioner of Gift-tax", substitute "the Commissioner (Appeals) or the Ap- pellate Assistant Commissioner"

5 Section 17.—

(a) in sub-section (1), after "Appellate Assistant Commis- sioner,", insert "Commissioner (Appeals),";

(b) in sub-section (4), for "Commissioner or the Appellate Tribu- nal", substitute "a Commissioner (Appeals), a Commissioner or the Appellate Tribunal".

6 Section 17A.—After "an Inspecting Assistant Commissioner", wher- ever it occurs, insert "or a Commissioner (Appeals)"

7 Section 21, sub-section (2) .-After "Appellate Assistant Commis- sioner", insert ", the Commissioner (Appeals)"

8. Section 22.--

(n) in sub-section (I), for "Any person", substitute "Subject to the provisions of sub-section (1A), any person";

V<^) after sub-section (1), insert—

l( M) Notwithstanding anything contained in sub-section (1),

any person—

(a) objecting to the value of taxable gifts determined under this Act or objecting to the amount of gift-tax deter- mined as payable by him or denying his liability to be assessed under this Act where the value of taxable gifts determined on assessment exceeds two lakh rupeeis; or

(b) objecting to any assessment or order referred to in clauses (a) to (h) (both inclusive) of sub-section (1) where such assessment or order has been made by an Inspecting Assistant Commissioner in exercise of the powers or functions conierred on ox assigned to him under section 7AA; or

(c) objecting to any penalty imposed under clause (c) of sub-section (1) of section 17 where the penalty has been imposed with the previous approval of the Inspecting Assist- ant Commissionei under sub-section (3) of section 17; or

(d) objecting to any penalty imposed by an Inspecting

Assistant Commissionei under section 17A; or

(e) objecting to any order made by a Gift-tax Officer in the* case of such persons or classes of persons as the Board may, having regard to the nature of the cases, the com- plexities involved and other relevant considerations, direct,

may appeal to the Commissioner (Appeals) against the assess- memt or order, as the case may be, in the prescribed form and verified in the prescribed manner:

Provided that no appeal shall lie under clause (b) of this sub-section against any order referred to in clause Cf) of sub- section (1) unless the tax has been paid before the appeal is filed.

(IB) Every appeal against any assessment or order referred to in sub-section (1A) which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with the appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before pro- ceeding further with the appeal or matteV the previous proceed- ing or any part thereof be reopened or that he be re-heard.

Explanation—In this sub-section, "appointed day'¹ means the date appointed under section 39 of the Finance (No. 2) Act, 1977 ' ,

(c) in sub-sections (2), (3), (4), (5), (5A), (5B) and (6), after "Appellate Assistant Commissioner', wherever it occurs, insert "or, as the case may be, the Commissioner (Appeals)".

9 Section 23 —

(a) in sub-section (1), after "the Appellate Assistant Commis- sioner", insert "or the Commissioner (Appeals)" and in the same sub- section, omit "or to an order passed by the Inspecting Assistant Com- missioner under section 17A",

(b) m sub-section (2), after "Appellate Assistant Commissioner", insert "or a Commissioner (Appeals/';

(c) in sub-section (2A), after "Appellate Assistant Commis- sioner,", at both the' places where it occurs, insert "or the Commis- sioner (Appeals)''.

10. Section 24, proviso to sub-section (1) —

(a) in clause (a), after "Appellate Assistant Commissioner", insert "or to the Commissioner (Appeals)" and for "in the case of the Appellate Tribunal", subst tute "m the case of an appeal to the Com- missioner (Appeals) or to the Appellate Tribunal";

(b) in clause (b), after "subject of an appeal", insert "to the Commissioner (Appeals) or".

11 Section 33A, sub-section (5)—After "Appellate Assistant Commis- sioner", insert ", Commissioner (Appeals)".

12. Sections 34 and 46.—After "Appellate Assistant Commissioner", wherever it occurs, insert "or the Commissioner (Appeals)".

13 Section 36, sub-section (1)—After "Appellate Assistant Commis- bioner,", insert "the Commissioner (Appeals),".

14. Section 41A, sub-section (2).—After "the Appellate Assistant Com- missioner", insert "or, as the case may be, the Commissioner (Appeals)".

PART IV

AMENDMENTS IN THE COMPANIHS (PROFITS) SURTAX ACT, 1964

1. Throughout the Act [except in sub-section (1) of section 3 and sec- tion 171, for "Appellate Assistant Commissioner" (except where it is preceded by "an"), substitute "Commissioner (Appeals)" and for "an Appellate Assistant Commissioner", substitute "a Commissioner (Ap- peals)".

2 Section 3, sub-section (?)—For "Additional Commissioner of Income-tax, Appellate Assistant Commissioner of Income-tax", substitute "Commissioner of Income-tax (Appeals), Additional Commissioner of Income-tax"

3 After section 11, insert,—

Transfer of certain pending appeals.

11A Every appeal under this Act which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals')

may proceed with such appeal or mattejr from the stage at which it was on that day:

Provided that the appellant may demand that before proceeding further with the appeal or matter the previous proceeding or any part theretof be reopened or that he be re-heard.

Explanation—In this section, "appointed dav" means the date

appointed under section 39 of the Finance (No. 2) Act, 1977.'

4. Section 17.—

(a) in sub-section (1), omit "or Appellate Assistant Commis-

sioner'¹;

(b) in sub-section (4), for clauses (a), (b) and (c), substituta—

" (a) where an appeal against the order lies to the Commis- sioner (Appeals) but has not been made and the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or

(b) where the order has been made the sub]ect of an appeal

to the Commissioner (Appeals).";

(c) omit Explanation 2

PART V

AMENDMENTS IN THE INTEREST-TAX ACT, 19T4

1. Throughout the Act [except in sub-section (1) of section 3 and sec- tion 20], for "Appellate Assistant Commissioner" (except where it is preceded by "an"), substitute "Commissioner (Appeals)", and for "an Appellate Assistant Commissioner", substitute "a Commissioner (Ap- peals)".

2 Section 3, sub-section (7).—For "Additional Commissioner of Income-tax, Appellate Assistant Commissioner of Income-tax", substitute "Commissioner of Income-tax (Appeals), Additional Commissioner of Income-tax",

3 After section 15, insert.—

Transfer of certain pending appeals

'15A Every appeal under this Act which is pending immediately before the appointed day before an Appellate Assistant Commissioner or a Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may pioeeed with such appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before proceeding further with the appeal or matter the previous proceeding or any part thereof be reopened or that he be re-heard

Explanation—In this section, "appointed day" means the date

appointed under section 39 of the Finance (No. 2) Act, 1977.'.

4. Section 20.—

(a) in sub-section (1), omit "or Appellate Assistant Commis- sioner";

(fa) in sub-section (4), for clauses (o), (b) and (c) substitute—

"(a) where an appeal against the order lies to the Commis- sioner (Appeals) but has no I. been made and the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or

(b) where the order has been made the subject of an appeal

to the Commissioner (Appeals'*.";

(c) omit Explanation 2.

K K SUNDARA.M; Secy, to the Govt, of India

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBHCATIONS> DELHI, 1977