mahfuzmee-eng/income-tax-bd huggingface dataset:
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 188 (Assessment of tax in case of change in the constitution of the firm.)
clause 1: At the time of assessing the tax of a firm, if it is found that its constitution has changed, then the tax of the newly formed firm shall be assessed at the time of assessment of the tax.
clause 2: The income of any assessment year assessed under sub-section
clause 1: shall, for the purpose of inclusion in the total income of the partners, be apportioned among the partners who, in such income year, were entitled to receive a share of the income; and when the tax levied on a partner cannot be recovered from him, the tax shall be recovered from the firm as constituted at the time of assessment.
clause 3: For the purpose of this section, change in the constitution of a firm shall be deemed to have been occurred in the following cases, namely: (a) where all the partners continue with a change in their respective shares or in the shares of some of them; or (b) where one or more persons who were partners continue to be so with a change by cessation of one or more partners or addition of one or more new partners. 10592
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 190 (Assessment in case of succession to business otherwise than on death.)
clause 1: Where, a person, carrying on any business (in this section, referred to as predecessor), has been succeeded therein otherwise than on death by another person (in this section, referred to as the successor) continues to carry on that business (a) the predecessor shall be assessed, in respect of the income of the income year in which the succession took place, for the period up to the date of succession; and (b) the successor shall be assessed, in respect of the income of the income year, for the period after the date of succession.
clause 2: Notwithstanding anything contained in sub-section
clause 1: , where the predecessor cannot be found, the assessment of the income year in which the succession took place up to the date of succession and of the income year or years preceding that year shall be made on the successor in the like manner and to the same extent as it would have been made on the predecessor; and the provisions of this Act shall, so far as may be, apply accordingly.
clause 3: Where any sum payable under this section in respect of the income of a business cannot be recovered from the predecessor, the Deputy Commissioner of Taxes shall record a finding to that effect, and thereafter the sum payable by the predecessor shall be payable by, and recoverable from, the successor who shall be entitled to recover it from the predecessor.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 191 (Assessment in case of discontinued business.)
clause 1: Save as the provisions of section 189, where any business is discontinued in any financial year, in that case assessment shall be made for that year.
clause 2: For the purpose of assessment in any income year under sub-section
clause 1: , the income shall be computed for the period from the beginning of the income year in which the business has discontinued to the date of such discontinuance.
clause 3: Any person discontinuing any business in any financial year shall give to the Deputy Commissioner of Taxes a notice of such discontinuance within 15 (fifteen) days thereof; and such notice shall be accompanied by a return of total income in respect of the period between the end of the income year and the date of such discontinuance and that financial year shall be deemed to be the assessment year in respect of the income of the said period.
clause 4: Where a person fails to give the notice required by sub-section
clause 3: , the Deputy Commissioner of Taxes may direct that a sum shall be recovered from him by way of penalty, however, the amount of this penalty shall not exceed the amount of tax assessed for the immediately preceding assessment year.
clause 5: Where an assessment is to be made under sub-section
clause 1: , the Deputy Commissioner of Taxes may serve (a) on the person whose income is to be assessed; (b) in the case of a firm, on the person who was a partner of the firm at the time of discontinuance of the business; and (c) in the case of a company, on the principal officer of the company, a notice to furnish within such time, not being less than 7 (seven) days, a return of his total income giving such particulars and information as are required to be furnished with a return to be filed under section 169 along with such other particulars, records and documents as may be specified in the notice.
clause 6: The provisions of this Act shall, so far as may be, apply to a notice under sub-section
clause 5: for the purpose of assessment of tax as if it were a notice under section 172.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 192 (Assessment in case of partition of a Hindu undivided family.)
clause 1: A Hindu family hitherto assessed as a Hindu undivided family shall be deemed, for the purposes of this Act, to continue to be a Hindu undivided family except where, and in so far as, a finding of partition has been given under this section in respect of that family.
clause 2: Where, at the time of an assessment of a Hindu undivided family, it is claimed by any member thereof that a partition has taken place amongst the members of the family, the Deputy Commissioner of Taxes shall make an enquiry there into after giving notice to all the members of the family.
clause 3: On the completion of the enquiry, the Deputy Commissioner of Taxes shall record a finding as to whether there has been a partition of the joint family property, and, if there has been such a partition, the date on which it has taken place.
