 'rue fin  tln(je (~o 2) dill, 1080(as introduced in lok sabha)  arrangement of clauses chapter i pbeliminaiiy clalises1 short title and commencement  chapter n rates of incgmiiotax2 income-tax  chapter iii dlucttaxes i ftc om, tal3 amendment of section 2 4 amendment of section 10 5 amendment of section 16 6 amendment of section 32 7 a mendment of bectlon 35 8 amendment of sectlon 35b 9 amendment of bectlon 36 10 amendment of section 37 11 a mendm ent of section 41 12 insertion of new' section 80aa 13 a mendment of sectlon 80c 14 omission of section 80ff 15 amendment of section 80g 16 insertion of new section 80-l 17 amendment of sectlon 8oj 18 amendment of section 8ojj 19 amendment of section 80l 20 amendment of section 80rr 21 amendment of section 80t 22 amendment of section bott 23 amendment of section 80u 24 amendment of section 139 25 amendment of section 143 26 amendment of section 155 27 amendment of section 164 28 amendment of scction 171 29 amendment of section 208 30 amendment of section 209a 31 amendment of section 212 32 amendment of section 215 33 amendment of section 273 34 amendment of fourth schedule 35 consequential amendments to certain sections 36 amendment of section 2 37 amendment of section 5 38 amendment of section 7 39 insertion of new section 20a 40 amendment of section 21 41 amendment of schedule i  gift-tax42 amendment of act 18 of 1958 43 amendment of act 45 of 1974  m i s4: ell gtleous44 saving in certain cases  chapter iv indirect taus45 amendment of act 51 of 1975 46 amendment of act 1 of 1944 47 amendment of act 13 of 1980 48 amendment of act 58 of 1967 49 amendment of act 26 of 1978 50 amendment of act 62 of 1962, etc, to provide for an appellate tribunal  chapter v misceu-aneovs clauses51 amendment of act 6 of 1898 52 amendment of act 32 of 1971 53 amendment of act 38 of 1974 54 repeal the first schedule the second schedule the third schedule the fourth schedt;le the fifth schedule (bul no 99 of 1980)  corrigendaipage 6, in l~oe 33 for "aft" read "after"; i page 29, 1d line 23 for ''developmnet'' read ''development'  page 87, 1d line 25, for ''be'' read ''the''; page 96, in line 30, for ''before before" read ''before'' i pap 99, in lide 15, for "(")" read "(5)"; page 107 in lide 26, for ''toa!'' read ''total "; page 129, in llde 9 from bottom, for "sent" read "set"  the finance (no2) bill, 1980 bill10 give effect to the {irltdtcial proposals of the central govem"ent for the fi"iiftciaj year 1980-81 bi: it enacted by parliament in the thirty-first year of the repubuc of india as follows:- chapter i paelim1jiiuy5 1 r 1) this act may be called the finance (no 2) act, 1980 short title and codlmencement (2) save as otherwise provided in this act, sections 2 to 43 am sections 52 and 53 shall be deemed to have come into force od the 1st day of april, 1980  chapter n 10 rates of incom  talincome-tu 2 (1) subject to the provisions of sub-sections (2) and (3), lor the assessment year commencing on the 1st day of apru, 1980, income-tax shall be charged at the rates specified in part i of the first schedule and shall be increased,-15 (ca) in the cases to which paragraphs a, b, c and d of that part apply, by a surcharge for purposes of the uniod; and (b) in the cases to which paragraph e of that part applies, b)' a surcharge, calculated in each case in the manner provided therein (2) in the cases to which sub-paragraph lor &b-paragraph u of paragraph a of part i of the first schedule applies, where the assessee has, in the previous year, any net agricultural income, in addition to total income, and the total income exceeds ten thousand rupees, then, -5 (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after the first eight thousand rupees of the total income but without being liable to tax), only for the 10 purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows:-(i) the total income and the net agr1cultural income 15 shall be aggregated and the amount of income-tax sball be determined in respect of the aggregate income at the rates specified in sub-paragraph lor, as the case may be, sub-paragraph n of the said paragraph a, as if such aggregate income were the total income: 20 provided that for the purposes of determining the amount of income-tax in accordance with this sub-clause, the provisions of clause (ii) of the proviso below &b-paragraph lor, as the case may be, &b-paragraph n of the said paragraph a add the provisions relating to 25 surcharge on income-tax in the said sub-paragraphs shall not apply; (ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the !let 30 agricultural income 8s 80 inoreased at the rates spec1fted in sub-paragraph lor, as the case may be, &b-paragraph n of the said paragraph a as if the net agr1culturalincome as 80 increased were the total1ncome: provided that for the purposes of determining the 35 amount of income-tax in accordance with this sub-clause, the provisions of clause (i) and clause (ii) of the proviso below sub-paragraph lor, as the case may be, sub-paragraph n of the said paragraph a and the provisions relating to surcharge on income-tax in the said sub-40 paragrapbs shall not apply; (iii) the amount of income-tax determ ined in accordance with sub-clause (i) shall be reduced by the amount of income-tax detennined in accordance with sub-clause (ti): 5 provided that where the sum so arrived at exceeds sixty per cent of the amount by which the total income exceeds ten thousand rupees, the excess shall be disregarded; (iv) the amount of income-tax determined in 10 accordance with sub-clause (iii) shall be increased by a surcharge for purposes of the union calculated at the rate of twent,v per cent of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income 43 of 1961 15 (3) in cases to whicjl the provisions of chapter xii or section 164 of the income-tax act, 1961 (hereinafter referred to as the income-tax act) apply, the tax chargeable shall be determined as provided in that chapter or that section, and with reference to the rates imposed by sub-section (j i or the 20 rates as specified in that chapter or section, as the case may be (4) in cases in which tax has to be deducted under sections 193, 194, 194a, 194b, 194bb, 194d and 195 of the income-tax act at the rates in forco, the deduction shall be 25 made at the rates specified in part ii of the first schedule (5) subject to the provisions of sub-section (6), in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of 30 section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted under section 192 of the said act from income chargeable under the head "salar~es" or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the sald sub-section (9) or in which the 35 "advance tax" payable under chapter xvii-c of the said act has to be computed, at the rate or rates in force, such incometax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in part m of the first schedulc: 40 provided that in cases to which the provisions of chapter xu or section 164 of the income-tax act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that chapter or section, as the ctlse may be (6) in the oaae8 to whlcb sub-paragraph i or sub-paraaraph n of pai-agraph a of part m of the first schedule applies where the usenee bas, in'the previous year or, if by virtue of any provision of the inoome-tax act, income-tax is to be charpd iii reapeot of the income of a period other than the previous , year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to tow idoome am the total income exceeds twelve thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) of section 132 of the income-tax act or in charging income- 10 tax udder sub-section (2) of section 174 or section 175 or subsection (2) of section 176 of the said act or in computing tbe "advance tax" payable under chapter xvu-c of the saki act, at the rate or rates in force -(a) the net agrlculturallncome shall be taken into 15 acooudt in the manner provided in clause (b) (that is to say as if the net agricultural incomo were comprised iii the total income after tbe first eight tbou88dd rupees of the total income but witbout being liable to tax) only for the purpose of calculating, cbargjng or computidg such 20 income-tax or as the case may be, "advance tax" in re8pect of the total income; add (b) such income-tax or as the case may be "advance tax" shall be 80 calculated, charged or computed as follows:-(i) the total income and the net agricultural income 25 sball be aggregated add the amount of income-tax or "advance tax" shall be determined in respect of tbe aggregate income at the rates specified ij:i sub-paragraph i or, 8s the case may be, &lb-paragraph n of the said paragraph a, as if such aggregate income were the total 30 income: provided that for the purposes of determining the amount of 1ncome-tax or "advance tax" in accordance with this sub-clause, the provisions of clause (ii) of the proviso below sub-paragraph lor, a8 the cu may 35 be sub-paragraph it of the sald paragraph a and the provisions relating to surcharge on income-tax in the said sub-paragraphs shall not applyi (ii) the net agricultural income shall be illcreared by a sum of eight thousand rupees ami tlh' :u1!oulll of 40 income-tax or "advance tax" slmll be de: ,  nn il,-'t! in respect of the not agricultural income ~ f; :~'j i:w reu,sed at the rates specified in sub-paragraph i or ~s the case may be, sub-paragraph n of the said paragraph a 8s if the net agricultural income as so jlll'rcased 45 were the total income: provided that for the purposes of determfnidg the amouat of 1dcome-tax or "adv&dce tax" in accordance with this sub-clause the provisions of clause (i) add clause (ii) of the provlbo below ~b-paragraph i or  the case may be sub-paragraph n of the sald paragrapb a add the provisions relating to surcharge od income-tax in the said ~b-paragraphs shall dot apply; (iii) the amount of mcome-tax or "advance tax" 10 determined in accordance with sub-clause (i) shall be reduced by the amount of 1ncome-tax or as the case may be "advance tax" determined in accordance with sub-clawle (i i) : provided that where the sum 80 arrived at exceeds 15 sixty per oent of the amount by whjch the total tacome axceeda twelve thousam rupees, the excess shall be cusreprded; (''') the amount of income-tax or "advance tax" determined in accordance with sub-clause (iii) shall 20 be tdcreued by a surcharge for purposes of the union calculated at the rate of ten per cent of such incometax or as the case may be "advance tax" add the sum 80 arrived at shall be the income-tax or as the case may be, "advance tax" in respect of the total income 25 (7) for the purposes of this section and the first schedule,-(a) "company in which the public are substantially interested" means a company which is such a company as is referred to in section 108 of the income-tax act; (b) "domestic company" means an indian company, or any 30 other company which, in respect of its income liable to income-tax under the income-tax act for the  sessment year oommenclog on the 1st day of april, 1980, has made the prescribed arrangements for the declaration and payment within india of the dlvldends (including dividends on 35 preference shares) payablo out of such income in accordance with the provisions of section 194 of that act; (c) "lddustrlal company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or 40 in the constroctlon of ships or in the m8dlfacture or processing of goods or in mining fxplanation -for the purposes of this ctause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or 5 in mining, if the income attributable to anyone or more of the aforesaid activities included in its total income of the previous year (8s computed before making any deduction \ulder chapter via of the income-tax act) is not less than fifty-one per cent of such total income; 10 (d) "insurance commis~ion" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance); 15 (t) ''net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in part iv of the first schedule; 20 (f) ''tax-free security" means any security of the central government issl\ed or dedared to be income-tax froe, or any security of a state government issued income-tax free, the income-tax whereon is payable by the state govornment; 25 (r) all other words and expressions used in this section or in the first schedule but not defined in this subsection and defined in the income-tax act shall have the meanings respectively assigned to them in that act  chapter iii30  direct taxes income-tal'amendment of aection 2 i in section 2 oftbe inoone-tax act, in clause (24), aft - sub-clause (iv), the following sub-clause shall be inserted, namely:-35 '(ivll) the value of any benefit or perquisite, whether convertible i~to money or not, oblained by any representative assessee mentioned in clause (iii) or clause (iv) of sub-section (i) of section 160 or by any person on whose behalf or for whose benefit any income is receivable by 40 the representative assessee (such person being hereafter in this sub-clause referred to as the ''beneficiary'') and any sum paid by the representative assessee in respect of any obligation which, but for such payment, would have been payable by the bel\eficlar}j ' 45 amendment of section 10,  in section 10 of the income-tax act, after clause (23a), the following clause shall be inserted and shall be deemed always to have been inserted, namely:-"(23aa) any income received by any person on behalf 5 of any regimental fund or non- public fund established by the armed forces of the union for the welfare of the past and present members of such forces or their dependants;" amendment of section 16 i in section 16 of the income-tax act, with effect from the 1st day of april, 1981,-10 (a) in clause (1),-(i) for the words liin respect of expenditure incidental to the employment of the assessee, ", the words "a deduction of" shall be substituted; (ii) in sub-clauses (a) and (b), the words "derived 15 from such employment" shall be omitled; (b) in clause (ii), for the words "in respect of any allowance", the words "a deduction in respect of any allowance" shall be substituted amendmen~ of section 32 i, in section 32 of the income-tax act, with effect from the 20 1st day of april, 1981,-fa) in sub-section (l)"atter clause (ii) , the following clause shall be inserted, namely:-, (iia) in the case of any new machinery orplant (other than ships and aircraft) which has been installed after the 31st day 25 of march, 1980 but before the 1st day of april, 1985, a further sum equal to one-half of the amount admissible under clause (ii) (exclusive of extra allowance for double or multiple shift working of the machinery or plant and the extra allowance in respect of maohinery or plant installed in any premises used as a hotel) 30 in respeot of the previous year in w'hic" such macbinery or plant is installed : provided that 00 deduotion shall be allowed under this clause in respeot of -35 (d) any machinery or plant installed in any office premises or any residential accommodation; (b) any office appliances or road transport vehicles; and 40 (e) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income charge-able under the head "proflts and gains of business or profession" of anyone previous year erpllulauon _ for the purposes oftbis clause,-(u)- "new machinery or plant" shall have the meaning assigned to it in clause (1) of the explanation below clause 5 (iii) ohbis sub-section: (b) "residential accommodation" includes accommodation tn the nature of a guest house but does not include premises used as a botel;'; (b) in sub-section (2), after the words, brackets and figures 10 "or clause (iii", the warda, brackets, figures and letter "or clause (uca)" shall be inserted 1 in section 35 of the lncome-tax act -(a) in sub-section (2) in clause (ill)-(f) for the brackets and figures "(ii) , (iii) ", the brackets, 15 figures and letter "(ii), (ii a), (iii)" shall be substituted with effect from the 1st day of april, 1981; (ii) for the words "for the same previous year", the words "for the same or any other previous year" shall be substituted and shall be deemed always to have been substituted; 20 (b) in sub-section (2a) , with effect from the 1st day of september 1980,-(i) after the words, brackets and figures "elause (if) of subsection (1)", the words "or to a public sector company" shall be insert6d; 25 (ii) the following explanation shall be inserted at the end, namely:-'explanation -for the purposes of this sub-sectton, ''public sector company" shall have the same meaning r8 in clau8e (b) of the ezplmdtion below sub-section (28) 30 of section 32a 'i (e) after sub-section (2a) , the following sub-section shall be inserted with effect from the 1st day of september, 1980, namely:-"(28) (i) where an as8e8see bas incurred any expenditure 35 (not being in the nature of capital expenditure incurred on the acquisition of any land or bdldlng or constructloft of any bunding ) on acteathie research undertaken udder a programme approved in thi8 behalf by the pre8cribed authority having regard to the social, econ<mic and industrial needs of india, he shall subject to the provisions of this sub-section, be allowed a deduction of a sum equal to one and one-courth times the amount of the expenditure certified by the prescribed i) authority to have been 80 incurred during the previous year (b) where a deductioo bas been allowed under clatlse (4) fur any previous year in respect of any expenditure, no deduction in respect of such expenditure shall be allowed under clause (i) of sub-section (1) or clause (i a) of sub-section (2) 10 for the same or any other previous year (e) where a deduction is allowed for any previous year under this sub-section in respect of expenditure represented wholly or partly by an asset, no deduction shall be allowed in respect of that asset under clauses (i), (if) (ita) and (iii) of 15 sub-section (i) or under sub-section (la) of section 32 for the same or any ilubsequent previous year (d) any deduction made under this sub-section in respect of any expenditure on scientific research in exce,8s of tht> expenditure actually incurred shall be deemed to have been 20 wrongly made for the purposes of this act if the assessee fails to furnish within one year of the period allowed by the prescribed authority for completion of the programme, a certificate of its completion obtained from that autbority, and the provisions of sub-section (s8) of section 155 shall 25 apply accordingly " amendment of section 35b i in section 35b ofthe income -tax act, in 8ub-scction (1) , with effect from the 1st day of april, 1981,-fa) in clause (b) sub-clauses (ii) (iii), (1') (vi) and (viii) shall be omitted; 30 (b) for fjplanauon 2 below clause (b), the following fi-planar ion shall be substituted namely:-"explanation 2 -for the removal of doubts, it is hereby declared that nothing in clause (b) shall be construed to include any expenditure which is in the nature of purchasing and manu-35 facturlng expenses ordinarily debitable to the trading or manufacturing account and not to the profit and loss account it amendmeat of seeticlll 36 t in section 36 of the income-tax act, in sub-section (i), after cbuse (ii) the following clause sball be inserted with effect from the 1st day of april 1981, namely:-40 ' (ii 4) a bum equal to one and one-third times the amount of the expenditure inoorred on payment of any salary to an employee who, as at the end of the previous year, -(a) is totally blind, or jb) is subject to or suffers from a permanent physioal disability (other than blindness) 'which hu the effect of muoing substantially his capacity to engage in a gainful employment or occupation : 5 provided that the assessee produces before the lncome-tax officer in respect of the first assessment year for which deduction is claimed in relation to each buch employee under this clause -(i) in a case rt~fcrrcd to in sub-clause (a) a certificate as to his total blindness from a registered medical practitioner being an oculist; and 10 (ii) in a case referred to in sub-clause (b), a certificate as to the permanent physical disability referred to in the said subclause from a registered medical practitioner: provided further that nothing contained in this clause shall apply in 15 the case of an employee whose income in the previws year ohargeable under the head "salaries" exceeds twenty thousand rupees fl'plcmation i -in this clause, "salary" includes the pay allowances, bonus or commission payable monthly or otherwise explanatidn 2·- for the removal of doubts, it is hereby declared 20 that where a deduction under this clause is allowed for any assessment year in respect of any expenditure, deduction shall not be allowed in respect of such expenditure under any other provision of this act for the same or any other assessment year; ' 26 amendment of sectiod 37 10 in section 37 of the income-tax act, sub-sectio;}s (3a), (38), (3c) and (3d) shall be omitted with effect from the 1st day of april, 1981 amendment of section 41 11 in section 41 of the income-tax act, with effect from the 1st day of april, 1981,-( a) in sub-section (2), aiter the proviso, the following proviso 30 shall be inserted, namely:-'provided further that where an asset representing expenditure of a capital nature on scientific research within the meaning of clause (c) of sub-flection (28) of section 35, read with clause (4) of section 43 owned by the assessee which was or bas been 3~ used for the purposes of business alter it ceased to be usoo for the purpose of scientific research related to the business is sold , discarded, demolished or destroyed the rrovislons of this subsection shall apply as if for the words "actual co£:t", at the first place where they occur, the words "actual cost as increased by 40 twenty-five per cent thereor' had been substituted '; (b) in bub-section (3),-(i) for the words, brackets and figures "clause (iv) of subsection (1) of section 35", the words brackets, figures and letters "olause (i v) of sub-section (l) ,or clause (c) of 6 ubsection (28), of section 35" shall be substituted: 5 (ii) for the words, brackets, flgures and letter "clause (ia) of sub-section (2) of section 35 ", the words, brackets, figures and letters "clause (la) of sub-section ( 2), or clause (c) of subsection (28), of section 35" shall be substituted | insertion    ||--------------|| new section  || 80m         |1z in the income-tax act, after section boa, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1963, namely:-10 15 '80aa wbere any deduction is required to be made or allowed deductions under any section included in this chapter under the headlng ·c-vedmc _ ~ be made £ions in respect of certain incomes" in respect of any income of the :::~:=e nature specified in that section which is included in tlte gross total included in income of the assessce, then, notwithstanding anything contained ~he cross total ded' d income in that section, for the purpose of computing the hction un er that section, the amollnt of income of that nature as comput8:i ir accordance with the provisions of this act (before making any deductions under this chapter) shall alone be deermd to be the amount of income of that nature which is derived or received by the assessee and which is included in his gross totalinoome ' 20 amendment of hctioa soc 11 in section 80c of the income-tax act, with effect from the 1st day of april, 1981,-(a) for sub-section (1)" the following sub-section shall be substituted, namely:-25 "(i) in oomputing the total income of an assessee, there shall be deducted, in accordance withand subject to the provisions of this section, an amount calculated, with reference to the aggregate of the sums specified in sub-section (2), at the following rates, namely:-30 (a) where sucb aggregate does not exceed rs 5, 000 | tbe        | whole    | of          | such      ||------------|----------|-------------|-----------|| aggregate: |          |             |           || (b)        | where    | such        | aggregate || rs        | 5,       | 000         | but       || rs10,ooo  |          |             |           || rs 5, 000 |          |             |           || pills      |          |             |           || 50         | per      |             |           || cent      | of       | the amount  |           || by which   | such     | aggre-      |           || gate       | exceeds  | rs 5, 000; |           |35 (c) where such aggregate exceeds rsi0,ooo rs 7, 500 plus 40 per cent of the amount by which such aggregate exceeds rs 10,000 "; 40 (b) in sub-flection (4), in clause (i), for the words "musician or actor", the words and brackets"musician actor or sportsman (including an athlete)" shall be substituted omlaiad of u section 80ff of the income-tax act shall be omitted with effect secttoa 80 ff from the 1st day of april, 1981 u in section 80g of the income-tax act,- aaaeaclment of &ec:tioil bog·5 (a) for sub-section (4), the following sub-section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of april, 1978, namely:-10 "( 4) where the aggregate of the sums referred to in 8ubclauses(iv) ,(v) , (vi) and (vii) of clause (a) and in clause (b) of sub-section (2) exceeds the smaller of the following amounts, that is to say,-15 (i) ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this chapter), and (ii) five hundred thousand rupees, then, the amount by which such aggregate exceeds such smaller amount shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1) - "; 20 (b) after sub-section (5) and before eiplanation i, the following subsection shall be inserted and shall be deemed al ways to have been inserted, namely:-ft( sa) where a deduction under this section is claimed and allowed for any assessment year in respect of any sum speclfted in sub-section (2) , 25 the sum in respect of which deductiod 18 so allowed shall not qualify for deduction under any other provi8lod of this act for me same or any other assessment year fl 30 ii in the income-tax act, after section sohha, the following section shall be inserted with effect from the ht day of april, 1981, namely:-| inaertioa    ||--------------|| new aectioft || 80-1        || 35           || deduction in || respect      || of           || plofit&      || and          || allim        || fiom         || industrial   || andertakings || after        || 8            || cer-         || tllin        || date,        || etc         |'so-i (1) where the gross total income of an assessee includes any profits and gains derived from an lndustrial undertaking or a ship or the business of a hotel, to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty per cent thereof: provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect as if for the words "twenty per cent ", the words "twenty-five per cent ii had been substituted (2) this section appues to any industrial undertaking which fulfils au the following condltions, namely:--(i) it is not formed by the splitting up, or the reconstruction, of a business already in existence; 5 (tt) it is not formed by tbe transfer to a new business of machinery or plant previously used for any purpose; 10 (iii) it manufactures or produces any article or thing, dot being any article or thing specified in the 11st in the eleventh schedule, or operates one or more cold storage plant or plantr, in any part of india, and begins to manufacture or produce articles or things or to operate such plant or plant~, at any time within the period of four years next followtng the 31st day of )larch, 1981, or such further period as the central government may, by notlfication in the offtc1a1 gazette, speclfy with reference to any particular industrial undertaking; 15 (iv) in a case where the industrial undertaking manufactures or produces articles or things, tbe undertaking employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufactur-ing process carried on without the aid of power: 20 26 provided that the condltlon in clause (t) shall not apply in respect of any industrial undertaking which is formed as a result of the re-establlshment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in sectlon 33b, in the circumstances and within the period speclfied in that sections provided further that the condition in clause (iii) shall, in relation to a small-scale industrial-undertaking, apply as if the words ''not being any article or thing speclfied in the list in the eleventh schedule" had been omitted 30 explanation f -for the purposes of clause (ii) of this subsection, any machinery or plant which was used outside india by ady person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the followlug conditions are fuuuled, namely:-36 (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in india; (b) such machinery or plant is imported into india from any country outside india; and 40 cc) no deduction on account of depreciation in respect of sucb machinery or plant has been allowed or is allowable under the provisions of this act in computing the total income of any person for any period prior to the date of the installation of the machldery or plant by the assessee eglldiiitidn 2- for the purposes of this sub-section, "smallscale industrial undertaking" shall have the same meaning as in clause (b) of the erplanatioh below sub-section (8) of section 6 borha (3) this section applies to any ship, where all the following conditions are fulfilled, namely:-(i) it is owned by an indian company and is wholly used for the purposes of the business carrled on by it; 10 (ti) it was not, previous to the date of its acquisition by the indian company, owned or used in indian territorial waters by a person resident in india; and (iii) it is brought into use by the indian company at any time within the period of four years next following the 1st day 15 of apru, 1981 (4) this section applies to the business of any hotel, where all the following conditions are fulfilled, namely:-(i) the business of the hotel is not formed by the sputtlng up, or the reconstructlon"of a business already in existence 20 or by the transfer to a new business of a bulldlng previously used as a hotel or of any machinery or plant previously used for any purpose; (ii) the business of the hotel is owned and carrled on by a company registered in india with a paid-up capital of not less 25 than five hundred thousand rupees; (iii) the hotel is for the time being approved for the purposes of this sub-section by the central government; (iv) the business of the hotel starts functioning after the 31st day of march, 1981 but before the 1st day of april, 1985 30 36 (5) the deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles or things, or to operate its cold storage plant or plants or the ship is first brought into use or the business of the hotel starts functioning (such assessment year being hereafter in this section referred to as the initial assessment year) and each of the six assessment years immediately succeeding the initial assessment year: provided that in the case of an assessee, being a co-operative society, the provisions of this sub-section shall have effect as if for the words "six assessment years", the words ''nine assessment years" had been substituted 5 10 (6) notwithstanding anything contained in any other provision of this act, the profits and gains of an industrial undertaking or a ship or the business of a hotel to which the provisions of sub-section (1) apply shall, for the purposes of determining the quantum of deduction under sub- section (1) for the assessment year immediately succeeding the initial assessment year or any subsequent assessment year, be computed as if such industrial undertaking or ship or the business of the hotel were the only source of income of the assessee during the previous years relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made 15 20 (7) where the assessee is a person other than a company or a co-operative society, the deduction undet sub-section (i) from profits and gains derived from an industrial undertaking shall not be admissible unless the accounts of the industrial undertaking ff'lr the previous year relevant to the assessment year for which the deduction is claimed have been audited by an accountant, as defined in the expjapl4tion below sub-section (2) of section 288, and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant 25 30 35 (8) where any goods held for the purposes of the business of the industrial undertaking or the hotel or the operation of the ship are transferred to any other business carried on by the assessee, or where any goods held for the purposes of any other business carrled on by the assessee are transferred to the business of the industrial undertaking or the hotel or the operation of the ship and, in either case, the consideration, if any, for such transfer as recorded in the accounts of the business of the industrial undertaking or the hotel or the operation of the ship does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of the industrial undertaking or the business of the hotel or the operation of the ship shall be computed as if the transfer, in either case, had been made at the market value of such goods as on that date: 40 provided that where, in the opinion of the income-tax officer, the computation of the profits and gains of the industrial undertaking or the business of the hotel or the operation of the ship in the manner hereinbefore specified presents exceptional difficulties, the incometax officer may compute such profits and gains on such reasonable basis ·as he may deem fit 45 explanation -in this sub-section, "market value", in relation to any goods, means the price that such goods would ordinarily fetch on sale in the open market (9) where it appears to the income-tax officer that, owing to the close connection between the assessee carrying on the business - of the industrial undertaking or the hotel or the operation of the ship to which this section applies and any other person, or for any other reason, the course of business between them is so arranged that the business transacted between them produces to the assessee more than the ordinary profits which might be expected to arise 5 in t be business of the industrial undertaking or the hotel or the operation of the ship, the income-tax offlcer shall, in computing the profits and gains of the industrial undertaklng or the hotel or the ship for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived 10 therefrom (10) the central government may, after maklng such inquiry as it may think fit, direct, by notification in the offlcial gazette, that the exemption conferred by this section shall not apply to any class of industrial undertakings with effect from such date as it may 15 specify in the notification '  17 in section 80j of the incom6-tax act,-amendment of section 80j (a) in sub-section (i), for the worus "computed in the prescribed manner", the ~ords, brackets, figure and letter "computed in the ",anner specified in sub-section (ia)" shall 20 be substituted aod shall be deemed to have been substituted with effect from the 1st day of april, 19'12; (b) after sub-section (1), the following sub-secuon shall be inserted and sball be deemed to liave been inserted wltll effect from tlle 1st day of april, 1972, namely :-25 '( la) (l) for the purposes of this section, the capital employed in an industrial undertaking or the business of a hotel sball acept as otherwise expressly provided in this section, be computed in accorttance with clauses (n) to (iv) and the capital employed in a ship shall be computed tn accordance with clause (v) 30 (ii) the aggregate of the amounts representing the values of "he assets as on the first day of the computation period of the undertaking or of the business of the hotel to which this section applies shall first be ascertained in the following manner:-36 (i) in the case of assets entitled to depreciation, their written down value; (if) in the case of assets acquired by purchase and dot entitled to depreciation, their actual cost to the assessee; 40 (iii) in the case of assets acquired otherwise than by purchase and not entitled to depreciation, the value of the assets when they beoame assets of the business; (iv) in the case of assets, being debts due to the person carrying on the business, the nominal tlll'ount of those debts; (v) in the case of assets, being cash in hand or bank, the amount thereof explczmtion i -in this clause,,"actual cost" has the same meaning as in clause (i) of section 43 5 explanation 2 -in this clause and in clause (iji), "oomputation period" means the period for which profits and gains of the industrial undertaking or business of the hotel are computed under sections 28 to 43a exp'clllotioft 1 -in this olause and in clauset'v), ''written 10 down value" has the same meaning as in olause (6) e)f section 43 exp'clllatioft 4 -where the oost of any asset has been satisfied otherwise than in oash, the then value of the oonsideration actually given for the asset shall be treated as the actual 15 cost of the asset (iii) from the aggregate of the amounts as asoertained under clause (ii) shall be deducted the aggregate of the amounts, as on the first day of the computation period, of borrowed moneys and debts lowed by the assessee (including ajmudts 20 due towards any liability in respect of tax) explanation -for the purposes of this clause, -(i) "tax" means -() adeom e-tax or super -tax (including adnnce tu) due under any provision of this act; 25 (b) wealth-ux due under any promiod of the wealch-tax aot, 1957; 'ri of 1957· '(e) glft-tax due under any provision obbe glft-tax act, 1958; 18 of 1958 (if) super profits tax due under any provision of the super profits tax act, 1963; 14 of 1963 30 (e) surtax due under any provision of the companies (profits) surtax act, 1964; 7 of 1964 (u) any liability in respect of tax shall be deemed to have become due -35 (a) in the case of advance tax due under any provision of this act on the date on which such advance tax is payable; and (b) in the case of any other tax, on the first day of the period within which it is required to be paid (iv) the resultant sum as determined under clause (ill) shall be diminished by the value, as asoertalned under clause (if), of any investments the income from whioh is not taken into account in oomputlng the profits of the business and any moneys not required for the purpose of the business in so far 5 as the aggregate of such investments or moneys exceed the amount of the borrowed moneys which under clause (ill) are required to be deducted in computjug the capital (v) the capital employed in a ship shall be taken to be the written down value of the ship as reduoed by the aggre-10 gate of the amounts owed by the assessee as on the oomputation date on account of moneys borrowed or debts incurred in acquiring that ship erplcmation -in this clause ''computation date" in relation to a ship, means -15 (a) in respect of the previous year in which the sh1p is first brought juto use the date on which it is so brought into use; (~) in respect of any subsequent previous year the first day of such previous year' 20 ameaclment of i18ctioa iojj ii in section 80jj of the income-tax act, for the portion begjuning with the words "a deduotion as specified hereunder namely:-" and ending with the words "whichever is higher" the following shall be substituted with effect from the 1st day of april 1981, namely:-25 "a deduction from such profits and gains of an amount equal to one-third of the aggregate amount of such profits and gains or tlfteen thousand rupees, whichever is less" amead  _t of ii in section 80l of the income-tax act, in sub-section(1) , ection iol for clause (vii), the following clause shall be substituted with 30 effect from the 1st day of april, 1981 namely:-"(vii) interest on deposits with a fldancial corporation which is engaged in providing long-term finance for industrial development in india or with a public company formed and re gistered in india with the main object of carrying on the 35 business of providing long-term finanoe for construction or purchase of houses in india for residential purposes: provided that the corporation or, as the case may be the company is (or the time being approved by the cel1trai govflrnment for the purposes of clause (viii) of sub-sectlon (1) of 40 section 36i" amendment of section borr zi in section 80rr of the income-tax act, for the words "musician or actor", the words and brackets "musician actor or sportsman (including an athlete)" shall be substituted amendment of section bot il in section bot of the income-tax act, in clause (a), the words "where the gross total income does not exceed ten thousand rupees or" shall be omitted with effect from the 1st day of april, 1981 amendment of section bott 5 ii in section 80tt of the income-tax act, in clause (a) , the words ''where the gross totallncome does not exceed tun thousand rupees or" shall be omitted with effect from the 1st day of april, 1981 amendment of section 80u u in section 80u of the income-tax act, for the words "five 10 thousand rupees" the words "ten thousand rupees" shall be substituted with effect from the 1st day of april, 1981 amendment of section 139 i in section 139 of the income-tax act, after sud-section (8), the fonowing sub-section shall be inserted with effect from the 1st day of september, 1980, namely:-15 "(9) where the income-tax officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on 20 an application made in this behalf, the income-tax officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this act, the return shall 25 be treated as an inval1d return and the provisions of this act shall apply as if the assessee had failed to furnish the return: provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period 30 allowed, but before the assessment is made, the inoome-tax offioer may condone the delay and treat the return as a valid return ezplanation -for the purposes of this sub-section, a return of income shall be regarded as defective unless all the tollowing 35 conditions are fulfilled, namely:-(a) the annexures,statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total iucom~ have been duly filled in; 40 (b) the return is accompanied by a statement showing the computation of the tax payable on the basis of the return; (e) the return is accompanied by proof of -(i) the tax, if any, claimed to have been deducted at source and the advance tax and tax on self-assessment, if any, claimed to have been paid; 45 (ti) the amount of compulsory deposit, if any, claimed to have been made under the compulsory deposit scheme (income-tax payers) act, 1974; (d) where regular books of account are maintained by the assessee, the retum is