[14th September, 1987] An Act to provide for the levy of a tax on
expenditure incurred in certain hotels [2]
[or restaurants and for matters
connected therewith or incidental thereto] Be it
enacted by Parliament in the Thirty-eighth Year of the Republic of India as
follows:- Prefatory
Note.-Statement of Objects and Reasons.-The Bill seeks to impose a tax on
expenditure incurred in hotels where the room charges for any unit of
residential accommodation are four hundred rupees or more per day per
individual. This tax will be levied at the rate of ten per cent of the
expenditure incurred in connection with provision of any accommodation food,
drinks, and certain other categories of services. This tax will not apply to
expenditure incurred in foreign exchange or in the case of a person enjoying
diplomatic privileges. (1)
This Act may be called
the Expenditure-tax Act, 1987. (2)
It extends to the whole
of India except the State of Jammu and Kashmir. (3)
It shall come into force
on such date[3] as
the Central Government may, by notification in the Official Gazette, appoint. In this
Act, unless the context otherwise requires,- (1)
?assessee? means a
person responsible for collecting the expenditure-tax payable under the
provisions of this Act; (2)
?assessment year? means
the period of twelve months commencing on the 1st day of April every year; (3)
?Board? means the
Central Board of Direct Taxes constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963); (4)
?chargeable expenditure?
means the expenditure referred to in Section 5; (5)
?expenditure-tax? or
?tax? means the tax chargeable under the provisions of this Act; (6)
?hotel? includes a
building or part of a building where residential accommodation is, by way of
business, provided for a monetary consideration; (7)
?Income Tax Act? means
the Income Tax Act, 1961 (43 of 1961); (8)
?person responsible for
collecting? means a person who is required to collect tax under this Act or is
required to pay any other sum of money under this Act and includes- (a)
every person in respect
of whom any proceedings under this Act have been taken, and (b)
every person who is
deemed to be an assessee-in-default under any provision of this Act; (9)
?prescribed? means
prescribed by rules made under this Act; [4] [(9-A) ?restaurant? means any premises, not being a
restaurant situated in a hotel referred to in clause (1) of Section 3, in which
the business of sale of food or drink to the public is carried on and such
premises, at the beginning of any month, are equipped with, or have access to,
facilities for air-conditioning;] (10)
?room charges? means the
charges for a unit of residential accommodation in a hotel and includes the
charges for- (a)
furniture,
air-conditioner, refrigerator, radio, music, telephone, television, and (b)
such other services as
are normally included by a hotel in room rent, but does not include charges for
food, drinks and any services other than those referred to in sub-clauses (a) and (b); (11)
all other words and
expressions used herein but not defined and defined in the Income Tax Act shall
have the meanings respectively assigned to them in that Act. This
Act shall apply in relation to any chargeable expenditure- (1)
incurred [6]
[before the 1st day of June, 2003] in a hotel wherein the room charges for any
unit of residential accommodation at the time of incurring of such expenditure
are [7]
[three thousand rupees or more per day] and where,- (a)
a composite charge is
payable in respect of such unit and food, the room charges included therein
shall be determined in the prescribed manner; (b)
(i) a composite charge is payable in respect of such unit, food,
drinks and other services, or any of them, and the case is not covered by the
provisions of sub-clause (a),
or (ii) it appears to the Assessing
Officer that the charges for such unit, food, drinks or other services are so
arranged that the room charges are understated and the other charges are
overstated, the Assessing Officer shall, for the purposes of this clause
determine the room charges on such reasonable basis as he may deem fit; and (2)
incurred in a
restaurant [8]
[before the 1st day of June, 1992].] Subject
to the provisions of this Act, there shall be charged on and from- (a)
the commencement of this
Act [10]
[but not after the 31st day of May, 2003], a tax at the rate of [11]
[ten] per cent. of the chargeable expenditure incurred in a hotel referred to
in clause (1) of Section 3: Provided
that nothing in this clause shall apply in the case of a hotel referred to
in [12]
[clause (a) of sub-section (7)
of Section 80-IB] of the Income-tax Act during the period beginning on the 1st
day of April, 1991 and ending on the 31st day of March, 2001: [13] [Provided further that nothing in this clause shall
apply in the case of a hotel referred to in [14]
[clause (a) of sub-section (7)
of Section 80-IB] of the Income Tax Act, 1961 (43 of 1961) during the period
beginning on the 1st day of April, 1998 and ending on the 31st day of March,
2008.] (b)
the 1st day of October,
1991 [15]
[but not after the 31st day of May, 1992], a tax at the rate of fifteen per
cent. of the chargeable expenditure incurred in a restaurant referred to in
clause (2) of Section 3.] For the
purposes of this Act, chargeable expenditure,- (1)
in relation to a hotel