clause 4: In the case of a finding under sub-section
clause 3: that the partition of the undivided family took place after the expiry of the income year, the total income of the income year of the undivided family shall be assessed as if no partition has taken place; and each member or group of members of the family shall, in addition to any tax for which he or it may be separately liable, be jointly and severally liable for the tax on the income of the family so assessed.
clause 5: In the case of finding under sub-section
clause 3: that the partition of the undivided family took place during the income year, the total income of the undivided family in respect of the period up to the date of partition shall be assessed as if no partition had taken place; and each member or group of members of the family shall, in addition to any tax for which he or it may be separately liable, by jointly and severally liable for the tax on the income of that period as so assessed.
clause 6: Notwithstanding anything contained in this section, if the Deputy Commissioner of Taxes finds after completion of the assessment of a Hindu undivided family that the family has already effected a partition, the tax shall be recoverable from every person who was a member of the family before the partition; and every such person shall be jointly and severally liable for tax on the income of the family in so assessed.
clause 7: For the purposes of this section, the several liabilities of any member or group of members of a Hindu undivided family shall be computed according to the portion of the property of the undivided family allotted to him or it at the partition.
clause 8: The provisions of this section shall, so far as may be, apply in relation to the levy and collection of any penalty, interest, fine or other sum in respect of any period up to the date of the partition of a Hindu undivided family as they apply in relation to levy and collection of tax in respect of any such period.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 193 (Assessment in the case of persons leaving Bangladesh.)
clause 1: The Deputy Commissioner of Taxes may assess the tax based on the total income of a person authorized to work in Bangladesh as follows, who may leave Bangladesh during or shortly after the expiry of the current financial year and has no intention of returning, namely: (a) if he has been previously assessed, for the period from the expiry of the last income year of which income has been assessed to the probable date of his departure from Bangladesh; and (b) if he has not been previously assessed, of the entire period of his stay in Bangladesh up to the probable date of his departure therefrom.
clause 2: Assessment under sub-section
clause 1: shall be made (a) in respect of each completed income year included in the period referred to in sub-section
clause 1: , at the rate at which tax would have been charged had it been fully assessed; and (b) in respect of the period from the expiry of the last of the completed income years to the probable date of departure, at the rate in force for the financial year in which such assessment is made and that financial year shall be deemed to be the assessment year in respect of the income of the said period.
clause 3: For the purpose of making an assessment under this section, the Deputy Commissioner of Taxes may serve a notice upon the person concerned requiring him to file, within such time, not being less than 7 (seven) days, as may be specified in the notice- (a) a return in the same form and verified in the same manner as a return under section 166 setting forth, along with such other particulars as may be required by the notice, his total income for each of the completed income years comprised in the relevant period referred to in sub-section
clause 1: ; and (b) an estimate of his total income for the period from the expiry of the last of such completed income year to the probable date of his departure from Bangladesh.
clause 4: All the provisions of this Act shall, so far as may be, apply to the notice under sub-section
clause 3: for purposes of assessment of tax as if it were a notice under section 172.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 194 (Assessment in the case of income of a deceased person.)
clause 1: Where a person dies, his legal representative shall be liable to pay any tax or other sum payable under this Act which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased; and the legal representative of the deceased shall, for the purposes of this Act, be deemed to be an assessee: Provided that before deeming the legal representative of the deceased to be an assessee, a notice to that effect shall be issued to him by the Deputy Commissioner of Taxes.
clause 2: For the purpose of making an assessment of the income of the deceased and recovery of tax, (a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued from the stage at which it stood on the date of the death of the deceased; and (b) any proceeding which could have been taken against the deceased, if he had not died, may be taken against the legal representative; and all the provisions of this Act shall, so far as may be, apply accordingly.
clause 3: The liability of a legal representative under this Act shall be limited to the extent to which the estate of the deceased is capable of meeting the liability.
clause 4: For the purposes of this section and other provisions of this Act in which the rights, interests and liabilities of the deceased are involved, legal representative includes an executor, an administrator and any person administering the estate of the deceased.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 195 (Spot Assessment.)
clause 1: The Deputy Commissioner of Taxes may assess the tax of any person on the spot, if such person (a) has taxable income; (b) has an obligation to file a return; (c) is required to comply with any provisions of this Act; (d) has failed to perform or comply with any provision of this Act.
clause 2: The Commissioner of Taxes may, in his jurisdiction, delegate to any Deputy Commissioner of Taxes subordinate to him the power to assess tax under this section.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 196 (Bar to question assessment.)