accompanied by copies of-(i) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other simllar account and balance sheet; (ii) tn the case of a proprietary business or profes-10 8ion, the personal account of the proprietor; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members; and in the case of a partner or member of a firm, association of persons or body of individuals, 15 also his personal account in the firm, association of persons or body of individuals; or (t) where the accounts of the assessee have been audited, the retum is accompanied by copies of the audited profit and loss account and balance sheet and the auditor's report; 20 (f) where regular books of account are not maintained by the assessee, the retum is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts 25 have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year " am_dmedt of aec:tioo 143 30 ii in 8oction 143 of the income-tax act, in sub-section (1),ln clause (b), sub-clauses (ii) and (iii) shall be omitted amendment of mctioli 1ss 21 in section 155, after sub-section (sa), the following subsection shall be inserted with effect from the 1st day of april 1981, namely:-" (58) where any deduction in respect of any expenditure on scientific research has been made in any assessment year under 36 sub-section (28) of section 35 and the assessee fails to furnish a certificate of completion of the programme obtained from the prescribed authority wlthin one year of the period allowed for its completion by sucb authority, the deduction originally made in excess of the expenditure actually incurred shall be deemed 40 to have been wrongly made, and the income-tax officer may, notwithstanding ~ythlng contained in this act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment: and the provisions of section 154 shall, so far as may be, apply thereto, the period of four 45 years specified in sub-secuon (7) of that section being reckoned from the end of the previous year in which the period allowed for the oompletlon of the programme by the prescribed authority expired "  11 in section 164 of the income-tax act,-6 () in bub-aectlon ( 1), -(t) for the portion beg1nn1dg with the words ''tax shall be charged-" and ending with the words "more beneficial to the revenue:", the following shall be substituted, namely~ 10 "tax shall be oharged on the relevant inoome ur part of relevant ldcome at the maztmum margtnal rate:"; (ti> in the proviso, -(i) for olause (t), the following olau/;8 shall be bubbt1-tuted, namely:-16 "(f) none of the beneficiaries bas any other income cbargealie under this act exoeed1ng the maztmum amount not ohargealie to tax in the oase of an association of per80d8 or is a beneficiary under any other trust; or"; 20 (2) in clause (if), for the worda "under a trust declared by will " the words ''under a trust declared by any per80n by will and such trust 18 the only trust so declared by him" shall be sub8tituted; 25 (3) in the ooncluding portion, for the worda ''as if the relevant income or part of relevant income", the words "on the relevant inoome or part of relevant income a8 if it" shall be substituted; (ii) in sub-aeotiod(3) -(i) for the portion beg1nn1ng with the words "s not 30 specifioally receivable" and ending with the words ''whichever oourse would be more benefictal to the revenue :", the following shall be subbtltuted namely:-"is not speclfically receivable on behalf or for the benefit of anyone person or the individual 8hares 36 of the beneficiaries in the income 80 applioable are indeterminate or unknown, the tax chargeable on the relevant income ,ball be the aggregate of-(4) the tax whloh would be ohargeable on that part of the relevant income which is applicable to oharltable 40 or religious purposes (as reduced by the inoome, if any, which is exempt under section 11) as if such part (or such part as so reduced) were the total inoome of an association of persons; and (b) the tax on that part of the relevant income which is applicable to purposes other than charitable or 5 rellgious purposes, and which is either not specifically receivable on behalf or for the benefit of anyone person or in respect of which the shares of the beneficiaries 'are indeterminate or unknown, at the maximum marginal rate:"; 10 (it) in the proviso, -(1) for clause (t) the following clause shall be substituted namely:-| "mnone                                          | of the beneficiaries    | in                 | respect    | of the                  | part     ||-------------------------------------------------|-------------------------|--------------------|------------|-------------------------|----------|| of                                              |                         |                    |            |                         |          || the                                             |                         |                    |            |                         |          || relevant income which                           | is                      | not                | applicable | to                      | 15       || charitable                                      | or                      | religious purposes | bas        | any                     | other    || ohargeable under this act exceeding the maximum |                         |                    |            |                         |          || amount not chargeable to                        |                         |                    |            |                         |          || tax                                             |                         |                    |            |                         |          || in the                                          | case                    | of an              | associa-   |                         |          || tion of                                         | persons                 | or                 | is         | a beneficiary under any | other    || trust;                                          | or";                    | 20                 |            |                         |          || (2)                                             |                         |                    |            |                         |          || in                                              | clause                  |                    |            |                         |          || (it),                                           |                         |                    |            |                         |          || for                                             | the                     | words              | ''under a  |                         |          || trust                                           |                         |                    |            |                         |          || declared                                        |                         |                    |            |                         |          || by                                              |                         |                    |            |                         |          || wuj                                             | ", the                  | worde'\mder        | a          | trust                   | declared || by                                              |                         |                    |            |                         |          || any                                             | person                  |                    |            |                         |          || by                                              |                         |                    |            |                         |          || wul                                             | and such                | trust              | is         | the only                | trust    || by                                              |                         |                    |            |                         |          || him"                                            |                         |                    |            |                         |          || shall                                           |                         |                    |            |                         |          || be                                              |                         |                    |            |                         |          || substituted;                                    |                         |                    |            |                         |          || 25                                              |                         |                    |            |                         |          || (3) in the concluding                           |                         |                    |            |                         |          || port1o~for                                      |                         |                    |            |                         |          || the                                             | words                   | "as                |            |                         |          || if                                              |                         |                    |            |                         |          || the                                             |                         |                    |            |                         |          || relevant income", the                           |                         |                    |            |                         |          || words                                           | "on the relevant income | aa                 |            |                         |          || if                                              |                         |                    |            |                         |          || the                                             | relevant                | income" shall      |            |                         |          || be                                              |                         |                    |            |                         |          || substituted;                                    |                         |                    |            |                         |          |(e) after sub-section (3), the following erplcuacltiofts shall be inserted, namely:-|                                       |                          | -                              | ejplcuagtion               | 1-            ||---------------------------------------|--------------------------|--------------------------------|----------------------------|----------------|| for                                   | the                      | purposes                       | of tms                     | section,-      || 30                                    |                          |                                |                            |                || 36                                    |                          |                                |                            |                || 40                                    |                          |                                |                            |                || (f)                                   |                          |                                |                            |                || any income                            | in                       | respect                        | of which the               | persons        || mentioned                             | in                       | clause                         |                            |                || (til)                                 |                          |                                |                            |                || and                                   | clause                   | (iv) of sub-aection            |                            |                || (1)                                   |                          |                                |                            |                || of                                    |                          |                                |                            |                || section 160                           | are                      | uable                          | as                         | repteeentative || assessee                              | or                       |                                |                            |                || any                                   |                          |                                |                            |                || part                                  | thereof                  | shall be deemed                | as                         |                || being                                 |                          |                                |                            |                || not specifically receivable on behalf | or                       | for                            | the                        |                || benefit of                            |                          |                                |                            |                || anyone                                | person                   | unless                         | the                        | person         || _half                                 | or                       | for                            | whose benefit such lncome | or             || thereof                               | is                       | receivable during the previou8 | year                       | is             || expressly                             |                          |                                |                            |                || stated                                |                          |                                |                            |                || in the                                | order                    | of the                         | court                      | or             || instrument                            | of                       | trust                          | or                         | wakf           || deed,                                 |                          |                                |                            |                || as                                    | the                      | case                           | may                        |                || be, and is identifiable               |                          |                                |                            |                || as                                    | such on the date of such |                                |                            |                || order,                                | instrument               | or                             | deed;                      |                |(ii) the individual shares of the persons on whose behalf or for whose benefit such income or such part 5 10 15 amedment of section 171 thereof is received shall be deemed to be indeterminate or unknown unless the individual shares of the persons on whose behalf or for whose benefit such income or such part thereof is receivable, are expressly stated in the order of the court or the instrument of trust or wakf deed, as the case may be, and are ascertainable as such on the date of such order, instrument or deed explanation 2 _ in this secuon, "maximum marginal rate" means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest slab of income in the case of an association of persons as specified in the finance act of the relevant year ' - ji in section 171 of the income-tax act, after sub-section (8) and before the erplanation the following sub~section shall be inserted, namely:-20 "(9) notwithstanding anything contained in the foregoing provisions of this section, where a partial partition has taken place after the 31st day of december 1978 among the members of a hindu undivided family hitherto assessed as undivided, !-25 (4) no claim that such partial partit10n has taken place shall be inquired into und~r sub-section (2) and no finding shall be recorded under sub-section (3) that such partial partition had taken place and any finding recorded under sub-section (3) to that effect whether before or after the 18th day of june, 1980, being the date of introduction of the finance (no2) bill 1980, shall be null and void; (b) such family shall continue to be liable to be assessed under this act as if no such partial partition had taken placei 30 :, '", 35 (c) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, pen~~y, interest, fine or other sum payable under this aot by  the family in respect of any period whether before or after such partial partitiol1, 40 (d) the several1iabllity of any member or group of membef8 aforesaid shall be computed aooordiag to the portion' of the joint family property allotted to him or it at suoh partial partition and the provision of this aot shall apply accordingly"_ aadaeatof sectlon 2ob •• iii section 208 of the inoome-tax act ill sub-sectlon ( 2), for clause (e), the following clause shall be substituted wl1h effect from the 1st day of seitember, 1980, namely:-"(e) in any other case -r~12, 000 " 45 ameadlhllt of section 209a  in sectlon 209a of the inoome-taxact, in su~sectlod(4), after the proviso, the followlng proviso sball be il1serted with effect from the 1st day of september, 1980, namely:-'ttl-ovided further that in the case of an assessee, being a com~, the provisim8 of th  aub-eecum ahall have effect as if for the figures and words "33 1/3 per cent ", the figure aad words "20 per cent " bad been substltuted ' 11 in sectlon 212 d the income-tax act, in sub-l8ctlon (]a), after the proviso, the followin, proviso iha1l be ln881'ted with effect from the 1st day of september, 1980, name1r-'prcwlded further that in the case of an ul8ssee, betdl a company, the provis1m8 of thls sub-aectlm ahall have effect as if for 1he figures and words "33 1/3 per cent", the flgure and words "20 per cent" bad been substltuted ' ii in sectlon 215 d the income-tu act, in sub-seouon (1), the followlng proviso shall be lneerted wi th effect from the let day d september, 1980, namely:-'prorided that in the case of an a888ss88, belng a company, the provialodb d tbls aub-sectlm ahall have effect as if for the words "s8veoty-(lve per ceot'~ the words "e1gh1jy-thr88 iiiid oile-thlrd per cent" bad been substituted '  in aectlon 273 d the income-tu act with effect from the lilt day of september, 1980,-(t) in sub-secum (1), the followldllw'ovi80 shall be inaerted, namely:-'prorided that in the case of an a88ess88, belng a company, the provl81ms of thl8 sub-eect1m aball have effect as if for the words "88v_ty-flve per oat ", at both the places where they occur, the worda "elghty-three iiiid one-thlrd per cent" bad been substituted"i (if) in aub-sectloll (2), before the erplangtlon ~ the followlng proviso shall be inaerted, name1y:-'provided that in the c»8e of an al88ssee, beldl a compadiy, the provi81oil8 of this 8ub-eectlm aball have effect as if for the words" leyeaty-flve per oeat " - wbereftr they occur, the worda "e1gbty-three add 0118-thlrd per oedt " bad been sab8tataled ' - | a         ||-----------|| _tof     || foaltla   || schedule |it in the fourth schedule to the income-tax act, in part a, in clause (b) of rule 6, the words "_ceeds one~ird of the salary of the employee or" shall be omitted with effect from the 1st day of april, 1981 - the following ameddments (beidg amendments of a consequential nature) shall be made in the income-tax act with effect from the 1st day of april, 1981, namely:-(i) in sub-sectlon (2) of section 34, in clause (ii) after the worde, bracket and f!cures "or clause (it) ", the words, brackets, figures aod letter "or clause (ug) " shall be inserted; (ii) in sub-sect1od (2) of sect10n 38, for the braokets, figures and word "(u) and (ut)", the brackets, figures, letter and word "(u), (iig) aod (iff)" shall be 8ub8tbtedi (iii) in sub-section (3) of section 80a, after the words, figures and letters "'or section 80hha ti the words figures and letter "or section 80-1" s"'all be inserted; (iv) in sub-section (9) of section 80hh for the words, 5 figures and letter ''under section 8oj"~ the words, figures and letters "under section 80-1 or section 8oj" shall be substituted (v) in sub-section (6) of section 80bha, for the words, figures and letter "under section 8oj", the words, figures and letters ''under section 80-1 or section 8oj" shall be 10 substituted, (vi) in sub-section (3) of section 80p, after the words, figures and letters "or section 80bha", the words, figures and letter "or section 80-1" shall be inserted  i'emrjhcutl of 1957 15 •• in the wealth-tax act, 1957 (hereinafter referred to as tbe ameadmeat of hctioa 2 ~tb-tax act) in seetlon 2, in sub-clause (2) of clause (e), for tbe words "provided tbat" tbe following shall be subsututed witb effect from the 1st day of april, 1981, namely:-'provided that in relation to the assessment year commenc-20 ing on the 1st day of april, 1981, or any subse!quent assessment year, this sub-clause shall have effeot subject to the modification that for item (i) thereo(, the following 11em shall be substituted, namely:-"(t)(a) agricultural land other than land comprised in any 25 tea, coffee, rubber or cardamom plantation (b) any buildjng owned or occupied by a cultivator of, or receiver of rent or revenue out of, agrioulturalland other than land comprised in any tea coffee, rubber or oardamom plantation : 30 provided that the building is on or in the immediate vicinity of the land and is a bullding which the cultivator or the receiver of the rent or revenue by reason of his connection with the land requires as a dwelung410use or a storehouse or an out-house; 35 (e) animals;": provided further that' ameadmeat of ec:tioa s it in section 5 of the wealth-tax act, in sub-section (1) with effect from the 1st day of april, 1981,-(a) for olause (ilia) the following clause shall bet subslltuted, 40 namely:-"(ilia) agricultural land comprised in any tea, ooffee rubber or cardamom plantation belonging to the assessee," - (b) in clause (ivb) for the words "agricultural land", the worda "agricultural land comprised in any tea, coffee, rubber or cardamom plantation" shall be substituted j (c) in clpuse (viiib) , for the words "in an orchard or a plantation", the words "in any tea, coffee, rubber or cardamom 5 plantation" shall be substituted; (d) for clause (uvii) , the following clause shall be substituted, namely:-"(nvii) any deposits with a financial corporation which is engaged in providing long-tenn finanoe for industrial develop-10 ment in india or with a public oompany formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes: provided that the corporation or, as the case may be, the 15 company is for the time being approved by the central government for the purposes of clause (viii) of sub-section (l)of section 36 of the income-tax act;" amendment of •• in section 7 of the wealth-tax act, in sub-sectlon (i), the section 7· following explanation shall be jnserted, namely:-20 "'explanation - -for the removal of doubts, it is hereby declared that the price or other consideration for which any property may be acquired by or transferred to any person under the terms of a deed of trust or through or un~er any restrictive covenant in any instrument of transfer shall be 25 ignored for the purpose of determining the prioe such property would fetch if sold in the open market on the valuation date " inaertiod of new section loa it in the wealth-tax act, after section 20, the following section shall be inserted, namely:-30 '20a where a partial partition has taken place after the 31st day of december, 1978 among the members of a hindu wldivided family hitherto assessed as undivided -abaesment after partial partition of 8 hindu undivided family (a) such family shall continue to be liable to be assessed under this act as if no such partial partition had taken place; ,b) each member or group of members of such family fmm ediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this act by the family in respect of any period whether before or after such partial partition; (c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition, and the provisions of this act shall apply accordingly elplcijicltidn - -for the purposes of this section, "partial partition" shall have the meaning assigned to it in clause (b) of the elplanation to section 171 of the income-tax act ' -  41 in section 21 of the wealth-tax act,-5 (a) in sub-sretion (1) , for the words ''in the case of assets chargeable to tax under this act" the words, brackets fjgure and letter "subject to the provisions of sub-seetion(ia), in the case of assets chargeable to tax under this act" shall be 10 substituted; (b) after sub-section (1) the following sub-section shall be inserted, namely:-"(la) where the value or aggregate value of the interest or interests of the person or persons on whose behalf or for whose 15 benefit such assets are held falls short of the value of any such assets, then in addition to the wealth -tax leviable and recoverable under sub-section (1) the wealth-tax shall be levied upon and recovered from the court of wards administrator-general, official trustee, receiver manager or other person or trustee 20 aforesaid in respect of the value of such assets, to the extent it exoeeds the value or aggregate value of such interest or interests, as if suoh excess value were the net wealth of an individual who is a citizen of india and resident in india for the purposes of this act, and -(i) at the rates speoified in part i of schedule ii or 25 (ii) at the rate of three per oent  whichever course would be more beneficial to the revenue it; (e) in sub-section (4),-(t) in olause (b), for the words "one and one-half per oent ", the words ''three per cent" shall be substituted; 30 (ii) in the proviso,-(i) in olause (i), for the words ''under a trust declared by will", the words ''under a trust deolared by any person by w1l1 and such trust is the only trust so declared by him" shall be substituted; 35 (2) after clause(i) - the following olause shall be inserted, namely:-"(ia) none of the beneficiaries has net wealth exceeding the amount not chargeable to wealth -tax in the case of an lddlv1dual who 1s a oiuzen of india and realdedt in jndia for the parposes of tlds act or is a bedeflolary under any other trust or" (iu) the explanation shall be numbered as explclllauon 2 and before that explcul4l&ion the following explanation shall 6 be inserted, namely:-"explclll4tion 1 -for the purposes of this sub-section, the shares of the persods od whose behalf or for whose benefit any suoh assets are held shall be deemed to be indeterminate or unknown unless the shares of the persods on whose behalf or 10 for whose benefit such assets are held on the relevant valuation date are expressly stated in the order of the court or instrument of trust or deed of wakf as the case may be and are ascertainable as such on the date of such order, inetrument or deed ti 15  u in the wealth-tax act, in part 1 of schedule 1 -"-dmedt of sclaedal l (4) in item (1), in the proviso, for the letters and figures i'r s 1,00, 000", at both the places where they occur, the leiters and figures l'rsl,50,ooo" shall be substituted; 20 (b) in item (2) ,-(') in the opening portion, for the words, letters and figures "assessment year exceeds rs1, 00,000", the words, letters and figures "assessment year exceeds r sl,50, 000" shall be substituted; 25 (u) in the proviso, for the letters and figures i'r s i, 00, oooi~ at both the places where they ooeur, the letters and flgures i'r s 1,50,000" shall be substituted gifhgx 30  u in the gift-tax act, 1958,-allleodmedt of act 18 of 195& (a) in section 2, in sub-clause (e) of clause (uiv) ,after the words "power of appointment", the brackets and words "(whether general, special or subject to any restrictions as to the persods in whose favow' the appointment may be made)" shall be inserted; 35 (b) in section 4, in sub-section (1) after clause (d), the following clause shall be inserted, namely:-40 "(e) where a person who has an interest in property as a tenant for a term or for life or a remainderman surrenders or relinquishes his interest in the property or otberwt be allows hi s interest ix> be termlnated wi thout conslderauon or for a consideration which is not adequate', the value of the interest so surrendered, rellnqulshed or allowed to be terminated or, a the case may be, the amount by which such value exceeds the conslderatlqd received, shall be deemed to be a gift made by such penon " -  interes  w 5u in the interest-tax act, 1974, with effect from the 1st day of september, 1980,-(1) in section 2,-(/i) in claue (1), _ 10 (il in aub-clauae (i), the word "and" shall be inaerted at the end; (it) in sub-clause(ii), the word "and" shall be omitted; (iu) sub-clause (iii) shall be omitted; 15 2 of 1934 (b) in clause (9), after the words and figures ''the reserve bank of india act, 1934", the following shall be inserted, name1y:-", and includes -20 15 of 194 (/i) the industrial finance corporation of india, established under the industrial finance corporatlon act 1948; 18 of 1964-(b) the industrial developmem bank of india, f3stabllshed under the industrial developmnet bank act 19&&; 25 (e) the industrial re-coll8t:ructioo corporation of india ll mlted; and (d) the lddustrlal credit and investment corporatloo d ~a limited"; (2) in seotloo 8, in sub-seouoil (2), for the words, figures 30 and letters "after the 28th day of february, 1978", the words, flgures and letters ", during the period commencing on the 1st day of march, 1978 and ending with the 30th day of june, 1980" shall be substituted  mi,uu4dleoulm 44 where before the 18th day of june, 1980 [beldg the date on which the finance (no2) blll, 1980 was introduceg,7, the supreme court has, on an appeal in respect of the assessment of an assessee for any particular assessment year, held that the deduction under any section included in chapter via of the income-tax act under the beading "c-declucuom ttl respect of certain incomes - is to be allowed in a madder different from that provided in section 8~ of the inoometax act, as inserted by section 12 of this act, then, nothing contained in the sald section 80aa shall apply to the assessment of such assessee for that particular assessment year 10  chapi'er iv iffolallct taxes| amenelment              | of           ||-------------------------|--------------|| act                     |              || 51                      |              || of                      |              || 1975                   |              ||                      | the customs  || act,                    |              || 1975                    | (hereinafter || to                      |              || as                      |              || the customs             | tariff       || shall                   |              || be                      |              || amended                 | in           || speclfled               | in           || i                       |              || and                     |              || n                       |              || of                      |              || the second schedule    |              || 16                      |              || allleaelment            |              || of                      |              || act 1                   |              || of                      |              || 1944                   |              ||                      | in           || the central excises and | salt         || referred                |              || to                      |              || as                      | the          |(a) in section 2, in c1ause(f), after sub-clause (iiii) , the followi ng sub-clause shall be inserted, namely:-"(viii) in relation to alumlnlum, includes lacquering or printing or both of plain oontainers;"; 20 (b) the first schedule shall be amended in the manner specified in parts i and n of the third schedule ameadmeat of act 13 of 19so il in section 5 of the finance act 1980, in sub-sectioll ( lj, for the words "flve per cent ", the words "ten per cent " shall be subs tltu ted 25 am_eimeatof act 58 of 1957 •• the additional duues of exclse (goods of special importance) act 1957 (here1nafter referred to as the addiuonal duties of exclse act),shall be amended in-the manner speclfied in the fourth schedule ameadmeat of •• in the customs, central excises and salt and central 30 act ls 0: 19'780 boards of revenue (amendment) act, 1978, in new section ub, as directed by section 21 of that act to be inserted in the central exclsee act-(a) in sub-section (1),-35 (i) for the words "from the dafe of payment of duty" occurring in the openlng portion, the words "from the relevlult date" nan be substituted; (ii) the elpjaftguon shall be omitted; (b) lor the expllulgtion at the end, the followlng explgnotton shall be substltuted, namely:- 'erplanatiolt - for the purposes of thls sectlon,-5 (a) "refund" includes rebate of duty of excise on excisable goods exported out of india or on excisable materials used in the manufacture of goods whlch are exported out of indiaj  (0) "relevant date" means,-10 (a) in the case of goods exported out of india where a refund of excise duty paid is available in respect of the goods themselves or, as the case may be, the excisable materials used in the manufacture of such goods,-15 (i) if the lfjods are exported by sea or air, the date on whlch the ship or the aircraft in whlch such goods are loaded, leaves india, or (ii) if the goods are exported by land, the date on which such goods pass the frontier, or 20 (iii) if the goods are exported by post, the date of despatch of goods by fhe post office cmcerned to a place outside india: (b) in the case of goods returned for being remade, refined, reconditioned, or subjected to any other similar process, in any factory, the date of entry into the factory for the purposes aforesaid; 25 30 (c) in the case of goods to which banderols are required to be affixed if removed for home consumption rut not 80 required when exported outside india, if returned to a factory after having been removed from such factory for export out of india, the date of entry into the factory; 35 40 (d) in a case where a manufacturer is required to pay a sum, for a certain period, on the basis of the rate fixed by the central government by notification in the official gazette in full di scharge of his liability for the duty leviable on his production of certain goods, if after the manufacturer bas made the payment on the basis of such rate for any period but before the expiry of that period such rate is reducec:j,the date of such reduc~lonj (t) in a case where duty of excl se is paid provisionally under this act or the rules made thereunder, the date of adjustment of duty after the flnal assessment thereof; (f) in any other case, the date of payment of duty ' ii (1) the all_claeats directed id the fifth schedule, beld, ameadmeats to provide for  appell  e tribudal udder the customs act, 1962, the ceatral excises act  d the gold (control) act, 1968  d for matlers coddected therewith, shall be made id the sald acts amendment of act 52 of 1962 etc, to provide for _ appeuate tribunal (2) the amendments directed to be made by sub-seotion 5 (1) shall come into force on 8\lch date as the central government may, by notification in the official gazette, appolnt; and different dates may be appointed for the ammdments to different  acts (3) if any dlfyiculty arises in giving effect to the provisions of any act referred to in sub-section ( 1), as amended by the amendments 10 thereto directed in the fifth schedule (particularly in relation to the transition to the provisions of that act as so amended), the central government may, by general or special order, do anything not inconsistent with such provisions as so amended which appears to be necessary or expedient for the purpose of removing the difficulty: 15 provided that no such order shall be made after the expiry of two years from the date on which such amendments came into force  chapter v mj bcilu"idd8ii in the first schedule to the indian post office act, 1898, -20 ameadmeat of act 6 of l8cj8, (a) for the sub-heading" leuers " and the entries thereunder, the following shall be substituted, namely:-" lellers for a weight not exceeding ten grams 36 paise 26 for every ten grams or fraction thereof, exceeding ten grams 15 pals~ "; (b) for the sub-heading ":rllrcels " and the entries thereunder, the following shall be substituted namely:-" perce" for a weight not exceeding five hundred grams re 2 00 30 a  tof act 32 of 1971 for every five hundred grams or fraction thereof, exceedldg five lumdred aramb ra 2 00 it  in section 64 of the finance (no2) act, 1911, for the worde "nine previous years", the worde ''fourteen previou y_rtt shall be aublltltuted 36 am  of act 38 of 1974  in the compulsory deposit scheme (lnoome-tax payer) aot, 1974,-(el) in beetlon 2, after clause (d), tbe following clau8e shall be ineerted and shall be deemed to have been inserted with effect from the 10th day of july, 1978, namely:-6 , (dd) "income-tax officer" has the same meaning as in clause (25) of section 2 of the income-tax act, and inclu\:les an inspecting assistant commissioner who exercises or performs the powers or functions conferred on, or assigned to, bim under section 126 or section usa of the said act: t; (b) after section 7, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1975, namely:-10 27 of 1957 eompullloty depo_it to be nempt for pq~ of wealtbto 117 a for the purposes of exemption under section 5 of the wealth-tax act, 1957, the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the banking regulation act, 1949 applies "; 10 of 1949 (c) with effect from the 1st day of april 1981 section 8 shall 15 be re-numbered as sub-section (1) thereof and after sub-section (1) as so re-numbered the following sub-section shall be lose rted namely:-"(2) where any amomt has become repayable or payable under sub-section (1) the depositor may, at his option, not withdraw such 20 amount after 1t has become so repayable or payable, and if he does so, sucb amomt sball carry interest for the period it is not withdrawn as if it were a comrulsory deposit, and the provisions of this act shall so far as may be, apply in relation to such amomt or interest tbereon as they apply in relation to a oompulsory 25 deposit or as the case may be, interest on sucb deposit "; (d) in section 10 with effect from the 1st day of april, 1975,-(i) in bub-section (1),-(i) in clause (a), for the words "has failed to make", the words "has, without reasonable cause, failed to make" shall be substituted; 30 (2) in clause (b), for the words ''the requisite amomt", the words ''the requisite amount and tbere is no reasonable cause for making such short payment" shall be substituted: 35 (3) for the words ''the income-tax officer shall ", the words ''the income-tax officer may" shall be subsututedi (ii) in sub-section (2)-(1) in clause (a) for the words ''has failed to make", the words ''has without reasonable cause, failed to make ii shall be substituted; (2) in clause (b)-40 (a) for the words "is less than" the word "fall short of" shall be substituted; (8) for the words "hie correct income", the words ''his correct income and there is no reasonable cause for making such short payment" shall be substituted; (3) for the words "the income-tax officer shall", the words "the income-tax officer may" shall be substituted; 5 (e) in section 11, with effect from the 10th day of july, 1978,-(i) in sub-section (1), for the words "additional commissioner of income-tax", the words and brackets "commissioner of income-tax (appeals)" sball be substituted; (ii) in sub-section (2), in clause (b) o~ the proviso, for 10 the words "appellate assistant commissioner", the words and brackets "commissioner (appeals) or the appellate assistant commissioner" shall be substituted; (n with effect from the 10th day of july, 1978, sectlon 12 shall be re-numbered as sub-sectlon (1) thereof, and, -15 (i) in sub-section (1),as so re-numbered, for the words "any depositor", the words brackets and figure ''subject to the provisions of sub-section (2), any depositor" shall be substituted; 20 (ii) after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely:-25 i (2) where an order referred to in sub-section (i) is made by an inspecting assistant commissioner in exercise of the powers or functions conferred on or assigned to him under section 125 or section 125a of the income-tax act, the provisions of that sub-section shall have effect as if for the words "appellate assistant commissioner", the words and brackets "commissioner (appeals)" were substituted '; 30 (8) after section 12, the following section shall be inserted with effect from the 1st day of september, 1980, namely:-special review ill certain calletl 35 40 '!2a (1) where any order imposing a penalty under section 10 made by the income-tax officer before the date on which the finance (no2) act, 1980 received the assent of the president (such order being hereafter in this sectioi referred to as pre-amendment penalty order) has not been made the subject matter of any subsequent prnceeding by way of appeal or revision under this act, then, the depositor aggrieved by such order may, if he considers that no such penalty would have been levied if the amendments made to section 10 by the finance (no2) act, 1980 had been in force on the date of passing of such order, make an application to the income-tax officer for a special review 6 10 (2) where a pre-amendment penalty order has been made the subject matter of any subsequent proceeding by way of an appeal or revision under this act, the depositor aggrieved by the order passed in any such proceeding or, as the case may be, the last of such proceedings may, if he considers that no such penalty would have been levied if the amendments made to section 10 by the finance (no2) act, 1980 had been in force on the date of passing of the pre-amendment penalty order, make an appucation to the authority which passed the order in such proceeding or, as the case may be, the last of such proceedings for a special review (3) the application referred to in sub-section (1) or subsection (2) shall