Expenditure-tax Act, 1987- Sections 14 to 33

14. Interest on delayed payment of expenditure-tax.

14. Interest on delayed payment of expenditure-tax.—Every person responsible for collecting expenditure-tax and paying it to the credit of the Central Government in accordance with the provisions of Section 7, who fails to credit the tax to the account of the Central Government within the period specified in that section, shall pay simple interest at the rate of [i][one per cent] for every month or part of a month by which such crediting of tax is delayed.

15. Penalty for failure to collect or pay expenditure-tax.

[ii][15. Penalty for failure to collect or pay expenditure-tax.—Any person responsible for collecting expenditure-tax in accordance with the provisions of sub-section (1) or sub-section (2) of Section 7, who—

(a) fails to collect such tax; or

(b) having collected the tax, fails to pay such tax to the credit of the Central Government in accordance with the provisions of sub-section (3) of that section,

shall pay,—

(i) in the case referred to in clause (a), in addition to paying tax in accordance with the provisions of sub-section (4) of that section, by way of penalty, a sum equal to the amount of tax that he failed to collect; and

(ii) in the case referred to in clause (b), in addition to paying interest in accordance with the provisions of Section 14, by way of penalty, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues, so, however, that the penalty under this clause shall not exceed the amount of tax that he failed to pay.]

16. Penalty for failure to furnish prescribed return.

16. Penalty for failure to furnish prescribed return.—If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of Section 8 or by notice given under sub-section (2) of that section, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees, but which may extend to two hundred rupees for every day during which the failure continues.

17. Penalty for concealment of chargeable expenditure.

17. Penalty for concealment of chargeable expenditure.—If the Income Tax Officer or the Commissioner (Appeals) in the course of any proceedings under this Act is satisfied that any person has concealed particulars of chargeable expenditure or has furnished inaccurate particulars of such chargeable expenditure, he may direct that such person shall pay by way of penalty, in addition to any expenditure-tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of tax sought to be evaded by reason of concealment of particulars of chargeable expenditure or the furnishing of inaccurate particulars of such chargeable expenditure:

Provided that if the amount of chargeable expenditure (as determined by the Income Tax Officer on assessment) in respect of which particulars have been concealed or inaccurate particulars have ben furnished exceeds a sum of twenty-five thousand rupees, the Income Tax Officer shall not issue any direction for payment by way of penalty without the previous approval of the [iii][Additional Commissioner or, as the case may be, of the] Deputy Commissioner.

18. Penalty for failure to comply with notice.

18. Penalty for failure to comply with notice.—If the Income Tax Officer in the course of any proceedings under this Act is satisfied that any person has failed to comply with a notice under sub-section (1) of Section 9, he may direct that such person shall pay, by way of penalty, in addition to any tax payable by him, a sum which shall not be less than ten per cent but which shall not exceed fifty per cent of the amount of the tax, if any, which would have been avoided if the chargeable expenditure returned by such person had been accepted as the correct chargeable expenditure.

19. Penalty not to be imposed in certain cases.

19. Penalty not to be imposed in certain cases.—Notwithstanding anything contained in the provisions of Section 15, Section 16, Section 17 or Section 18, no penalty shall be imposable on the assess for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.

20. Notice of Demand.

20. Notice of Demand.—When any tax, interest, penalty or any other sum is payable under this Act, the Income Tax Officer shall serve upon the assessee a notice of demand in the prescribed form, specifying the sum so payable and the amount of chargeable expenditure in relation to which such sum is payable.

21. Revision of orders by the Commissioner.

21. Revision of orders by the Commissioner.—(1) The Commissioner may, either of his own motion or on application by the assessee for revision, call for the record of a proceeding under this Act which has been taken by the Income Tax Officer subordinate to him and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit.

(2) No order which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity of being heard.

(3) No order under this section shall be passed by the Commissioner, if an appeal against the notice of demand issued by the Income Tax Officer under Section 20 is pending before the Commissioner (Appeals).

(4) No order under this section shall be passed after the expiry of two years from the end of the financial year in which the order sought to be reviewed has been passed.

[iv][(6) On every application by an assessee for revision under this sub-section, made on or after the 1st day of October, 1998, an order shall be passed within one year from the end of the financial year in which such application is made by the assessee for revision.

Explanation.—In computing the period of limitation for the purposes of this sub-section, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to Section 24 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.

(7) Notwithstanding anything contained in sub-section (6), an order in revision under that sub-section may be passed at any time in consequence of or to give effect to any finding or direction contained in an order of the Appellate Tribunal, [v][the National Tax Tribunal,] the High Court or the Supreme Court.]

22. Appeals to the Commissioner (Appeals).

22. Appeals to the Commissioner (Appeals).—(1) Any person objecting to the amount of expenditure-tax for which he is assessed by the Income Tax Officer, or denying his liability to be assessed under this Act, or objecting to an order levying penalty under this Act, may appeal to the Commissioner (Appeals).

[vi][(2) Every appeal shall be in the prescribed form and shall be verified in the prescribed manner and in respect of appeals filed on or after the 1st day of October, 1998, shall be accompanied by a fee of two hundred and fifty rupees.]

(3) An appeal shall be presented within thirty days of the receipt of the notice of demand relating to tax, interest or penalty under this Act:

Provided that the Commissioner (Appeals) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period.

(4) The Commissioner (Appeals) shall hear and determine the appeal and, subject to the provisions of this Act, pass such orders as he thinks fit and such orders may include an order enhancing the assessment or penalty:

Provided that an order enhancing the assessment or penalty shall not be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.