clause 1: Notwithstanding anything contained in this Act or any other law in force in Bangladesh, no person or authority, other than the Income-tax Authority referred to in section 4, the Tax Appellate Tribunal established under this Act and the Supreme Court of Bangladesh, may raise any question as to the tax assessment made under this Act.
clause 2: Any action taken or any question arisen in violation of the provision of sub-section
clause 1: shall be null and void and have no legal effect. PART 11 LIMITATION OF TIME
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 197 (Limitation for assessment.1[(1) Subject to the provisions of sub- sections (2) and (3), the assessment or return processing shall be completed before the expiry of the following periods, namely: (a) 2 (two) assessment years from the end of the assessment year in which the return was filed in case of return process under section 181; (b) 2 (two) assessment years from the end of the assessment year in which the return was selected for audit under sub-section (1) of section 182; (c) 1(one) assessment year from the end of the assessment year in which the return was considered as a normal return; (d) 3 (three) assessment years from the end of the assessment year in which the income was first assessable in case of assessment under section 235.] (2) An assessment under section 212 may be made within 2 (two) years from the end of the year in which the notice under sub-section (1) of section 212 was issued. 1 Sub-section (1) was substituted by section 70 of the Finance Act, 2024 (Act No.)
clause 3: Notwithstanding anything contained in this section, limiting the time within which any action may be taken, or any order or assessment may be made, order or assessment, as the case may be, to be made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under sections 213, 285, 289, 292, 294 or 295 or, in the case of a firm, an assessment to be made on a partner of a firm in consequence of an assessment made on the firm, or an agreement reached under section 304, shall be made within thirty days from the date on which the order or the agreement was communicated [and communicate such revised order to the assessee within 30 (thirty) days next following.
clause 4: Where an order of assessment has been set aside by any authority, the assessment shall be made within 60 (sixty) days from the date on which the order was communicated to him.
clause 5: Where by an order under section 213, 285, 289, 292, 294 or 295, any income is excluded from the total income of the assessee for an assessment year, an assessment of such income for another assessment year shall, for the purposes of this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order.
clause 6: Where by an order under section 213, 285, 289, 292, 294 or 295, any income is excluded from the total income of a person and held to be the income of another person, an assessment of such income of such other person, shall, for the purposes of this section, be deemed to be one made in consequence of or to give effect to, any finding or direction contained in the said order.
clause 7: Where the Deputy Commissioner of Taxes fails to give effect to any finding or direction contained in an order referred to in sub-section
clause 3: within the period stipulated therein, such failure of the Deputy Commissioner of Taxes shall be construed as misconduct. PART 12 COLLECTION OF INFORMATION CHAPTER -I COLLECTION OF INFORMATION BY INCOME TAX AUTHORITY
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 200 (Collection of information.)
clause 1: For the purposes of this Act, any such authority, not below the rank of Deputy Commissioner of Taxes, shall by notice in writing, from any person, and in such manner and by means as may be specified in the notice, and within such period as may be specified in the notice, call for such information as he may deem necessary for the purpose of carrying out the functions under this Act.
clause 2: Any income-tax authority, not below the rank of Deputy of Commissioner of tax, may, by notice in writing or by electronic means, from any person, and in such manner and by such means as may be specified in the notice, and within the time specified in the notice, call for such information as may be necessary or relevant to any investigation pending or proceeding under this Act: Provided that no income tax authority subordinate to the Commissioner of Taxes shall call for any information from any bank or 2[finance company] without the approval of the Commissioner of Taxes.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 201 (Automatic furnishing of information.)
clause 1: The Board may, by notification in the official gazette, require any authority, person or entity to furnish in digital manner to the Board or any income tax authority specified by the Board, any information including information regarding assets, liabilities, income, expenses and transactions in respect of any class of persons.
clause 2: For the purpose of sub-section
clause 1: , furnishing information in digital manner includes (a) uploading data in the system of the Board; (b) sharing data to the digital or electronic system of the Board; (c) granting digital or electronic access to the intended system. 1 Clause (d) was substituted by section 71 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 204 (Inquiry and investigation.)
clause 1: The Investigating Income-tax Authority may make such inquiry and investigation as it thinks fit in respect of any person or any other person who is assessable to tax under this Act or may direct Such Person or organization or any other person or organization concerned with such inquiry and investigation to appear before the investigating authority at the time and place indicated to deliver or take measures to deliver any documents related to any information or income under the control of the said person or organization.