referred to in clause (1) of Section 3, means any expenditure incurred in, or
payments made to, the hotel in connection with the provision of- (a) ???any accommodation, residential or otherwise;
or [17] [* * *] (c)? ?any
accommodation in such hotel on hire or lease; or [18] [* * *], but does not include- (i)
any expenditure which is
incurred, or payment for which is made, in foreign exchange [19]
[before the 1st day of October, 1992]; (ii)
any expenditure incurred
by persons within the purview of the Vienna Convention on Diplomatic Relations,
1961or the Vienna Convention on Consular Relations, 1963; (iii)
any expenditure incurred
in any shop or in any office which is not owned or managed by the person who
carries on the business of a hotel; (iv)
any expenditure by way
of any tax, including tax under this Act. Explanation.-For
the purposes of this clause,- (a)
expenditure incurred or
any payments made in Indian currency obtained by conversion of foreign exchange
into Indian currency shall in such cases and in such circumstances as may be
prescribed be deemed to have been incurred or, as the case may be, made in
foreign exchange; and (b)
?foreign exchange? and
?Indian currency? shall have the meanings respectively assigned to them in
clauses (h) and (k) of Section 2 of the Foreign
Exchange Regulation Act, 1973 (46 of 1973); (2)
in relation to a
restaurant referred to in clause (2) of Section 3, means any expenditure
incurred in, or payments made to, a restaurant in connection with the provision
of food or drink by the restaurant, whether at the restaurant or outside, or by
any other person in the restaurant, but does not include any expenditure
referred to in sub-clauses (ii)
and (iv) of clause (1).] [20] [(1) Every Director General of Income Tax, Chief
Commissioner of Income Tax, Director of Income Tax, Commissioner of Income Tax,
Commissioner of Income Tax (Appeals), [21]
[Additional Director of Income Tax, Additional Commissioner of Income
Tax,] [22]
[Joint Director of Income Tax, Joint Commissioner of Income Tax] Deputy
Director of Income Tax, Deputy Commissioner of Income Tax, Assistant Director
of Income Tax, Assistant Commissioner of Income Tax, Income Tax Officer, Tax
Recovery Officer and Inspector of Income Tax shall have the like powers and
perform the like functions under this Act as he has and performs under the
Income Tax Act, and for the exercise of his powers and the performance of his
functions, his jurisdiction under this Act shall be the same as he has under
the Income Tax Act.] (2) ??All officers
and persons employed in the execution of this Act shall observe and follow the
orders, instructions and directions of the Board: Provided
that no such orders, instructions or directions shall be issued- (a)
so as to require any tax
authority to make a particular assessment or to dispose of a particular case in
a particular manner; or (b)
so as to interfere with
the discretion of the Commissioner (Appeals) in the exercise of his appellate
functions. (3) ??Every Income
Tax Officer employed in the execution of this Act shall observe and follow the
orders, instructions and directions issued for his guidance by the [23]
[Director General or Director or by the Chief Commissioner or Commissioner] or
by the [24]
[Additional Commissioner of Income Tax or] [25]
[Joint Commissioner] within whose jurisdiction he performs his functions. (1)
Where any chargeable
expenditure is incurred in a hotel referred to in clause (1) of Section 3,- (a)
if such expenditure
relates to any of the services, specified in sub-clauses (a) to (d) of clause (1) of Section 5, provided by the hotel, the person
who carries on the business of such hotel; and (b)
if such expenditure
relates to any of the services, specified in sub-clause (b) or sub-clause (d) of clause (1) of Section 5,
provided by the other person referred to therein, such other person, shall
collect the expenditure-tax at the rate specified in clause (a) of Section 4. (2)
Where any chargeable
expenditure is incurred in a restaurant referred to in clause (2) of Section
3 [27]
[before the 1st day of June, 1992] in relation to any services specified in
clause (2) of Section 5 and where such services are- (a)
provided by the
restaurant, the person who carries on the business of such restaurant; and (b)
provided by the other
person, such other person, shall collect the expenditure-tax at the rate
specified in clause (b) of Section
4. (3)
The tax collected during
any calendar month in accordance with the provisions of sub-section (1) and (2)
shall be paid to the credit of the Central Government by the 10th of the month
immediately following the said calendar month. (4)
Any person responsible
for collecting the tax, who fails to collect the tax in accordance with the
provisions of sub-section (1) or sub-section (2) shall, notwithstanding such
failure, be liable to pay the tax to the credit of the Central Government in
accordance with the provisions of sub-section (3).] (1)
Every person responsible
for collecting the tax shall before the expiry of four months from the 31st day
of March in each year, furnish or cause to be furnished to the Income Tax
Officer in the prescribed form and verified in the prescribed manner, a return
in respect of the immediately preceding financial year showing- (a)
the aggregate of the