be presented before the 1st day of january, 1981: 15 provided that the income-tax officer or the other authority to whom an application for special review is made may admit such application after the sald date if he or it is satisfied that the depositor had sufficient cause for not presenting it before the said date 20 (4) the income-tax officer or other authority to whom the application for special review is made under sub-section (1) or sub-section (2), may make such enquiry or cause such enquiry to be made and, subject to the provisions of this act, may pass such order as he or it thinks fit 26 (5) the provisions of section 12 shall, so far as may be, apply in relation to an order passed under sub-section (4) as they apply in relation to a pre-amendment penalty order or, as the case may be, an order passed by any other authority under that section 30 (6) the special review under this section shall be in addition to and not in derogation of any other remedy which an aggrieved depositor may have under this act erp'cmation -for the purposes of this section, "authority" includes the appellate tribunal 'i 35 tk) in section 13, in sub-section (1), after the words "the appellate assistant commissioner, ", the words and brackets "the commissioner (appeals)" shall be inserted repeal 13 of 1980-ii section 2 of the finance act, 1980 is hereby repealed and shall be deemed never to have been enacted 40  declarauon under tile provisional collection of tares act, 19 31it is hereby declared that it is expedient in the public interest that the provisions of clauses 45, 46 47 and 48 of this bul shall have immediate effect under the provisional collection of taxes 16 of 1931 45 act 1931 in the case of every iddivtdual or li1ndu undivided famuy or unregistered firm or other association of per80d8 or body of individllals, whether incorporated or not, or every artlflcia1 juridical person referred to in aub-cllulle (vii) of clause (3u of 10 section 2 of the income-tax act not beldl a case to which sub-paragraph n of this paragraph or any other paragraph of this part applies,-nil; 15 (1) wbere the total income does not exceed rs 8,000 (2) where the totallncome exceeds rs 8,000 but doas not exceedrs15,000 15 per cent of the amount by which the total idcome exceeds rs 8,000; 20 (3) where the total idcome exceeds rs 15,000 but does not exceed rs20,000 rs i, 050 plus 18 per cent of the amount by which the total income exceeds re15000; 25 (4) where the total income exceeds rs 20,000 but does not exceed rs 25000 rs 1950 plus 25 per cent of the amount by which the total income exceeds rs 20, oooi (5) where the total income exceeds rs 25, 000 but does not exceed rs30,ooo ra 3, 200 plus 30 per cent of the amount by which the total income exceeds rs 25, oooi (6) where the total income rs 4,700 plus 40 per cent of exceeds rs 30,000 but does not the amount by which the total 30 exceed as 50,000 income exceeds re 30, oooi (7) where the total income exceeds rs 50000 but does not exceed rs 70,000 rs12,700 plus 60 per cent of the amount by which the total income exceeds rs 50, 000 (8) where the total idcome exceeds rs 70,000 but does not exceedrsl,oo,ooo re 22,700 plus 55 per cent of the amount by wblch the total income exceeds rs 70,000; (9) where the total income s exceeds r8 1,00,000 rs 39,200 ,ius 60 per cent of the amount by which the total income exceeds rs 1,00,000: provided that for the purposes of this sub-paragraph,-(i) no income-tax shall be payable on a total income not exceeding re 10,000; 10 (til where the total1ncome exceeds rs 10,000 but does not exceed rs 12, 000, the income-tax payable thereon shall not exceed thirty per cent of the amount by which the total income exceeds rsi0, 000  surchgrqt em irtcdllle-uz15 the amount of income-tax computed in accordance with the preceding provisions of tbis sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of twenty per cent of such income-tax  sub--paraaraph ij20 in the case of every hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment yeai' commencing on the 1st day of april, 1980 exceeds rs 10,000,- rates of irtcdllle-tar25 (1) where the total lncome nil; does not exceed ra 8, 000 (2) where the total lnoome exceeds rs 8, 000 but does not exceed re 15,000 18 per cent of the amolldt by which the total income exceeds ra 8,000; (3) where the total income rs 1,260 plus 25 per cent of exceeds rs 15,000 but does not· the amount by which the total exceed ra 20 000 income exceeds rs 15, 000; re 2, 510 pjus 30 per cent of the amount by which the total income exceeds rs 20, 000; (4) where the total income exceeds ra 20,000 but does not exceed rs 25000 | rs                 | 4,010    ||---------------------|----------|| plus               |          || 40                  | per      || the amount by which |          || the                 | total    || income              | exceeds  |(5) where the total income exceeds rs ~5 000 but does not exceed re 30 000 5 rs 6 010 plus 50 per cent of the amount by which the total income exceeds rs 30000; (6) where the total income exceeds rs 30000 but does not exceed &s 50 000 | rs    | 16010    ||--------|-----------|| plus   |           || 65     | per       || the    | amount    || income | exceeds   |(7) where the total income exceeds rs 50000 but does not exceedrs70000 (9) where the total income exceeds rs 70,000 rs 27010 plus 60 per cent of 10 the amount by which the total income exceeds rs 70 000: provided that for the purposes of this sub-paragraph-(i) no income-tax shall be payable on a total income not exceeding re 10000; 15 (ii) where the total income exceeds rs 10,000 but does not exceed rs 13 000, the income-tax payable thereon shall not p-xceed thirty per cent of the amount by which the total income exceeds hs10,000 20 the amount of income-tax computed in accordance with the prec-<>llng provisions of this sub-paragraph shall be increased by a sur-:-harge for purposes of the union calculated at the rate of twenty per cenl of such income-tax  pllragraph b25 in the (,pbe of every oo-operative society,- races of inco",e-14l1'|         | (lj where the total    | income    ||---------|------------------------|-----------|| does    | not                    | exceed    || as     |                        |           || 10000  |                        |           || 15      | per                    | cent     || income; |                        |           || 30      |                        |           || (2)     | where the total        | income    || exceeds | rs,                    | 10,000    || exceed  |                        |           || & •    |                        |           || 20000  |                        |           || rs     | 1500                  |           || plus    |                        |           || 25      | per                    | cent     || the     | amount by which        |           || the     |                        |           || total   |                        |           || income  | exceeds                | rs       |(3) where the total u1come exceeds re20,000 rs 4000 plus 40 per cent of the 1ullc'unt by which the total income exceeds rs 20000 35  surch"'rt 0" incomt-(cuthe amount of income- tax computed in acoordance with the preceding provisions of this paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of 5 twenty per cent of such income-tax  p"r4sr"ph c sub-p ar"grapk iin the case of every registered firm, not being a case to which sub-paragraph 11 of this paragraph applies,-rates of income-leu 10 (1) where the total income nil; does not exceed rs 10,000 5 per cent of the amount by which the total income exceeds rs 10000; (2) where the total income exceeds rs 10,000 but does not exceed re 25 000 15 rs 750 plus 7 per cent of the amount by which the total income exceeds rs 25, 000; (3) where the total income exceeds rs 2500() but does not exceed rs50000 ~o (4) where the total income exceeds rs 50,000 but does not exceedrs1,oo,000 rs 2 500 plus 15 per cent of the amount by which the total income exceeds rs 50, oooi (5) where the total income exceeds rs1,00,000 rs 10,000 plus 24 per cent of the amount by which the total income exceeds rs 1,00,000 25  surcharrt on income-taxthe amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of twenty per cent of such income-tax 30 in the case of every registered firm whose total income includes income derived from a profession carried on by it and the in~me so uicluded is not less thad fifty-one per cent of such total income,-| rares                  | of      ||------------------------|---------|| income(ta            |         || nil;                   |         || (1)                    |         || where the total income |         || does                   | not     || 5                      |         || 4                      | per     || which the total income | exceeds || rs10,000;             |         |(2)wbere the total income exceeds rs 10000 but does not exceed rs 25,000 | rs                 | 600    ||---------------------|--------|| pills               |        || 7                   | per    || amount by which the |        || totallncome         | 10     || exceeds             |        || jls,                |        || 26, 000;            |        |(3) where the total income exceeds rs 25,000 but does not exceed ri 50000 | rs     | 2,360           ||---------|-----------------|| plus    |                 || 13      | per             || amount  |                 || by      | which the total || income  |                 || exceeds | rs             |(4) where the total income exceeds re 50, 000 but does not exceedrs1,oo000 15 (5) where the total income exceeds re 1, 00, 000 rs 8,850 plus 22 per cent of the amount by which the total income exceeds rs 1,00, 000  s",luulje on incomf"'tathe amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased 20 by a surcharge for purposes of the union calculated at the rate of twenty per cent of such income-tax erp'culgtimi • - for the purposes of this paragraph, "registered firm" includes an unregistered firm auessed as a registered firm under clause (b) of section 183 of the income-tax act 25 in the case of every local autbortty,- rate of income-taon the whole of the total income 50 per cent su'chluljt on fncoiiit-tu 30 the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purpose of the union calculated at the rate of twenty per cent of such incometax  in the caae of a company,- l in the case of a ckmestic company,-5 (1) where the company is a company in which the public are substantially interested,-10 (i) in a case where the 45 per cent of the total income; total lncom e does not exceed re 1,00,000 (ii) in a case where the 66 per cent of the total income; total income exceeds re 1,00,000 15 (2) where the company is not a company in which the public are substantially interested, -(i) in the case of an industrial company_ 20 (a) where the total 55 per cent of the tow income income does not exceed re2,00,000 25 (b) where the total 60 per cent of the total income; income exceeds rs 2, 00,000 (ii) in any other case 65 per cent of the total income:  provided tbat-30 (i) the income-tax payable by a domestic company being a company in which the public are substantially interested, the total income of which exceeds rs 100,000, shall not exceed the saregate of-(ca) the income-tax which would have been payable by the company if its total ldcome bad been rs 1,00, 000 (the income of re 1,00,000 for tbia purpose being computed a8 if such ldcome included incodle from variou8 35 | sources                             | in the                 | same                         | proportion                 | as       | the tota11ncome of    ||-------------------------------------|------------------------|------------------------------|----------------------------|----------|-----------------------|| the company); and                   |                        |                              |                            |          |                       || (b)                                 |                        |                              |                            |          |                       || eighty                              | per                    | cent of the amount by which | its                        | total    |                       || income                              | exceeds                | rs                          | 1,00,000;                  |          |                       || (ii)                                |                        |                              |                            |          |                       || the                                 | income-tax             | payable by a                 | domestic                   | company, | not                   || being a company in which the public |                        |                              |                            |          |                       || are                                 | substantially          |                              |                            |          |                       || interested,                         | which                  | is                           | an in<ktstrial company and | the      | total                 || income of which                     | exceeds                | rs                          |                            |          |                       || 2,                                  |                        |                              |                            |          |                       || 00, 000,                            | shall                  | dot                          | exceed                     |          |                       || the                                 | aggregate              | of-                          |                            |          |                       || (a)                                 |                        |                              |                            |          |                       || the                                 | income-tax             | which would have             | been                       | payable  | by                    || the company                         |                        |                              |                            |          |                       || if                                  |                        |                              |                            |          |                       || its                                 | total income had       | been                         | rs                        | 2,00,000 |                       || (the income of                      | rs                    | 2,00,000                     | for                        | this     | purpose               || puted                               |                        |                              |                            |          |                       || as                                  |                        |                              |                            |          |                       || if                                  |                        |                              |                            |          |                       || such                                | income included income | from                         | various                    |          |                       || sources                             |                        |                              |                            |          |                       || in                                  |                        |                              |                            |          |                       || the                                 |                        |                              |                            |          |                       || same                                | proportion             | as                           | the                        | total    | income                || the company); and                   | 15                     |                              |                            |          |                       || (b)                                 |                        |                              |                            |          |                       || eighty                              | per                    | cent of the amount by which |                            |          |                       || itl                                 |                        |                              |                            |          |                       || total                               |                        |                              |                            |          |                       || income                              | exceeds                | rs                          | 2,00,000                  |          |                       | ii in the case of a company other than a domestic company-20 (i) on so milch of the total income as consists of-25 (a) royalties received from an indian concern in pursuance of an agreement made by it with the indiau concern after the 31st day of march, 1961 but before the 1st day of aprll, 1976, or 30 35 (b) fees for rendering technical servicel received from an indian concern in pursuance of an agreement made by it with the 1dd1&n concern after the 29th day of february, 1964 but before the 1st day of april, 1976, 50 per cent ; and where such agreement has, in either case, been approved by the central government 70 per cent (ii) on the balance, if any, of the total income  surcflarre on incdme-t4%the amount of income-tax computed in accordance with the preceding provi8ions of this paragraph shall be increased by a burcharge calculated at the rate of seven and a half per cent of 8uch income-tax ' ;  part n rates for deduction of tar at source in certain casesin every case in which under the provisions of sections 193, 194, 194a, 194b, 194bb, 194d and 195 of the income-tax act, 5 tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates :-income-tax rate of income-tax rate of surcharge 10 1 in the case of a person other than a company-(a) where the person ie resident in india-nil; 10 per cent 15 (i) on income by way of interest other than "interest on securities 11 30 per cent 3 per cent , (ii) on income by way of winn1ugs from lotteries and crossword puzzles 20 30 per cent 3 per centi nil; 10 per cent (tii) on income by way of winniugs from horse races (iv) on income by way of insurance camm is e ion nil; 10 per cent 25 (v) on income by way of interest payable on -(a) any security, other than a tax-free security, of the central or a state government; 30 35 (b) any debentures or other securitiea for money issued by or on behalf of any local authority or a corporation established by a central, state or provincial act; 40 (c) any debentures issued by a company where such debentures are listed in a recognised stock exchange in india in accordance with the idcome-tax rate of rate of ldcome-tax sll1"cbarp securities contracts (beplatlod) act, 1956, add my 5 42 of 1_ rules made thereunder (iii) od 8dj other income 21 per cedt 2 per cedt; (exoluchdg interest payable od a tax-free security) ("> where the persod 11 dot 10 reslde1lt ill iddta-(i> od the whole income idooma-tu: at 30 par oent &ad (excludtag ldtereat payable iurcharp at 3 per cent of the od a tax-free security) amount of the inoome, or 16 idoome-tax and surcharge od idooma-tax in respect of the inoome at the rates prescribed in sub-paragraph i of paragraph a of part m of this schedule 20 if suoh idoome had been the total income, whichever ia ~her: (ti) od income by way of 15 per cedt 15 per cent; 2s intereat payable od a taxfree aecul"1ty  2 m the case of a oompany-(g) wbere the compaay is a domestic compaay-(f) od idcome by way of 20 per cedt interest otber thad ''ldtereat 15 per oent ; 30 on aecurltles" (io od bi'ly other idoome 215 per oent 1 a per oedt; (exoludtdg interest payable 011 a tax-free eeourltj) 36 (b) where the oompgj ia dot a domestic oompad)"-(f> oil bloome by way of 2& per c_t nfl; ·-divldead8 pa)'able by any domuc coidpay 40 income-tax rate of rate of income-tax suroharge (ii) on income by way of 40 per cent nil; 5 royalty payable by an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, uw6, 10 where such royalty ia in consideration for the transfer of all or any rights (iacludidg the granting of a llcellce) in respect of copyrtgbt in any 15 book on a 8ubject referred to in tho proviso to sub-section (la)of section usa of the inoome-tax act, to the indian concern 20 (iii) on income by way of royalty cnot beldg royalty of the nature refl!jrred to in sub-item (b) (ii)] payable by an indian ooncern in 25 pursuance of an agreement made by it with the buan concern and which baa been approved by the central government, -30 (a) where the agreement 50 per cent 375 per cent ; 18 made after the 31st day of maroh 1961 but before the 1st day of apro 1976 (8) where the agreement 35 ia made after the 31st day of march 1976-(1) on 80 much of the 20 per oent ntl; amount of such income as consists of lump sum oon-40 sideration for the transfer income-tax rate of rate of income-tax aureharp outside india of, or the imparting of information 5 outside india in respect of, any data, documentation, drawing or specui-cation relating to any 10 patent, invention, model, design, secret formula or process, or trade mark or similar property (2) on the balance, u 40 per cent nil; 15 any, of such income (iv) on income by way of fees for technical services payable by an indian concern in pursuance of an agreement 20 made by it with the indian concern and which has been approved by the central government-(a) where the agreement 50 per cent s '75 per cat ; 25 is made after the 29th day of february, 1964 but before the 1st day of april, 1976 (b) where the agreement 40 per cent nfl; is made after the 31st day 30 of march, 1976 (ii) on income by way of 44 per cent 33 per cedt i interest payable on a taxfree security (iii) on any other income 70 per cent s2s per cedt 35  part mrates for calculating or charsing incomnax in certain cases, deducting income~tai from income charseable under the head "salaries /ii or any payment referred to in su~section (9) of section roe and coiiiputing 5 i advculc e tal· 10 15 20 in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted under section 192 of the said act from income chargeable under the head "salaries" or deducted under subsecuon (9) of section' 80e of the said act from any payment referred to in the said sub-section (9) or bl which the "advance tax" payable under chapter xvn-c of the said act has to be oomplted, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" (not being "advance tax" in respect of any income chargeable to tax under chapter xu or section 164 of the income-tax act at the rates as specified in that chapter or section), shall be so calculated, charged deducted or complted at the following rate or rates:- paragraph a sub-p aragraph iin the case of every individual or hbldu undivided family or unregistered firm or other association of persons or body 25 of individuals, whether blcorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which sub-paragraph n of tbls paragraph or any other paragraph of this part applies,-30 rates of i  colle,w (1) where the total income nil; does not exceed rs 8, 000 35 (2) where the total income exoeeds rs 8,000 but does not exceed rs 15, 000 15 per cent of the amount by which the total income exceeds rs 8,000; rs 1,060 pills 18 per oent of the amount by which the total income exceeds rs1s, 000; - (3) where the total income exoeeds rs 15,000 but does dot exceed rs 20 000 5 rs 1950 plus 25 per ceotof the amount by which the total income ex0eed8 re 20, 000; (4) where the total idoome exceeds rb 20,000 but does dot exoeed rs 25, 000 (5) where the total idcome exoeeda_ ra 25, 000 but doeb dot exceed rs 30,000 | rs     | 3,200    ||---------|----------|| plus    |          || 30      |          || per     |          || cent   |          || of      | the      || amoudt  |          || by      |          || which   |          || the     |          || total   |          || income  |          || aoeed8  |          || rs     | 25,000;  || 10      |          || rs     | 4700    || cent   |          || of      |          || the     |          || amoullt |          || by      |          || which   |          || the     |          || total   |          || inoome  |          || exoeed8 |          || ra     |          || 30,000; |          |(8) where the total income exceeds rs 30,000 but doeb dot exceed rb 50,000 15 (7) where the total income exceeds rb 50,000 but does dot exceed rb 70000 ra 12,700 plus 50 per oeat of the amount by which the total income a0eed8 re 50,000; (8) where the total income exceeds rs 70000 but does not exceed rs 1, ~o, 000 | rs     | 22,700    ||---------|-----------|| plus    |           || 56      |           || per     |           || oent   |           || of      |           || the     |           || amount  |           || by      |           || which   | the       || exoeeds | rs       || 20      |           |(9) where the total inqome exceeds rs 1, ~o, 000 rii 39200 plus 80 per cem of the amount by which the total inoome exoeeds ra 100,000: provided that for the purposes of th18 sub-parcraph -25 (i) do income-tax shall be payable on a total jaoome dot exceechac rbl2, 000; (ii) where the total income exoeeds ra12, 000 but doea dot exceed rs16,250, the idoome-tax payable thereon hall dot exceed thirty per cent of the amount by whloh the total income axceeda ra 12 , 000 30 the amouat of mcome-tax oomputed in acoordance with the preoecuag provisioll8 of tb1s sub-paragraph llhan be inoreued by - burohap for purposes of the udfoll caloulatad at the rate ~ ten per oent of euch 1noome-tax in the oue of every btadu udcl1vtded lamby wbfoh at iuij time duridg the prevlou8 year has at leat ode member wbo  total iacome of the prevloue ,ear relev8l1t to the a  ment year 6 oommeocidg on the 1st day of aprn, 1981 exceed 88 12,000,  rau, of '",oil~w(1) where the totalldoome nfl; doel not exoeed ra 8,000 (2) where the totallnoome 22 per cent of the amount 10 exceeds rs 8,000 but does not by which the total 1dcome exceed rs 15, 000 exceeds rs 8,000; (3) where the total 1dcome r$ 1,540 plus 27 per oent exceeds r8 15, 000 but does dot of the amount by which the exceed rs 20,000 totallncome exceeds rs1b ooo~ 15 (4) where the total 1doome rs 2890 ph" 35 per cent of exceeds re 20,000 but does dot the amount by which the total exceed rs 25, 000 1doome exoeedb as 20000; (5) where the totalldcome re 4640 plus 40 per cent exoeeds rs 25,000 but does of the 8liloudt by which tbe 20 not exoeed r8 30000 totalldcome exoeeds ra 25,000; (6) where the total1doome ri 6640 plus 50 per cent exoeeds rs 30, 000 but doe8 not of the amount by which the exceed rs 60000 total1doome aoeedb 25 ra 30,000; ('1) where the tota11doome r8 16 640 plus 60 per oent axoeeds re 60,000 of the amount by which the total income exceeds ra50000: provided that for the plrpo888 of this sub-paragraph-(i) do income-tax shall be pa,yable (11 a totalinoome not exceeding rs 12,000; (ii) where the tota11dcome exoeeds rs 12,000 but does not exceed rs17, 610, the income-tax payable thereon shall not exceed forty' per cent of the amount by which the total income exceeds re 12,000 the amount of idcome-tax computed in accordadge with the precedjdg provisions of this sub-paragraph sba11 be idcreued by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax  pcarqraph bin the case of every co-operative society,-(1) where the total income does not exceed rs 10,000 15 per cent of the total income; (2) where the total income exceeds rs 10,000 but does not exceed rs 20000 rs 1,500 pm's 25 per oent of the amoudt by which the total income exceeds rs 10,000: (3) where the total income exceeds rs 20,000 ra 4000 plus 40 per cent of the amoudt by which the total income exceeds rs 20000 the amoudt of income-tax comptted in accordance with the preceding provisions of this paragraph shall be idcreaaed by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax  p ar"4lraph c sil~par4braph iin the case of every registered firm, not being a cue to which sub-paragraph n of this paragraph appues,-| rilles                     | of               | incomna      ||----------------------------|------------------|--------------|| 5                          |                  |              || (1)                        |                  |              || where                      | the tota1lncome  | nil;         || does                       |                  |              || not                        |                  |              || exceed                     | rs              |              || 10,000                     |                  |              || 5                          |                  |              || per                        | cent            | of           || by                         |                  |              || which                      | the              | total        || rs                        |                  |              || 10,000;                    |                  |              || (2)                        |                  |              || where                      | the              | total income || exceeds                    |                  |              || rs                        |                  |              || 10,000                     |                  |              || but does not               |                  |              || exceed                     |                  |              || rs                        | 25,              |              || 000                        |                  |              || 10                         |                  |              || rs                        |                  |              || 750                        |                  |              || plus                       |                  |              || 7                          |                  |              || per                        | cent            | of           || the amount                 |                  |              || by                         |                  |              || which the                  | total            |              || income exceeds rs25,oo'>: |                  |              || (j)                        |                  |              || where the                  |                  |              || total                      |                  |              || income                     |                  |              || exceeds                    |                  |              || rs                        |                  |              || 25,                        | 000              |              || but does not               |                  |              || exceed                     |                  |              || rs                        |                  |              || 50,                        | 000              |              || 15                         |                  |              || (4)                        |                  |              || where                      | the total income |              || exoeeds                    |                  |              || rs                        |                  |              || 50,000                     |                  |              || but does not               |                  |              || exceed                     |                  |              || rs                        |                  |              || 1,00,000                   |                  |              || rs                        |                  |              || 2,500                      |                  |              || plus                       |                  |              || 15                         |                  |              || per                        | cent            |              || of                         | the              | amount       || by                         |                  |              || which the                  |                  |              || total income exceeds       |                  |              || rs                        |                  |              || 50,000:                    |                  |              || (5)                        |                  |              || where the total income     |                  |              || exceeds                    |                  |              || rs                        |                  |              || 1,00,000                   |                  |              || 20                         |                  |              || rs                        |                  |              || 10,000                     | pills            | 24           || per                        | cent            |              || of the amount              |                  |              || by                         |                  |              || which the                  |                  |              || total income exceeds       |                  |              || rs                        |                  |              || 1,00,000                  |                  |              |the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased 25 by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax in the case of every registered firm whose total income includes income derived from a profession carried on by it and the income 80 included is not lel8 thad fifty-one per cnt of such total income, -| ratts        | of               | incolfte-t4l    ||--------------|------------------|-----------------|| nil;         |                  |                 || 5            |                  |                 || (1)          | where            | the             || does         |                  |                 || not          |                  |                 || exceed       | rs              | 10,000          || 4            |                  |                 || per          |                  |                 || cent        | of               |                 || the          |                  |                 || amowat       |                  |                 || by           |                  |                 || which        |                  |                 || the          |                  |                 || totalinoome  |                  |                 || exceeds      |                  |                 || rs          |                  |                 || 10,000      |                  |                 || (2)          |                  |                 || where        | the              | tota1income     || exceeds      | rs              | 10,             || but          |                  |                 || does         |                  |                 || dot          |                  |                 || exceed       | rs              | 25,             || 10           |                  |                 || rs          |                  |                 || 800          |                  |                 || phu          |                  |                 || 7            |                  |                 || per          |                  |                 || cent        |                  |                 || of           |                  |                 || the amount   |                  |                 || by           |                  |                 || which        | the              |                 || total        |                  |                 || income       |                  |                 || exceeds      |                  |                 || rs          |                  |                 || 25000;      |                  |                 || (3)          |                  |                 || where        | the total income |                 || exceeds      | rs              | 25,             || but          |                  |                 || does         |                  |                 || dot          |                  |                 || exceed       |                  |                 || rs          |                  |                 || 50,000       |                  |                 || (4)          |                  |                 || where        | the              | tota11ncome     || exceeds      | rs              | 50,000          || but          |                  |                 || does         |                  |                 || not          |                  |                 || exceed       |                  |                 || rs          | 1,00,000         |                 || 16           |                  |                 || rs          | 2,350            |                 || ph,s         |                  |                 || 13           |                  |                 || per          |                  |                 || cent        |                  |                 || of           | the              |                 || amowlt       |                  |                 || by           |                  |                 || which        |                  |                 || the          |                  |                 || total income |                  |                 || exceeds      |                  |                 || rii         |                  |                 || 50,000;      |                  |                 || (5)          |                  |                 || where        |                  |                 || the          |                  |                 || total income |                  |                 || exceeds      |                  |                 || rs          | 1,00,000         |                 || rii         |                  |                 || 8850        |                  |                 || plus         |                  |                 || 22           |                  |                 || per          |                  |                 || cent        |                  |                 || of           | the              | amount          || by           |                  |                 || which        | the              |                 || total        |                  |                 || income       |                  |                 || exceeds      |                  |                 || rs          | 1,00,000        |                 || 20           |                  |                 || silfchcitbt  |                  |                 || on           | incolle-lar      |                 |the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be ihcreued by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax 25 explanation - -for the purposes of this paragraph "registered firm" includes an waregistered fl'"1d &bsessed as a registered firm under clause (b) of section 183 of the income-tax act in the case of every local authorlty,-| rate                          | of         ||-------------------------------|------------|| 30                            |            || on                            |            || the whole of the total income |            || 50                            |            || per cent                     |            || surcharre                     |            || on                            | ''''oiinai |the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purpose of the union calculated at the rate of ten per cent of such income-tax 35 id the case of a compaay, - rates of inc:olle-lg i in tbe cue of a domestic company,-5 (1) where the company is a oompaay in which the public are substanually interested,-45 per cent of the total incomei 10 (i) in a case where the total income does not exceed rs 1,00,000 (ii) in a case where the total 55 per centof the total1noomei incom, exceeds rs 1,00,000 (2) where the company is not a company in which the public 15 are 8ubstanually interested, -(i) in the case of an jddustrial company,-55 per cent of the totalincomei (a) where the total income does not exceed r8 2, 00, 000 20 (bl where the total 60 per cent of the total income; income exceeds re 2,00, ooe (ii) in any other case 85 per cent of the total income: provided that -25 (i) the income-tax payable by - domestic company, being a company in which the pubuc are aabstadually interested, the total income of which exceeds rs 1,00, oootehall not exceed the acgregate of -(a) the income-tax which would have been payable by the 30 compay if its total income had been rsi, 00,000 (the incoltle of ra1, 00, 000 for fbis purpose beidg computed as if such income included income from various sources in the same proportion u the tota1income of the company); and (b) eighty per cent of the amount by wbtoh ita totalilloome exceeds bs 1,00,000; (ii) the inoome-tu payable by a dollleauc company, dat hem, a oomplllly ill which the pubuc are aubatadually ldteroted, which fa lid indutrla1 company and the totalillcome of which _oeeda 5 re 2, 00, odd 8ha11 dot exceed the aarepte of-(a) the inoome-tu which would have bead payable by the oompany u its total 11lcome had been bsi, 00, 000 (the mcome of bs 2, 00, 000 for ws pul'poae bam, oomputed u if ncb moome included moolde froid vartoue souroes in the bulle 10 proport1od u the total ldoome of the oompadj); and (b) eighty per cent of the amount by wbtch ita totalidoome exceeds bs 2, 00, 000  n in the cue of a company other tbail a domelltlc company,-15 (i) (jl 80 much of the total income as ooosists of -20 (4) royalties received from an indian coocern in pursuanoe of an agreement made by it with the !ndian concern after the 31st day of march" 1961 but before the 1st day of aprn 1976, or 26 (b) fees lor rendermg tecmical services received from ad indian ooncern in pursuance of an agreement made by it with the indiiul concern after the 29th day of february 1964 but before the 1st day of apru, 1976, 30 50 per cent ; idd where such qreement hu, in eitber cue, been approved by the central government 70 per cent (iij on the balance u any, of the total income 35  surcharsi on intome-tutbe amount of mcome-t computed ld acoordance with tbe preoedlda' provlalol1s of this paragraph shall be idcreued by a aurcharp calculated at the rate ~ 8even am a half per cent 5 of