clause 2: The Board shall, for the purposes of this section, prepare a manual to be followed for the purposes of inquiry and investigation. CHAPTER II SURVEY, SEARCHING, AND SEIZURE
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 205 (Power of Survey.)
clause 1: For the purpose of surveying the tax liability of any person under this Act, the Board or the Commissioner of Taxes may delegate to any income-tax authority the power to visit and survey any place or premises where a business is carried on or income is derived from the payment of rent.
clause 2: The income-tax authority shall enter the place mentioned in sub-section
clause 1: in the following cases, namely: (a) if the business is carried on at the place, only during the hours when the place is open for business; and (b) in any other case, only after sunrise and before sunset.
clause 3: On entering the place mentioned in sub-section
clause 2: , the income-tax authority shall take the following steps, namely: (a) placing marks of identification on or stamping the books of accounts related to income, assets, and liabilities inspected by it and gathering summary and copy thereof; (b) seizing or taking into custody the records relating to the income so inspected after recording the reasons; (c) making an inventory of any cash, cash deposit or other valuable articles; (d) examining on oath any person for any statement made by him if it is relevant to any proceeding under this Act; and (e) making such enquiries as may be necessary.
clause 4: Every proprietor, employee or other person who may be attending in any manner to, or helping in, the carrying on of any business, or every person who may be residing in the place or premises in respect of which an income tax authority may be exercising power under sub-section
clause 1: , shall in aid of the exercise of such power, (a) the authorities shall take necessary measures to carry out the following functions (i) inspecting and entering records relating to income, assets and liabilities; or (ii) scrutinizing and inspecting cash, stock or any other valuable article or thing received at such place or premises; and (b) furnish such information as the authority may require in respect of any matter which may be useful for, or relevant to, any proceeding under this Act.
clause 5: A statement made by any person under clause (d) of sub-section
clause 8: shall be used as evidence in any proceedings under this Act.
clause 6: During the enforcement of this section, the Income-tax authority shall not remove any cash, stock or other valuable article or thing from the place or premises entered.
clause 7: The Income Tax Authority shall not retain any records relating to income seized in custody under this section, for a period exceeding 1 (one) month without the approval of the Commissioner of Taxes.
clause 8: Any Income-tax authority, other than an Inspector, shall have all the powers to enforce sub-section
clause 1: of section 223, if any person is incapable of performing or disobeys the following duties, namely: (a) providing assistance to income-tax authorities for examination of accounts or other documents;(b) permitting the examination or examination of any cash, stock or other valuable article or thing; (c) providing any information; or (d) recording or giving statements.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 207 (Transfer of records relating to confiscated income to Deputy Commissioner of Taxes.)
clause 1: If the authorized officer and the Deputy of Commissioner of Taxes are separate persons, the authorized officer shall hand over to the Deputy of Commissioner of Taxes the record relating to the income seized under section 206 within 30 (thirty) days from the date on which it is recorded.
clause 2: The officer empowered under sub-section
clause 1: and the Deputy of Commissioner of Tax shall be treated as separate persons, if the authorized officer has no authority over the person from whom any account or document is seized.
clause 3: If the authorized officer and the Deputy of Commissioner of Tax are the same person, the records relating to income referred to in sub-section
clause 1: shall be deemed to have been handed over to the Deputy of Commissioner of Tax on the date on which they are seized.
clause 4: When records relating to the income of any person are seized from any other person, the authorized officer shall hand over such seized contents to the Deputy of Commissioner of Tax having jurisdiction over the said person within 30 (thirty) days from the date of seizure.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 208 (Period of retention of records relating to seized income.)
clause 1: Subject to the provisions of sub-section
clause 2: , the records relating to income seized under section 206 shall not be retained by the authorized officer for a period exceeding 60 (sixty) working days from the date of seizure.
clause 2: Subject to the approval of the Investigating Income Tax Authority, the authorized officer may retain records relating to income for an extended period and the Investigating Income Tax Authority shall not extend the retention period of the relevant records for more than 30 (thirty) days after the completion of proceedings under this Act in any year.
clause 3: Any person legally entitled to records relating to income seized under section 206, if aggrieved, may file an application against the extension of such preservation, and the Board shall pass such order as it thinks fit, giving the applicant a reasonable opportunity of being heard.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 209 (Provision of seized assets.)
clause 1: Where any money, bullion, jewelry or other valuable article or thing (hereinafter referred to as assets) seized under section 206 is handed over to the Deputy Commissioner of Taxes, the procedure as described in sub-section
clause 2: is to be followed.