payments received in respect of chargeable expenditure; (b)
the amount of the tax
collected; (c)
the amount of the tax
paid to the credit of the Central Government; and (d)
such other particulars
as may be prescribed. (2)
In the case of any
person who, in the opinion of the Income Tax Officer, is responsible for collecting
tax under this Act and who has not furnished a return under sub-section (1),
the Income Tax Officer may, before the expiry of the financial year in which
the return is to be furnished, issue a notice to him and serve the same upon
him, requiring him to furnish within thirty days from the date of service of
the notice the return in the prescribed form and verified in the prescribed
manner setting forth such other particulars as may be prescribed. (3)
Any person responsible
for collecting the tax who has not furnished the return within the time allowed
under sub-section (1) or sub-section (2), or having furnished a return under
sub-section (1) or sub-section (2), discovers any omission or wrong statement
therein, may furnish a return or a revised return, as the case may be, at any
time before the assessment is made. (1)
For the purpose of
making an assessment under this Act, the Income Tax Officer may serve on any
person who has furnished a return under Section 8 or upon whom a notice has
been served under sub-section (2) of Section 8 (whether a return has been
furnished or not) a notice requiring him on a date therein to be specified, to
produce or cause to be produced such accounts or documents or other evidence as
the Income Tax Officer may require for the purposes of this Act and may, from
time to time, serve further notices requiring the production of such further
accounts or documents or other evidence as he may require. (2)
The Income Tax Officer,
after considering such accounts, documents or other evidence, if any, as he has
obtained under sub-section (1) and after taking into account any relevant
material which he has gathered, shall, by an order in writing, assess the
chargeable expenditure and the amount of tax payable on the basis of such
assessment. If- (a)
any person fails to make
the return required by any notice given under sub-section (2) of Section 8 and
has not made a return or a revised return under sub-section (3) of that
section, or (b)
any person having made a
return fails to comply with all the terms of a notice issued under sub-section
(1) of Section 9, or (c)
the Income Tax Officer
is not satisfied with the correctness or the completeness of the accounts of
the assessee, the Income Tax Officer, after taking into account all the
relevant material which he has gathered, shall, by an order in writing, make
the assessment of the chargeable expenditure to the best of his judgement and
determine the sum payable by the assessee or refundable to the assessee on the
basis of such assessment. If- (a)
the Income Tax Officer
has reason to believe that by reason of omission or failure on the part of the
assessee to make a return under Section 8 for any assessment year or to
disclose wholly and truly all material facts necessary for his assessment for
any assessment year, chargeable expenditure for that year has escaped
assessment or has been underassessed, or (b)
notwithstanding that there
has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income Tax Officer has, in
consequence of information in his possession, reason to believe that chargeable
expenditure assessable in any assessment year has escaped assessment or has
been underassessed, he may, in cases falling under clause (a), at any time, and in cases falling
under clause (b), at any time
within four years from the end of that assessment year, serve on the assessee a
notice containing all or any of the requirements which may be included in a
notice under Section 8 and may proceed to assess or reassess the chargeable
expenditure, and the provisions of this Act shall, so far as may be, apply, as
if the notice was a notice issued under that section. (1)
With a view to
rectifying any mistake apparent from the record, the tax authority referred to
in Section 6 which passed any order under the provisions of this Act may,
within four years of the date on which such order was passed, amend the order. (2)
Where any matter has
been considered and decided in any proceeding by way of appeal or revision
relating to an order referred to in sub-section (1), the authority passing such
order may, notwithstanding anything contained in any law for the time being in
force, amend the order under that sub-section in relation to any matter other
than the matter which has been so considered and decided. (3)
Subject to the other
provisions of this section, the authority concerned- (a)
may make an amendment
under sub-section (1) of its own motion, and (b)
shall make such
amendment if any mistake is brought to its notice,- (i)
by the assessee; or (ii)
where the authority
concerned is the Commissioner (Appeals), by the Income Tax Officer. (4)
An amendment, which has
the effect of enhancing an assessment or reducing a refund or otherwise
increasing the liability of the assessee, shall not be made under this section
unless the authority concerned has given notice to teh assessee of its
intention so to do and has allowed the assessee a reasonable opportunity of
being heard. (5)
Where an amendment is