such lucome-tax  part iv ~ee section 2(7)(e~rule 1 -agricultural income of the nature referred to in 10 sub-olause (a) of olause (1) of aeotlon 2 of the income-tax act shall be computed &8 if it were idcome chargeable to income-tax udder that act udder the head ''ldoome from ather sources" and tm prcmslona of aeottou 67 to 59 of tbat act shall, 80 far as may be, app~ acoordldgly: 15 provided that sub-section (2) of 8ection 58 shall apply subject to the modification that the reference to section 40a therein 8hall be oonstrued a8 not including a reference to 8ub-sectiolls (3) and (4) of 8ection 40a rule 2 -agricultural income of the nature referred to in 20 8ub-clau8e (b) or sub-clausa (c) of clause (1) of section 2 of the ldcome-tax act [other than income derived from any buudlng required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (e) 8hall be computed &8 if it were tncome 25 chargeable to income-tax under that act under the head "profits and gains of bu8lneaa or profession" and the provisions of sections 30,31,32,34,36,37 ,s8,40,4oa [9ther than subaectlons (3) and (4) thereog, 41, 43 and 434 of the income-tax aot 8hall 80 far as may be apply accordingly 30 rule 3 -agricultural income of the nature referred to in sub-claule eel of clau8e (1) of section 2 of the income-tax act, belugldcome derived from any buudlng required as a dwelling house by the reoelver of the rent or revenue or the cultivator or the receiver of rent-tn-kind referred to in the said sub-35 clause (c) shall be computed as if it were income chargeable to income-tax under that act under the head "income from hou8e property" and the provisions of sections 23 to 27 of that act shall, so far as may be apply accordingly: prcwided that· sub-section (2) of the  id section ii eba1l apply subject to the modlficatlodb that the referedces to "totalldcome" &hereld sbail be codstnaed as referedces to net qrloultural ldcome and that the words, ftpres add letter "and before makldi( any deductloo udder chapter via" shall be omitted rule 4 - notwithstaddldg anythldc contalded ld any other provtsiods of these rules, ld a case where the assessee derives ldcome from sale of tea grown add manufactured by him in iddla, such ldcome shall be computed in accordadce with rule 8 of the ldcome-tax rules, 1962, and sixty per cent of such ldcome sball be regarded  the acrlcultural income of the  sess88 rule 5 • -where the auess88 is a partner of a registered firm or an unregistered firm assessed &8 a registered firm under clause (b) of section 183 of the income-tax act, which in the previous year has any agricultural ldcome, or is a partner of an unregistered firm which baa dot been assessed as a registered firm under clause (b) of the said section 183 and wblch in the previous yoar has either do idcome charge -able to tax under the ldcome-tax act or hu total ldcome dot axceedlnl the maximum amoudt ddt chargeable to tax in the cue of an unregistered firm but has any qrlculturalldcome, then, the agricultural ldcome or loss of the firm shall be computed in accordance with theae roes and bis share in the agricultural 1dc0me or loss of the firm sball be computed in the manner laid down in sub-sectlcm(l), sub-section (2) and sub-section (3) of sectiod 67 of the income-tax act and the s hare so computed shall be regarded as the agrlcultural ldcome or 10s8 of the &88es8ee 30, rule 6 -where the &8sessee is a member of an associatlon of persons or a body of lddtvldllals (other than a hindu undivided famuy, a company or a firm) which in the previous year baa either'do income obarpable to tax under tbe income-tax act or has total income not exceedldc the maximum amount not charpable to tax in the case of an  soctatjon of per80d8 or a body of tndlvlduala (other than a hiddu uadlvlded funuy, a coldpiidy or a firm) but baa any agricultural ldcome, tbed, the agrloulturalldcome or los8 of the association or body 8hall be computed in accordadce with these rules and the share of the a8se8see in the agricultural idoom or loss 80 computed shall be regarded as the agr1cultural ldcome or 1088 of the  ess88 rid e 7 -where the result of the computation for the prevloua year in respect of any source of agrloulturalldcome ia a 10 •• , such loss shall be eet off apinat the inoome of the  e8he, it any, for that previous year from any other source of qrlcul-5 tura! ldcome: provlded that where the  se8see is a parmer of an unregltered firm whlch has not been a  e •• ed  a registered finn under clause (b) of section 183 of the income-tax act or 1 a member of an association r1 persons or a body of 10 individuals add the share of the  e  b1 the qrloultural ldeome of the firm,  oclatlod or body,  the c  e may be, ls aloes, uch 1088 shall not be eet rb apldat &dy ldoome of the  ee from any other ouroe r1ll1l'lculturalldcome rul,8 -a1:jy sum payable by the  e8888 oil accaadt of any 1& tax levied by the state govermnedt oil the agtlcultaral ldcome hall be deducted in compat  tbe qrlaultural bioome rule 9 - (1) where the  has, in the previous year relevant to the asseasment year commencing on the 1st day of april, 1980, any agricultural lncome and the net result of the computation 20 of the agricultural income of the a8sessee for anyone or more of the previous years relevant to the asses8ment yers commencing on the 18t day of april, 1974 or th~ 18t day of april, 1975 or the 18t day of april, 1976 or the 1st day of april, 1977 or the 1st day of april', 1978 or the 1st day of april, 1979, i a 1088, then, br the 21 purpose8 of sub-section (2) of 8ection 2 of this act,-(i) the loss 80 computed for the previou8 year relevant to the asse8sment year commencing on the 1st day of april 1974 to the extent, if any such 108s bas not been set off against the agricultural income for the previous year relevant to the 30 a8sessment year commencing on the 1st day of april 1975 or the 18t day of april, 1976 or the 1st day of april 1977 or the 18t day of april, 1978 or the 1st day of april, 1979, (ii) the 1088 so computed for the previous year relevant to the asse 8sment year commencing on the 18t day of april, 1975, 35 to the extent, if any, such 1088 has not been set o'f against the agricultural income for the previous year relevant to the aslle!ssment year commencing on the 1st day of april 1976 or the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 - (iii) the loss so oomputed for the previous year relevant to the assessment year oommencidg on the 1st day of april, 1976, to the extent if any such 108s bas not been set off against the agricultural inoome for the previous year relevant to the assessment year commencing on the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979, (iv) the 108s so computed for the previous year relevant to the assessment year commencilll on the 1st day of april, 1977, to the extent if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1978 or the 1st day of april, 1979, (il) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1978, to the extent, if any such loss has not been set off against the agricultural income for the prevtous year relevant to the assessment year commencing on the lat day of april, 1979, and (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1979, shall be set off against the agricultural inoome of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april 1980 (1) where the 88seske has, in the previous year relevant to the assessment year commencing on the 1st day of aprll 1981 or, if by virtue of any prov1eim m the income-tax act income-tax is to be charged in respect of the inoome of a period other than that previous year in such other period, any agricultural income idci the net result of the comput&ucm of the agrioulturalincome of the assessee for any one or more of the previous years relevant to the assessment years commencjng oil the 1st day of april, 1974 or the 1st day of april 1975 or the let day of apr1l, 1978 or the lst day of april 1977 or the lst day of april, 1978 or the bt day of april 1979 or the 1st day of aprll, 1980, 11 a 1088, then, for the purpose8 of 8ub-tlection (6) of section 2 of this act, -(i) the 1088 10 computed for the previous year relevant to the assessment year commencing <d the lit daj of aprll 1974, to the extent, u any, such 1088 has not been set off against the agrloulturalincome for the previous year relevant to the use8ament year commencing on the 1st day of april 1975 or the 1st day of april, 1978 or the let day of april 1977 or the 1st day of april 197 8 or the 1st day of aprll, 1979 or the 1at day of april 1980 (it) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1975 to the extent, if any, such loss has not been set off against tbe agricultural income for the previous year relevant 5 to the assessment year commeneing on the 1st day of aprh 1976 or the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980, (iii) the l08s so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 10 1976, to the extent, if any, such loss bas not been set off against the agr1cultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980, 15 (ill) the loss 80 computed for the previous year relevant to the assessment year commencing on the 1st day of april 1977 to the extent, if any such ios8 has not been set off against the agricultural income for the previous year relevant to the assessment year commencmg on the 1st day of april, 197 8 20 or the 1st day of april, 1979 or the 1st day of april, 1980, (ii) the loss so computed for the prey ious year relevant to the assessment year commencing on the 1st day of april, 1978, to the extent, if any, such loss bas not been set off against the agricultural income for the previous year relevant to the assessment year 25 commencing on the 1st day of april, 1979 or the 1st day of april, 1980, (iii) the loss 80 computed for the previous year relevant to the assessment year commencing on the 1st day of april 1979 to the extent if any 8uch loss has not been set off agajnst the 30 agricultural income for the previous year relevant to the asses8-ment year commencing on the 1st day of april, 1980 and (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1980 35 shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april, 1981 or the period aforesaid 40 (3) where a change has occurred in the conlftltution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to 8et off 80 much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-eection(l) , sub-section (2) and sub-section (3) of section 67 of the income-tax act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said 1088 (computed in the manner aforesaid) which is not apportlonable to him 45 5 (4) where any person deriving any agricultural income from any source has been succeeded in suoh capacity by another person otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person other than the person incurring the loss, to have it set off under sub-rule (1) or, 88 the case may be sub-rule (2) (5) notwithstanding anything contained in this rule no i08s which has not been determined by the income-tax officer under the provisions of these rules or the rules contained in part iv of the first schedule to the finance act, 1974, or ofthe flret schedule to the finance act, 1976 or of the first schedule to the finance act, 1976, or of the first schedule to the finance (no2) act, 1977, or oftbe schedule to the finance act, 1978, or of the first schedule to the finance act, 1979, shall be set off under sub-rule (1) or, as the case may be, sub-rule (1) | 10    | 20    ||-------|-------|| of    |       || 1974 |       || 25    |       || of    |       || 1975 |       || 66    |       || of    |       || 1976 |       || 29    |       || of    |       || 1977 |       || 19    | of    || 21    |       || of    |       || 1979 |       || 15    |       |rule 10 - where tbe net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored am the net agricultural income shall be deemed to be nil ruj e 1 j - the provisions of the income -tax act relating to 20 procedure for assessment (includlng the provisions of sectioo 288a relating to rounding off of income) sball, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income 25 rule l2 -for the purposes of computing the net agricultural income of the assessee, the income-tax officer shall have the same powers as hoe bas under the income-tax act for the purposes of assessment of the total income  part iin the first scbedule to the customs tariff act,-5 (i) the entry in column (5) in sub-beading no (5) of heading no 2901/45, sub-beading no (6) of heading no29 01/45, heading no 5001, heading no 50 00, sub-beading no (1) of heading no 50 03/08 and sub-beading no (1) of heading no 50 09/10 shall be omitted; 10 (ii) in sub-beading no (2) of heading no 3701/08, for tbe entry in column (3) the entry ''re 100 per linear metre" shall be substituted; (iii) in heading no 100 01, for the entry in column (3), the entry "30~"shall be substituted  15 part nsub-heading no and description of article heading no rate of duty standard preferential areas (3) (4) 20 duration when rates of duty are protective (5) (1) @) in the first schedule to the customs tariff act, for headlng no 10002, the following heading shall be 25 substituted, namely:-"10002 all dutiable articles, even if elsewhere specified, intended for personal use, imported by post or air, 30 and exempt from any prohibition in respect of the import thereof under the imports and exports (control) act, 1947 (18 of 35 1947), but excluding articles falling under heading no 10001 and alcoholic drinks: (1) drugs and medicines 60% 40 (2) others 100% "    part iin the first schedule to the central excises act,-(i) in item no 14a, for the entry in the third oolumn, the 5 entry "fifteen per cent lid lialortll" shall be substituted; (ii) in item no 14b, for the entry in the third column, the entry "fifteen per cent ad valorejii " shall be substituted; (iii) in item no 14g, for the entry in the third column, the entry "fifteen per cent ad vlllortlll" shall be substituted; 10 (ill) in item no 15c, for the entry in the third column, the entry "fifteen per cent ad wlortlll" shall be substituted; (v) in item no 16aa, for the entry in the third column, the entry 'ten per cent ad valor," shall be substituted; (vi) in item no 26 a, in the entry in the second column, -15 (ii) the words "and copper alloys containing nar less than fifty per cent by weight of copper" shall be omitted; (b) the following erplcmcltidtl shall be inserted at the end namely:-20 'erplcmcltidn - "copper" shall include any alloy in which copper predominates by weight over ch of the other metals '; (liii) in item no26b, in the second column, the following explanation shall be inserted at the end, namely:-25 , explanation- "zinc" shall include any alloy in which zinc predominates by weight over each of the other metals '; (viii) tn item no27a, in the second column, the following erplgll4tion shall be inserted at the end, namely:-'explanation - "lead" shall include any alloy in 30 which lead predominates by weight over each of the other metals '; (ix) in item no 68, in the second column, the following erplanatlon shall be inserted at the end, namely:-"expillnation -for the purposes of this item, goods 35 which are referred to in any preceding item in this schedule for the purpose of excluding such goods from the description of goods in that item (whether such exclusion is by means of an fiplancation to such item or by words of exclusion in the description itself or in any other mann,er) shall be 5 deemed to be goods not specified in that item if  part n| description    | of    | goods    ||----------------|-------|----------|| rate           | of    | duty     || item           |       |          || no            |       |          || (1)            |       |          || (3)            |       |          || (2)            |       |          || 10             |       |          || in             |       |          || the            | first | scbedule || the            |       |          || central        |       |          || excises        | act,- |          |(i) after item no 15c, the following item shall be inserted, namely:-| "15cc                          | molasses              ||---------------------------------|-----------------------|| thirty                          | rupees                || per                             |                       || metric                          | tonne                || 15                              |                       || (ii)                            |                       || for                             | item                  || item                            | shall                 || thirty                          | per                   || cad                             |                       || vcalo                           |                       || rem                            | ";                    || 20                              |                       || 25                              |                       || 30                              |                       || 35                              |                       || "16                             | b                    || laminboard",                    |                       || ba                              | rten                  || hard or                         |                       || soft                            | wall                  || insulating board                | and                   || panels,                         | whether               || cont aining                     |                       || any                             | material other        || than wood;                      |                       || cellular                        | wood                  || panels; building boards         |                       || of                              |                       || wood                            | pulp                  || fibre,                          | whether or not bonded || with natural                    |                       || or                              | artificial            || resins or with similar runders; |                       || and artificial or reconstituted |                       || wood being wood shavings, wood  |                       || chips,                          |                       || saw                             | dust, wood            || other                           | ligneous waste        || merated                         | with natural or       || artificial                      | resins or             || organic binding substances,     |                       || in sheets, blocks, boards       |                       || or                              | the                   |(iii) for item no 19, the following item 40 shall be substituted, namely:-'19 cotton fabrics-| "cotton    | fabrics"     | means    | all    | varieties    | of       ||------------|--------------|----------|--------|--------------|----------|| fabrics    | manufactured | either   | wholly | or           |          || partly     | from         | cotton   | and    | includes     | dhoties, || description of goods              | rate                        | of duty             ||-----------------------------------|-----------------------------|---------------------|| (2)                               |                             |                     || (3)                               |                             |                     || item                              |                             |                     || no                               |                             |                     || (1)                               |                             |                     || 5                                 |                             |                     || 10                                |                             |                     || 15                                |                             |                     || sarees,                           | chaddars,                   | bed-sheets,         || bed-                              |                             |                     || spreads,                          | counter-panes,              | table-cloths,       || embroidery                        | in the piece, in            | strips              || or                                | in motifs,                  | fabrics             || coated                            |                             |                     || or                                | laminated with              | preparations        || of cellulose derivatives          | or                          | of                  || artificial                        | iiastic                     | matertals           || covered                           | partially                   | or                  || bocks                             |                             |                     || or                                | wtth                        | preparations        || textue flocks,                    |                             |                     || if                                |                             |                     || (i)                               |                             |                     || in such                           | fabrics                     |                     || cotton predominates               | in                          | weight             || (ii)                              |                             |                     || such                              | fabrics                     | contain             || per                               | cent,                       |                     || by                                |                             |                     || weight of cotton and 50           |                             |                     || per                               | cent                       | or                  || by                                |                             |                     || weight of non-                    |                             |                     || cellulosic                        |                             |                     || fibres                            | or                          | yarn                || 20                                |                             |                     || 25                                |                             |                     || 30                                |                             |                     || provided that in the              |                             |                     || case                              | of                          | embroi-             || dery                              | in the piece,               |                     || in                                |                             |                     || strips                            | or                          |                     || in                                |                             |                     || motifs,                           | fabrics                     | impregnated, coated || or                                | laminated with              | preparations        || cellulose                         |                             |                     || derivatives                       | or                          | of                  || cial plastic                      | materials                   | and                 || covered                           | partially                   | or                  || bocks                             |                             |                     || or                                | wtth                        | preparations        || textile flocks, such predominance |                             |                     || or                                |                             |                     || percentages,                      | as                          | the                 || be,                               |                             |                     || shall                             |                             |                     || be                                |                             |                     || in                                | relation                    | to                  || which                             | are                         | embroidered         || coated                            |                             |                     || or                                | laminated                   | or                  || case                              | may                         |                     || be-                               |                             |                     || 35                                |                             |                     || i                                | cotton                      | fabrics,            || (i)                               |                             |                     || embroidery                        | in the piece, in            | strips              || in motifs,                        |                             |                     || (ii)                              |                             |                     || fabrics                           | 1mpregnated,               |                     || coated                            |                             |                     || or                                | laminated with preparatiods |                     || of cellulose                      |                             |                     || derivatives                       | or                          | of                  || artificial                        | plastic                     | materials           || (iii)                             |                             |                     || fabrics                           | covered                     | partially           || with textue flocks                | or                          | with                || containing textile                | flocks-                     |                     || 40                                |                             |                     || (a)                               |                             |                     || cotton                            | fabrics,                    | not sub-            || jected                            |                             |                     || to                                |                             |                     || any                               | process                    |                     || twenty                            |                             |                     || per                               | cent                       |                     || gd                                |                             |                     || valorem                          |                             |                     || twenty                            | per                         | cent               || ad                                |                             |                     || i1gjd                             |                             |                     || rtlll                            |                             |                     || 45                                |                             |                     || (b)                               | cotton                      | fabrtcs,            || to the                            |                             |                     || process                           | of bleaching,               |                     || mercer1sing, dyeing, printing,    |                             |                     || water                             | -proofing,                  |                     || rubberllng,                      |                             |                     || shrink-proofing, organdle         |                             |                     || rate         | of               | duty         ||--------------|------------------|--------------|| description  | of               | goods        || (3)          |                  |              || (2)          |                  |              || item         |                  |              || no          |                  |              || (1)          |                  |              || 5            |                  |              || processing   | or               | any          || or           | any two          | or           || processes   |                  |              || 10           |                  |              || n           |                  |              || embroidery   | in               | the          || strips       | or               | in           || to           |                  |              || the          | manufacture      | of           || prooess      | is               | ordinaruy    || with         |                  |              || the          | !lid             |              || of           |                  |              || power       |                  |              || the          | duty             | for          || time         | being            | levi-        || able         | on               | the          || fabrics,     |                  |              || if           |                  |              || not          |                  |              || al           |                  |              || ready        | paid,            |              || plus         |                  |              || twenty       | per              |              || cent        |                  |              || ad           |                  |              || valorem     |                  |              || 15           |                  |              || m           |                  |              || cotton       | fabrics          | impregnated, || coated       | or               | laminated    || tions        | of               | cellulose    || or           | of               | other        || materials   |                  |              || the          | duty             | for          || time         |                  |              || being        |                  |              || levi-        |                  |              || able         | on               | the          || fabrics,     |                  |              || if           |                  |              || not          |                  |              || already      | paid,            |              || plus         |                  |              || thirty       | per              | cent        || ad           |                  |              || valorem     |                  |              || 20           |                  |              || 25           |                  |              || iv          |                  |              || cotton       | fabrics          | covered      || partially    | or               | fully with   || flocks       | or               | wtth         || containing   | textile          | flocks       || as           | flock            | printed      || flock        | coated           | fabrics     || the duty     | for              | the          || time         |                  |              || being        |                  |              || levi-        |                  |              || able         | on               | the          || fabrics,     | if               | not          || already      | paid,            |              || plus        |                  |              || thirty       | per              | cent        || ad           | valorem         |              || explanation  | 1-              | "base        || fabrics"     |                  |              || means        | fabrics          | falling      || 30           |                  |              || item         |                  |              || i            |                  |              || of           | this             | item         || subjected    |                  |              || to           |                  |              || the          | process          | of           || embroidery   | or               | which        || nated,       | coated           | or           || preparations | of               | cellulose    || 35           | uves             | or           || or           | which            | are          || fully with   | textile          | flocks       || preparations | containing       | textile      || flocks      |                  |              || 40           | erplcdlgtion     |              || ii          |                  |              || _where       | two              | or           || more         | of the following | fibres,      || is           | to               | say,         || (a)          |                  |              || man-made     | fibre            | of           || 10sic        | origin;          |              || (b)          |                  |              || cotton;      |                  |              || 45           |                  |              || description                   | of         | goods       ||-------------------------------|------------|-------------|| rate                          | of         | duty        || (2)                           |            |             || (3)                           |            |             || item                          |            |             || no                           |            |             || (1)                           |            |             || (c)                           |            |             || wool;                         |            |             || (d) suk (including suk not1); |            |             || 5                             |            |             || (e)                           |            |             || jute                          | (including | blmlipatam  || jute                          | or         | mesta       || fibrf!);                      |            |             || (n                            |            |             || man-made                      |            |             || fibre                         |            |             || of                            | non-       |             || cellulosic                    | origln;    |             || (s)                           |            |             || flax;                         |            |             || (ii)                          |            |             || ramie                        |            |             || 10                            |            |             || 15                            |            |             || 20                            |            |             || in                            | any        | fabric      || equal                         |            |             || in                            | weight,    |             || then                          |          |             || such                          | one        | of          || nance                         | of         | which would || fabric                        | fall       | under       || in                            | this       |             || ezp'magtion                   |            |             || referred                      | to         | as          || appllcalie                    | item)      | among       || 19 20 21, 22, 22a           |            |             || and                           |            |             || 22aa,                         |            |             || which                        |            |             || read                          | with       | the         || if                            |            |             || any,                          | for        | the         || under                         |            |             || the                           |            |             || central                       | excise     | rules,      || involves                      | the        | highest     || shall                         | be         | deemed      || such                          | fabric     | and         || fabric                        | shall      | be          || the                           | apliicable | item       || 25                            |            |             || explanation                   | iii       | -           || this                          | item       | does        || include                       | floor      | coverings,  || item                          |            |             || no                           | 220       | ';          |(tv) fot: item no22 the following item shall be substltuted, namely:-30  '22 man-made fabrics-35 40 "man-made fabrics" means all varieties of fabricl) manufactured either wholly or partly from manmade fibres or yarn and includes embroidery in the piece, in strips or in motifs, fabrics lmpregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials and fabrics covered parually or description of goods rate of d~ty item no (1) (2) @) 5 10 15 20 fully with textile flocks or with preparations containing textile flocks, in each of which man-made (i) cellulosic fibre or yarn, or (ii) non-cellulosic fibre or yarn, predominates in weight: provided that in the case of embroidery in the piece, in strips or in motifs, fabrics impregnated coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials and fabrics covered partially or fully with textile flocks or with preparations containing textile flocks, such predominance shall be in relation to the base fabrics which are embroidered or impregnated, coated or laminated or covered, as the case may be-25 30 (1) man-made fabrics other than (i) embroidery in the piece, in strips or in motifs, (it) fabrics impregnated, coated or laminated with preparations of cellulose derivati ves or of other artificial plastic materials and (iii) fabrics covered partially or fully with textlle flocks or with preparations containing textile flocks-35 (11) man-made fabrics, not subjected to any process twenty per cent ad vcalorem pills rupees five per square metre 40 twenty per cent ad iiuoral plus rupees flve per square metre (b) man-made fabrics, sub3ected to the process of bleaching, dyeing, printing, shrink-proofing, tentering, heat-setung, crease resistant processing or any other process or any two or more of these processes 45 (2) embroidery in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power 60 tbe duty for the time being leviable on the base fabric, if not already paid, pills twenty per cent ad lia1orem rate of duty item no description of goods (3) (1) (2) 5 (3) fabrics impregnated ooated or laminated with preparations of cellulose derivatives or of other artificial plastic materials 10 15 (4) fabrics covered partially or fully with textlle flocks or with preparations containing textile flocks such as flock printed fabrics and flock coated fabrics the duty for the time belng levlatie on the base fabrics, if not already paid plus thlrty per oent ad l1alor •• the duty for the time being leviable on the base fabrios, if not already paid,pllls thirty per cent lui l1ald rat 20 25 erplgllgtidn i - "base fabrics" means fabrics falling under 8u~ item (1) of this item which are subjected to the process of em broidery or which are impregnated coated or laminated with preparations of cellulose derivatives or of other plastic materials or which are covered partially or fully with textne flocks or with preparations contaln1ng textue flocks 30 explanatidn ii - i'his item does not include glass fabrics or fabrics falling under item no 19 or item no 21 35 erplcmatidn iii -explanatidn ii under item no 19 shall, 80 far as may be, apply in relation to this item as it applies in relation to that item frplancltion iv - this item does not include floor coverings, falling under item no 220 '; 40 (v) for item no 22f, the following item shall be substituted, namely:-45 "22f mineral fibres and yarn, and manufactures therefrom, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of rate of duty description of goods (2) item no (1) (3) power, the following, namely:-5 fifteen per cent cad vcaloran (1) glass fibre and yam including glass tissues and glass wool; (2) asbestos fibre and yam; fifteen per cent cad valorellj 10 fifteen per cent u lia1o'em, (3) any other mineral fibre or yarn, whether continuous or otherwise, such 88 slag wool and rock wool; 15 fifteen per cent all llcajoral\ (4) other manufactures in wldch mineral fibres or yarn or both predomidate or predominates in weight 20 expllul4uon - -this item does not include asbestos cement products "; (vt) in item no 27,-25 (a) for sub-item (n, the followldg sub-item shall be substituted, namely~ "m containers, plain, lacquered, or printed or lacquered and printed fifty per oent ad lia10rna ,ius twotboueand rupees per metric tonne "; (b) the explanation shall be numbered a explanation i and -30 35 40 (i) in explanation i~ as so numbered, for the word "oam", the words "collapsl1ie tubes, calks" shall be substituted; and (ti) after explanation i~ as so numbered, the following elplanauon shall be inserted, namely:-i'elplllllarion ii - in this item, the expresslon "alumlnjum"sball include any alloy in whicb aluminium predominates by weight over eacb of the other metals i 45 | description    | of    ||----------------|-------|| rate           | of    || d~ty           |       || item           |       || no            |       || (1)            |       || ( 3)           |       || 5              |       |in the first schedule to the additional duties of excise act, -(i) in item no 19, (a) for sub-item i, the following subitem shall be substituted, namely:-10 15 ''1 cotton fabrics, other than (i) embroidery in the piece, in strips or in motifs, (ii) fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials and (iii) fabrics covered partially or fully with textile flocks or with preparations containing textile flocks -20 (a) cotton fabrics, not subjected to any process five per cent ad valortll five per cent cad vcaioral "; 25 (b) cotton fabrics, subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, rubberising, shrink-proofing, organdie procesbing or any other process or any two or more of