 the super profits tax bill, 1963a bill to impose a special tax on certain compllnie • shorttltl~ and extent be it enacted by parliament in the fourteenth year of the republic of india as follows:-1 (1) this act may be called the super profits tax act, 1963 (2) it extends to the whole of india 5 10 4 of 1924 is 43011981 43 of 1961 20 2 in this act, unless the context otherwise requires-deftnition~ (1) "assessee" means a person by whom super profits tax or any other sum of money is payable under this act and includes every person in respect of wh,;m any proceeding under this act has been taken for the assessment of his chargeable profits or of the amount of refund due to him; (2) "assessment" includes re-assessment; (3) "assessment year" means the period of twelve months commencing on the 1st day of april, every year; (4) "board" means the central board of revenue constituted under the central board of revenue act, 1924; (5) "chargeable profits" means the total income of an assessee computed under the income-tax act, 1961 for any previous year or ~ars, as the case may be, and adjusted in accordance with the provisions of the first schedule; (6) "rncome-tax act" means the income-tax act 1961; (7) "prescribed" means prescribed by rules made under this act; (8) "standard deduction" means an amount equal to six per cent of the capital of the company as computed in &£:cordance with the provisions of the second schedule: provided that where the previous year is greater or lea than a period of twelve months, the aforesaid amount of iix per cen5- of the capital shall be increased or decreased proportionately: 1110 (i) ts-i provided further that where an assessee has difterent previous years in respect of his income profits and gains the aforesaid increase or decrease as the case may be shall be calculated with reference to the length of the previous year of the longest duration; and 5 (9) all other words and expressions used herein but not defined and defined in the income-tax act shall have the meanings respectively assigned to them in that act taxautboritiel 3 (1) every director of inspection commissioner of incometax, appellate assistant commissioner of income-tax, inspecting 10 assistant commissioner of income-tax and income-tax officer shall have the like powers and perform the like functions, under this act as he has and performs, under the income-tax act, and for the exercise of his powers and the performance of his functions, his  jurisdiction under this act will be the same as that he has under the is income-tax act (2) all officers and persons employed in the execution of this act shall observe and follow the orders, instructions and directions of the board: provided that no such orders instructions or directions shall be 20 given so as to interfere with the discretion of the appellate assistant commissioner in the exerci')e of his appellate functions (3) every income-tax officer, employed in th~ execution of this act, shall observe and follow the orders, instructions and directions issued for his guidance by the director of inspection or by the com- 25 missioner or by the inspecting assistant commissioner under whose jurisdiction he performs his functions 4 subject to the provisions contained in this act, there shall be charged for every assessment year commencing on and from the 1st day of april 1963, a tax (in this act referred to as the super profits 30 tax) in respect of the chargeable profits of the previous year or previous years as the case may be, of every company, at the rate or rates specified in the third schedule returnot ineome 5 (1) in the case of every company whose chargeable profits assessable under this act exceeded during the previous year the 35 amount of standard deduction, its principal officer, or in the case of a - non-resident company if it has no principal officer in india, the person treated as its agent under section 163' of the income-tax act shall furnish a return of the chargeable profits of the company during the previous year in the prescribed form and verified in the prescrib- 40 eel manner and settini forth such other particulars as may be preeertbed, before the 30th day of september of the lae_ent year:  lok sabha corrigenda toi the super profits tax bill, 1963 (as introduced in lok sabha) lre-print with line number!7 1 page 5, line 1,-!2!:-"nothwithstanding" read "notwithstanding" 2 page 7, line 8,- for "appeallate" read "appellate" --3 page 15, l~ne 7 from bottom,-!2!: ii counts" read "accounts" new delhi, march 6 1963 ph-alguna 15, 10884 (saka) - provided that on an application made in this beha11, the incometax officer may, in his discretion, extend the date for the furnislainl of the return (2) in the case of any company which in the income-tax officer's s opinion is assessable under this act, the income-tax officer may, before the end of the relevant assessment year, serve a notice upon its principal officer, or in the case of a non-resident company if it has no principal officer in india upon any person who is treated as its agent under section 163 of the income-tax act, requiring him to 10 furnish within thirty days from the date of service of the notice, a return of the company's chargeable profits during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed: provided that on an application made in this behalf, the income-15 tax officer may, in his discretion extend the date for the furnishing of the return (3) any assessee who has not furnished a return during the time allowed by the income-tax officer under sub-section (1) or subsection (2), or having