made under this section, an order shall be passed in writing by the tax
authority concerned. (6)
Subject to the other
provisions of this Act, where any such amendment has the effect of reducing the
assessment, the Income Tax Officer shall make any refund which may be due to
such assessee. (7)
Where any such amendment
has the effect of enhancing the assessment or reducing the refund already made,
the Income Tax Officer shall serve on the assessee a notice of demand in the
prescribed form specifying the sum payable and such notice of demand shall be
deemed to be issued under Section 20 and the provisions of this Act shall apply
accordingly. (1)
No order of assessment
shall be made under Section 9 or Section 10 at any time after expiration of a
period of four years from the end of the assessment year in which the
chargeable expenditure was first assessable, or one year from the date of the
filing of the return or revised return under Section 8, whichever is later. (2)
No order of assessment
or reassessment shall be made under Section 11,- (a)
where the assessment or
reassessment is to be made in a case falling within clause (a) of Section 11 for which a notice
has been served upon the assessee, at any time after the expiration of a period
of four years from the end of the assessment year in which the said notice was
served; (b)
where the assessment or
reassessment is to be made in a case falling within clause (b) of Section 11, for which a notice
has been served, after the expiration of a period of- (i)
four years from the end
of the assessment year in which the chargeable expenditure was first
assessable, or (ii)
one year from the date
of service of such notice, whichever is later. (3)
Notwithstanding anything
contained in sub-sections (1) and (2), an order of fresh assessment in
pursuance of an order passed under Section 21, Section 22 or Section 23,
setting aside or cancelling an assessment, may be made at any time before the
expiry of four years from the end of the financial year in which the order
under Section 21 is passed by the [28]
[the Commissioner, or the order is received by the Chief Commissioner or
Commissioner, as the case may be, under Section 22 or Section 23.] (4)
The provisions of
sub-sections (1) and (2) shall not apply to the assessment or reassessment made
in consequence of, or to give effect to, any finding or direction contained in
an order under Section 21, Section 22, Section 23 or any order of [29]
[the National Tax Tribunal or of] a High Court or Supreme Court in a proceeding
by way of reference or appeal under this Act or any order of any court in a
proceeding otherwise than by way of an appeal or reference under this Act and
such assessment or reassessment may, subject to the provisions of sub-section
(3), be completed at any time. Explanation.-In
computing the period of limitation for the purposes of this section, the period
during which the assessment proceeding is stayed by an order or injunction of
any court shall be excluded. 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 [30]
[one per cent] for every month or part of a month by which such crediting of
tax is delayed. 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.] 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. 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 [32]
[Additional Commissioner or, as the case may be, of the] Deputy Commissioner. 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. 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. 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. (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. [33] [(5) 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. (6) ??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, [34]
[the National Tax Tribunal,] the High Court or the Supreme Court.] (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). [35] [(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. [36] [(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. (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 [37]
[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. 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, [38]
[139-A,] 140, 144-A, [39]
[145], 159 to 163 (both inclusive), 166, 167, 170, 171, 173 to 179 (both
inclusive), 187, 188, [40]
[188-A], 189, 220 to 227 (both inclusive), 229 [41]
[***] 232, 237 to 245 (both inclusive), 254 to 262 (both inclusive), 265, 266,
268, 269, 278-B, 278-C, 278-D, 278-E, [42]
[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. 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. 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. 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. 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. 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. (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. (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 [43]
[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 [44]
[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. 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. [45] [Repealed [1] Received the
assent of the President on Sept. 14, 1987 and published in the Gazette of
India, Extra., Pt. II, Section 1, dt. 14th Sept., 1987, pp. 1-12. [2] Inserted by Act 49 of 1991, Section 113 (w.e.f. 1-10-1991). [3] Came into force,
w.e.f. 1-11-1987, vide S.O.