these processes 30 (b) after sub-item iii, the following sub-item shall be inserted, namely:-35 ''iv cotton fabrics covered partially or fully with textile flocks or with preparations containing textile flocks such as flock printed fabrics and flock coated fabrics the duty for the time being leviable on tbe bue fabrics, if not already paid ": | description        | of           | goods        ||--------------------|--------------|--------------|| -                  |              |              || rate               | of duty      |              || item               |              |              || no                |              |              || (1,)               |              |              || (3)                |              |              || (2)                |              |              || (ii)               |              |              || in                 | item         | no 22,      || 5                  |              |              || (a)                |              |              || for                | sub-item     |              || (i),               |              |              || the                |              |              || following          | sub-item     | shall        || tuted,             | namely:-     |              || 11(1)              |              |              || man-made           | fabrics,     | other        || than               |              |              || (i)                |              |              || embroidery         | in           | the          || 10                 |              |              || in                 | strips       | or           || impregnated,       | coated       | or           || with               | preparations | of           || derivatives        | or           | of           || plastic            | materials    |              || and                |              |              || (iii)              |              |              || fabrics            |              |              || 15                 | covered      | partially    || textile            | flocks       | or           || tions              | containing   | textile      || (a)                |              |              || man-made           | fabrics,     | not          || subjected          | to any       | process     || 20                 |              |              || seven and a        |              |              || half               |              |              || per                | cent        |              || ad                 |              |              || vcdorem            |              |              || plus               |              |              || rupees             | two          | per          || square             | metre       |              || 25                 |              |              || seven and a        |              |              || half               | per          | cent        || ad                 |              |              || valorem            |              |              || plus               |              |              || rupees             |              |              || two                | per          | square       || metre             | ";           |              || (&)                |              |              || man-made           | fabrics,     |              || subj               | ected        | to           || bleaching, dyeing, |              |              || printing,          |              |              || shrink-proofing,   | tentering,   |              || heat-setting,      | crease       |              || resistant          | processing   | or           || other              | process      | or           || or                 | more         | of           || 30                 |              |              || (b)                | after        | sub-item     || (3),               |              |              || the                |              |              || following          | sub-item     | shall be     || inserted,          | namely:-     |              || 35                 |              |              || "(4)               |              |              || fabrics            | covered      | partially    || or                 | fully with   | textile      || preparations       | containing   | textile      || flocks             | such         | as           || fabrics            | and          | flock coated || the                | duty for     |              || the                |              |              || time               | being        |              || leviable           | on           | the          || base               | fabrics,     |              || if                 |              |              || not                | already      |              || paid "           |              |              | part iamomens iii de customs act, ]g62 5  1 section 2-<(ii) por olause (1), substitute -10 '( 1) "adjudioating authority" means any authority competent to pass any order or decision udder th1s act, but does dot include the board, collector (appeals) or appellate tribunal; 22 of 1934 (ia) "alroraft" bas the same mean1dg &8 in the aircraft act, 19mi 15 (ib) "appellate tribunal" means the customs, excise and gold (ccmtrol) appellate tribunal oonstltuted 'under otlm 129i'i (6) after clause (7) insert-'(7a) "collector (appeals)" means a person appointed to be a collector of customs (appeals) under sub-section (1) of section 4;' 20 2 section 3 -for clause (b) substitute -,t (b) collectors of customs (appeals);" 3 section 5 in sub-section (3) -por "an appellate collector of customs", subeutute "a collector (appeals)" 4 for chapter xv substitute -26  , chapl'd xv128(1) any person aggrieved by any decision or order passed under this act by an officer of customs lower in rank than a appeal to collector (appee1a) collector of customs may appeal to the collector (appeals) within 30 three mouths from the date of the communication to him of such decision or order: 3& provided that the collector (appeals) may if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months allow it to be presented within a further period of three months (2) every appeal under this section shall be in such form and sball' be verlfled in such manner as may be specified by rules made in this behalf procedure in appeal 128a" (1) the collector(appeals) shall give an opportunity to the appellant to be heard if he so desires 5 (2) the collector (appeals' may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the collector(appeals) is satisfied that the omission of that groldld from the grounds of appeal was not wilful or unreasonable 10 (3) the collector (appeals) may, after making such further inquiry as may be necessary, pass such order as he thinks fit confirming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudioating authority with such directions as he may think fit for a fresh 15 adjud1oation or decision, as the case may be, after taking addltlunal evidenoe, if necessary: provided that an order enhanoing any penalty or fine in lieu of confiacatic1d or confisoating goods of greater value or reducing the amount of refund shall not be passed unless the appellant 20 has been given a reasonable opportunity of showing cause against the proposed order: provided further that where the collector (appeals) is of opinion that any duty has not been levied or has been shortlevied or erroneously refunded, no order requiring the 25 appellant to pay any duty not levied, short-levied or erroneously refunded shall be passed unless the appellant is given notice within the time-limit specified in section 28 to show cause against the proposed order (4) the order of the collector (appeals) disposing of the appeal 30 shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision (5) on the disposal of the appeal, the collector (appeals) shall communicate the order passed by him to the appellant, the adjud10ating authority and the collector of customs 35 appellate tit_al 129 (1) the central government shall constitute an ap~llate tribunal to be called the customs, excise and gold (control) appellate trlbunal consisting of as many judicial and technical members as it thinks fit to exercise the powers and discharge the fldlctions conferred on the appellate tribunal by this act 40 (2) a judicial member shall be a person who has for at least ten years held a civil judicial post or who has been a member of the central legal service (not below grade i) for at least three years or who has been in practioe as an advooate for at least ten years; and a technioal member shall be a person who bas been a member of the indian customs and central excise service-group a and bas held the post of collector of customs or central excise, level i or any equivalent or higher post for at least three years (3) the central government shall appoint one of the members 5 of the appellate tribunal to be the president thereof (4) the central government may appoint one or more members of the appellate tribunal to be the vice-president, or, as the case may be, vice-presidents thereof (5) the vice-president shall exercise suoh of the powers 10 and perform such of ihe funct1ms of the president as may be delegated to him by the president by a geoeral or special order in writing 129a (i) any person aggrieved by any of the following orders may" appeal to the appellate tribunal against such order-15 appeal to tile appellate tribaaal (a) a decision or order passed by the collector of customs as an adjudicating authorltyi (b) an order passed by the collector (appeals) under section 128ai (c) an order passed by the board or the appellate collector 20 of customs under section 128 as it stood immediately before the appointed dayi (d) an order passed by the board or the collector of customs either before or after the appointed day under section 130 as it stood immediately before that day: 25 provided that the appellate tribunal may in its discretion refuse to admit an appeal in respect o~ an order referred to in clause (b) or clause (e) or clause (d) where -(i) the value of the goods confiscated without option having been given to the owner of the goods to pay a fine in ueu of 30 oonfiscation under secuon 125 i or (ii) in any disputed case other than a case where the determination of any question having a relation to the rate of duty of customs or to the vall,le of goods for purposes of assessment is in issue or is one of the points in issue the 35 difference in duty involved or the duty involvedi or (iii) the amount of fine or penalty determined by such order, does not exceed ten thousand rupees (2) the collector of customs may, if he is of opinion that an order passed by the appellate collector of customs under section 128, as it stood immediately before the appointed day, or the collector (appeals) under section 128a, is not legal or proper, direct the proper officer to 5 appeal on his behalf to the appellate tribunal against such order (3) every appeal under this section shall be filed within three months from the date on which the order bought to be appealed against is communicated to the collector of customs, or as the case may be, the other party preferring the appeal 10 15 (4) on receipt of notice that an appeal has been preferred under this section, the party against whom the a~peal bas been preferred may, notwithstanding that he may not have appealed against such order or any part thereof" file, within forty-five days of the receipt of the notice, a memorandum of cross-objections verified in such manner as may be specified by rules made in this behalf against any part of the order appealed against and such mem>randum shall be disposed of by the appellate tribunalas if it were an appeal presented within the time specified in sub-section (3) 20 (5) the appellate tribunal may adnit an appeal or permit the filing of a memorandum of cross-objections after the expiry of tbe relevant period referred to in sub-section (3) or sub-section (4), ifit is satisfied that there was sufficient cause cor not presenting it witbin that period 25 (6) an appeal to the appellate triblnal shall be in such form and shall be verified in such manner as may be specified by rules made in this behalf 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 a fee of two bundred rupees 30 orders of appellate tribunal 35 129b (1) the appellate tribunal may, after giving tbe parties to tbe appeal, an opportunity of being heard pass sucb orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the autbority whicb passed sucb decision or order with such directions as tbe appellate tribunal may t'hink flt, for a fresh adjudication or decision as the case may be, after taking additional evidence, if necessary (2) the appellate trlbmal may, at any time within four years 40 from the date of the order with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-seotion (1) and shall make such amendments if the mistake is brought to its notice by the collector of customs or the other party to the appeal: 45 provided that an amendment which has the effect of enhancing the assessment or reducing a relllld or otherwi8e increasing the liability of the other party shall not be made under this subsection unless the appellate tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard (3) the appellate trl~ shall sead a oopy of every order 5 passed under tbls section to the collector of customs and the other party to the appeal (4) save as otherwise provided in section 130 or section 130e, orders passed by the appellate tribunal on appeal shall be final 10 pnlcedmeof appell  tiibima 129c (i) tho powers and functions of the appellate tribunal may be exercised and discharged by benches constituted by the president from amongst the members thereof (2) subject to the provisions oontained in sub-sections (3) and (4), a bench shall consist of one judicial member and one technical member 15 (3) every appeal against a decision or order relating, amoag other things, to the determination of any question having a relation to the rate of duty of customs or to the wlue d goods for purposes of assessment' shall be heard by a special ben,ch constituted by the president for hearing such appeals and such bench shall consist of not less 20 than three members and shall include at least one judicial member and one technical member (4) the president or any other member of the appeuate tribunal authorised in this behalf by the president may, sitting singly, dispose of any case which bas been allotted to the bench of which 25 he is a member where-(ci) the value of the goods confiscated without option having been given to the owner of the goods to pay a fine in lieu of confiscation under section 125 or (b) in any disputed case other than a case where the 30 determination of any question having a relatim to the rate of duty of customs or to tile value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or (e) the amount of fine or penalty involved, 35 does not exceed ten thousand rupees (5) if the members of a bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ and 40 the case shall be referred by the president for hearing on such point or points by one or more of the other members of the appellate tribmal, and such point or points shall be decided according to the opinion of the majority of the membe rs of the appellate tribunal who have heard the case inoluding those who first heard it 5 (6) subject to the provisions of this act, the appellate tribunal shall have power to regulate its own procedure and the procedure of the benches thereof in all matters arising out of the exercise of us powers or of the discharge of its functions, including the places at which the benches shall hold their sittings 10 5 of 19(15 (7) the appellate tribunal shall, for the purposes of discharging its funoticxl8, have ihe same powers as are vested in a court under the code of civil procedure, 1908, when trying a suit in respect of the following matters, name1y:-(a) discovery and in~pectlon; (b) enforcing the attendance of any person and examining 15 him on oath; (e) compelling the production of books of account and other documents; and (d) issuing oommissions 20 4s of 1860 2 of 1974 (8) any proceeding before the appellate tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of segtion 196 of the indian penal code, and the appellate tribunal shall be deemed to be a c ivll court for all the ~poses of section 195 and chapter xxvi of the code of criminal prooedure, 1973 25 powemofbon or collector of cuaa to p  certllin ord, 30 129d (1) the board may, of its own motion oall for and examine the record of any proceeding in which a collector of customs as an adjudicating authority has passed any decision or order under this act for the purpose of satisfying itself as to the legality or propriety of any such decision or order and may, by order, direct such collector to apply to the appellate tribunal for the determination of such points arising out of the decision or order as may be specified by the board in its order (2) the collector of customs may, of his own motion, call for and examine the record of any proceeding in which an 35 adjudicating authority subordinate to him bas passed any decision or order under this act for the purpose of satisfying himself as to the legality or propriety of any such deoision or order and may by order, direct such authority to apply to the collector (appeals) for the determlnatim of such polnts arising 40 out of the decision or order as may be specified by the collector of customs in his order (3) no order shall be made under sub-section (1) or subsection (2) after the expiry of two years from the date of the decision or order of the adjudicating authority (4) where in pursuanoe of an order under sub-sectioo (i) or sub-section (2), the adjudicating authority or any officer of customs authorised in this behalf by the collector of customs, makes an application to the appellate tribunal or the collector (appeals) within a period of three months from the date of 5 communication of the order under sub-section( 1) or sub-section (2) to the adjudicating authority, such application shall be heard by the appellate tribunal or the collector (appeals), as the case may be, as if such application were an appeal made agalnst the decision or order of the adjudicating authority and the provisions 10 of this act regarding appeals, inoluding the provisions of subsection (4) of section 129a shall, so far as may be, apply to such application 15 deposit, peddid& appeal of duty dllladed or pnuty t_'lied 129e where in any appeal under this chapter, the decision or order appealed against relates to any duty demended in respect of goods which are not under the control of the customs authorities or any penalty levied under this act, the person desirous of appealing against suoh decision or order shall, pellding the appeal, deposit with the proper officer the duty demanded or the penalty levied: 20 provided that where in any particular case, the collector (appeals) or the appellate tribmal is of opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person, the collector (appeals) or, as the case may be,the appellate tribunal may dispense with such deposit subject to such 25 conditions as he or it may deem fit to impose so as to safeguard the interests of revenue statemeot of case to high court | 130                                 | (                                     ||--------------------------------------|---------------------------------------|| 1)                                   |                                       || the                                  | collector                             || sixty days of the date upon which he |                                       || is                                   | served                                || under                                | section                               || 129b                                 |                                       || (not being                           | an                                    || to the                               |                                       || determination                        | of any question having a              || of duty of                           | customs                               || ment),                               |                                       || by                                   |                                       || application                          | in                                    || be                                   |                                       || specified                            | by                                    || made in                              | this                                  || by                                   |                                       || the                                  | other                                 || appellate tribunal                   |                                       || to                                   |                                       || refer                                | to the high court any question of law || arising                              | out of such                           || contained                            |                                       || in                                   |                                       || this                                 | section,                              || hundred and twenty days of           |                                       || the                                  |                                       || receipt                              | of                                    || up                                   | a                                     || the                                  |                                       || case                                 | and                                   || it                                   |                                       || to                                   | the high                              || 40                                   |                                       |provided that the appellate tribunal may, jilt is satisfled that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceedjng thirty days 45 (2) on rece1pt of notice that an application has been made under sub-section (1) the person against whom such application has been made,may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memorandum of cros8"'objections verified in such manner as may be specified by rules made in this behalf against any part of the order in relation to which an application 5 for reference has been made and such memorandum shall be disposed of by the appellate tribunal as if it were an application presented within the time specified in sub-section (1) (3) if, on an application made under sub-section (1), the appellate tribunal refuses to state the case on the ground that 10 no question of law arises, the collector of customs, oijas the case may 'be" the othe r party may, within six months from the date on which he is served with notice of such refusal, apply to the high court and the high court may, if it is not satisfied with the correctness of the decision of the appellate trlbunal,require 15 the appellate tribunal to state the case and to refer it, and on receipt of any such requisition, the appellate tribunal shall state the case and refer it accordingly (4) where in the exercise of its powers under sub-section(3), the appellate tribunal refuses to state a case which it has been 20 required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw bis application and if he does so, the fee, h any, paid by him shall be refunded 25 | statemeftt    | of    ||---------------|-------|| caee          |       || to            |       || supreme       | court || in            |       || certain       |       || caee          |     |130a if, on an application made under section 130, the appellate tribunal is of opinion that, on account of conflict in the decisions of high courts in respect of any particular question of law, it is expedient that a reference should be made direct to the supreme court, the appellate tribunal may draw up a statement of the case and refer it through the president direct to the supreme court 30 | power        | of       ||--------------|----------|| high         |          || court or     |          || supreme      | court    || to           |          || require      |          || statement to |          || be           | amended |35 130b if the high court or the supreme court is not satisfied that the statements in a case referred to it are sufficient to enable it to determine the questions raised thereby, the court may refer the case back to the appellate tribunal for the purpose of making such additions thereto or alterations therein as it may direct in that behalf case lefore high court to be heard by not less th811 two judges 40 130c (1) when any case has been referred to the high court under section 130, it shall be heard by a bench of not less than two judges of the high court and shall be decided in accordance with the opinion of such judges or of the majority, if any, of such judges 45 (2) where there is no such majority i the judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other judges of the high court, and such point shall be decided according to the opinion of the majority of the judges who have heard the case including those who first heard it supreme court on the case stated 5 130d (i) the high coort or the supreme court hearing any such case shall decide the questians of law ralsed therein, and shall deliver its judgment thereon containing the groonds on which such decision is foonded and a c~y of the judgment shall be sent under the seal of the coort and the signature of the reglstrar to the appellate tribunal which shall pass such orders as are necessary to dispose of the case in conformity with such judgment (2) the ooats of any reference to tbe high coort or the flapreme coort which shall not include the fee tor makin, the reference 10 shall be in the discretion of the court 130e an appeal shall lie to the supreme coort from -appelllto supreme court (a) any judgment of the higb court delivered on a reference made under section 130 in any case which, on its own motion or on an oral apliicatlon made by or on behalf of the party ag-15 grieved"lmmedtately after the passing of the judgment, the high coort certifies to be a fit one for appeal to the supreme coort; or (b) any order passed by the appellate tribunal relating, among other things, to the determination of any question hav-20 ing a relation to the rate of duty of customs or to the value of goods for purposes of assessment | hearidl        | before    ||----------------|-----------|| supreme court |           || 5              | of        || 25             |           |130f (1) the provisions of the code of civil procedure 1908, relating to appeals to the supreme court shall, so far as may be, apply in the case of appeals under section 130e as they apply in the case of appeals from decrees of a high coort: provided that nothing in thls sub-section shall be deemed to affect the provisions of sub-section (1) of section 130d or section 131 (2) the costs of the appeal shall be in the discretion of the 30 supreme court (3) where the judgment olthe high court is varied or revetscd in the appeal, effect shall be given to the order of the supreme court in the manner provided in section 130d in the case of a judgment of the high coort 35 sums due to be paid notwithstmding reference, etc 131 notwithstanding that a reference has been made to the hlgb court or the supreme coort or an appeal has been preferred to the supreme coort, sums due to the government as a result of an order passed under sub-section (1) of section 129b shall be payable in accordance with the order 80 passed 40 131a in computing the period of limitation specified for an appeal or application under this chapter, the day on which the exclubion of time taken for copy order complained of was served, and if the party preferring the appeal or making th{' application was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order shall be excluded 5 transfer of cerh,in pending proceedings and trllll8itiona! provisions 10 131b (1) every l;lppeal which is pending immediately before the appointed day before the board under section 128, as it stood immediately before that day, and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the appellate tribunal and the appellate tribunal may proceed with such appeal or matter from the stage at which it was on that day: provided that the appellant may demand that before proceeding further with that appeal or matter, he may be re-heard (2) every proceeding which is pending immediately before the 15 appointed day before the central government under section 131, as it stood immediately before that day, and any matter arising out of or connected with such proceeding and which i6 so pending shall stand transferred on that day to the appellate tribunal and the appellate tribunal may proceed with such proceeding or 20 matter from the stage at which it was oil that day as if such proceeding or matter were an appeal filed before it: provided that if any such proceeding or matter relates to an order where -(a) the value of the goods confiscated without option having 25 been given to the owner of the goods t<? pay a fine in lieu of confiscation under section 125; or (b) in any disputed case other than a case where the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment 30 is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or (c) the amount of fine or penalty determined by such order, does not exceed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the central government as if 35 the said section 131 had not been substituted: provided further that the applicant or the other party may make a demand to the appellate trlbmal that before proceeding further with that proceeding or matter he may be re-heard (3) every proceeding which is pending immediately before 40 the appointed day before the board or the collector of customs under sectioo 130,as it stood immediately before that dav, and any matter arising out of or connected with such proceedtng and which is so pending shall continue to be dealt with by the board or the collector of cusmms, as the case may be, 45 as if the said section had not been substituted (4) any person who immediately before the appointed day was authorised to appear in any appeal or proceeding transferred under sub-section (1) or sub-section (2) shall notwithstanding anything contained in section 1-46a have the right to appear before the appellate tribunal in relation to such appeal or proceed-5 tng definitions 13 :rt  in this chapter --(a) "appointed day" means the date of coming into force of the amendments to this act specified in part i of the !'lith schedule to the finance (no2) act 1980; 10 (b) "high court" means -(i) in relation to any state the high court for that state; (ii) in relation to a union territory to which the jurisdiction of the high court of a state bas been extended by law, that high court; 15 (iii) in relation to the unioo territories of dadra and nagarhaveli and goa daman and diu, the high court at bombay;  (iv) in relation to any other unioo territory, the highest court of civil appeal for that territory other than the supreme 20 court of indiaj (e) "president" means the president of the appellate tribunal ' 5 after section 146, insert,-25 appearance by aatbori sed represent ilti ve 1146a (1) any person who is entitled or required to appear before an officer of customs or the appellate tribunal in collnection with any proceedings under this act otherwise than when required under section 108 to attend personally for examination on oath or affirmation, may subj ect to the other provisions of this section, appear by an authorised representative 30 (2) for the purposes of this section, "authorised representative" means a person authorised by the person referred to in subsection (1) to appear on his behalf, being -(a) his relative or regular employee: or (b) a custom house agent licensed under section 146; or 35 i (c) any legal practitioner who is entitled to practise in any civil court in india; or (d) any person who has acquired such qualifications as the central government may specify by rules made in this behau (3) notwithstanding anything contained in this section no person who was a member of the indian customs and central excise service - group a and has retired or resigned from such service after having served for not less than three years 5 in any capacity in that service shall be entitled to appear as an authorised representative in any proceedings before an officer of customs for a period of two years from the date of his retirement or resignation, as the case may be (4) no person,-10 (a) who has been dismissed or removed from government service; or lof 1944 4s of 1968· (b) who is convicted of an offence connected with any proceeding under this act, the central excises and salt act 1944 or the gold (control) act, 1968; or 15 (e) who has become an insolvent, 20 shall be qualified to represent any person under sub-section (1), for all times in the case of a person referred to in clause (a) and for such time as the collector of customs or the competent authority under the central excises and salt act 1944, or the gold (control) act, 1968, as the case may be, may by order, detennine in the case of a person referred to in clause (b), and for the period during which the insolvency continues in the case of a person referred to in clause (e) (5) if any person, -25 (a) who is a legal practitioner is found guilty of misconduct in his professional capacity by any authority entitled to institute proceedings against him, an order passed by that authority shall have effect in relation to his right to appear before an officer of customs or the appellate tribunal as it has in re-30 lation to his right to practise as a legal practitioner; (b) who is not a legal practitioner, is found gullty of misconduct in connection with any proceedings under this act by such authority as !day be specified by rules made in this behalf, that authority may direct that he shall thenceforth be 35 disqualified to represent any person under sub-section (1) (6) any order or direction under clause (b) of sub-section (4) or clause (b) of sub-aection (5) shall be subject to the following conditions namely:-(ii) no buch order or direction shall be made in respect 40 of any persoil unless he has been given a reasonabl~ q>portu-dity of being heard; (b) any per80n apjut whom any suob order or dlrect101l is made may, wttbin ode mootb f1 the making of the order or dlrectlo11, appeal to tbe board to bave tbe order or d1rectl<rl oancelled; add (c) no such order or dlreotiol1 sball take effect untu tbe 5 exptratlol1 of one montb from tbe majdng thereof, or, where an appeal has beed preferred, until tbe disposal of the appeal '  partu10 1 section 2 - re-ietter clause (41) as clause (am) and before clause (4ig4i) as so re-iettered, maert-'(a) "adjudicating authority" means any authority competent to pass any order or decision under tbis act but does not lnclude the central board of excise and customs constituted under the 15 central boards of revenue act, 1963, collector of central 54 of 1963 excise (appeals) or appellate trlbunalj (aa) "appellate tribunal" means the customs, excise and gold (control) appellate tribunal constituted under secticm 129 of tbe customs act, 1962;' 20 52 of 1962 2 for secuons 35 351\ and 36, substltute- 'chapter via appeals25 appeal to collector (ap  ) 35 (1) any person aggrieved by any decision or order passed under this act by a central exclse officer lower in rank than a collector of central excise may appeal to the collector of central exclse (appeals) fbereafter in thls chapter referred to as the collector (appeal;) / within tbree mcmtbs from the date of the communication to hlm of such decision or order: provided that the collector (appeals) may, if he is satisfied that 30 the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months (2) every appeal under this section shall be in the prescribed form and shall be verified in the prescrlbed manner 36 pldceciwe in appeal 35a (1) the collector (appeals) shall give an opportwllty to the appellant to be heard, if he so desires (2) the collector (appeals) may, at the hearlng of an appeal, allow an appellant to go lnto any ground of appeal not specified in the grounds of appeal, lftbe collector (appeals) is satisfied that 40  the omission of that ground from the grounds of appeal was not wilful or unreasonable (3) the collector (appeals) may, after maldng such further lnquiry as may be necessary, pass such order as he thinks fit 5 confirm1ng, modifying or annulung the decision or order appealed agalnst,or may refer the case back to the adjudicating authority with such dlrectl(iui as be may think fit for a fresh adjudlcauod or declaim, as the case may be, after taking additional evidence, if necessary: provided that an order enbancldg any penalty or fine in lieu of 10 confiscation or confiscating goods of greater value or reducing the amount of refund shall not be passed unless the appellant has been given a reasonable opportunity of showldg cause against the proposed order: provided further that where the collector (appeals) is of oplllon 15 that any duty of excise has not been levied or pald or has been shortlevied or short-paid or erroneouoly refunded, no order requlrldg the appellant to pay any duty not levied or paid, short-levied or short-paid or erroneously refunded shall be passed unless the appellant is given notice within the tidhhimlt spectfied in section 20 ua to show cause against the proposed order (4) the order of the collector (appeals) disposing of the appeal shall be in writldg and shall state the points for determination, the decision thereon and the reasons for the decision (5) 01 the disposal of the appeal, the collector (appeals) shall 25 communicate the order passed by him to the appellant, the adjudlcatldg authority and the collector of central excise 35b (i) any person aggrieved by any of the following orders may appeal to the appellate tribunal against such order-(a) a decision or order passed by the collector of central excise as an adjudicating authority; 30 (b) an order passed by the collector (appeals) under section 35a; 54 of 1963 35 (c) an order passed by the central board of excise and customs constituted under the central boards of revenue act, 1963 (hereafter in this chapter referred to as the board) or the appellate collector of central exoise under section 35, as it stood immediately before the appointed day; (d) an order passed by the board or the collector of central excise, either before or after the appointed day, under section 35a, as it stood immediately before that day: 40 provided that the appellate tribunal may, in its discretion, refuse to admit lid appeal in respect of an order referred to in clause (b) or clause (el or clause (d) where-5 (i) in any disputed case other than a case where the determination of any question baving a relation to tbe rate of duty of excise or to the value of goods for purposes of usessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or (u) the amount of fine or penalty determined by such order, does not exceed ten thousand rupees 10 (2) the collector of central excise may, if he is of oplnloll that an order passed by the appellate collector of central excise udder section 35, as it stood immediately before the appointed day, or the collector (appeals) under sectlon 35a, is notlepl or proper, direct any central excise officer authorised by him in this behalf (bere- lafter in thls chapter referred to as the authorised offlcer) to appeal 15 oil his bebalf to the appellate trlbmal against such order 20 (3) every appeal under thls sectloo shall be fred withln three months from the date on which the order sought to be appealed agalnst is communicated to the collector of central excise, or, as the case may be, the other party preferring the appeal 25 (4) on receipt of nouce that an appeal has been preferred under this section, the party against whom the appeal has been preferred may, notwithstanding that he may not have appealed against such order or any part thereof,file, within forty-five days of the receipt of the nouce, ii memorandum of cross-objections verified in the prescribed manner against anv parto1 the order appealed against and such memorandum shall be disposed of by the appellate tribunal u if it were an appeal presented wi thin the time speclfled in sub-section (3) 30 (5) the appellate tribunal may admlt 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 35 (6) an appeal to the appellate tribunal shall be in the prescribed form ·and shall be verlfied 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 a fee of two hundred rupees orden! of appellate tribunal 40 35c (1) the appellate tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirmlng, modifying or annulllng the decision or order appealed against or may refer the case back to the authority which passed such decision or order with such directions as the appellate tribunal may think flt, for a fresh adjudication or decision, as the case may be, after taking addiuonal evidence, if necessary 45 (2) the appellate tribunal may, at any time within four - years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-secuon (1) and shall make such amendments if the 5 mistake is brought to its notice by the collector of central excise or the other party to the appeal: provided that an amendment which bas the effect of enhancing an assessment or reducing a refund or otherwise increasing the habul ty of the other party shall not be made under this sub-10 sectlon,unless the appellate tribunal bas glveo notice to him of its intention to do 80 and bas allowed him a reasonable opportuni ty of being heard (3) the appellate tribunal shall send a copy of every order passed under this section to the collector of central excise 15 and the other party to the appeal (4) save as provided in section 35g or section 354 orders passed by the appellate tribunal on appeal shall be final 52 of 1962-procedure of appe11llle tribunal 20 350 (1) the provisions of sub-sections (1) (2) (5) and (6) of section 129c of the customs act 1962, shall apply to the appellate tribunal in the discharge of its functions under this act as they apply to it in the discharge of its functions under the customs