clause 2: The Deputy Commissioner of Taxes shall give the person concerned a reasonable opportunity of being heard and shall, within 90 (ninety) days of the seizure of the asset and shall undertake the following necessary investigation, (a) estimate the undisclosed income (including income from the undisclosed property), in a summary manner to the best of his judgement on the basis of such materials as are available with him; (b) computation of the amount payable, which shall be the sum of the following items, namely: (i) the tax and any other sum payable on the basis of the assessment referred to in clause (a); and (ii) the amount so required to satisfy such person's existing tax liability, in respect of which such person is in default or deemed to be in default.
clause 3: For the purposes of sub-section
clause 2: , in computing the period of 90 (ninety) days, any time limit, order or injunction imposed under this section shall exclude any proceedings.
clause 4: In cases where it is not possible to determine whether the property seized or part thereof relates to any income year or years for the purpose of computation of total income and tax, the Deputy Commissioner of Taxes shall assign the property or part thereof, as the case may be, to the income year of the person in respect of which the property has been seized.
clause 5: After completing the proceedings under sub-sections
clause 2: and
clause 3: , the Deputy Commissioner of Taxes may, with the approval of the Commissioner, order the person concerned to pay the amount referred to in clause (b) of sub- section
clause 2: .
clause 6: Where the person concerned makes any payment or takes satisfactory action, the Deputy Commissioner of taxes shall, release the seized property or take such initiative as may be deemed appropriate by him.
clause 7: Where no satisfactory arrangements have been made for payment under sub-section
clause 2: , (a) such person shall be deemed to be an assessee for the payment of the unpaid amount of tax; and (b) the Deputy Commissioner of Taxes may retain in custody such amount of property seized under section 206 as is sufficient to recover the unpaid portion of the tax.
clause 8: If the Deputy Commissioner of Taxes is satisfied that the property seized under section 206 or any part thereof is in the possession of any person or any other person, he may take action against such person under this section and all the provisions of this section shall be duly applicable.
clause 9: Any person who is required to pay the amount prescribed under sub- section
clause 4: , if he is aggrieved, may raise an objection in writing to the Commissioner of Taxes, and the Commissioner shall, after giving the applicant an opportunity of being heard, pass an appropriate order.
Part 9: Return, Statement And Records
Chapter I: Return And Statement
Section 210 (Application of Retained Assets.)
clause 1: Where the assets retained under sub-section
clause 7: of section 206 consist solely of money, or partly of money and partly of other assets (a) the Deputy Commissioner of Taxes shall first apply such money towards payment of the amount in respect of which the person concerned is deemed to be an assessee in default under that sub- section; and thereupon such person shall be discharged of his liability to the extent of the money so applied; and (b) where, after application of the money under clause (a), any part of the amount referred to therein remains unpaid, the Deputy Commissioner of Taxes may recover the amount remaining unpaid, by sale of such of the assets as do not consist of money in the manner movable property may be sold by a Tax Recovery Officer for the recovery of tax; and for this purpose he shall have all the powers of a Tax Recovery Officer under this Act.
clause 2: Nothing contained in sub-section
clause 1: and in sub-section
clause 7: of section 206 shall preclude the recovery of any liability of an assessee in default by any other mode provided in this Act.
clause 3: Any assets or proceeds thereof which remain after the discharge of the liability in respect of the amount referred to in sub-section 7 of section 206 shall forthwith be made over or paid to the persons from whose custody the assets were seized. CHAPTER III SUMMONS FOR HEARING
Part 13: Recovery Of Tax Evasion
Section 211 (Power to take evidence on oath, etc.)
clause 1: The Deputy Commissioner of Taxes, the Additional Commissioner of Taxes, the Commissioner of Taxes the Director General(Central Intelligence Cell), the Commissioner of Taxes (Appeals) and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Act No. V of 1908), when trying a suit in respect of the following matters, namely: (a) discovery and inspection; (b) enforcing the attendance of any person and examining him on oath or affirmation; (c) compelling the production of accounts or documents (including accounts or documents relating to any period prior or subsequent to the income year); and (d) issuing commissions for the examination of witnesses.
clause 2: The Deputy Commissioner of Taxes shall not exercise his powers under this section for the purpose of enforcing the attendance of an employee of a scheduled bank as a witness or compelling the production of books of account of such a bank except with the prior approval of the Commissioner.