919(E), dated October 14, 1987. [4] Inserted by Act 49 of 1991, Section 114 (w.e.f. 1-10-1991). [5] Substituted by Act 49 of 1991, Section 115 (w.e.f. 1-10-1991). [6] Inserted by Act 32 of 2003, Section 102 (w.e.f. 1-6-2003). [7] Substituted for ?two thousand rupees or more per day per
individual? by Act 20 of 2002, Section 115 (w.e.f. 1-6-2002). [8] Inserted by Act 18 of 1992, Section 105 (w.e.f. 1-6-1992). [9] Substituted by Act 49 of 1991, Section 115 (w.e.f. 1-10-1991). [10] Inserted by Act 32 of 2003, Section 103 (w.e.f. 1-6-2003). [11] Substituted for ?twenty? by Act 32 of 1994, Section 57 (w.e.f.
1-6-1994). [12] Substituted for ?clause (ii)
of sub-section (5) of Section 80-IA? by Act 27 of 1999, Section 98 (w.e.f.
1-4-2000). [13] Inserted by Act 26 of 1997, Section 61 (w.e.f. 1-4-1998). [14] Substituted for ?clause (ii-a)
of sub-section (5) of Section 80-IA? by Act 27 of 1999, Section 98 (w.e.f.
1-4-2000). [15] Inserted by Act 18 of 1992, Section 106 (w.e.f. 1-6-1992). [16] Substituted by Act 49 of 1991, Section 115 (w.e.f. 1-10-1991). [17] Sub-clause (b) omitted by Act 20 of 2002, Section 116 (w.e.f. 1-6-2002). [18] Sub-clause (d) omitted by Act 20 of 2002, Section 116 (w.e.f. 1-6-2002). [19] Inserted by Act 18 of 1992, Section 107 (w.e.f. 1-6-1992). [20] Subs. by Act 26 of 1988, S. 73 (w.e.f. 1-4-1988). [21] Inserted by Act 32 of 1994, Section 58 (w.e.f. 1-6-1994). [22] Inserted by Act 21 of 1998, Section 82 (w.e.f. 1-10-1998). [23] Subs. by Act 26 of 1988, S. 73 (w.e.f. 1-4-1988). [24] Inserted by Act 32 of 1994, Section 58 (w.e.f. 1-6-1994). [25] Substituted for ?Deputy Commissioner? by Act 21 of 1998,
Section 82 (w.e.f. 1-10-1998). [26] Substituted by Act 49 of 1991, Section 116 (w.e.f. 1-10-1991). [27] Inserted by Act 18 of 1992, Section 108 (w.e.f. 1-6-1992). [28] Subs. by Act 26 of 1988, S. 74 (w.e.f. 1-4-1988). [29] Inserted by Act 49 of 2005, Section 30 and Schedule (w.e.f.
28-12-2005). [30] Substituted for ?one and one-fourth per cent? by Act 54 of
2003, Section 22 (w.e.f. 8-9-2003). [31] Substituted by Act 49 of 1991, Section 117 (w.e.f. 1-10-1991). [32] Inserted by Act 32 of 1994, Section 59 (w.e.f. 1-6-1994). [33] Inserted by Act 21 of 1998, Section 83 (w.e.f. 1-10-1998). [34] Inserted by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005). [35] Substituted by Act 21 of 1998, Section 84 (w.e.f. 1-10-1998). [36] Inserted by Act 27 of 1999, Section 99 (w.e.f. 1-6-1999). [37] Substituted for ?a fee of two hundred rupees? by Act 21 of
1998, Section 85 (w.e.f. 1-10-1998). [38] Inserted by Act 49 of 1991, Section 118 (w.e.f. 1-10-1991). [39] Inserted by Act 49 of 1991, Section 118 (w.e.f. 1-10-1991). [40] Inserted by Act 49 of 1991, Section 118 (w.e.f. 1-10-1991). [41] Omitted by Act 26 of 1988, S. 75 (w.e.f. 1-4-1988). [42] Inserted by Act 49 of 1991, Section 118 (w.e.f. 1-10-1991). [43] Substituted for ?sub-section (2)? by Act 49 of 1991, Section
119 (w.e.f. 1-10-1991). [44] Inserted by Act 49 of 1991, Section 119 (w.e.f. 1-10-1991). [45] Repealed by Act 30 of 2001, Section 2 and Schedule I. The
repeal by this Act of any enactment shall not affect any other enactment in
which the repealed enactment has been applied, incorporated or referred to.Expenditure Tax Act, 1987[1]
[Act 35 of 1987]