aot, 1962 (2) every appeal against a decision or order relating, among other things, to the determination of any question having a rela-25 tion to the rate of duty of excise or to be value of goods for purposes of assessment, shall be heard by a ~ecial bench constituted by the president for hearing such appeals and such bench shall consist of not less than three members and shall include at least one judicial member and one technical member 30 ( 3) the president or any other member of the appellate tribunal authorised in this hehalf by the president may sitting singly, dispose of any case which has been allotted to the bench of which he is a member where-35 (a) in any disputed case other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or (b) the amount of fine or penalty involved 40 does not exceed ten thousand rupees 35e (1) the board may, of its own motion, call for and examine the record of any proceeding in which a collector of powena of board or collector of central excise to pass certain ordena cantral excise as an adjudicatidg authority has passed any decision or order under this act for the purpose of satisfying itself as to the legality or propriety of any such decision or order and may, by order, direct such collector to apply to the appellate tribunal for the determination of such points 5 arising out of the decision or order as may be specified by the board in its order (2) the collector of central excise may, of his own motion, call for and examine the record of any proceeding in wblch an adjudicating authority subordinate to him has passed any 10 decision or order under this act for the purpose of satisfyldg himself as to the legality or propriety of any such decision or order and may by order direct such authority to apply to the collector (appeals) for the determination of such points arising out of the decision or order as may be specifled 15 by the collector of central excise in his order (3) no order shall be made under sub-section (1) or sub-section (2) after the expiry of two years from the date of the decision or order of the adjudicating authoritly (4) where in pursuance of an order under sub-section (1) or sub-20 section (2)' the adjudicating authority or the authorised officer makes an appllcatloo to the appellate tribunal or the collector (appeals) within a period of three months from the date of communication of the order under sub-section (1) or sub- section (2) to the adjudicating authority, such application shall be heard 26 by the appellate tribunal or the collector (appeals), as the case may be as if such application were an appeal made against the decision or order of the adjudicating authority and the provisions of this act regarding appeals,1ncludlng the provisions of sub-section (4) of section 35b shall 80 far as may be, apply to such appucation 30 depoett, p_dlq appelll, of duty dem  ded or penalty levied 35f where in nny appeal under this chapter, the decision or order appealed against relates to any duty demanded in respect of goods which are not under the control of central excise authorities or any penalty levied under this act, the persoll desirous of appealing against such decision or order shall, 35 pending the appeal, deposit with the adjudicating authority the duty demanded or the penalty levied: proviged that where in any particular case, the collector(appeals) or the appellate tribunal is of opinion th,t the depostt of duty demanded or penalty levied would cause undue hardship to such 40 parboil, the collector (appeals) or al the case may be, the appellate trlbmal, may dlspense wi til such deposlt subject to such ooooltlodb  be or it may deem fit to impose so as to safeguard the interests of rev_ue 45 statement of cue to hlp court 350 (1) the collector of central excise or the other party may, within sixty days of the date upon which be is served with notice of an order under section 35c (not being an order relating, among other things, to the determlnation of any question having a relation to the rate of duty ~ excise or to the mae of goods for purpoaes of assessment), by appllcatlon in the preacrlbed form aooompanled, where the aplilcatloll is made by the other party, by a fee of two bundred rupees, reqlllre the appellate 5 trlbmal to refer to the high court any questlclll of law arising out of aach order and, subject to the other provisions ooatalned in this aeollan, the appellate tribunal aball, within one bundred and twedty days of the reoeipt of such appllcatlon, draw up a statement of the case and refer it to the high court: 10 provided that the appellate tribunal may, if it is satisfied that the appllcant was prevented by sufficient cause from presentil1g the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days 15 (2) on receipt of nouce that an appuo&tloo bas heed made under subsection (1), the person against whom such application bas b~ made, may, notwithstanding that he may not have fued such ,!n application, fue, within forty-five days of the receipt of the notice, a memorandum of cl'oss-objectlons verified in the prescribed manner against any part d 20 the order in reiatlm to which an appllcatlon for reference has been made and sucb memorandum shall be disposed of by the appellate tribunal as if it were an application presented within the time specifled in sub-sectlm (1) (3) if, on an application made under sub-section (1) , the 25 appellate tribunal refuses to state the case on the ground that no questlm of law arises, the collector of central exclse,or, as the case may be, the other party ma~ within six months from the date an which be is served with notice of such refusal, apply to the hlgh court and the high court may, if it is not satisfied with the 30 correctness of the declslon of the appellate tribunal, require the appellate tribunal to state the case and to refer it, and on receipt of any such requisition, the appellate tribunal shall state the case and refer it accordingly (4) where in the exercise of its powers under sub-section 35 (3), the appellate tribunal refuses to state a case whlch it bas been required by an appicant to state, the applicant may, wltbln thirty days from the date on which be receives notice of such refusal withdraw his application and, if he does so, the fee, if any, pald by him shall be refunded 40 stlltement of case to supreme court in certain cases 45 35h if, on an appllcatlon made under section 35g, the appellate tribunal is of opinion that, on account of conflict in the decisions of high courts in respect of any particular questl~n of law, it is expedient that a reference should be made direct to the supreme court, the appellate tribunal may draw up a statement of the case and refer it through the president direct to the supreme court power of high court or supreme court to require statement to be  ndecl 351 u the high court or the supreme court is not satisfied that the statements in a case referred to it are sufficient to enable it to determine the questions raised thereby the court may refer the case back to the appellate tribmal for the purpose of making such additions thereto or alterations therein as it may direct in that behalf calle before be heerd by two judges 35j (1) when any case has been referred to the high court under section 350, it shall be heard by a bench of not less than two judges of the high court and shall be decided in accordance with the opinion of such judges or of the majority, if any, of such judges (2) where there is no such majority, the judges shall state the point of law upon which they differ and the case shall then be beard upon that point only by one or more of the other judges d the high court,and such point shall be decided according to the oplnion of the majority of the judges who have heard the case including tlx)se who first heard it - declslon of high court or supreme court on the case stated 3sk (1) the high court or the supreme court hearing any such case shall decide the questions of law raised therein and shall deliver its judgment thereon contalnlng the grounds on which such decision is founded and a copy of the judgment shall be sent under the seal of the court and the signature of the registrar to the appellate tribunal which shall pass such orders as are necessary to die-pose of the case in conformity wi th such judgment ( 1) the oosts of any reference to the hlgb court or the supreme court which shall not include the fee for making the reference shall be in the dlscretioll of the court 35l an appeal shall 11e to 1he supreme court from -appeal to supreme court (a) any judgment of the high court delivered on a reference made under section 350 in any case which, oil its own motion or oil an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgment, the high court certlfles to be a fit one for appeal to the supreme court; or (b) any order passed by the appellate tribldbl relating, among other things, to the determlnatloll of any question having a relatlon to the rate of duty of excise or to the value of goods for purposes of asseesment 5 35m (1) the provisions of the code of civil procedure , 1908, relating to appeals to the supreme court shall, so t"ar as may be, apply in the case of appeals under section 35l as they apply in the case of appeals from decrees of a high court: provided that nothing in this sub-section shall be deemed to affect the provisions of sub-section (1) of section 35k or section 35n (2) the costs of the appeal shall be in the discretion 10 of the supreme court (3) where the judgment of the high court is varied or reversed in the appeal, effect shall be given to the order ofthe supreme court in the manner provided in section 35k in the case of a judgment of the high court 15 suma due to be paid notwithat_ding reference, etc 20 35n notwithstanding that a reference has been made to the high court or the supreme court or an appeal has been preferred to the supreme court, sums due to the government as a result of an order passed under sub-section (1) of section 35e shall be payatie in accordance with the order so passed excluaion of time taken for copy 25 35-0 in computing the period of limitation prescribed for an appeal or application under this chalter, the day on which the order complained of was served, and if the party preferring the appeal or maldng the aprucatioll was not furnished with a copy of the order when the notice d the order was served upon him, the time requisite for ottaining a copy of such order shall be excluded 30 transfer of certain pend inc proceedings an d transition iii provisions 35 35p (1) every appeal which is pending immediately before the appointed day before the board under section 35, as it stood immediately before that day, and any matter arising out of or connected with such appeal and which is 90 pending shall stand transferred on that day to the appellate tri wnal and the appellate trlwnal may proceed with such appeal or matter from the stage at which it was on that day: provided that the appellant may demand that before proceeding further with that appeal or matter, he may be re-henrd (2) every proceeding which is pending immediately 40 before the appointed day before the central government under sootlon 36, as it stood immediately before that day, and any matter arising out of or connected with such proceeding and which is so pending shall stand transferred on that day to the appellate triwnal and the appellate 45 tribunal may proceed with such proceeding or matter from the stage at which it was on that day as if such proceeding or matter were an appeal med before it: provided that if any such prooeeding or matter relates to an order where -5 (a) in any disputed case other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or ~e duty involved; or (b) the amount of fine or penalty determined by such order, 10 does not exoeed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the central government as if the said section 36 had not been substituted: provided further that the appllcant or the other 15 party may make a demand to the appellate trlbmal that before proceedlng further with that proceeding or matter, he may be re-heard (3) every proceeding which is pending immediately before the appointed day before the board or the collector of central 20 excise under section 35a, as it stood immediately before that day, and any matter arising out of or connected with such proceeding and which is so pending shall continue to be dealt with by the board or the collector of central excise, as the case may be, as if the said section had not been substituted 25 (4) any person who immediately before the appointed day was authorised to appear in any appeal or proceeding transferred under sub-seetlon (1) or sub-sectloo (2) shall, notwithstanding anything contained in sectlon 35q,have the right to appear before the appellate trtbunal in relation 30 to such appeal or proceeding appearance by autlxaiaed repraentau yeo 35 35q ( 1) any person who is entitled or required to appear before a central excise officer or the appellate trll:wla1ln connection with any proceedings under tm act, otherwise than when required under this act to appear personally for examination on oath or affirmation, may, subject to the other provisions of this section, appear by an authorised representative 40 (2) for the ~rpose8 of this section, 'authorised representatlve" means a person authorised by the person referred to in 8u~section (1) to appear on his behalf, being -(a) his relative or regular employee; or (b) any legal practitioner who is entitled to practise in any ci·  ll court in india; or (e) any person who bas acquired such qualifications as the central government may prescribe for thls purpose (3) notwlthstandlng anything contained in this section, no person who was a member of the indian customs and 5 central excise service -group a and has reti red or resigned from such service after having selved for not less than three years in any capacity in that service, shall be entitled to appear as an authorised representative in any proceedings before a central excise officer for a 10 period of two years from the date of his retirement or resignation, as the case may be (4) no person, -(a) who has been dismissed or removed from government selvlcei or 15 52 of 1962 (b) who is convicted of an offence connected with any proceeding under this act the customs act 1962 or the gold (control) act, 1968; or 4s of 1968 (c) who bas become an insolvent, 20 25 shall be qualified to represent any person under sub-section (i), for all umes in the case of a person referred to in clause (a) and for such tlme as the collec1or of central excise or the competent authorl ty under the customs act, 1962 or the gold (control) act, 1968, as the case may be, may, by order, determine in the case of a person referred to in clause (b), and for the period during which the insolvency contlnues in the case of a person referred to in clause (e) (5) if any person, -30 (a) who is a legal practitioner, is found guutyof misconduct in his professional capacity by any authority entitled to institute proceedings against him, an order passed by that authority shall have effect in relation to his right to appear before a central excise officer or the appellate trltnnal as it has in relation to his right to practise asa legal practltioneri 35 (b) who is not a legal practitioner, is found gullty of misconduct in connection with any proceedings under this act by the prescribed authority, the prescribed authority may d1 reet that he shall thenceforth be disqualified to represent any person under sub-section (i) 40 (6) any order or direction under clause (b) of subsection (4) or clause (b) of sub-sectlon (5) shall be subject to the following conditions, namely:-(a) no such order or direction shall be made in respect of any person unless he has been given a reasonalie opportunlty of being heard; (b) any person against whom any such order or direction 5 is made may, within one month of the making of the order or direction, appeal to the board to have the order or direction cancelled; and (e) no such order or direction shall take effect untu the expiratioil of oile moilth from the making thereof, 10 or, where an appeal has been preferred, until the disposal of the appeal de&nitiool 36 in this chapter -15 (a) "appointed day" melns the date of coming into force of the amendments fn thls act specified in part u of the fifth scheoole to the finance (no2) act, 1980; (b) "ffigh court" means,-(i) in relation fn any state, the high court for that state: 20 (ii) in relation to a unioil territory to which the jurisdiction of the high court of a state has been extended by law, that high court; (iii) in relation to the union territories of dadra and nagar havell and goa, daman and diu, the h 19b court at bombay; 25 (tv) in relation to any other unian terrlfnry, the highest court of elva appeal for that territory other than the supreme court ofindla; (e) "president" means the president of the appellate t rlbunal ' 30  3 before section 36a, insert - "chapl'er vlb presumption as to ooqjmrmts " part m amdldmdits in no: gol» (c(i(tiol) aer, 196835 1 section 2 -(i) for clause (a) substitute-, (a) "adjudicating authority" means an authority competent - to pass any order or decision under this act, but does not include the administrator, collector (appeals) or appellate tribunal; (cui) "administrator" means the administrator appointed 5 under section 4; (aaa) "appellate tribunal" means the customs, excise and gold (control) appellate tribunal constituted under section 129 of the customs act, 1962:' i (ii) after clause (e), insert -10 '(ee) "collector (appeals)" means a collector of central excise (appeals) or a collector of customs (appeals) appointed under section 4 to be a collector (appeals) for the purposes of this act j }, 2 sectlon 4, in sub-section (4), omit "or under clause (a) of sub-15 sectlclll (1) of sectlon 80 or under sectlon 81" 3 in chapter xiv, for the heading, substitute- "adjudica'i1on and appeals·'4, for sections 80, 81 and 82, silbstitute-20 appeal to collector (appeals), '80 (1) any person aggrieved by any decision or order passed under this act by a gold control officer lower in rank than a collector of central excise or of customs may appeal to the collector (appeals) within three months from the date of the communication to him of such decision or order: 25 provided that the collector (appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months 30 (2) every appeal under this section shall be in the prescribed form and shall be verified in the prescribed manner procedure in appeal 80a (1) the collector (appeals) shall give an opportunity to the appellant to be heard, if he so desires (2) the collector (appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not 35 specified in the grounds of appeal, if the collector (appeals) is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable (3) the collector (appeals) may" after making such further inquiry as may be necessary, pass such order ,as he thinks 40 fit confirming, modifying or annulling the decision or order appealed bgainst,or may refer the case back to the adjudicating authority with such directions as hi) may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary: 5 provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating things of greater value shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order 10 (4) the order of the collector (appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision (5) on the disposal of the appeal, the collector (appeals) shall communicate the order passed by him to the appellant, the adjudicating authority and the collector of central excise or of customs 15 appeals to tile appell ate triban al 81 (1) any person aggrieved by any of the following orders may appeal to the appellate tribunal against such order -20 (a) a decision or order passed by the collector of central excise or of customs as an adjudicating authority; (b) an order passed by the collector (appeals) under section 80ai 25 (c) an order passed by the administrator, collector of central excise or of customs or the appellate collector of customs under section 80, as it stood immedlately before the appointed day; (d) an order passed by the administrator, either before or after the appointed day, under sectlon 81, as it stood immediately b<: :'),' before that day: 30 provided that the appellate tribunal may, in its discretion, refuse to admit an appeal in respect of an order referred to in clause (b) or clause (c) or clause (d) where, 35 (i) the value of the thing confiscated without option having been given to the owner thereof to pay a flne in 1:00 of confiscation under section 73; or (ii) the amount of fine or penalty determined by such order, does not exceed ten thousand rupees 40 (2) the administrator may if he is of opinion that an order passed by the collector of central excise or of customs or the appellate collector of customs under clause (b) of sub-section (1) of section 80, as it stood immediately before the appointed day, is not legal or - proper, direct an officer authorised by him in this behalf (hereafter in this chapter referred to as the authorised officer) to appeal on his behalf to the appellate tribunal agalnst such order 5 (3) the collector of central excise or of customs, may, if he is of opinion that an order passed by the collector (appeals) under section 80a is not legal or proper direct the authorised officer to appeal on his behalf to the appellate tribunal agalnst such order 10 (4) every appeal under this section shall be fued within three months from the date on which the order sought to be appealed against is communicated to the collector of central excise or of customs, or, as the case may be, the other party prefer ring the appeal 15 (5) on receipt of notice thtlt an appeal has been preferred under this section, the party against whom the appeal hs been preferred may, notwi thstanding that he may not have appealed against such order or any part thereof,file, within forty-five days of the receipt of the notic~ a memorandum of 20 cross-objections verified in the prescribed manner against any part of the order appealed against 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 (4) (6) the appellate tribunal may admit an appeal or permit 25 the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (4) or sub-section (5) , if it is satisfied that there was sufficient cause for not presenting it within that period (7) an appeal to the appellate tribunal shall be in the 30 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 sub-section (3) or a memorandum of cross-objectlons referred to in sub-section (5), be accompanied by a fee of two hundred rupees 35 orders of appellate tribunal 40 8la (1) the appellate tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit,confirmlng, modifying or annulling the decision or order appealed against or may refer the case back to the authority which passed such decision or order with such directions as the appellate tribunal may think fit1for a fresh adjudication or decision, as the case may be, after taking additional evidence if necessary (2) the appellate tribunal may, at any time within four 45 years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1) and shall make such amendments if the mistake is brought to its notice by the collector of central excise or of customs or the other 50 party to the appeal: provided that an amendment which has the effect of enhancing any penalty or cine in lieu of confiscation or confiscating things of greater value shall not be made under this sub-section unless the appellate tribunal has given notice of its lntentlon to do bo, to the other party and bas 5 allowed him a reasonable opportunity of being beard (3) the appellate tribunal shall send a copy of every order passed under this section to the collector of central excise or of customs and the oiber party to the appeal 10 (4) save as otherwise provided in section 82b, orders passed by the appellate tribunal on appeal shall be flnal 52 of 1962 procedure of appellate tribunal 15 8lb (1) the provisions of sub-sections (i), (2), (5) and (6) of section 129c of the customs act, 1962,ahad apply to the appellate tribunal in the discharge of its functions under this act as they apply to it in the discharge of its functions under the customs act, 1962 (2) the president or any other member of the appellate tribunal authorised in this behalf by the president may sitting singly, dispose of any case which has been allotted to the bench of which he is a member where-20 (a) the value of the thing conftscated without option llaving been given to the owner thereof to pay a fine in ueu of confiscation under section 73i or (b) the arrount of fine or penalty involved, does not exceed ten thousand rupees 25 30 powers of the admidistrlltor or collector of central ellciae or of customs to pass certain orders 82 (1) the administrator may, of bis own motion, call for and exanine the record of any proceeding in whioh a collector of central excise or of customs as an adjudicating authority has passed any decision or order under this act for the purpose of satisfying biil5elf as to the legality or propriety of any such decision or order and may, by order, direct such collector to apply to the appellate tribunal for the determination of such points arising out of the decision or order as may be specified by the administrator in his order 35 40 (2) the collector of central excise or of customs may, of his own motion, call for and ex8ldne the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order \i1der this act for the purpose of satisfying mmself as to the legality or propriety of any such decision or order and may, by order, direct such authority to apply to the collector (appeals) for tlle determination of such points arising out of the decision or order as may be specified by the collector of central excise or of customs in his order 45 (3) no order shall be made mder sub-section (1) or sub-seotion (2) after the expiry of two years from tl'oe date of the decision or order of the adjudioating authority 5 10 15 (4) where in pursuance of an order under sub-seotion (1) or sub-section (2) the adjudioating authority or the authorised officer makes an application to the appellate tribunal or the collector (appeals) within a period of three months from the date of comm\d'lication of thl order under sub-section (1) or sub-section (2) to the adjudicating authority such application shall be heard by the appellate tribunal or the collector (appeals) as the case may be as if such application were an appeal made against the decision or order of the adjudicating authority and the provisions of this act regarding appeals including the provisions of sub-section (4) of section 8~shall so far as may be apply to such application deposit, pending appeal, of penalty levied 20 82a where in any appeal under this chapter the decision or order appealed against relates to any penalty l~ied under this act the person desirous of appealing against such decision or order shall pending the appeal, deposit with the adjudicating authority the penalty levied: 25 provided that where in any particular case the collector (appeals) or the appellate tribmalis of opinion that the deposit of penalty levied would cause undue hardship to such person the collector (a ppea1 s) or as the case may be, the appellate trilxmal may dispense with such deposit suiject to such conditions as he or it may deem f1 t to impose statemeat of ca_ to hich court 30 35 82b (1) the colleotor of central excise or of customs or the other party may, within sixty days of the date upon which be is served with notice of an order under section bla by applioation in the prescribed form  accompanied where the application is made by the other party by a fee of two hundred rupees require the appellate tribunal to refer to the high court any question of law arising out of such order and,subject to the other provisions contained in this section the appellate tribunal sball, within one hundred and twenty days of the receipt of such application draw up a statement of the case and refer it to the high court: provided that the appellate tribunal lilly if it is satisfied 40 that the applicant was prevented by sufficient cause from presenting the appl1cauon within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days (2) on receipt of notice that an appllcatlon has been mado 45 under sub-section (1) the person against whom such application has been made may notwithstanding that he may not have filed such an appl1catlon file within forty-five days of the receipt of the notioe, a memorandum of cro8s-objectlods verified in the prescribed m8llder agalnst any part of the order in relation to which an applioation for refereace has been made add such memo1'8ddum shall be dlsposed of by the appellate trlbmal as if it were an ap}iioatlod presented within the time speolfled in sub-sectloo (1) (3) u,on an applioatlon made under sub-s8cuon (1), the appellate tribunal refuses to state the oue on the ground that do question of law arises, the collector ~ central exolse or of customs, or, as the case may be, the other party, may with-in six months from the date on whioh he is served with muoe of suoh refusal, apjiy to the high court and the hlgb court may, if it is not satlsfled with the correctness of the decision ~ the appellate tribunal, require the appellate trlbldal to state the case and to refer it ,and on receipt of any such requisition, the appellate trlhmal shall state the case and refer it accordlngly (4) where in the exercise of its pow81's under sub-sectlon (3) the appellate tribunal refuses 10 state a case whioh it has been requlred by an appuoant to state, the applicant may within thirty days from the date on wblob be receives notice of sucb refusal, wuhdraw bis appuoauon ,and, if be does so, the fee, if any, paid by him shall be refunded 82c if, on an applioatlon made mder section 82b, the appellate tribunal1s of opinion that, on account of conflict in ltie decisions of mgb courts in respect of any partlcular question of law, it is expedient that a reference should be made direct to tbe supreme court, the appedate tribunal may draw up a statement of tbe case and refer it tbrough the president direct to the supreme court so power of lu&b court or s  coiirt to n9lite --_tto be  ded 82d u tbe higb court or tbe supreme court is not satlsfled tttat the statemeats in a cue referred to it are sutbc1ent to mabie it to determine the questions raised thereby, the court may refer the cue back to the appellate tribunal for the purpose of making such additions thereto or alterations therein as it may direot in t  t behalf 35 case before hlp coiirt to be  mid by dot 1  til  two jucfcea 82e (1) when any case bas been referred to tbe high court udder section 82b, it sball be beard by a beilcb of not less than two judps of tbe higb court and sball be decided in acoordance with the opinion of sucb judges or of the majority, if any" of such judges 40 (2) where there i8 do 8ucb diljority, the judps sball state tbe point of law upon whiob they differ and the case shall then be beard upon that point only by one or more of tbe otber judges of the h1gb court and sucb point shall be decided aooording to the opjn1oa of tbe majority of the judges wbo bave beard the 45 case incltd1ng those wbo flrst'heard it 5 82f (1) the high court or the supreme court bear:lng 8dy sucb case sball deoide the questions of law raised therein add shall deliver its judgment thereon conta1n1ng the groudds on whicb such decision is founded and a copy of the judgment shaul be sent udder tbe seal of the court and the signature of the registrar to tbe appellate tribunal wbicb sball pass sucb orders as are necessary to dispose of the case in conformity with such judgment (2) the costs of 8dy reference to tbe higb court or tbe 10 supreme court wbich sball not include the fee for making ute referenctt sball be in the discretion of the court appeal to supreme court 15 82g an appealsballl1e to tbe supreme court from any judgm8llt of the 81gb court delivered on a refel't'jll08 made mder section 82b 111 8dy case wbich,on its own motion or on an oral applioatlon made by or on bebalf of tbe party aggrieved,immediately after the passing of the judgment,tbe higb court oerufies to be a fit one for appeal to tbe supreq court supreme court 5 of 19(11 20 82h (1) the provisions of the code of civil procedure, 1908, relating to appeals to the supreme court shall, so far as may be, apply in the case of appeals under section 82g as tbey apply in tbe case of appeals from decrees of a high court: provided that nothlng in this sub-section shall be deemed 25 to affect the provisions of sub-section (1) of section 82f or section 821 (2) the costs of the appeal sball be in the discretion of the supreme court (3) where the judgment of the high court is varied or 30 reversed in t"e appeal, effect shall be given to the order of tbe supreme court 10 tbe diidiler provided in section 82f in tbe case of a judgment of the high court sum due to be paid notwutl  maclin, refeftllce etc 35 821 notwitbstanding tbat a reference bas been made to tbe 81gb court or the supreme court or an appeal has been preferred to tbe supreme court, sums due to the governm8llt as a result of an order passed under sub-section (1) of section 8la sball be payable in accordance witb the order so passed 82j in computing the period of umltauon prescribed for an 40 appeal or application uljder tb1s cbapter, the day on whioh the ::ue taken order complained of was served/_ if the party preferring the r copy appeal or making the application was not furnishedwlth a copy of the order when the notice of the order was served upon hlm, the time requisite for obtaining a copy of such order shall be 45 excluded eerta penclla, piocmdiap idd tranllitioaal ploviaioa •• - 82k (1) every appeal whicb is pending immediately before the appointed day before the adldnistrator or the collector of central excise or of customs under section 80, as it stood immediately before that day and any matter arising out of or oodnscted witb sucb appeal and whicb is 80 pending sball stand transferred on that day to the appellate tribunal or tbe collector (appeals), as tbe oase may be, and the appellate tribunal or the collector (appeals) may proceed with such appeal or matter from the stage at which it was on that day: | provided that tbe appellant may demand 'that    | before                   ||-------------------------------------------------|--------------------------|| 10                                              |                          || proceeding                                      | further                  || re-heard                                       |                          || (2)                                             |                          || every proceeding which                          | is                       || the appointed day before the                    |                          || central                                         | government under section || 82,                                             |                          || as                                              |                          || it                                              |                          || stood immediately before                        | that                     || bdy                                             |                          || dbtter                                          |                          || 15                                              |                          || arising                                         | out                      || 80                                              |                          || pending                                         | shall                    || tribunal                                        |                          || and                                             |                          || the appellate tribunal may proceed with such    |                          || proceeding                                      |                          || or                                              | matter                   || it                                              |                          || was on that                                     |                          || day                                             |                          || as                                              |                          || if                                              |                          || such proceedlng                                 | or                       || it:                                             |                          || 20                                              |                          || provided that the applicant                     | or                       || before proceeding                               |                          || further                                         |                          || with                                            |                          || that                                            |                          || proceeding                                      |                          || or                                              | matter,                  || he                                              |                          || may                                             |                          || be                                              |                          || re-heard                                       |                          || (3) every proceeding whicb                      | is                       || the appointed day before                        |                          || the                                             | admnistrator             || as                                              | it                       || matter                                          | arising                  || wi                                              |                          || tl-                                             | such proceeding and      || which 1s so pending                             |                          || shall                                           | continue to              || be                                              |                          || dealt                                           | with by the              || administrator                                   | as                       || if                                              |                          || the said section                                | had not been             || substituted                                    |                          || 30                                              |                          |(4) any person who immediately before the appointed day was authorised to appear in any appeal or proceeding transferred under sub-section (1) or sub-section (2) sball, notwithstanding anything contained in section lola have tbe right to appear before the appellate trlbunalin relation to 35 such appeal or proceeding definitioaa, 132l in tbis chapter -(a) "appointed day" means the date of corning into force of the amendments to this act specified in part m of tbe fifth scbedule to the finance (no2) act, 1980; 40 (b) '111gb court" means, -(i) in relation to aay state, the high court for that state; (ii) in relation to a union territory to which the jur18d1otlon of the hlgh court of a state bas been extended by law, that hlgb court; (iii) in relatlon to the union territories of dadra and nagar havel1 add goa, daman and diu, the hlgh court at bombay; 5 (tv) in relation to any otoor union territory, the highest oourt of oivi1 appeal for that territory other than the supreme court of indiai 10 (c) "president" means the president of the appellate tribunal ' - 5 secuon 83, in sub-secuone (1) and (3), omit "or exercising my powers of revision " 6 ontt section 84 15 appe_8jlcle by authorised represeatlltive 7 after secuon 101, insert,-, lola (1) any person who is enutled or required to appear before a gold control officer or tbe appellate tribunal in oonnecuon with any'proceedings under this act, otherwise than wben required tmder this act to appear personally for examinauon on oath or affirmation, may, subjeot to the other provisions of this secuon, appear by an authorised representative 20 (2) for the purposes of tbis secuon, "authorised representauve" means a person authorised by the person referred to in subsecuon (1) to appear on his behalf, being -(a) his relative or regular employee: or 25 (b) any legal practitioner who 1s entitled to practise in any civil court in india; or (e) any person who has acquired such qualificatlons as the central government may prescribe for this purpose (3) notwithstanding anything contained in this seotion, no 30 persodwho was a member of the indian customs and central exoise service -group a and has reured or resigned from suoh servioe after having served for not less than three years in any capacity in tbat service shall be entitled to appear as an autborll'ed representative in any proceedings before a gold 35 control offioer for a period of ~o years from the date of his retirement or resignation, as the oase may be (4) no person -(a) who has been dlsmissed or removed from government service; or (") wbo is ooovicted of an offeaoe connected with any proceeding under tb1s act, the customs act, 1982, or the cedtral excises aad selt act, 1944; or 52 of 1962 1 of 1944 (e) who has beooma an 1dsolvedt, shall be qualifted to represeat any person under sub-section (1) - 5 for an times in the case of a period referred to in clause (4) , and for such time as the codector of ctral excise or of customs or the cod1peteot authority udder the customs act, 1982, or the central excises ad salt act 1944, as the case may be, may, by order, determine in the cue of a person 10 referred to in clause (b) ad for the period duridg wblch the insolvency continues in the case of a per80d referred to in clause (e) (5) if any person, -15 20 (4) who is a legal practitioner, is found gutlty of misconduct in bib professional cas-city by any autborltjy entitled to institute proceedings against him, an order passed by that authority shall have effect in relauon to his right to appear before a gold control officer or the appellate tribunal as it has in relaticll to bis right to practlse as a legal practitioner; 25 (b) wbo is not a legal pracuuoner, is found gutlty of misconduct