[vii][(4-A) In every appeal, the Commissioner (Appeals), where it is possible, may hear and determine such appeal within a period of one year from the end of the financial year in which such appeal is filed under sub-section (1).]

(5) The procedure to be adopted in the hearing and determination of the appeals shall, with any necessary modification, be in accordance with the procedure applicable in relation to income-tax.

23. Appeals to Appellate Tribunal.

23. Appeals to Appellate Tribunal.—(1) Any assessee aggrieved by an order passed by a Commissioner under Section 21, or an order passed by a Commissioner (Appeals) under any provision of this Act, may appeal to the Appellate Tribunal against such order.

(2) The Commissioner may, if he objects to any order passed by the Commissioner (Appeals) under any provision of this Act, direct the Income Tax Officer to appeal to the Appellate Tribunal against the order.

(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee or to the Commissioner, as the case may be.

(4) The Income Tax Officer or the assessee, as the case may be, on receipt of a notice that an appeal against the order of the Commissioner (Appeals) has been preferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).

(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period.

(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections referred to in sub-section (4), be accompanied by [viii][a fee of one thousand rupees in the case of appeals filed on or after the 1st day of October, 1998].

(7) Subject to the provisions of this Act, in hearing and making an order or any appeal under this section, the Appellate Tribunal shall exercise the same powers and follow the same procedure as it exercises and follows in hearing and making an order on any appeal under the Income Tax Act.

24. Application of provisions of Income Tax Act.

24. Application of provisions of Income Tax Act.—The provisions of the following sections and Schedules of the Income Tax Act and the Income Tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to expenditure-tax instead of to income-tax:

[2(44), 118, 120, 129, 131 to 136 (both inclusive)], 138, [ix][139-A,] 140, 144-A, [x][145], 159 to 163 (both inclusive), 166, 167, 170, 171, 173 to 179 (both inclusive), 187, 188, [xi][188-A], 189, 220 to 227 (both inclusive), 229 [xii][***] 232, 237 to 245 (both inclusive), 254 to 262 (both inclusive), 265, 266, 268, 269, 278-B, 278-C, 278-D, 278-E, [xiii][279-B], 281, 281-B, 282, 283, 284, 287, 288, 288-A, 288-B, 289 to 293 (both inclusive), the Second Schedule and the Third Schedule:

Provided that references in the said provisions and rules to “assessee” shall be construed as reference to an assessee as defined in this Act.

25. Wilful attempt to evade tax, etc.

25. Wilful attempt to evade tax, etc.—If a person wilfully attempts in any manner whatsoever to evade collection or payment of any tax, penalty or interest chargeable or imposable under this Act, or to understate the aggregate of the chargeable expenditure, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

Explanation.—For the purposes of this section, a wilful attempt to evade collection or payment of any tax, penalty or interest chargeable or imposable under this Act shall include a case where any person—

(i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or

(ii) makes or causes to be made any false entry or statement in such books of account or other documents; or

(iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or

(iv) causes any other circumstances to exists which will have the effect of enabling such person to evade collection or payment of any tax, penalty or interest chargeable or imposable under this Act.

26. Failure to furnish prescribed returns.

26. Failure to furnish prescribed returns.—If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of Section 8 or by a notice given under sub-section (2) of that section, he shall without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

27. False statement in verification, etc.

27. False statement in verification, etc.—If a person makes a statement in any verification under this act or any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

28. Abetment of false return, etc.

28. Abetment of false return, etc.—If a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to any chargeable expenditure which is false and which he either knows to be false or does not believe to be true or to commit an offence under Section 25, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

29. Certain offences to be non-cognizable.

29. Certain offences to be non-cognizable.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under Section 25 or Section 26 or Section 27 or Section 28 shall be deemed to be non-cognizable within the meaning of that Code.

30. Institution of proceedings and composition of offences.

30. Institution of proceedings and composition of offences.— (1) A person shall not be proceeded against for any offence under Section 25 or Section 26 or Section 27 or Section 28, except with the previous sanction of the Commissioner:

Provided that no such sanction shall be required where the complaint before the court is a Commissioner (Appeals).

(2) The Commissioner may, either before or after the institution of proceedings, compound any offence punishable under Section 25 or Section 26 or Section 27 or Section 28.

31. Power to make rules.

31. Power to make rules.—(1) The Board may, subject to the control of the Central Government, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely—

(a) the manner is which the room charges may be determined under [xiv][sub-clause (a) of clause (1)] of Section 3 in cases where composite charges are payable in respect of residential accommodation and food;

(b) the cases and the circumstances in which payments made in Indian currency by conversion of foreign exchange into Indian currency shall be deemed to have been made in foreign exchange for the purposes of clause (a) of the Explanation to [xv][clause (1) of] Section 5;

(c) the form in which returns under Section 8 may be furnished, the manner in which they may be verified and the other particulars which a form may contain;

(d) the form in which a notice of demand may be served on the assessee under sub-section (7) of Section 12;

(e) the form in which appeals under Section 22 or under sub-section (6) of Section 23 may be filed and the manner in which they may be verified;

(f) the manner in which a memorandum of cross-objections under sub-section (4) of Section 23 may be verified;

(g) any other matter which by this Act is to be or may be prescribed.

(3) The power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospective effect to the rules or any of them from a date not earlier than the date of commencement of this Act.

(4) The Central Government shall cause every rule made under this section to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

32. Power to remove difficulties.

32. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act.

33. Consequential amendments.

33. Consequential amendments.— [xvi][Repealed]

References

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