furnished a return under sub-section (1) or 10 sub-section (2) discovers any omission or wrong statement therein, may furnish a return or a revised return, as the case may be, at any time before the assessment is made 6 (1) for the purposes of making an assessment under this act, ~_ the income-tax officer may serve on any person who has made a menta 25 return under sub-section (1) of section 5 or upon whom a notice has been served under sub-section (2) of section 5 (whether a return has been made or not) a notice requiring him on a date therein to be specified, to produce or cause to be produced such accounts or documents as the income-tax officer may require for the purposes of this 30 act and may from time to time serve further notices requiring the production of such further accounts or documents or other evidence as he may require (2) the income-tax officer, after considering such accounts, documents or evidence, if any, as he has obtained under sub-section 3s (1) and after taking into account any relevant material which he has gathered, shall, by an order in writing, assess the chargeable profits and the amount of the super profits tax payable on the basis of such assessment '7 (1) the income-tax officer, before proceeding to make an assess- provisional 40 ment (in this section referred to as the regular assessment) under ~:~ section 6, may; at any time after the expiry of the period allowed  423 m tt>f fin-2 - under sub-section (1) or sub-seetion (2) of section 5 for the furnishing of the return and whether the return has or has not been furnished, proceed to make in a summary manner a provisional assessment of the chargeable profits and the amount of the super proflts tax payable thereon s (2) before making such provisional assessment, the income-tax officer shall give notice in the prescribed form to the person on whom the provisional assessment is to be made of his intention to do so, and shall with the notice forward a statement of the amount of the proposed assessment, and the said person shall be entitled to deliver 10 to the income-tax officer at any time within fourteen days of the service of the said notice a statement of his objections, if any, to the amount of the proposed assessment (3) on expiry of the said fourteen days from the date of service of the notice referred to in sub-section (2), or earlier, if the assessee 15 agrees to the proposed provisional assessment, the income-tax officer may, after taking into account the objections, if any, made under su1:hection (2), make a provisional assessment, and shall furnish a copy of the order of the assessment to the assessee: provided that assent to the amount of the provisional assessment, 20 or failure to make objection to it, shall in no way prejudice the assessee in relation to the regular assessment (4) there shall be no right of appeal against a provisional assessment made under this section (5) after a regular assessment has been made, any amount paid 25 or deemed to have been paid towards the p'rovisional assessment made under this section shall be deemed to have been paid towards the regular assessment; and where the amount paid or deemed to have been paid towards the provisional assessment exceeds the amount payable under the regular assessment, the excess shall be 30 refunded to the af4sessee 8 if-- (a) the income-tax officer has reason to believe that by reast'n 0' the omission or failure on the part of the assessee to make a return under section 5 for any assessment year or to 35 disclob\! fully and truly all material facts necessary for his "'lident for any assessment year, chargeable profits for that year have escaped assessment or have been under~aasessed or ajseii8ci at too low a rate or have been made the subject of rwl've relief under this act, or , - , b) nothwithstanding that there has been no omiulon ·or failure as mentioned in clause (a) above on the part oftbe assessee, the income-tax officer has in consequence of information in his possession reason to believe that chargeable profits s assessable for any assessment year have escaped assessment or have been under-assessed or assessed at too low a rate or have been the subject of excessive relief under this act, he may, in cases falling under clause (a) at any time, and in cases falling under clause (b) at any time within four years of the end of 10 that assessment year, serve on the assessee a notice containing all or any of the requirements which may be included in a notice under section 5, and may proceed to assess or re-assess the amount chargeable to super profits tax, and the provisions of this act shall, so far as may be, apply as if the notice were a notice issued under that i'section  t if the income-tax officer, in the course of any proceedings penalut& under this act, is satisfied that any person has, without reasonable cause, failed to furnish the return required under section 5, or to produce or cause to be produced the documents, accounts or other ~o evidence required by the income-tax officer under sub-section (1) of section 6, or has concealed the particulars of the chargeable profits or has deliberately furnished inaccurate particulars of such profits, he may direct that such person shall pay, by way of penalty, in addition to the amount of super profits tax payable, a sum not 25 exceeding-(a) where the person has failed to furnish the return required under section 5, the amount of super profits tax payable; (b) in any other case, the amount of super profits tax which would have been avoided if the return made had been accepted 30 as correct: provided that the income-tax officer shall not impose any penalty under this section without the previous authority of the inspecting assistant commissioner 10 no order imposing· a penalty under section 9 shall be made ~pportu-35 unless the assessee has been given a reasonable opportunity of being ~\~f heard heard 11 (1) any person objecting to the amount of super profits tax appeals for which he is liable as assessed by the income-tax officer or deny- ~p~!late ing his liability to be assessed under this act, or objecting to any acssistan i t onvn s-,0 penalty or fine imposed by the income-tax oftlcer, or to the amount sioner allowed by the income-tax officer by way of any relief under any - provisions of this act, or to any refusal by the incom~tax omcer to grant relief or to an order of rectification or amendment having the effect of enhancing the assessment or reducing the refund, or to an order refusing to allow the claim made by the assessee for a rectiftcation under section 13 or amendment under section 14 may , appeal to the appellate assistant commissioner (2) every appeal shall be in the prescribed form and shall be verified in the prescribed manner (3) an appeal shall be presented within thirty days of the following date that is to say-10 (a) where the appeal relates to assessment or penalty or fine, the date of service of the notice of demand relating to the assessment or penalty or fine, or  (b) in any other case the date on which the intimation of the order sought to be appealed against is served: is provided that the appellate assistant commissioner may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sujrcient cause for not presenting it within that period (4) the appellate assistant commissioner shall hear and deter- 20 mine the appeal and, subject to the provisions of this act, pass such orders as he thinks fit and such orders may include an order enhan--cing the assessment or a penalty: provided that an order enhancing an assessment or a penalty shall not be made unless the person affected thereby has been given a 25 reasonable opportunity of showing cause against such enhancement (5) the procedure to be adopted in the hearing and determination of the appeals shall, with any necessary modification, be in accordance with the procedure applicable in relation to income-tax appeals to 12 (1) any assessee aggrieved by an order passed by a com- 30 appellate missioner unde!" section 15, or an order passed by an appellate tribunal assistant commissioner under any provisions of this act, may appeal to the appellate tribunal against such order - (2) the commissioner may, if he objects to any order passed by the appellate assistant commissioner under any 'provisions of 3s this act, direct the income-tax officer to appeal to the appellate tribunal against the order (3) every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee ~r to the commissioner, as the case may be ,,40 (4) the idcome-tax officer or the assessee, as the case may be, on receipt of notice that an appeal against the order of the appellate assistant commissioner has been preferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he , may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the appeallate assistant commissioner, and such memorandum shall be disposed of by the appellate tribunal as if it 10 were an appeal presented within the time specified in sub-section (3) (5) the appellate tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if is it is satisfied that there was sufficient cause for not presenting it within that period (6) an appeal to the appellate tribunal shall be in the prescribed form and shall be verified in the prescribed manner and, shall, except in the case of an appeal referred to in sub-section (2) or a 20 memorandum of cross-objections referred to in sub-section (4), be accompanied by a fee of rupees one hundred (7) subject to the provisions of this act, in hearing and making an order on any appeal under this section, the appellate tribunal shall exercise the same powers and follow the same procedure as it 2s exercises and follows in hearing and making an order on any appeal under the income-tax act  13 (1) with a view to rectifying any mistake apparent from the reetiflcarecord, the commissioner, the income-tax officer, the appellate ~~:es assistant commissioner and the appellate tribunal may, of his, or 30 its, own motion or on an application by the assessee in this behalf, amend any order passed by him or it in any proceeding under this act within four years of the date on which such order was passed (2) an amendment which has the effect of enhancing the assessment or reducing a refund or otherwise increasing the liability of 3s the assessee shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard ' i '!'ii" (3) whj!re an amendment is made under this secti9n, the order 40 shall be passed in writing by the authority concerned (4) subject to the other provisions of this act, where any such amendment has the effect of reducing the assessment, the incometax officer slvtll make any refund which may be due to such asam,,"   - (5) where any such amendment has the effect of enhancing the assessment or reducing the refund already made, the income-tax officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable other amendments 14 where as a result of any order made under section 154 or s section 155 of the income-tax act, it is necessary to recompute the chargeable profits determined in any assessment under this act, the income-tax officer may proceed to recompute the chargeable profits, and