clause 3: Any authority mentioned in sub-section
clause 1: may impound and retain in its custody for such period as it considers fit, any books of accounts or other documents produced before it in any proceeding under this Act.
clause 4: Deputy Commissioner of Taxes (a) shall not seize any document relating to income without recording the cause; or (b) shall not retain in his possession any document relating to income for more than 15 (fifteen) days (excluding holidays) without the prior approval of the Chief Commissioner or the Commissioner .
clause 5: Any proceedings under this Act before any authority mentioned in sub- section
clause 1: shall be deemed to be judicial proceedings under sections 193 and 128 for the purpose of section 196 of the Penal Code, 1860 (Act No. XLV of 1860).
clause 6: Any order passed by the Income-tax Authority in any proceeding taken or conducted under this Act shall be deemed to be an order of a Civil Court.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 213 (Power of Inspecting Additional Commissioner to revise the erroneous order.)
clause 1: The Inspecting Additional Commissioner of Taxes may call for and examine the record of any proceeding under this Act if he considers that any order passed therein by the Deputy Commissioner of Taxes is erroneous in so far as it is prejudicial to the interests of the revenue, and may, after giving the assessee an opportunity of being heard, and after making or causing to be made, such inquiry as he thinks necessary, pass such order thereon as in his view the circumstances of the case would justify, including an order enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment to be made.
clause 2: Where the power of the Deputy Commissioner of Taxes is exercised by a higher income tax authority under the provision of section 12, the proceedings mentioned in sub-section
clause 1: shall be taken by the Inspecting Additional Commissioner of Taxes.
clause 3: No order shall be made under sub-section
clause 1: after the expiry of 4 (four) years from the date of the order sought to be revised.
clause 4: Nothing in section 212 shall bar any proceeding under this section in applicable cases.
clause 5: In this section, an order shall be deemed to be erroneous if, in the opinion of the Inspecting Additional Commissioner (a) any income is misclassified in the order; (b) any provision of this Act is misinterpreted in making the order; (c) the order is passed without making verification which should have been made; (d) the order is passed allowing any relief without inquiring into the claim; (e) the order, direction or instruction issued by the Board under section 10 has not been observed or followed in the order; or (f) the order is erroneous for reasons apparent from the record.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 215 (Direct collection of tax and refund.)
clause 1: Recovery of tax may also be collected from the assessee through direct transfer from the assessee's bank account to the government bank account.
clause 2: The amount owed to the assessee shall be refunded through electronic transfer to the assessee's bank account.
clause 3: Notwithstanding anything contained in this Act or any other law, if the assessee files the return in the self-assessment manner, if the return process is completed by the Deputy Commissioner and there is a refund, the said refund shall be electronically transferred within 60 (sixty) days to the bank mentioned in the assessee's return.
clause 4: The Board may make rules prescribing the procedure, conditions, qualifications and limits for collection or refund of tax by bank transfer as described in sub-sections
clause 1: ,
clause 2: and
clause 3: .
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 216 (Certificate for recovery of tax.)
clause 1: When an assessee is in default or is deemed to be in default in making payment of tax, the Deputy Commissioner of Taxes may forward to the Tax Recovery Officer a certificate for recovery of the tax, under his signature specifying the amount of arrears due from the assessee; and such certificate may be issued notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.
clause 2: Any certificate under sub-section
clause 1: shall be forwarded to the following Tax Recovery Officers, namely: (a) the Tax Recovery Officer within whose jurisdiction the assessee carried on his business or the principal place of business of the assessee is situated; (b) the Tax Recovery Officer within whose jurisdiction the assessee resides or any movable or immovable property of the assessee is situated; or (c) the Tax Recovery Officer who has jurisdiction in relation to the assessee whose income is assessable by the Deputy Commissioner of Taxes forwarding the certificate.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 217 (Method of recovery by Tax Recovery Officer.)
clause 1: Upon receipt of a certificate forwarded to him under section 216, the Tax Recovery Officer shall, notwithstanding anything contained in any other law for the time being in force, proceed in accordance with the rules made in this behalf by the Board, to recover from the assessee the amount specified in the certificate by one or more of the following modes, namely: (a) attachment and sale, or sale without attachment, of any movable or immovable properties of the assesses; (b) arrest of the assessee and his detention in prison; (c) appointment of a receiver for the management of the movable and immovable properties of the assessee.
