Companies (Profits) Surtax Act, 1964- Sections 18 to 26

18. Application of provisions of Income-tax Act.

18. 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 such modifications, if any, as may be prescribed, as if the said provisions and the rules referred to surtax instead of to income-tax [i][* * *]:—

[ii][2(44)], [iii][116, 117, 118, 119, 120, 129,] 131, 132, 132-A, [iv][132-B,] 133] to 136 (both inclusive), 138, 140, 156, 160, 162, 163, 166, 167, 170, 173, 175, 176, 179, [v][218 to 229] (both inclusive), 231, 232, 233, 237 to 242 (both inclusive), 244, 245, 254 to 262 (both inclusive), 265, 266, 268, 269, 281, [vi][281-B,] 282, 284, 287 [vii][, 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 the rules to the “assessee” shall be construed as references to an assessee as defined in this Act.

19. Income-tax papers to be available for the purposes of this Act.

19. Income-tax papers to be available for the purposes of this Act.—(1) Notwithstanding anything contained in the Income-tax Act, all information contained in any statement or return made or furnished under the provisions of that Act or obtained or collected for the purposes of that Act may be used for the purposes of this Act.

(2) All information contained in any statement or return made or furnished under the provisions of this Act or obtained or collected for the purposes of this Act may be used for the purposes of the Income-tax Act.

20. Failure to deliver returns, etc.

20. Failure to deliver returns, etc.—If any person fails without reasonable cause to furnish in due time any return sub-section (2) of Section 5, or to produce, or cause to be produced, any accounts or documents required to be produced under Section 6, he shall be punishable with fine which may extend to five hundred rupees, and with a further fine which may extend to ten rupees for every day during which the default continues.

21. False statements.

21. False statements.—If a person makes in any return furnished under Section 5, any 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 simple imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

22. Abetment of false returns, etc.

22. Abetment of false returns, etc.—If a person makes or induces in any manner another person to make and deliver any account, statement or declaration relating to chargeable profits liable to surtax which is false and which he either knows to be false or does not believe to be true, he shall be punishable with simple imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

23. Institution of proceedings and composition of offences.

23. Institution of proceedings and composition of offences.—(1) A person shall not be proceeded against for an offence under Section 20 or Section 21 or Section 22 or under the Indian Penal Code (65 of 1860) except at the instance of the Commissioner.

(2) The Commissioner may, either before or after the institution of proceedings, compound any offence punishable under Section 20 or Section 21 or Section 22.

24. Power to make exemption, etc., in relation to certain Union Territories.

24. Power to make exemption, etc., in relation to certain Union Territories.—If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of this Act to the Union Territories of Dadra and Nagar Haveli, Goa, Daman and Diu and [viii][Puducherry], the Central Government may, by general or special order, make an exemption, reduction in rate or other modification in respect of surtax in favour of any class of assessees or in regard to the whole or any part of the chargeable profits any class of assessees.

24-A. Agreement with foreign countries.

[ix][24-A. Agreement with foreign countries.—The Central Government may enter into an agreement with the Government of any country outside India—

(a) for the granting of relief in respect of chargeable profits on which have been paid both surtax under this Act and tax of a similar character or income-tax on such profits in that country, or

(b) for the avoidance of double taxation of chargeable profits under this Act and under any law relating to the taxation of income or profits in force in that country, or

(c) for exchange of information for the prevention of evasion or avoidance of surtax chargeable under this Act or the tax chargeable under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or

(d) for recovery of tax under this Act and under any law relating to the taxation of income or profits in force in that country,

and may, by notification in the Official Gazette, make such provision as may be necessary for implementing the agreement.]

24-AA. Power to make exemption, etc.

[x][24-AA. Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils.—(1) If the Central Government is satisfied that it is necessary or expedient so to do in the public interest, it may, by notification in the Official Gazette, make an exemption, reduction in rate or other modification in respect of surtax in favour of any class of foreign companies specified in sub-section (2) or in regard to the whole or any part of the chargeable profits of such class of companies.

Explanation.—For the purposes of this sub-section, “foreign company” shall have the meaning assigned to it in clause (4) of Section 80-B of the Income-tax Act.

(2) The foreign companies referred to in sub-section (1) are the following, namely:—

(a) foreign companies with whom the Central Government has entered into agreements for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils; and

(b) foreign companies providing any services or facilities or supplying any ship, aircraft machinery or plant (whether by way of sale or hire) in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried on by that Government or any person specified by that Government in this behalf by notification in the Official Gazette.

(3) Every notification issued under this section shall be laid before each House of Parliament.

Explanation.—For the purposes of this section, “mineral oil” includes petroleum and natural gas.]

25. Power to make rules.

25. 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 purposes 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 form in which returns under Section 5 may be furnished and the manner in which they may be verified;

(b) the form in which notice for making provisional assessment shall be given;

(c) the form in which appeals under Section 11 or Section 12 may be filed and the manner in which they shall be verified;

[xi][(cc) the circumstances in which, the conditions subject to which and the manner in which, the [xii][Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the [xiii][Assessing Officer];]

(d) the procedure to be followed on applications for rectification of mistakes and applications for refunds;

[xiv][(dd) the procedure to be followed in calculating interest payable by assessees or interest payable by the Government to assessees under this Act, including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be ignored;]

(e) any other matter which by this Act it to be, or may be, prescribed.

[xv][(2-A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.]

(3) 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 [xvi][or in two or more successive sections (sic sessions)], and if, before the expiry of the session [xvii][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 make, that rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that nay such modification or annulment shall be without prejudice to the validity of any previously done under that rule.

26. Saving.

26. Saving.—Nothing contained in this Act shall apply to any company which has no share capital.

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