determine the super profits tax payable or refundable on the basis of such recomputation and make the necessary amendment and 10 the provisions of se;ction 13 shall, so far as may be, apply thereto, the period of four years specified in sub-section (1) of that section being reckoned from the date of the order passed under the aforesaid sections of the income-tax act revision 15 (1) the commissioner may call for and examine the record ij ~::~~al of any proceeding under this act, if he considers tdat any order to revenue passed therein by the income-tax officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such 20 order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment (2) no order shall be made under sub-section (1)-(a) to revise an order of re-assessment made under section 25 8, or  (b) after the expiry of two years from the date of the order sought to be revised (3) notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in 30 the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the appellate tribunal, the high court or the supreme court ezplanati011-in computing the period of limitation for the purposes of sub-section (2), any period during which any proceeding 35 under this section is stayed by an order or' injunction of any court shall be excluded revision of 16 (1) the commissioner may, either of his own motion or on ~:::~ an appucation by the assessee for revision, call for the record of any ilone: proceeclini under this act which has been taken by an income-tax_ offt~r or appellate assistant commissioner subordinate to him and may make such inquiry or cause such inquiry to be made anct subject to the provisions of this act, may pass such orders thereon not being an order prejudicial to the assessee, as he thinks fit  (2) the commissioner shall not of his own motion revise any s order u!lder this section if the order has been made more than one year previously (3) in the case of a{l application for revision under this section by the assessee, the application shall be made within one year from the date on which the order in question was communicated t9 him 10 or the date on which he otherwise came to know of it, whichever 'is earlier: provided that the commissioner may, if he is satisfied that the assessee was prevented by sufficient cause from making the appli cation within that period, admit an application made after the expiry is of that period (4) the commissioner shall not revise any order under this section in the following cases--(a) where an appeal against the order lies to the appellate assistant commissioner or to the appellate tribunal but hu ao not been made and the time within which such appeal may be made has not expired, or, in the case of an appeal to the appellate tribunal, the assessee has not waived his right of appeai; or (b) where the order is pending on an appeal before the appellate assistant commissioner; or 25 (c) where the order has been made the subject of an appeal to the appellate tribunal (5) every application by an assessee for revision under this section shall be accompanied by a fee of twenty·five rupees explanation i-an order by the commissioner declining to 30 interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee explanation 2-for the purposes of this section, the' appellate assistant commissioner shall be deemed to be an authority subordinate to the commissioner 35 17 the provisions of the following sections and schedules of the app1ica--incometax act shall apply with such modifications, if any, as may up of d   " i be prescribed, as if the sai provisions were provls ons 0 f tho a t provlalodl 18 c of acui and referred to super profits tax instead of income-tax:-of u8l 2 (4!), 131 to 138 (both inclusive), 140, 156, 180, 161, 162, 163, 40 166, 167, 170 173, 175, 176, 178, 179, 220 to 229 (both incluaive), 3780 (b)ls-2 231, 232, 233, 237 to 245 (both inclusive), 254 'to 262 (both inclusive), 265 to 269 (both inclusive), 281, 282, 284, 286 to 293 (both inclusive), the second schedule and the third schedule: provided that references in the said provisions to the uassessee" shall be construed as referei)ces to an assessee as s defined in this act income-to: 18 (1) notwithstanding anything contained in the income-tax c:~;:il~ aet, all information contained in any statement or return made or able for furnished under the provisions of that act or obtained or collected the purposes of for the purposes of that act may be used for the purposes of this act 10 this act (2) all information contained in any statement or return made or furnished under the provisions of this act or obtained or collected for the purposes of this act may be used for the purposes of the income-tax act failure to deliver returns, etc 19 if any person fails without reasonable cause to furnish in due is time any return under section 5 or to produce, or cause to be produced, any accounts or documents required to be produced under section 6, he shall be punishable with fine which may extend to five hundred rupees, and with a further fine which may extend to ten rupees for every day during which the default continues 20 false 20 if a person makes in any return required under section 5, any statements statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with simple imprisonment which may extend to ~ months, or with fine which may extend to one thousand rupees, or with both 2s abetment of false returns, etc 21 if a person 'makes or induces in any manner another person to make and deliver any account, statement or declaration relating to chargeable profits liable to super profits tax which is false and which he either mows to be false or does not believe to be true, he shall be punishable with simple imprisonment which may extend to six 30 months, or with fine which may extend to one thousand rupees, or with both institution 22 (1) a person shall not be proceeded against for an offence of proceed under section 19 or se~tion 20 or section 21 or under the indian penal ~=~~ code except at the instance of the commissioner 3s lion of ofteneet (2) the comrrrissioner may, either before or after the institution of proceedings, compound any offence punishable undf section 18 or section 20 or sf!