clause 2: While recovering under sub-section
clause 1: the amount specified in the certificate forwarded to him, the Tax Recovery Officer may also recover in the same manner from the assessee in default, in addition to such amount, any cost and charges, including expenses on the service of any notice or warrant, incurred in the proceedings for the recovery of the tax in arrears.
clause 3: If the Tax Recovery Officer to whom a certificate is forwarded under section 216 is not able to recover the entire amount by the sale of movable and immovable properties of the assessee within his jurisdiction, but has information that the assessee has property within the jurisdiction of another Tax Recovery Officer, he may send the certificate to such other Tax Recovery Officer or to the Tax Recovery Officer within whose jurisdiction the assessee resides; and the Tax Recovery Officer to whom the certificate has been so sent shall proceed to recover under this Chapter the amount remaining unrecovered as if the certificate was forwarded to him by the Deputy Commissioner of Taxes.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 218 (Power of withdrawal of certificate and stay of proceedings.)
clause 1: Notwithstanding the issue of a certificate for recovery of tax under section 216, the Deputy Commissioner of Taxes shall have power to withdraw, or correct any clerical or arithmetical error in the certificate by sending an intimation to that effect to the Tax Recovery Officer.
clause 2: Where the order giving rise to a demand of tax for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Act and, as a consequence thereof, the demand is reduced but the order is the subject matter of further proceedings under this Act, the Deputy Commissioner of Taxes shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal or other proceedings remain pending.
clause 3: Where a certificate for recovery has been issued and subsequently the amount of outstanding demand is reduced as a result of appeal or other proceedings under this Act, the Deputy Commissioner of Taxes shall, when the order, which was the subject-matter of such appeal or other proceeding, has become final and conclusive, amend the certificate or withdraw it, as the case may be.
clause 4: The Deputy Commissioner of Taxes shall communicate to the Tax Recovery Officer any orders of cancellation, correction, stay of proceeding, withdrawal or amendment, as the case may be, of a certificate for recovery.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 220 (Recovery of Tax through Collector of District.)
clause 1: The Deputy Commissioner of Taxes may forward to the Collector of District in which the office of the Deputy Commissioner of Taxes is situate or the District in which the assessee resides or owns property or carries on business, a certificate under his signature specifying the amount of arrears due from an assessee, and the Collector, on receipts of such certificate shall proceed to recover, from such assessee the amount specified therein as if it were an arrear of land revenue.
clause 2: Without prejudice to any other powers which the Collector of District may have in this behalf, he shall, for the purposes of recovery of the amount specified in the certificate for recovery forwarded to him under sub-section
clause 1: , have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act No. V of 1908), for the purposes of recovery of an amount due under a decree.
clause 3: The Deputy Commissioner of Taxes may, at any time, recall from the Collector of District a certificate forwarded to him under sub-section
clause 1: and upon such recall, all proceedings commenced in pursuance of the certificate shall abate.
clause 4: That recall of a certificate shall not affect any recoveries made by the Collector before the recall as if the certificate had not, to the extent of such recovery, been recalled; or shall the recall of a certificate issued at any time prevent this recovery, by issue of a fresh certificate, of any amount which was recoverable at the time the certificate so recalled was issued.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 223 (Interim attachment or seizure of property.)
clause 1: Where in the course of discharging functions under this Act, the Director General (Central Intelligence Cell) or the Commissioner has specific information to the effect that any person has concealed information relating to his income or investment, he may, by order issued in writing, require any person in whose possession for the time being any money, bullion, ornaments, financial documents, financial assets, valuables or any other property, not to remove, transfer or otherwise dispose of it without the prior permission of the concerned authority issuing such order.
clause 2: Such order shall cease to have any effect after the expiry of one year from the date of the passing of the order under sub-section
clause 1: .
clause 3: The Income-tax authority referred to in sub-section
clause 1: may, subject to the approval of the Board, extend the said period: Provided that the period of extension shall in no case exceed 1 (one) year in total.
clause 4: In computing the period referred to in sub-sections
clause 2: and
clause 3: , if the order made under sub-section
clause 1: is stayed by the Court for any period, such period, if any, shall be excluded. 1 The words, comma, figures and brackets the Customs Act, 2023 (Act No. LVII of 2023) were substituted for the words, comma, figures and brackets the Customs Act, 1969 (Act No. IV of 1969) by section 14(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. CHAPTER III REFUND AND SET OFF
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 224 (Right of refund.)
clause 1: Where any person satisfies the Deputy Commissioner of Taxes that the amount of tax paid by him or on his behalf in any year, or the amount of tax deemed to have been paid by him or on his behalf, is more than the amount of tax claimed from him under this Act in that year, in that case, he shall be entitled to refund of the excess amount paid.
clause 2: Where the income of any person is included in the total income of any other person under any provision of this Act, such other person shall be entitled to return under this Act solely in respect of such income.