in coddeotion with any proceedlngs udder tbls act by the prescribed authority, the prescribed authority may direct that he shall thenceforth be diaqualifled to represent any person udder 81lb-seotlon(l) - (6) any order or diractloo mder clause (i) of sub-secuon (4) or clause (b) of sub-sectloo (5) sball be subject to the following coodlt1ons, name1y:-30 (a) do such order or direction shall be made in respect of any persod unless ·be has been glveil a reasonable opportmiw of being heard; 35 (b) any perboll agalnst whom any such order or direcuon is made may, within one iiililth of the making of the order or direction, appeal to the adm1d1strator to have the order or direction cancelled; and (e) no such order or direc&n sball take effect unul the expiration of one month from the maldng thereof, or, where an appeal bas been preferred, unw tbe disposal of the appeal ' 40 8 section 114, in sub-section (2), in clause (e), omit sub-clause (iii)  statement of objects and reasonsthe object of the bill is to give effect to the financial proposals of the central government for the financlal year 1980-81 the notes on clauses explain the various provisions contained in the bill new ddbi; r venkataraman the ibtii j  e 1980  president's recommendation under articles 117 and 274 of the constitution of india(copy of letter no f 3(1)-b(d)/80 dated the 18th june, 1980 from 1ilrl r venkataraman, mlnlster of finance, to the secretary, lok babha) the president, having been informed of the subject matter of the proposed bill, recommends under clauses (1) and (3) of article 117 read with clause (1) of article 274 of the constitution of indla, the introduction of the f1nance (no2) bill, 1980 to the lok babba and also recommends to the lok babba the codblderation 01 the bill 2 the bui will be introduced in the lok sabba immediately after the presentatlon of the budget oil the 18th jude, 1980 clause 2, read wi th the first schedule to the bill, aeeb to preecrlbe the rate at which income-tax (including sul"clarge thereon) is to be levied on mcome oharpable to tax for the uaessment year 1980-81 further, it lays down the rates at which tu is to be deducted at source dormg the flnanolal year 1980-81 from inoomes subject to loch deduction under the inoome-tax a at; and the rate at which" idvanoe tu" i to be pald and tax is to be oalgjlated and charged in special oases for the financial year 1980-81 rates of income-tu for the usell8ment year 1980-8l -part i of the first scheclde to the bui speclfi e8 the rates d income-tax (including surcharge) oil incomes liable to tax for the assessment year 1980-81 these rates are the aame as those speclfied in part m of the first schedule to the finlllloe act, 1979 for th~ purpose of deductiol1 d tax at source from ''balarles'' iiild for compltatlon d "advance tax" payable during the finllllcial year 1979-80 rates for demctlon of tax at 80urce during the financial year 1980-81 from incomes other than "salaries"· - part ii of the first schedule to the bill speclfles the rates at which income-tax (including surcharge where applicable) 18 to be deducted at source during the financial year 1980-81 from inoomes other than "salaries" and retirement annuities under section soe(9) of the income-tax aot the rates 8peclfied in this part for deduction of tax at sooroe are the same as those specified in part d d the first schedule to the finance act 1979 for the parposes of deduction of tax at soorce during the financial year 1979-80, except for certain modlflcatiol18 in the case of income by way of winnings from lotteries and crossword puzzles, and winnings from hor •• races payable to a resident recipient (other than a oompany) durtng the financial year 1980-s1, tax will be deductible at the rate of 33 per cent (made up of basic inoome-tax of 30 per cent and surcbarge of 3 per cent), as against 36 per cent during 1979-80 in the case of incomes by way of interest on securiues issued by the central or a state government (not being tax-free securities) or interest on debentures or ot"er securiues issued by or on behalf of a local aufhority or a statutory corporauon or interest on debentures 18sued by companies wbere such debentures are listed in a recognised stock exchange in india, income-tax will be deducted at tlle rate of 10 per cent as in tlle finllllcial year 1979-80 in the case of incomes by way of interest on otller securiues (not being interest on a tax-free security) or dividends payable to a resident recipient (other than a company) during the f1nllllc1al year 1980-81, tax w11~ 'however, be deducuble at the rate of 23 per cent (made up of basic income-tax of 21 per cent and surcharge of 2 per cent ) as against 24 per cent during 1979-80 in the case of i·ncomes (other than interest oil a tax-free security) payatie to a non-resident (other than a company) durtng the financial year 1980-81, tax: will be deductible at the minimum rate of 33 per cent (made up of income-tu: of 30 per cent and surcharge ~ 3 per cent ) as against 36 per cent in 1979-80 in the ca •• of interest on a tax-free security plyable to a don-corporate don-resident the rate for deduction will be 165 per cent (made up of income-tax of 15 per cent and iorohal'le of 15 per cent) as againbt 18 per cent in 1979-80 in the case of incomes by way of interest other than "intereat on securities" payable to a domestic codlpllly durlng the financial year 1979-80, tax wul be deductible at the rate of 215 per cent (made up of idcome-tax of 20 per cent and surcharge of 15 per cent) as in 1979-80 in the case of illy other inoome (excluding luterest plyable on a tax-free security) payatie to a domestic company during the financial yoar 1980-81, tax will be deductltie at the rate of 23 per cent (made up of inoometax of 215 per ceut and surcharge ~ 15 per cent) as agalnst 24 per cent in 1979-80 the rates specified in this part for deduction of tax at source in all other caees are thesrme as those speclfied in part n of the first schedule to the finance act, 1979, for the purposes of deduction of tax at source during the financial year 1979-80 rates for deduction of tax at source from ''salaries'' and retirement annuities, or computation of "advance tax" and charging to income-tax in special cases during the flnanclal year 1980-81 -part in of the first schedule to the bill specifies the rates at which income-tax (including surcharge) is to be deducted at source from ''salaries ii and retirement annuities referred to in section 80e(9) of the inoome-tax act, and also the rates at which "advance tax" is to be paid and inoome-tax is to be calculated or charged in special cases for the financial year 1980-81 these rates are the same as those specified in part i of the first schedule to the bill for the assessment of incomes liable to tax for the assessment year 1980-81, except for the following modifications:-(1) in the case of individuals, hindu undivided frmilies, unregistered firms, etc, no tax wlll be payable if the total income of the assessee does not exc'}ed rs 12, 000 where the total income exceeds rs12, 000 by a small margin, the income-tax (excluding surcharge) payable by the individuals, ~nndu undivided families with no member having independent taxable income exceeding rs12, 000, unregistered firms, etc, will not exceed 30 per cent of the excess, of total income over rs12, 000 as hitherto in the case of individuals, hindu undivided families with no member having independent taxable income exceecungrs12, 000, unregistered firms, etc, this marginal provision will cease to operate where the total income exceeds rs 16,250 where the total income in the case of hindu undivided families having one or more members with independent taxable income exceeds rs12, 000 by a small margin, tbe income-tax (excluding surcbarge) payable by the assessee will not exceed 40 per cent of the excess of the toalincome over rs12, 000 as against 30 per cent hitherto accordingly in the case ot hindu undivided famuies witn one or more members with independent taxable income exceeding rs 12,000, tbis marginal provision will cease to operate where the total income exceeds rs17 610 (11) the rates of income-tax applicalie to the hindu undivided families having one 01' more members witb independent taxable income exceeding rs12, 000 have been increased under the proposed amendment, the nil rate slab has been maintained at the existing level for income up to rs 8, 000 for the slab of income rs 8,001 to rs 15,000) the rate applicable will be 22% as against 18% as at present; for the slab of income rs 15, 001 to rs20, 000, the rate applicable will be 27% as against 25% as at present; for the slab of income rs 20,001 to rs 25,000  the rate of tax will be 35% as against 30% as at present; for the income slab of rs 25, 001 to rs 30, 000, the rate of tax will be 40% as at present; for the income slab of rs 30,001 to rs 50,000, the rate of tax will be 50% as at present;and for the income above rs 50,000, the rate will be 60% as against 55% up to rs 70, 000 and 60% for the income exceeding rs 70,000 as at present (u1) the rate of surcharge on income-tax in the case of all non-corporate absessees is proposed to be reduced from 20 per cent to 10 per cent of such income-tsx the provisions in the bill for the purposes of computation of "advance tax" and charging of income-tax in special cases durlag the financial year 1980-81 in the case of individuals, hlndu undlvlded famules, unregistered firms, etc, having net agriculturallncome, in addition to oon-agrlculturalincome exceeding rs12,ooo, are the same as in the finance act, 1979 except for the modification that these provisions wlll apply only where the net agricultural income exceeds rs600 in the case of compmies, the rates of income-tax specified in paragraph e of part m of the first schedule to the bill are the same as those specified in paragraph e of part i 01 the first schedule to the bill clause 3 seeks to insert a new 8ub-clause (iva) in clause (24) of section 2 the new sub-clause (iva) seeks to provtde that the value of any benefit or perquisite, whether convertible into money or not, which is obtained by any representative &8sessee mentioned in clause (!11) or clause (iv) 01 section 160( 1) of the income-tax act or by any beneficiary or anyajlk)udt paid by the representative abbessee for the benefit of the beneficiary whlch the beneficiary would have ordinarily been required to pay wou1d be regarded as "income" this amendment wlll take effect from 1st aprll, 1980 and will accord1n&ly apply in relation to the assessment year 1980-81 add 8i1bsequent years clause 4 seeks to insert a new clause (23aa) in sectlon 10 of the income-tax act the new clause seeks to provide for exemltlon from income-tax of any income derived by any regimental fund or non-publlc fund estabushed by the armed foreee for the welfare of the put and present members 01 the armed forces and their dependants the proposed amendment will apliy retrospectively from 1st aprll, 1962, fhat is to say, the date of commencement of the income-tax act, 1961 clause 5 seeks to amend section 16 01 the income-tax act relating to deduction from salaries under the existing provisions, a etaddard deduction is granted to salaried a88eesees in respect of expenditure incidental to employment the standard deduction is allowed in an amount equal to 20 per cent of the salary up to bs10,ooo and 10 per cent 01 the salary in excess thereof, subject to a mulmum of bs 3, 500 it is proposed to extend the benefit 01 the standard demction to pensioners as well the amendmeots wlll take effect from 1st april, 1981 and wlll acoordlngty apliy in relation to the assessment year 1981-82 and subsequent years clause 6 seeks to insert a new clause (ua) in sub-section (1) of section 32 of the income-tax act under the proposed amendment, an assessee carrying on business or profession will be entltled to an addl tional depreciation of lul amount equal to 50 per cent of the amount of depreciation admissible wlder clause (ll) of section 32 (1) (other than an extra allowance for double or multiple s'hltt working of t'he machinery or plant and the extra allowance in respect of mac'"'inery or plant installed in a premises used as a hotel) in respect of any new machinery or plant mstalled by him at any tlme after 31st march, 1980 but before 1st april, 1985 the additional depreclatloo wlll be admi8sibleonly for the previous year in which such new machinery or plant 1& installed the additional depreclatlon wlll not be admissible in respect of any machinery or plant installed in any office preml ses or any residential accommodation, including any accommxlation in t6e nature of a guest house (other than a hotel) or any office appliances or road transport vehicles or any machinery or plant the whole of the actual cost of which is allowed as a deduction by way of depreciation or otherwise in computing the income chargeable under the head "proflts and gains of bu8lnoss or profession" of any one previous year the new machinery or plant wul include recondl tloned machinery or plant imported from outside india this amendment will take effect from the 1st april 1981 and will accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 7 seeks to 3inem section 35 of the income-tax act relating to deduction in respect of expenditure on scientific research sub-clause (a) seeks to amend clause (iv) of sub-section (2) of section 35 under the existing provisions, where any deduction is allowed in respect of any capital expenditure represented wholly or partly by an asset, no deduction is allowed in respect of depreciation or terminal allowance for the same previous yeat in respect of that asset under the proposed amendment, the deduction for depreciation or terminal allowance wlll not be available for any other previous year as well suh-clause (b) seeks to amend sub-section (2a) of section 35 under the existing provisions, where an asbessee pays any sum to an approved scientific research association or university or college or other institution for undertaking scientific research under an approved programme, he is entitled to a weighted deduction of one and one-third times the amount of such sum under the proposed amendment, where any such sum 1 s paid to a publlc sector company for undertaking an approved programme of scientific research, the assessee will he entitled to a weighted deduction of one and one-thlrd times the amount of such sum for this purpose, a 'public sector company' wul mean a statutory corporation or a govermnent company as defined in section 617 of the companies act, 1956 sub-clause (c) seeks to losert a new sub-section (2 b) in sectlon 35 under clause (a) of the new sub-section (2b), an assessee who incurs any expendi-blre,other than capital expenditure on acquisition of any land or building or construction of any building, for undertaking an approved programme of scientific research, wlll be entitled to a weighted deduction of one and one-fourth times the amount of such expenditure so certified by the prescribed autoorlty to have been incurred on such scientific research during the previous year under clause (b) of the new sub-section (2b), where any deductlon referred to in clause (a) has been allowed for any previous year in respect of any ejq)enditure, no deduction in respect of such expeoditure will be allowed under sub-sectioo (1) (i),or sub-section (2)(i8) of section 35 for the same or any other previous year under clause (c) of the new sub-section (2b), where any deduction is allowed for any previous year in respect of any capt tal expenditure under cl buse (a), no depreciation or terminal allowance will be allowed in respect of the sald expenditure for the arne or any subsequent prevloos year under clause (d) of new sub-section (2b), if the assessee falls to furnish a oertj1loate of comlietlon of the awroved programme withln one year of the period allowed for its oompietloo by the prescribed authority any deduotlon allowed - under this sub-section in excess of the expendlture actually incurred aball be deemed to have been wrmgly allowed and the provisions of section 155 (58) wlll apply the amendment in sub -clause (a)(i) will take effect from 1st april, 1981 and the amendment in sub-clause (a)(il) will be d1ide retrospectively from the commencement of the income-tax act the other amendments will take effect from 1st september, 1980 and will accordingly apply in relation to the assessroont year 1931-82 and subsequent years clause 8 seeks to amend section 35b of the income-tax act relating to the export mark6ts development allowance sub-clruse (8) seeks to omit sub-clauses ell), (111), (v), (vi) and (vut) in clause (b) of sub-section (1) of section 35b under the proposed amendment, any expenditure incurred on olxaining information regarding markets outside india for the goode, services or fac11lttes which the assessee deals in or provides in the oourse of his business or on distribution, supply or provision outside india of such goods, services or facilities or on preparation and submlsslon of tenders for the supply or provll!lion outside india of such goode, etc, or on furnishing to persons outside india samples or technical information or on performance of services outside india in connection with, or incldental to, the execution of any contract for the supply outside india of such goods, services or facilities will not qualify for the weighted deductton sub-clause (b) seeks to substit'1te a new explanation for explanatlon 2 below sub-clause (b) of sub section (l) of section 35 b  the new explanation seeks to rr ake it clea r that expenditure which is in the nature of purchasing and manufacturing expenses ordinarily debitatie to the trading or manufacturing account and not to the profit and 108s account will not qualify for the weighted deduction under sub-section (1) of section 35b these amendments will take effect from 1st april, 1981 and wtu acoordingly apply in relation to the assesttment year 1981-82 and subsequent years clause 9 seeks to insert a new clause (ha) in snb-sectton (1) of section 36 of the incometax act under the proposed amendment, an assessee carrying on a business or profession will be entitled to a weighted deduction in respect of any salary up to rs 20,000 per annum paid by him to an employee who as at the end of the relevant previous year was totally blind or who is subject to or suffers from a pennanent physical disablltty, other than blindness, which has the effect of reducing substantially his capaoity to engage in a gainful employment or occupation the weighted deduction would be allowed only if the employer produces before the income-tax officer in respect of the first asbessment year for whi::h the deduction is claimed under this clause, in the case of an employee who is totally blind, a certificate as to his bltndnes8 from a registered medical pracutioner being an oculist and in the case of an employee suffering from any permanent physical disability 8 certificate from a registered medical practitioner this amendment will take effect from the 1st april, 1981 and will accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 10 seeks to amend section 37 of the income-tax act under the existing provisions, a specified percentage of the aggregate expenditure on advertisement, publiclty and sales promotion is disallowed in the computation of the taxable profits certain specified kinds of expenditure on advertisement, publioityand sales promotion, such as, on advertisement in any small newspaper, statuto~ notices, participation in trade fairs or exhibitions, etc, is not taken into account for this purpose similarly, entertainment expenditure in connection with advertisement, publicity or sales promotion is governed by the other provisions of the income-tax act further, any expenditure on advertisement, publicity or sales promotion for the purpose of the business of a new industrial undertaking is exempted from the provisions of this section for an initial period of three years under the proposed amendment, the provisions relating to the disallowance of the specified percentage of expenditure on advertisement, publicity and sales promotion as also other related provislons,wlll be omitted these amendments will take effect from 1st april, 1981 and will apply in relation to the assessment year 1981-82 and subsequent years clause 11 seeks to amend section 41 of t~ income-tax act sub-clause (a) seeks to insert a new proviso in sub-section (2) of section 41 under the existing provisions, where l'1y building, machinery, plant or furniture owned by the assessee and used for the purposes of business or profession is sold, discarded, demolished or destroyed the excess of the aggregate moneys payable for such asset and its scrap value over its written down value is charged to tax as the income of the business or profession of the previous ye8r in which the moneys payable for such assets became due under the proposed amendment, where any asset representing expenditure of a capital nature whic'h has been used for scientific research (feferred to in clause (c) of new subseotion (2b) proposed to be inserted in section 35 by clause 11 and is used for the purpose of the business after it ceases to be used for the purpose of scientific research, is sold, discarded demoushed or destroyed, the provisions of sub-section (2) of section 41 wlll apply with the modification that for the words "actual cost", the words "actual cost as increased by 25 per cent " were substituted in other words, the difference between the enhanced actual cost and the written down value will be chargeal:ie to income-tax under sub- section (2) of section 41 sub-clause (b) seeks to amend sub-section (3) of section 41 under the existing provisions, where a capital asset referred to in section 35(1)(1v) and used for the purpose of scientific research is sold without having been used for any other purpose the excess of the sale proceeds together with the deduction allowed under section 35(2)(ia) over the actual cost of the capital asset or the amount of th, deduction so admisbible, whichever is less, is charged to tax as the income of the business or profebslon of the previous year in which the sale took place under the proposed amendment, the provisions of sub-section (3) of section 41 will also apply in relation to the capital expenditure referred to in clause (c) of new subsection (2b) of section 35 proposed to be inserted by clause 7 of this bill these amendments will take effect from 1st april, 1981 and will accordingly apply in relation to assessment year 1981-82 and subsequent years clause 12 seeks to insert a new section 80aa in the income-tax act with reference to deductions under any section included under the heading "c_deduction,s in respect of certain incomes" in chapter vi-a of the income-tax act the new bection seeks to clarify that the deductions provided under any such section with reference to the inclusion in the gross total income of an assessee of any income of the nature ~entioned in that section wul be allowed with reference to the net amount of income of that nature included in the gross total income of the as88s888 and that the amount of income of that nature 80 included will be computed in accordance with the provisions of the income-tax act this amendment will take effect retrospectively from the 1st april, 1968 and will accordingly apply in relation to the asselsment year 1968-69 and subsequent years clause 18 seeks to amend section 80c of the income-tax act relrung to deduction in respect of ufe insurance premia, contributions to provident fund, etc sub-clause (a) seeks to substitute sub-section (1) of section 8oc under the proposed amendment, the quantum of deduction from taxable income in respect of long-term savings through life insurance, provident fund, etc, will be raised so as to allow a deduction of the whole of tne first rs 5, 000 of the qualifying savings, 50 per cent of tne next rs 5 000 and 40 per cent of the balance however, the nnnetary limit of the savings qualifying for tax relief will remain \dlc'hanged at 30 per cent of the gross total income or rs 30,000, whlchever is less sub-clause (b) seeks to amend sub-section (4) of section 8oc under the existing provisions, the monetary limit of the savings qualifying for tax reuef in the case of an author, playwright artist, musician or actor can be varied by njies under the proposed amendment, it will be possible to extend the benedt of this higher deduction in respect of long-term savings to sportsmen (including athletes) as well these amendments wul take effect from 1st april, 1981 and wul accordingly apply tn relation to the assessment year 1981- 82 and subsequent years clause 14 seeks to omit, with effect from the 1st apru, 1981, section 80ff of the income-tax act relating to deduction in respect of expenses on higher education of specified dependant relatives the deduction wul not, therefore be avanatie for the assessment year 1981-82 and subsequent years clause 15 seeks to amend section 80g of the income-tax act relating to deduct10n in respect of donations to certain funds, charitable institutions, etc sub-clause <a> seeks to substitute sub-section (4) of section 800 under the proposed amendment, it is being clarified that the deduction in respect of the aggregate sums of donations to specified funds and charitable institutions in sub-section (2) of that section sball be limited to the smaller of the ceiling limits specifled in ~e new sub-section (4) bub-clause (b) seeks to insert a new sub-section (sa) in section 8og under the proposed amendment, where a deduction in relation to any sum specifled in subsection (1) of section 80g is claimed and allowed under thts hctton for any assessment year, deduction in relation to such sum shall not be allowed under any other provision of the act for the same or any other asesment year the amendment made by lub-clause (a) wni take effect retrospectlvely from 1st april, 1978 and wni accordingly apply in relation to the aselsment year 19'78-79 and subsequent years the amendment made by sub-clause (b) wul take effect retrospeotively from 1st april 1962, that is to say~from the date of commencement of the income-tax act, 1981 clause 16 seeks to insert a new section 80-1 tn the income-tax act relating'to deduction in respect of profits and gains from industrial undertakings, etc, established after a certain date sub-section (1) provides that where the gross total income of an assessee includes any profits and gains from an industrial undertaldng or a ship or the business of a hotel, he shall be allowed a deduction in the computation of the taxable income of 25% of such profits and gains in the case of a company and 20% in the case of other categories of assessees sub-section (2) provides that this section will apply to an industrial undertaking which fulfils certain conditions, namely, it is not formed by the splitting up, or ftte reconstruction, of a business already in existence: it is not formed by the transfer to a new business of machinery or plant previously used for any purpose: it manufactures or produces articles or things, other than an article or a thing of low priority speelfied in the eleventh schedule to the income-tax act: it begins to manufacture or produce articles or to operate one or more cold storage plant or plants at any time within four years from 1st april, 1981 or such extended period as may be notified in the offielal gazette: and in th, case of an industrial undertaking which manufactures or produces articles, the undertaking employs at least 10 workers in a manufacturing process carried on with the aid of power or employs at least 20 workers in a manufacturing process carried on without the aid of power it bas heed specified that in the case of a small-scale industrial undertaking, the benefit of this tax holiday will apply even if the undertaking manufactures articles of low priority specified in the eleventh schedule ,or the purposes of this sectioo, recodcfitiooed imported machinery or plant will be regarded as new sub-section (3) provides tbat the provisioos of this sectioo apply in relation to a ship which fulfils certain conditions, namely, it is owned by an ilxiian company and is woolly used for the purposes of the business carried on by it: it was not prior to the date of its acquisition by an indian company owned or used in indian territorial waters by any person resident in iodla: and it is brought into use by the indian colq)8lly at any time within the period of four years from 1st april, 1981 sub-section (4) provides that the provisions of this section apply to the business of an approved hotel wl1icll fulf1ls certain conditions, namely, it is not formed by the sputting up or the reconstruction of a business already in existence or by the transfer to a new business of a building previously used as a hotel or of any machinery or plant previously used for any purpose; the business of the "'ote1is owned and carried oil by an indian oompany with a paid-up capital of not less than rs5 lakhs; and the business of the hotel starts functioning after 31st march, 1981 but before 1st april, 1985 sub-section (5) provides that the benefit of this tax holiday wlll be avatlable to an industrtlll undertaking, or a ahlp or the business of a botel for seven assessment years beginning with the initial as8essment year in the case of a co-operative aoctety this benefit wul be avallable for a total period of ten assessment years beginning with the inittal allsessment year sub-aection (6) provides tbat for the purpose of computing the deductlon at the specified percentage for the assessment year immediately succeeding the lnittal assessment year and any subsequent assessment year, the profits and gains will be computed as if such business were the only source of income of the assessee in all the auessmeot years for which the deduction at the specified percentage under this 8ectlon is avallalie sub-section (7) provides that in the case of assessees,other than companies or co-operative socteties,whlch are statutorily required to get their accounts audued, the deduction rt the specified 'percentage will not be avrllable unless the accounts of such rssessee arc audited by a chartered accountant or rny other qualified accountant and the assessee furnishes, along with the retul'ls of income, the report of such audit in the form to be prescribed in the income-tax rules sub-section (8) provides that where the goods held for the purposes of the wsiness of the industrial undertaking, ship or the hotel are transferred to any other wstness carried on by the assessee or where the cost of the goods held for the purposes of any other wsiness carried on by the assessee and transferred to the business of the industrial undertaking or the hotel or the operation of ship does not correspond to the market value of such goods as on the date of the transfer, then, the profits and gaills of the industrial undertaking or the ship or the weiness of the hotel wul be computed 88 if the transfer of goods had taken place at the market value on the date of the transfer the income-tax officer has been empowered to compute such profits and gains on a reasonable babis, if the computation of profits on the aforesaid basts presents any exceptional dlfficulty sub-section (9) empowers the income-tax officer to determine the reasonable profits that could be attributed to the industrial undertaking or ship or the business of a hotel in a case where awing to close connection between the assessee and any other person or for any other reason, the course of the wslness is so arranged that the business of the industrial undertaking or the ship or the business of the hotel derives more than the ordinary profits which might be expected to arlse in that business sub-section (10) provides that the central government may, after making nece8bbry inquiries direct by notification tn the official gazette that the exemption conferred by this section will not apply to bny class of industrial undertakings with effect 'from a specified date this amendment will take effect from 1st april, 1981 clause 17 seeks to amend section 80j of the income-tax act under the existing provisions, the capital employed in the business of the industrial undertaking or ship or the business of hotel is computed in the manner laid down in the income-tax rules, 1962 under the proposed amendment, the capital employed in such industrial undertaking, ship or the business of the hotel will be computed in the manner specified in the new sub-section (la) sub-clause (b) seeks to insert a new sub-section (la) in section 80j clause (1) of sub-section (la) provides that the capital employed in an industrial undertaking or the business of the hotel will be computed in accordance with the provisions of clauses (n) to (iv) except as otherwise expressly provided in that section and the capital employed in the ship will be computed in accordance "nth clause (v) clause (ll) of 8ub-section (la) provldes that the aggregate of the value of the assets as on the 1st day of the computation period of the undertaking or of the business of the hotel will first be ascertained in the manner laid down therein for this purpose, computation period means the period for which profits and gains of the industrial undertaking or the business of the hotel are computed for the purposes of determining the income under the head "profits and gains of business or profession" the value of the assets is taken at their written down value if the assets are entitled to depreciation or ~t their actual cost if the assets are not entitled to depreciation the assets such as casb-inhand or bank are taken at their actual amount clause (id) of sub-section (la) provides that from the aggregate of the value of the assets, the aggregate of the borrowed moneys and debts owed by the assessee on the 1st day of the computation period will be deducted the debts owed will include liability in respect of the specified taxes clause (v) of sub-section (la) provides that the capital employed in a ship will be taken at the written down value of the ship as reduced by the aggregate of the amounts owed by the assessee o!l the valuation date on account of moneys borrowed or debts incurred in acquiring that ship these amendments will take effect retrospectively from 1st april, 1972 and will apply in relation to assessment year 1972 -73 and subsequent years  clause 18 seeks to amend section 80jj of the income -tax actunder the existing' provisions, an assessee who derives profits and gains from a busine8s of livestock breeding or poultry or dairy farming is entitled to a deduction, in the computation of taxable income, of an amount equal to one-tbird of the aggregate amount of such profits and gains or bs10, 000, whichever is higher where the aggregate amount of such profits and gains does not exceed rs 10,000, the whole of such profits and gains are exempted from income-tax under the prq>osed amendment, a deduction will be allowed, in the computation of total income, of an amount equal to one-third of the aggregate of the profits and gains derived from these soorces or rs15, 000, whichever is less this amendment will take effect from 1st april, 1981 and will accordingly apply in relatlo1l to the assessment year 1981-82 and subsequent years  clause 19 seeks to make an amendment in section 80l of the income-tax actunder the existing provisions, income from specifled financial assets cpal1f1es for exemption from income-tax up to bs3,ooo in the case of individuals, hindu undivided families and certain associations of persons the financial assets specified in this behalf include deposita with a ftoancial corporation engaged in providing long-term finance for idduatrial development in india which is approved by the central government for the purposes of section 36(1)(vil1) of the income~ act the proposed amendment seeks to provide that deposits with a public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of residential hcuses in india and approved by the central government for the purposes of section 36(\)(vui) will also quaufy for inclusion in the categories of financial absets income from wblch qualifies for deduction up to rss,ooo under this section tbls am_mmt will take etrect from 1st apr1l los), and will accordindy apply in relatioll to the a8lessment year 1981-82 and subsequent year8 clause 20 leeks to amend lecuon 80rr of the income-tax act under the existing provisioll8, a resident individual being an author, playwright, artist, musician, or actor wlao derives idcome in the exerc1be of hi protesim fj;'om foreign solrees and receives such income in india or br1dg8 it ldto india in i»relp exobldp is _utled 1:0 deduct 26 per cent of the income so received or brolgbt in computing h18 totalinoome under &:be pl'q)oeed ameadmeut, the benefit of thia provi8101l 111 betq exteaded to eportma_ (ldcludlllg athletes) tbja ameadmeat will take effeot from 1a april, 1880 aad will aoconuqly iippl)' til relatlo1l to the u8smeat year 1980-81 ad _bhqu_t yean clailee 21  ks to amead aeouoil sot of the iaoome~ act relatinl to dedaouoilid reapect «iollg-term capital pid8 iii the cue 01 doil-oorporate a  udder the utstidg proviaicm, wbere the 11'08 total ldci<me of a doil-corporate  sil88 does dot exceed be 10, 000, tbe whole 01 the loag-term capltal pldl 18 allowed u a deduoticm in tbe colllj)lltaucm of the taxable idoome udder the ameddme, thia pravtl101l 111 prq)osed to be deleted in vie of the propoeal for the ra1iilq of the edjdp-uod limit ld the cue of dcm -corporate uaeea, other thad re gi8tered firme, from bal0,ooo to 11112,000 this amendment wlll take effect from tat april, 1981 add will acoord1d&ly iipply iii relatloll to the assessment year 1981-82 and subeeqlleot years clause 22 seeke to amend eect101l 80n of the ldcame-talt act relating to deduotloll in respect of wimddp from lottery udder the eldlludg pl'ovllicdb, where tbe! gross total bloome of a non-corporate  -ssee doe not exceed as 10, 000 the wbole of the income by way of wlddlnp from , lottery i allowed aa deglct101l intbe e<aputattoll of the taxable income under the ameadment, thle pro'v18101l i propoeed to be deleted in new of the pl"qp~ for ralalllg tbe exemptloll ltmit fram iii 10,000 to ri 12,000 thil amendment will take effect from 18t april, 1981 add will accordldgly apply iii relatioll to the assessment year 1981-82 and ilubee«pent yean clauae 23 eeeka to amend sect101l 80u of the inoome-tu act under the exi8t1ni provlelc1ll, - reatdedt lddtvtdual who la totally budd or who adler from a permanent phy8lcal dloablllty (other than bunddeu) wbich baa the effect of reduc-iilg bublrtadtlally bil capacity for edpging ill p1dt1 employment or oocupatioll, ia emlued to a deglotloo of ba 5,000 in the computatloll of hlii taxable income udder the p~08ed amedlim8llt, the bdlbldt of deduct1c1l la prq>oeed to be rallied from ba 5,000 to ra10, 000, thia amendment wtll take effect frem lat april, 1981, aad wlll accordlqiy iipply in relatim to the asaelament year 1981-82 aad iubmqueat yean clause 2' seeks to wert a dew li1b-ectlo1l (9) 111 aeotiod 139 « the ~come-w act the explanation to tbe new sub-eect101l spells bit the condttlodb which wtll han to be illfilled in order to enlure that a return 11 dot a defeetive return the dew ii1b~cltioll empowers the income-tax officer to idtlmate the defects to the ueee who hal bled a defectlye return and glve him ad qpportudl~ to l'8ctlfy the 8&d1e wltbtd meed dap or withid iuch luther period  the idcome-tax offioer may allow iftbe unee fail to rectify those dejecta; wttbld irlcb period, the ldceme-tu officer may treat the return as an invalid return in cue the defect are rectwed after the expiry of the period allowed but before the aseement le made the ldoome4x officer may ooadoae the delay and treat the return al a valid retum where a return 18 treated as layalld by reuoil of the fa1lure of the u  to rectify the deteota, the  will be deemed to have failed to me the return thl  will tab eftect from the 1st september 1180 ad wul ap&i1id njltioa to rlluru flled aft  that dille ctse 26 seea to amead  cum 143 oftha ldoome-tu ad udder the atattnl provistoas, the ldoclide-ta offtcer may, wttilaat requiring the pruiadoe of the aue  or the prodadtod by bjm of mdedce ld support of the relul'il, u  the total idcome or loes of the usess  oil tile bas18 of the retum after maidilg speoifted adjustmeats to the ldeome or loes declared id the retum the iiiop,osed amendmt seelal toomit the recplrem_t to make the followldllldjutmeuts to the ldcome or loa declared ld lte remm damely:-(1) allowaoe of lui)' de&acttoll, allowance or rellef wb1oh, oil the bas of tdformauoa avallable id the retum, accollnts and docllmedtii is, prima fac1e, admslble, bat bu nca been claimed id the return; (11) dlallowbdce of luly decuctloll, allowlulee or relief cla1llled in the retum but wblch, oil the basts of the ldform8tiod avauable in the retum, accounts add documents, la, prima facie, ldadmlsslble the  amendments w111 take effect from lilt april, 1980 and wul accordingly apply til relaucm to the u"slldlent year 1980-81 and sub8equeat yean clau  26 11880 to 1n8ert a new aub-eection (sb) in section 155 of the income-tu: act udder the proposed amendmeat, where an a  ee who has olailled a demctlon id respect of ad)' apeddlture on scientific neeareh under mb-lleoticlll (lb) of aect10ll 35 pl'q)omid to be idserted by clause 7, fails to iimlah a certificate of complettclll of the approved pj'ol1'&llld1e within one year of the period allowed for its completion by the preacribed 8iitbority tjle deduction orig1dally made in excess of the expenditure actually incurred·wll1 be deemed to have been wroqly made for this purpose, prov1ai0d8 of _ctioa 1m relating to rectification of mistakes will apply and the period of four years for ameadment of orders specified ill iiib-section (7) of that section will be reckoned from the ead of the previous year id which the period allowed for the completion of the pi'oiftiiljd8 by the prescribed authority ellplred tbi8 ameddment wul take effect from lilt april 1981 add will accordingly apply in relat10e to the usessment year 1981-82 and subsequent years cia  27 seeks to ameud section 164 of the income-tax act relatidg to the taxation of dlacretlonary truats 8lab-clauae (a)(i) seeks to ameud sub-section (1) of section 164 under the existldg provtlod8 the tdcome received by the trustees of a discretionary trust is chargeable to ldcome-tax at the nat rte of 66 per cent or the rate wblch would be applicable u auch 1dc0llle were the total ldcome of ad associatioll of per8oll8, whichever course  would be more bedeftclal to the revenge under the propqaed