(tion 21 ~ if the eentral government considers it necessary or expedient power to io to do for avoiding any hardship or anomaly or removing any :~~ptlon, difficulty that may arise as a result of the application of this act, to etc, ~ the union territories of dadra and nagar haveli, goa, daman and ~:~\~ to $ diu and pondicherry, the central government may, by general or uni'?ton - 'i d ak t' d' th difi terri nee specla or er, mean exemp lon, re uctlon in rate or 0 er mo ' ~ cation in respect of super profits tax in favour of any class of assessees or in regard to the whole or any part of the chargeable profits of any class of assessees, 10 24, (l) the board may, subject to the control of the central power to government, by notification in the official gazette, make rules for ma1ke ru es carrying out the purposes of this act (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the follow· 1 s ing matters:-(a) the' form in which returns under section 5 may be furnished and the manner in which they may be verified; (b) the form in which notice for making provisional assessment shall be given; 20 (c) the form in which appeals under section 11 or section 12 may be filed and the manner in which they shall be verified; (d) the procedure to be followed on applications for rectification of mistakes and applications for refunds; (e) any other matter which by this act is to be, or may be, 25 prescribed (3) the central government shall cause every rule made under this section to be laid as soon as may be after it is made before each house of parliament while it is in session for a total period of thirty days, which may be comprised in one session or in two successive 30 sessions, and, if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, that rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that 35 any such modification or annulment shall be without prejudice to the validity of an~thing previously done under that rule 25 nothing contained in this act shall apply to any company savini which has no ~are capital -  the first schedule[see section 2 (5)] , rules for computing the chargeable profits td computing the charg~able profits of a previous year, the total income computed for that year under the income-l ax act shall be 5 adjusted as follows:-1 income, profits and gains falling within the following subrules shall be excluded from such total income, namely:-(i) any income chargeable under the income-tax act under the head "capital gains"; 10 (ii) any compensation or other payment as is referred to in clause (ii) of section 28 of the income-tax act; (iii) profits of any business of life insurance 2 on the balance of the total income, income-tax and supertax shall be calculated at the rates in force in the financial year, is as if such income had been the total income no portion of which had been exempt from the payment of income-tax or super-tax and on no portion of which any deduction of income-tax or supertax had been admissible under any provisions of the income-tax  act or the annual finance act; and the tax so calculated shall be 20 deducted from the amount of the income aforesaid 3 the net amount of income calculated in accordance with rule 2 shall be increased by any expenditure incurred on account of commission, entertainment and advertisement, to the extent such expenditure, in the opinion of the income-tax ofticer, is 25 excessive having regard to the circumstances of the cue: provided that the previous authority of the idspecting assistant commissioner is obt:iined for holding such expenditure to be excessive  the second schedule [see aection 2(8)1 rull's for computinc the capital or a company for th&purposes of super profits tax  1 subject to· the other provisions contained in this schedule, the capital of a company shall be the sum of the amounts, as on the first 3s day of the previous year relevant to the assessment srear, of its paid up share capital and of its reserves in so far as the amounta credited thereto have not been allowed in computing its profits for the purposes 41 011861 of the indja~ income-tax act, 1922 or the income-tax act, 1961 diminished by the amount by which the cost to it of the asset; the income from which in accord~ce with the first schedule l not includible in its chargeable profits exceeds any money borrowed by 5 itwhieh remains outstanding expztl:nation 1-a paid up share capital or reserve brought into existence by creating or increasing (by revaluation or otherwl:e) any book asset is not c:1pital for computing the capital of a company for the purposes of this act 10 explanation 2-any premium received in cash by the company on the issue of its shares standing to the credit of the share premium account shall be regarded as forming part of its paid up share capital 2 where aiter the first day of the previous year relevant to the assessment year, the paid up share capital of a company is increased j 5 or reduced by any amount during that previous year, the capital