Part 14: Recovery Of Arrear Tax, Set Off And Refund
Chapter I: Recovery Of Tax
Section 225 (Adjustment of the claims and refund.)
clause 1: If any amount is due to an assessee for any period the provisions of this Act, the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of 1984), the Gift Tax Act, 1963 (Act No. XIV of 1963) or the Gift Tax Act, 1990 (Act No. XLIV of 1990) or Wealth Tax Act, 1963 (Act No. XV of 1963), the said arrears shall be adjusted before payment of the refundable amount to the said assessee.
clause 2: Where a refundable amount is adjusted against any amount due for any period, the adjusted amount shall be deemed to have been paid to the assessee and the Deputy Commissioner of Taxes shall duly enter the same in the tax records of the assessee to that effect.
Part 15: Prevention Of Tax Avoidance
Chapter I: General Provisions Relating To Prevention Of Tax Avoidance
Section 230 (Definitions.)
clause 1: tax benefit shall include the following, namely: (a) directly or indirectly avoiding or reducing the liability of income- tax; (b) directly or indirectly relieving a person from liability to pay income-tax or from a potential or prospective liability to future income-tax; (c) directly or indirectly, avoiding, deferring or reducing any income tax liability, or any potential or prospective liability to future income-tax; (d) delay in payment of income-tax; (e) avoidance of the obligation to deduct or collect tax at source and deposit such tax in the Government treasury;
clause 2: arrangement means any consent, agreement, scheme or consensus enforceable or not enforceable and all acts and transactions through which it is executed;
clause 3: abuse of tax arrangement means any arrangement, whether executed by the person affected by the arrangement or any other person (a) which, in the absence of this section, directly or indirectly creates one or more tax benefits unless the arrangement is reasonably adopted or created for a bona-fide purpose other than the purpose of obtaining a tax benefit; or (b) which, is a part of a multiple arrangement and the multiple arrangement, in the absence of this section, creates directly or indirectly 1 (one) or more tax benefits unless the multiple arrangement are reasonably adopted or created for any purpose other than the purpose of obtaining tax advantage.
Part 15: Prevention Of Tax Avoidance
Chapter I: General Provisions Relating To Prevention Of Tax Avoidance
Section 231 (Adjustment of tax benefits.)
clause 1: In cases where, in the course of any proceedings, it appears to the Deputy Commissioner of Taxes that an assessee has taken tax advantage by abusing a tax arrangement in any income year, the Deputy Commissioner of Taxes may make the necessary adjustments following the procedure mentioned in this section in pursuance of taking actions against such tax advantage received through abuse.
clause 2: The adjustment referred to in sub-section
clause 1: shall include the following matters, namely: (a) enhancement of income; (b) amendment of tax liability; (c) adjustment of tax refunds; (d) amendment of allowances, rebate etc.; (e) any other order withdrawing the tax benefit.
clause 3: Any adjustment under this section shall have effect for all purposes under this Act.
Part 15: Prevention Of Tax Avoidance
Chapter I: General Provisions Relating To Prevention Of Tax Avoidance
Section 232 (Procedure for adjustment.)
clause 1: In order to take action against the tax advantage, the Deputy Commissioner of Taxes shall issue a notice to the assessee specifying the following issues, namely: (a) the Deputy Commissioner of Taxes has reason to believe that the assessee has taken advantage of the tax through abuse of the tax arrangement; (b) where applicable, details of the measures intended to be taken, including the purpose of the adjustment; (c) to appear before the Deputy Commissioner of Taxes on the date specified in the notice to the assessee; (d) submission of statements, documents and information necessary for decision on receipt of tax advantage.
clause 2: For the adjustment of tad benefit, the assessee shall be given an opportunity of being heard and be allowed at least 30 (thirty) days from the date on which notice was served on the assessee to the date of hearing.
clause 3: The Deputy Commissioner of Taxes shall issue an adjustment order subject to the prior approval of the Commissioner of Taxes after considering all the information presented to him on the basis of records, documents submitted by the assessee and presented during the hearing and shall notify the same to the assessee within 30 (thirty) days from the date of issuance of the order of adjustment. CHAPTER II TRANSFER PRICING