amendment, the income received by the trubtees of - discretionary trust would be chaipable at the rate of idcome-tu, 1dc1adtdg aarobarge applicable to the highest slab of income of ad association 01 persodb •• apeclfted in the finance act of the relevadt assessment year - sub-clause (a)(11) seeks to amend the proviso to sub-section (1) of section 164 the first amendment seeks to provide that the provisions of sub-section (1) will not apply to a discretionary trust in which none of the beneficiaries has any other income chargeable to income-tax and none of them is a beneficiary in any other trust for this purpose done of the beneficiaries should have income assessable under the income- tax act exceeding the exemption l1mlt for the relevant assessment year the second amendment seeks to amend clause (11) of the proviso to section 164(1) under the existing provisions where a discretionary trust is declared under a wui the income of the discretionary trust is charged to tax at the rates appl1cable to an association of persons and not at the nat rate of 65 per cent under the proposed amendment the benefit of concessional tax treatment will be withdrawn if the person declarlng such trust has declared any other trust by will &lb-clause (b) seeks to amend sub-section (3) of section 164 &li>-clause (b)(i) seeks to provide that where the property is held under trust in part only for charitable or rel1gious purposes and the income which is applicable to other purposes is receivable on behalf of beneficiaries whose shares are indeterminate or unknown the tax chargeable would be the aggregate of the tax on that part of the income which is applicable to charitable or rellgious purposes,to the extent it is not exempt under sectlbn 11 of the income-tax act,at liae rates appllcable to an associatlon of personsi and the tax on the income which is applicable to other purpolles would be at the rate of income-tax appucable to the highest slab of income of an association of persons 88 specified in the finance act of the relevant assessment year sub-clause (b)(ll) seeks to amend tile proviso to section 164(3) th~ first amendment seeks to substitute clause (1) of the proviso by a new clane under the proposed amendment the benefit of the proviso would be available in respect of that part of the income which is not appllcable to charitable or rellglous purposes if nolle of the beneflclarles bas any other income chargeable under the act and nolle of them is a beneficiary under any other trust the second amendment seeks to amend clause (it) of the proviso under the proposed amendment the benefit of the collc"essional tax treatment declared by will by a person w1ll be withdrawn if such person has declared any other trust by wui sub-clause (c) seeks to insert two new exp)'neu9d8 in such-section (3) of section 184 under explbdatlon i, any income in respect of which the persods mentioned in sectlon 160(i)(ul) and (tv) are liable as representative assessee or any part thereof wul be deemed as not being spec1ft\jal!y receivable on behalf or for'the benetjt of 8dy one person unless the person on whose behalf or for whose benefit such income or 8uch part therecl is receivable during the previous year is expressly mentioned in the order of the court or instrument of trust or the wakf deed and is identifiable on the date of the order, ln8trument of trust or the wakf deed further the lndlvldual shares of the beoeficlarle wlu be deemed to be lndetermlnate or unlmown udles8 the individual shares of such beneflclaries are expressly stated in the order of the court or an instrument of trust or the wakf deed and are ascertainable on the date of such order lnitrument or deed new explanation 2 deflnee the expre8s10n "maximum marginal rate" to mean the rate of income tax including surcharge, if any apstlcable to the blghest slab of income of an 88soclatlon of persons 88 specified in the finance act of the relevant year these amendments will take effect from lst aprll 1980 and will aooordjncly apply in relation to assessment year 1980-81 and subsequent year •• clause 28 seeks tc insert a new sub-section (9) in section 171 of the income-tax act the new sub-section seeks to provide that notwithstanding anything contained in the other provisions of section 171, where any partial partition has been effected after 31st december, 1978 in relation to a hindu undlyided famuy which had been assessed as undivided certain consequences will follow clause (a) of sub-section (9) provides that it wui not be competent for the incometax officer to inquire into an)' claim of such partial partition which has taken place and no finding will be recorded under sub-section (3) of section 171 that such partial partition had taken place where any such finding has been recorded under subsection (3) of section 171 to that effect either before or after 18th june 1980 (the date of introduction of this bul in the house of the people) it wtll be treatci as null and void clause (b) of sub-section (9) provides that the famuy wui contlnup to be liable to be assessed as a hindu undivided famuy as if no partial partition had taken place clause (c) of sub-section (9) provides that each member or group of members of such famuy immediately before such partial partition and the famlly wui be jointly and severally liable (or any tax, penalty interest, fine or any other sum payable under this act in respect of any period preceding or succeeding such partial partition clause (d) of sub-section (9) provides that the severalliabulty of any member or group of members wui be computed in accordance with the portion of the joint famuy property which has been allotted to him or such group at such partial partition this amendment will take effect from 1st april, 1980 and will acoordingly apply in relation to the assessment year 1980-81 and subsequent years clause 29 seeks to substitute clause (c) of sub-section (2) of section 208 of the income-tax act in the case of a person, other than a company, local authority or registered firm, advance tax is payable only where the income of the person subject to advance tax exceeds &10,000 the proposed amendment meeks to raise this llmit from bs10, 000 to ra 12, 000 this amendment will take effect from 1st september, 1980 clause 30 seeks to amend sub-section (4) of section 209a of the income-tax act under the exlstlng provisions, an assessee who has made a statement or estimate of advance tax is required to file an estimate or a revised estimate of advance tax if the tax on his current income is likely to exceed the amount of advance tax on the basis of such statement or estimate by thirty-three and one-third per cent on or before the date on which the last instalment of advance tax is payable by him under the proposed amendment, a company wlll be required to rne the higher estimate of advance tax if the tax on its current income exceeds the advance tax payable by it oil the basis of its statement or estimate by twenty per cent this amendment will take effect from 1st september 1980 c181188 31 seeks to amend _b-sectloo (3a) of sectlon 212 of the 1dc0000-tax act udder the existidg provtal0ll8, ad usessee who is requlred to pay dvuoe tax in pursuance of ad ordel' under eectlod 210 made by the ldcome-tax officer 1 required to me an estimate of c:lyadce tax if the tax oil his current income is llkely to exceed the advance tax demapcjed from him by thirty-three and ode-third per cent,on or before the date on which the last ldatalment of adv8d08 tax la payable by him under the proposed amendment, in the case of a company, it will be necessary to rue the higher estimate of advance tax if the tax oil current income exceeds the ac:iyance tax demanded from it by twedty per cent tbis amendment wul take effect from 1st september, 1980 clause 32 seeks to amend sub-aectlon (1) of section 215 of the 1do0me-tax act under the existing provlaiods, where the c:iyadoe tax pald by an ass  ciurtnc the finadcial year on the basis of his own estlmate is leas tbad seventy-five per cat ot the assessed tax, 1 e, tax oil the bast of the reaular assessment a recmced by tax decilcted at aoul'ce, be is required 110 pay intereat at the rate of twelve per cent oil the difference between the asseeaed tax add the advuoe tax ctually pald from 1st apru of the assessment year to the date of the replar assessment under the propoeed amendment, in the case of a oompuy,auch interest would be cbarpable if the advance tax paid is less than eigbty-tbree and ode-third per cent of the assessed tax tbis amendment wlll take effect from let september, 1980 c18l188 33 seeks to 8jd8dd sectlon 273 of the income-tax act under the ex1st1dg provislolls, where ad 88888s88 mea - false statement ot advance tax, he is hable to pay penalty of an amount which is dot 188s thad ted per cent but whleh does dot exceed ode add a half times the amount by which dvadoe to aatually paid by him falls sbort of the seventy-five per cent of the a  el tax or the advlulc8 tax payable by him ld accordadce with a correct and oojdp1ete statement, whichever 1 ie ••• further, an 88sesee who has faded, wubout reasonable ciwi8, to furnib a tatement of advanoe tax ls llable to pa,y penalty of an amount wblcb is not lea than ten per cent but which does not exceed ode and a half tljdu of sevaty-rv per cent of the u  sed tax under the propoaed amendment, in the cue of a company, the penalty wlll be calculated oil the basis of eighty-three and cme-thlrd per cent of the uaesed tax u against seventy-ftve per cent in the case of other catefrl88 of asse  under the existing provlsiona, where an  888 baa fued a fal  estimate of advuoe tax, he l8 llable to pa,y a penalty of id amount wb1cb 1 not ie •• thad ten per oeilt bat which c:loea dot exceed one and a half times the udoudt by wb1cb the advance tax paid by btm talls sbort of seventy-flve per cent of the as  ed tax or the tax parable in accorcladce with a tatement or a nottc lsued to him by the income-tax oftloer whlchever is 18 further, where an 88888888 baa rued - hlper estimate which 18 fale be 1 liable to pay a peulty of id amount wb1ch i not 188 than  per mdt but whlch doe not exceed one and a ball tlme8 the amount by which the adyance tax paid by him falls bort of seventy-five per cent of the uaessed tax jurther wbere a new sse  baa wltbout r8uollable c8l18e faded to furntsb lid eumate of ady, tax be i uable to pa,y a paalty of an ilidoudt which i8 not 1 ••• than t4id per cent but which doe dot uceed ode and a ball times the 18venty-rve per oeut of the useued tax in additiod, where an  see baa without reasonable c8ll88 faded to furn18h a higber estimate of advuce tax, be t hable to pay penalty wbtch 1 not leas thad ted per 08ilt bllt wb1ch does dot aceed one idld a half times the adiouilt by which /he tu: payable in acoordance wlth a statement or estimate or the tax payable in pursuance of a dottce lasued by theldcome-tax atlcer falls short of 88v81lty-five per cent of the asaeaaed tax under the proposed ameudmeut, in the aforesaid cases where the assessee is a company the above limit of s8y81lty-five per cent of the assessed tax is being raised to elghty-three add one-third per cent theae ameddments wu1 take effect from 1st september, 1980 ciilll88 34 eeeka to amedd rule 6 of part a of the fourth schedule to the ldcome-tax act udder the ameddment, the exlsttdg provision to charge to tax the interest oredited to the recognised provident fund of lui employee in excess of one-third of the salary of buch employee is proposed to be omitted this amendment will take effect from 1st apru, 1981 add ww accordingly apply in relation to the &8aeasjdent year 1981-82 and subsequent years clause 35 seeks to make certain amendments of a consequential nature in dllferent pl'ov'lslons d the income-tax act the am8ddments in sub-clau8es (1) aad cu) are conseqaenual to the 81da1dmat made to sectioa 32 of the income-tax act under clause 6 of the bill the amendments in sub-clauses (ul) to (vi) are consequential to the insertion of new section 80-1 in the income-tax act under clause 16 of the bill these ameddments will take effect from 1st april, 1981 add will accordldgly apply in relation to the assessment year 1981-82 and subsequent years aause 36 seeks to amend the deflnluon of "assets" ld clause <e) of sectlon 2 of the wealth -tax act the effect of the proposed amendment wul be that in relation to the assebsment year commencing on the 1st day of april, 1981 and subsequent years "assets", for the purposes of wealth-tax, will not include agricultural land otber than land comprised in any tea, coffee, rubber or cardamom plantatlon and any buudlng owned or occupied by a cultivator of or receiver of rent or revenue out of agricultural land other than land comprised in any tea, coffee, nlbber or cardamom plantatlon clause 37 seeks to amend section 5 of tbe wealtb-tax act sub-clause (a) seeks to aubst1blte clause (tva) of sub-section (1) of section 5-under the prollosed amendment, tbe value of agricultural land comprised in any tea, coffee rubber or cardamom plantations belonging to the assessee will qualify for exemption from wealth-tax up to rb 1,50,000 along with the value of dtber specified financial assets sub-clause (b) aeeks to amend clause (ivb) of sub-aection (1) of section 5 under the proposed amendment, tbe value of one buuding or a group of buildings being a storebouse or a buuding used for keepldg livestock add situated on or in the vicinity of bd1' agrloultunlland oomprl8ed in tea, coffee, rubber and oardamom pladtatlons wlll be exempt from wealth-tax sub-clause ,(c) seeks to amend clause (vilib) of sub-section (1) of section 5 under the proposed amendment, the value of trees standing on an agricultural land other than that comprised in any tea, coffee, rubber or cardamom plantation will be exempt from wealth-tax sub-clause (d) seeks to substitute clause (xxvll) of sub-section (1) of section 5 under the existing provisions any deposit with an approved financial corporation engaged in providing long-term finance for industrial development in india qualifies for exemption from wealth-tax up to rs 1,50,000 along with the value of specified financial assets under the proposed amendment, the benefit of this tax concession wul be extended to any deposit with an approved public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes these amendments will take effect from 1st april, 1981 and w111 accordingly apply in relation to assessment year 1981-82 and subsequent years  clause 38 seeks to insert a new explanation in aub-section (1) of seotlcm 7 of the wealth-tax actunder the proposed explanation any price or other consideration for which any property may be acquired by or transferred to any person under the terms of a deed of trust or through or under any restrictive covenant in any instrument of transfer wlll be disregarded for the purpose of determining the market price of such property as on the valuation date this amendment w111 take effect !rare 1st april, 1980 and w1ll accordingly apply in relation to the assessment year 1980-81 and subsequent years  clause 39 seeks to insert a new section 20a in the wealth-tax actthe new section 201 seeks to provide that where any partial partition has been , effected after 31st december, 1978 by a hindu undivided family which had hitherto been assessed as undivided, certain consequences will follow clause (a) of section 2m provides that such family wlll continue to be hable to be asse8sed under the wealth-tax act as if do partial parutlod had taken place f , clause (b) of section 20a provides that each member or group of members of such famlly immediately before such partial partltloo, as also the famlly (welf, will be jointly and severally liable for any tax, penalty, interest or any other sum payable l'dder thewealtb-t&xact by the family in respect of any period preceding or succeeding web partial partt tion clause (c) of section 20a provides that the several liab1l1ty of any member or group of members for the purposes of clause (bj wlll be computed accordidl to the portion of the joint family wbtcb bas been allotted to him at the tlj:pe of partial partition 1he explanation to section 20a leeks to provide tlaat for the purposes of this sectioq,"partial partition" will have the meaning  signed to it in clause (b) of the explanation to section 171 of the income-tax act this amendment will take effect from the 1st april, 1980 and wlll accordinpy apply in relatioll to the assessment year 1980-81  clause 40 seeks to amend section 21 of the wealth-tax actsub-clause ca) seeks to amend sub-section (1) of section 21 under the proposed amendment, the provi81ons of sub-section (1) bave been made subject to the provisions of new sub-section cia) proposed to be lnserted by sub-clause (b) sub-clause (b) seeks to insert a new sub-section (ia) in section 21 the new subsection leeks to provide that where the aggregate value of the interests of the beneficiaries falls short of the total value of the usets held by representative uses88es, then, in addition to the wealth-tax payable by the representative assessees, such as, the court of wards, administrator general, official trustee, receiver, manager or other person, the excess value of such assets will be charged to wealth-tax as if it wu the net wealth of an individual citizen of india 'resident in india and charged to tax at the rates specified in part i of the first schedule or at the rate of 3 per cent •• whichever course is beneficial to the revenue sub-clause (c) seeks to "8iilend sub-section (4) of section 21 item (i) of this sub-clause seeks to provide that in the case of assets held by a discretionary trust, wealth-tax shall be charged at the rate applicable to an individual citizen of india and resident in india at the rates specified in part i of schedule i or at the rate of 3 per cent (as against 15 per cent huherto) whichever course is more beneficial to the revenue item (u) of this sub-clause seeks to amend the proviso to sub-section (4) under clause (i) of the proviso, the wealth-tax is charged at the rates applicable to an individual citizen, resident in india if the assets are held by the discretionary trust declared by wlll under the proposed amendment, the concessional tax treatment will be applicable only if such trust is the only trust created by the person by wlll a new clause (ia) is proposed to be inserted in the proviso the new sub-clause seeks to provide that where none of the beneficiaries in a discretionary trust has net wealth exceeding the esemption limit or none of them is a beneficiary in any other trust, wealth-tax sball be charged at the rates specified in part i of schedule i and not at the nat rate of 3 per cent as proposed a new explanation is proposed to be added to this sub-section under the new explanation, the shares of the beneficiaries will be deemed to be indetermina~e or unknown unless their shares are expressly stated in the order of the court, or ldstrument of trust or deed of wakf and are ascertainable as such on the date of the order, instrument or deed these amendments will take effect from 1st april, 1980" and will accordingly apply in relation to assessment year 1980-81 and subsequent years clause 41 seeks to amend part i of schedule i to the wealth-tax act, 1957 under the proposed amendment, no wealth-tax will be payable in the case of individuals as well as hindu undivided families if their net wealth does not exceed re 1,50000 however wealth-tax payable shall in no case exceed 5 per cent of the  amoudt by wblcb the net wealth exceeds rs 1,50000 these amendments w111 take effect from 1st apru 1981 and wul acoordingly apply in relation to the asseflsment year 1981-82 and subsequent years clause 42 makes certain amendments in the gift-tax act with effect from tbe 1st day of april 1980 &ib-clause (a) of the clause seeks to amend the 'definition of ''transfer of property" qontained in clause (xxiv) of section 2 of the glft-tax act to make it clear that the exercise of a power of appointment would amount to a transfer irrespective of whether such power i8 general or 8pecial or su~'ect to any restrictions as to the perboils in wbose favour the appointment may be made sub-clause (b) seeks to amend section 4 of the gift-tax act so as to provide that where a person who bas an interest in property as a tenant for a term or for life or a remainderman surrenders or relinquishes his intere8t in the property or otherwise allows his interest to be termiuted without consideration or for a oonsideration which is not adequate the value of the interest or as the case may be the amount by wbich such value exceeds the consideration received will be deemed to be a gift made by such person clause 43 8eeks to make certain amendments in the interest-tax act 1974 sub-clause (l)(a) seeks to omit sub-clause (iii) of clause (7) of section 2 of the interest-tax act relating to the definition of the expression "interest" the effect of the proposed amendment will be to include in tbe scope of the definltlon the amount of any interest accruing or arising on moneys lent for the creation of a capual asset in india where the agreement under wbich such moneys are lent provides for the repayment thereof during a period of not less than !'even years sub-clause (l)(b) seeks to amend clause (9) of section 2 of the interest-tax act 1974 relating to the definition of the term "scheduled bank " under the existing provisiolls a "scheduled bank" means the state bank of india a subsidiary bank of the state bank of india, nationalised banks specified in the banking companies (acquisition and transfer of undertakings) act 1970 or any other bank included in the second schedule to the reserve bank of india act, 1934-under the proposed amendment the term "scheduled bank"  111 also include certain specified industrial financial institutions the institutions specified in this behalf are the industrial finance corporation of india the industrial development bank of india the industrial re-conetruction corporation of india limited and the industrial credit and investment corporation of india limited sub-clause (2) seeks to amend sub-section (2) of section 6 of the interest-tax act the proposed amendment seeks to re-introduce the levy of interest-tax on scheduled banks in respect of the interest accruing or arising after 30th june, 1980 these amendments will take effect from 1st september 1980 and will accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 44 seeks to insert a saving provision to cover certain cases this clause seeks to provide that the provisions of section 80aa proposed to be inserted by clause 12 of the bill will not apply in respect of the assessment of an assessee for any particular assessment year if the supreme court has, for the said assessment year, in an appeal decided before the 18th june, 1980, that is to say the lntroduction of the finance (no2) bill, 1980,held that deduction under any section included under the heading "c deductions in respect of certain incomes,under chapter via of the income-tax act should be allowed in a manner different from that proposed in the new section 80aa clause 45 read will- the second schedule seeks to <a) raise t'he rates of import duty on -(1) cinematograph films, not exposed: and (ti) artlcles of baggage, (b) delete the entries in column (5) of the first schedule to the customs tariff act 10 respect of certain headings as these entries have become redundant, (c) to amend heading no 10002 relaung to articles imported by air or post for personal use, by way of clarification sub-clause (a> of clause 46 seeks to amend clause (f) of section 2 of tbe central excises and salt act to include lacquering or printing or both of plain containers in the definition of ''manufacture'' in relation to alum1n1um covered ~ item no 27 of the first schedule to this act sub-clause (b) of clause 46 read with tbe third schedule seeks -(a' to raise the rates of basic excise duty on -(1) soda ash, (2) caustic soda and caustic potash, (3) nitric, hydrochloric and sulphuric acids, (4) starch, (5) synthetic rubber; (b) to change the tariff description of -(1) item no26a relating to copper and copper alloys to include any alloy in whicb copper predominates in weight over each of t1:'e other metals witltln 1ts scope (2) item no26b reiaung to zinc to include any alloy in which zinc predordnates in weigbt over each of the other metals within its scope, (3) item no 27 a relating to lead to include any alloy in which lead predonmates in weight over each of the other metals w1thin its scops (4) item no 68 relating to goods not elsewhere specified in the central excise tariffto include witltln 1ts scope all such goods which are spec1f1cally excluded from the scope of any otber item either by an explanation to that item or by words of exolusion in the desoription of that item or in any other manner (5) item no16b relating to plywood to delete sub-items (1) and (11) thereof (6) item no 19 relating to cotton fabrlo to include ootton fabrlo oovered parually or fully with textile flocks wttbjn ita 8cope (7) item no22 relating to man--made fabrl08 to include man-made fabrlc8 oovered partially or fully with textile flocks wtthin ita 8cope (8) item no22f relating to mideral flbre8 and yarn by way of clartftoation (9) item no27 relating to alum1d1um to include within ita scope -(1) collapsible tubes prldted or lacquered or prldted and lacquered and (11) any alloy in which aluminium predominate8 in" weight over eaoh of the other metals; (c) to include mola8ses as a new item in the central excise tariff cla\lse 47 seeks to amend sub-section (1) of section 5 of the fldance act, 1980 to ra1ee the rate of special excise duty from five per cent to ten per ctllt of the duty of excise leviable under the first schedule to the central excises and salt act, 1944, read with any notul-' cauon issued by the central government for the time being in force clause 48 read with tbe fourth schedule seeks to ammd the first schedule to the additional duties of excise (goods of special importance) act, 1957 to include cotton and man-made fabrics covered parually or fully with textue flocks wltbin ita cope clause 49 of the bill seeks to amend certain proviioni of i8ction llb,tbe 1niertlon of which has been directed to be made in the central exctses and salt act by the cultom8, central excises "and central boards of revenue (amendment) act, 1978, 10 ai to cover specific situations including exports under claim for rebate clause 50 of the bill read with the flfth schedule seeks to amedd the customs act, 1962, the central excises and salt act, 1944 and the gold (control) act, 1988 to provide for an appellate tribunal to hear appeals arising in customs, central exctse and gold control matters these amendmenta will take effect from a date to be noufled by the central government; and different dates may be notuled for the amendments to differedt actt: clause 51 seeks to amend the first schedule to the indian post office act, 1898 with a view to revising the postage rates for letters and parcels clause 52 seeks to amend section 64 of the finance (no2) act, 1971 the effect of the amendment will be that the housing and urban development finance corporation limited (a company formed and registered under the companies act 1968 and wholly owned by the government) which was exempted from income-tax ana surtu uptotbe assessment year 1980-81 by the finance (no2) act 1971 w111 be exempted from income-tax and surtax for five more years, that is, up to the asse8sment year 1985-86 the proposed amendment will take effect from 1st april, 1980 clause 53 seeks to make certain amendments in the compulsory deposit scbeme (income-tax payers) act, 1974 sub-clause (a) seeks to insert a new clause (dd) in section 2 of the act the - amendment seeks to define the expression "income-tax officer" to mean the incometax uftlcer as defined in section 2(25) of the income-tax act and to include an inspecting assistant commissioner who exercises or performs the powers or functions conferred on, or assigned to, him under section 125 or section 125a of the income-tax act this amendment is proposed to oe made retrospectively from 10th july, 1978 sub-clause (b) seeks to insert a new section 7a in the act the amendment seeks to secure that for the purpose of exemption under section 5 of the wealth-tax act, 1957, the amount of compulsory deposit w1ll be regarded as a deposit with a banking company to which the banking regulation act, 1949 applies this amendment is proposed to be made :-etrospectlvely from 1st april, 1975 sub-clause (c) seeks to insert a new sub-section (2) in section 8 of the act so as to give an option to the depositor not to withdraw the amount of instalment or interest when it becomes due the new sub-section also provides that when the amount of instalment or ,interest is not so withdrawn, it wul carry the same rate of interest as is payable on tl compulsory deposit for the period for which it is retained this amendment will be effective from 1st april, 1981 sub-clause (d) seeks to amend section 10 of the act the proposed amendments seek to provide that penalty for failure to make, or for making a short-payment in the compulsory deposit made by the assessee will be levied only if the assessee did not have reasonable cause to make compulsory deposit or for making a short-payment of the compulsory deposit further, the income-tax officer will be given the discretion to levy the penalty this amendment will have retrospective operation from 1st april, 1975 sub-clause (e) seeks to amend section 11 of the act the effect of the proposed amendments is that the commissioner of income-tax (appeals) will be an authority for the purposes of the act and that no directions w1ll be issued by the board which will have the effect of interfering with the discretion of the commissioner (appeals) in the exercise of his appellate functions this amendment will have retrospective operation from 10th july, 1978 sub-clause (f) seeks to amend section 12 of the act the effect of the proposed amendment will be that an appeal from an order of the inspecting assistant commissioner who exercises or performs the powers or functions of an incometax officer wlll lie to the commissioner (appeals) this amendment will have retrospective operation from loth july, 1978 sub-clause (g) proposes to insert a new section 12a which enables a depositor iiiirteved by an order of penalty imposed by an income-tax officer under section 10 of the act or by any authority in any proceedings by way of appeal or revision against that order to file an application for special review to the income-tax officer or thl3 authority which passed the last of such orders if the depositor considers that no such penalty would have been levied if the amendments made to section 10 by sub-clause (d) of this clause had been in force on the date of passing of the order of penalty the application can be presented before the 1st of january, 1981 thls amendment wui take effect from 1st september, 1980 sub-clause (h) seeks to amend section 13 of the act under the proposed a~end­ment the commissloner (appeals) will have the power to amend his orders wlth a view'to rectifying any mistake apparent from the record within the specified period clause 54 seeks to repeal section 2 of the finance act, 1980 clause 50 of the bill, read with the fifth schedule thereto, seeks to provide for the setting up of the customs, central excise and gold (control) appellate tribunal for customs, central excise and gold control matters 2 the proposed appellate tribwlal would hear brst appeals against the orders of collectors of customs or of central excise and second appeals against the orders 10 appeal passed by the collectors of customs (appeals) or the collectors of central excise (appeals) 3 provision bas also been made for the transfer to the appellate tribunal of oertain cases pending with the various authoriues under the aots on the date when the amendments are brought into force however, certain cases of revision pending on that date where the duty or the difference in duty or fine or penalty involved does not exceed rs10, 000, etc, are proposed to be continued with the ex1stlng rev18looal machinery for this purpose, it is proposed to oontlnue the reviblonal maohldery of the government for two years with a reduced strength 4 it is expected that about 10,000 to 11,000 cases would be transferred to the appellate tribunal when it is estabushed about 6,000 appeals per annum are expected to be flied before the appellate tribunal thereafter the number of oases that would be dealt wit" by the ex1sung revisional macbinery would be about 6, 000 5 with ttee setting up of the appellate tribunal, work of a follow-up nature, suoh as examination of orders for making appl1cauons to t"e appellate tribudal and appeala to the supreme court, would also arise in the central board of excise bdd custoldj 6 the details of estimated recurring expenditure on the establia1unedt of the appellate tribunal and the continuance of the existing revlsional maohinery, as disoussed above, are given below:-1 expenditure rela~, to the appellate trtbuqpj departmental reprugtdyu and the follow-up cell 10 the central board of exo1ee yd cuetoms  (a) appellate tribunal: (1) salaries1i2l a"v8rap nmtb-annual 1y expepdltu expepditgre 4fts ) (rii ) 1 president 1 3875 46,500 2 vice-president 1 3825 43,500 3 members 12 3375 4,88,000 4 registrar (1500-2000) 1 2300 27,800 5 assistant registrars 8 1450 1,39,100 (650-1200) 8 technical officers (650-1200) 7 7 head clerks 7 1450 1,21,800 900 76,800 8 upper division clerks 14 670 1,12,580 9 lower division clerks 14 520 87,380 10 private secretary to president, 14 1300 2,18,400 members 11 personal assistants/ 17 stenograpbers 900 1,83,800 | s                                     | no            ||----------------------------------------|----------------|| post                                   |                || nos                                   |                || 4                                      |                || average month-                         | arnual        || lyexpenditure                          |                || expend~ture                            |                || (rs )                                 |                || (rs )                                 |                || 670                                    |                || 32,160                                 |                || 12                                    |                || uhrarions                              |                || 13                                    |                || daftrtes/record                        | -              || keepers                                |                || 14                                    |                || peons/sepoys                           |                || 5                                      |                || 23                                     |                || 360                                    | 21,600         || 320                                    |                || 88,320                                 |                || (11)                                   |                || ta/da                                  |                || expenses,                              | hiring         || accommodation/other expenses including |                || stationery,                            | maintenance of || 2,55,000                               |                || 19,39,200                              |                || total                                  | of             || <al                                    |                |(b) departmeptal representatives woo would represent tb" department's case before the tribunal: (1) salaries ~ ~ nos average monthly annual expenditure expenditure (rs ) 1,93,200 1,51,200 1,21,800 1,83,600 56,280 43,680 26,880 (rs ) 1 senior departmental 7 2300 representatives (1500-2000) 2 junior departmental 7 1800 representatives group (a) (1100-1600) 3 junior departmental 7 1450 representatives (650-1200) 4 personal assistants/ 17 900 stenograpbers 5 upper division clerks 7 670 6 ldwer division clerks 7 520 7 peons/sepoys 7 320 94,000 (11) ta/da expenses, hiring of office accommodation and other expenses 8,70,640 total of (b) (c) follow-up cell to be sent up in the central boar~?lexc:!se and customs tohaddle tribunal matters 8alarlel! annual expenditure nos average montbly-sno e2!1 (rs ) exp!nditure (rs ) 31,200 22,800 1 2600 1 1900 1 director 2 under secretary post nos annual expenditure average monthly-(rs ) e~enduure (rs ) 1300 900 15,600 21,600 900 670 530 320 3 section offlcer 1 4 personal assistants/ 2 stenographers 5 assistants 4 6 upper division clerks 2 7 lower division clerks 2 8 peon/sepoy 1 43,200 16,080 12,480 3,mo --1,66,800 total of (c) 29,76,640 gross 'reourridg' expenditure 6 e total of (8), (b) and (c) j less 17,30,000 (d) approximate ilnidg on account of replacement of the present arrangement of revisions/appeals (e' accrual from addluonai fees since the fee 18 6,75,000 being ftxed at rs200, as against rslas for a revision appucauod and 'nu' for an appeal to the board at present 24,06,000 savings d e total of (d) and (e' j 5,71,640 net recurring expenmture li e (a) + (b' + (c) - (d) - (e' j  n expenditure relating to transitional prov1siops estimated expenditure on 'residual' rey1bjppa} mach1dea(1) salaries annual expeoditure (rs ) 76,000 91,200 43,200 18,080 12,480 7,880 ~ ~ h2h average monthly expeddltul't! (rs t 1 joint secretaries 2 3126 2 ljnder secretaries 4 1900 3 personal asb1stanta/ 4 900 stenographers 4 upper division clerks a 670 5 lanyer division clerks 2 520 6 peons/bepoys a 320 2,45,640 50,000 (11) ta/da and otha, expenses 1dcludiug stauonery 2,95,640 lnote: tbls expend1ture will be only for 2 yea:raj 7 the gross don-recurring expenditure on aocotmt of the establishment of the appellate tribunal lwhicb would bave bencbes at four plaoesjand tbe institution of departmental representatives is estimated to be rs 115 lakbs as aga1n8ttb1s, a saving of rs 4 lakbs is anticipated tbus the net non-recurring expenditure is likely to be of rs 7 6 lakbs 8 the blll does not involve any other expenditure of a recurring or non-recurring nature sub-clause (c) of clause 7 seeks to insert a new sub-section (2b) in seotion 35 of the income-tax act the new eub-secuon provides for a weighted deduction in respeot of expenditure on certain programmes of scientiflc research such a programme must be one approved by the prescribed authority having regard to the social, economio and industrial needs of india in order to be el1g1ble for the deduction, the assessee has also to furnish a certiu~ate of completion of the programme from the same authority clause 16 seeks to insert a new section 80-1 in the income-tax act relaung to deduction in respect of profits and gains from industrial undertakings, etc, estabushed after a certain date sub-section (7) of this new section provides that in the case of asses sees , other than oompanies or co-operative societies, the deduction under the 8e9tion will dot be available tc such assessees unless the accounts of suoh assessees are audited by a ohartered accountant or by any other qual1f1ed accountant and the assessee furni8hes along with his return of income the report of such au:lit in the form to be prescribed by rules, algned and verified by such accountant clause 50 read with the fifth schedule thereto, seeks to amend the cus10ms act, 1962, the central excises and balt act, 1944 and the gold (control) act, 1968 to make detailed provisions regarding appeals 10 the appellate collectors of customs or central excise, dow being redesignated as the collector of customs (appeals) or collector of central excise (appeals), as the case may be, and to provide for an appellate tribunal under these acts the proposed appellate tribunal would hear first appeals againbt the orders of the collectors of customs or of central excise and second appeals against the orders in appeal passed by the collectors of customs (appeals) or central excise (appeals) as a result of these amendments, the ambit of the power to make rules under section 156 of the customs act, section 37 of the central excises and salt act, 1944 and section 114 of the gold (control) act, 1968 will become enlarged to cover, inter alia the form and manner in which appeals may be llilde to the collector of customs (appeals) or the collector of central excise (appeals) or the appellate tribunal, the form of applications to be made to the appellate tribunal for requiring a statement of case to be referred to the high court, the manner of verification of such appeals and applications and other matters relating to such appeals it is also proposed to include a provision in all these acts for appearance by authorised representatives before tlle various authorities under these acts including the appellate tribunal '!'be clauses ociilc8rned empower the central governmont to specify by rules qual1ftcations for such autborised representatives provision bas also been included to specify an authority by rules which will inquire into an allegations of misconduct in connection with any proceedings under the acts concerned against an authorised representative other than a legal practitioner 8dd disqualify him from appearing as ali authorised representative this 1s', however, lubject to a reasonable opportunity of being heard to the affected person and a right of appeal to the central board of excise and customs or the administrator,under the gold (control) act,against the orders of the prescribed authority  sub-clause (3) of clause 50 empowers tlle central government to remove by general or special order any difficulty which may arise in giving effect to the provisions of any act referred to therein as amended by the amendments thereto directed in the fifth schedule as all the problems which may arise, partlcularly in relation to the transition to the new provlaioll8 as to &ppeal, cannot be envisaged, this provision has been included by way of abundant caution it is also made clear in the sub-clause that suoh a removal of difficulties order in relation to any act sbould not be inconsistent with the provisions of the act the delegation of legislative power under the aforementioned provisions relates to matters of procedure or administrative detail or to matters in respect of which it 1s not possible to visualise at this stage hence the delegation of legislative power is of a normal character  billto give effect to the financial proposals of the central government for the flnanclal year 1986-81 (shri r vemat •• _, minister of fillallce) 