computed in accordance with rule 1 shall be increased or decreased, as the case may he, by a portion of that amount which is proportional to the portion of the previous year during which the increase or the reduction of the paid up share capital remained effective 20 3 where a part of the income, profits and gains of a company are not includible in its total income as computed under the income-tax act, its capital shall be the sum ascertained in accordance with rules 1 and 2, diminished by an amount which bears to that sum the same proportion as the amount of the aforesaid income, profits and gains 25 bears to the total amount of its income, profits and gains  the third schedule (see section 4) rates or super profits taxsuper profits tax shall be charged on the amount by which the 30 charges,ble profits exceed the amount of the standard deduction, at the following rates, namely:-50%   (i) on an amount equal to four per cent of the amount of capital as computed in accordance with the second schedule (u) on the balance 3s  ~tatemen'i' of objects and rtas6nsthe object of this bill is to impose a special tax on certain companieson their income and profits as reduced by the income-tax and super-tax chargeable thereon, in so far as such reduced amount exceeds six per cent of their capital the notes on clauses explain the various provisions contained in the bill   new delhi; morarji desai the 28th february, 1963 - notes on clausel clause 2 contains definitions of the various terms and expressions used in the clauses of the bill sub-clause (5) defines 'chargeable profits' to mean the total income of the assessee for the previous year relevant to the assessment year as computed under the income-tax act, 1961 and adjusted in accordance with the provisions of the first schedule sub-clause (8) defines the term 'standard deduction' to mean an amount equal to six per cent of the capital of the company as computed in accordance with the second schedule and adjusted in relation to the length of the previous year sub-clause (9) says in general that all words and expressions used in the bill but not defined therein and defined in the incometax act, 1961 shall have the same meanings as in that act clause 3 seeks to give jurisdiction to the same authorities as have jurisdiction under the income-tax act, 1961 clause 4 seeks to provide for the charging of super-prqfits tax for the assessment year 1963-64 and subsequent assessment years on the chargeable profits of every company during the previous year or years at the rate or rates specified in the third schedule clause 5-sub-clause (1) seeks to impose a liability on the principal officer of every company, or in the case of a non-resident company if it has no principal officer in india, the person treated as its agent under section 163 of the income-tax act, 1961 tet furnish a return of the chargeable profits of the company l~y the 30th day of september of the relevant assessment year sub-clause (2) seeks to enable the- income-tax officer to issue a notice requiring the filing of a return lr the chargeable profits within thirty days from the date of service of the notice under both the sub-clauses, the income-tax officer has been 81lthorised to extend the time for furnishing the return clause 6 provides that the income-tax officer may call for !counts, documents or other evidence from the assessee for the purpose of his assessment, and shall make the assessment after considering all the material so obtained h y him clause 7 enables the income-tax officer to make a provisional assessment of the chargeable profits of the assessee at any time after the expiry of the period allowed for filing a return subject to the tl8\le of ~ 1" days' llotice to him inviting his ob1ections, if any, tq - the proposed assessment it has been provided that "here shall be no right of appeal against such a provisional assessment and that the tax paid on the provisional assessment shall be deemed to have been paid towards the regular assessment clause 8 relates to the assessment or re-assessment of chargeable profits which have escaped assessment or have been under-abbessed etc this provides that in the case of omission or failure on the part of the assessee to file a return or to disclose fully and truly all the materials necessary for his assessment, such procet'dings may be initiated at any time, and in other cases within four years of the end of the relevant assessment year czause 9 relates to the imposition of penalties for the assessee's failure without reasonable cause to furnish a return of his chargeable profits or to produce th~· accounts, documents or evidence required by the income-tax officer, and for any concealment or deliberate furnishing of inaccurate particulars of his chargeable profits clause 10 provides that the assessee shall be given a reasonable opportunity of being heard before any penalty under clause 9 is imposed upon him clause 11 relates to appeals by the assessees to the appellate assistant commissioner against any order passed by the income-tax oftlcer the provisions in this clause are on the lines of the corresponding provisions in the income-tax act, 1961 clause 12 relates to appeals to the appellate tribunal by assessees or by the income-tax officer under the directions of the commissioner against any order made by the appellate assistant commissioner it has been provided that in disposing of such appeals, the tribunalshall exercise the same powers and follow the same' procedure as it exercises and follows in disposing of any appeal under the income-tax act, 1961 clause 13 provides for the rectification of mistakes apparent from the record of any proceedings by the commissioner, the incometa:, officer, the appellate assistant commissioner and the appellate tribunal, suo motu or at the instance of the assessee, within four years of the date on which the order sought to be rectified has been passed the provisions in this clause are on the lines of the ~orre  ponding provisions of the income-tax act, 1961 clause 14 seeks to enable the income-tax officer to re-compute the chargeable profits of the assessee in consequence of any order of rectification or amendment passed by him under section 154 or section 155 of the income-tax act, 1961, ·in relation to the relevant income-tax assessment of the assessee, within four years from the date of the latter order clause 15 enables the commissioner to revise any orden passed by the income-tax officer which are prejudicial to r1!venue, within - a period of tw() yeats from the date of the order sought to be revised this provision corresponds to section 263 of the income-tax act, 1961 clause 16 enables the commissioner to give relief to the assessee on revision of any orders passed by the lncome-tax officer or the appellate assistant commissioner subordinate to him, either of his own motion or on an application by the assessee the provlslons in this clause correspond to the provisions in section 264 of the income-tax act, 1961 clause 17 seeks to make applicable to the proceedings relatma to super-profits tax, certain provisions of the income-tax act, 1961, pertaining to various matters for which no separate provision has been made in the bill, eg, issue and service of notice of demand, recovery of arrear tax dues, assessment proceedings against nonresidents through an agent, liability of directors of private companies in liquidation, reference to high court, appeal to the supreme court, etc clause 18 provides that all information contained in any statement or returns made by the assessee or furnished in any proceeding under the income-tax act, 1961, may be used for the purposes of proceedings relating to the super-profits tax and vice-versa clauses 19 to 22 (both inclusive) relate to prosecution for various offences by way of failure to deliver returns without any reasonable cause, making of false statements, abetment of false returns, and composition of such offences these provisions substantially correspond to the relevant provisions in the income-tax act, 1961 -  clause 23 seeks to enable the central government to make an exemption, reduction in rate or other modification in respect of super-profits tax in favour of any class of assessees or in regard to the whole or any part of the chargeable profits of any class of assessees in order to remove any difficulty or avoid any hardship that may arise as a result of application of super-profits tax to the union territories of dadra and nagar haveli, goa, daman and diu and pondicherry  clause 24 seeks to enable the central board of revenue to make rules for carrying out the purposes of this enactment clause 25 seeks to exclude companies which have no share capital from the purview of super-profits tax the first schedule lays down rules for computing the chargeable profits the second schedule lays down rules for computing the capital of a company for_the purposes of super-profits tax the third schedule lays down the rates at which super-profits tax are sought to be levied on chargeable profits exceeding the amount of the standard deduction 2780 (b) js,8 financial memorandum the bill seeks to impose a new tax on all companies other thlj'l companies having no share capital this tax will be administered by the income-tax department but its proceedings relating to assessment, collection and revision and appeals will be separate from that of income-tax the administration of this tax will, therefore, necessitate the employment of some additional staff the expenditure on account of additional staff together with incidental expenses on administration is estimated at about rs 4 lakhs  requirement of personnel and financeannual emolwnents no coat ri i of~'-1 conunissioner of income-tax z00400 lxrs zo400 assistant conunissioners 43,aoo 3xrs 14400 3 13 income-tax officers (ci i) 64,800 iaxrs 5400 ii sf(~l/-inspectors 11,520 4xrs a880 4 supervisors 8 8xrs 4,320 34,560 al,ooo headclcrks 7xrs 3,000 7 4xrs 1800 7,200 4 stenographers  - upper division clerks 90,000 50 xrs 1,800 50 20,160 stenotypist» ia i2xrs 1680 lower division clerks 18 18xrs 1,500 27000 iii incidnral,lrp'rus-iucijenl81 expenses including cla •• iv staff  50000 total - or,s8y 3,90,000  mtmorandum regarding delegated legislationclause 24 empowers the board to make rules for carrying out the purposes of the act the matters in respect of which such rules may be made pertain to the form in which returns under section 5 may be furnished, the form in wh~ch notice for making provisional assessment shall be given, the form in which appeals under the act may be filed and the procedure that may be followed on application for rectification of mistakes and application for refunds the matters in respect of which rules will be made are matters of procedure, form or detail the delegation of legislative ,power is, therefore, of a normal character  billto impose a special tax on certain companies the president has, in pursuance of clauses (i) and (3) of article 117 of the constitution of india, recommended to the lok sabha, the introduction and consideration of the bill m n kaul, secretary (shri m orar;; desai, minister 0/ fii'iijj'ic4) - 