 the expenditure-tax bill, 1957( as in'l'loducbd in lok sabm )  arrangement of clauses ~ chapter r preliminary1 short title, extent and commencemeat 2 deftnitiolll ;  chapter it ciur(2 0  gpenditure-tax and expilnditl1r1 !ubj!'c'j to such c:rait_3 charge of expenditure-tax , amounts to be included in taxable expenditure 5 exemptions from expenditure-tax in certain cues e exclusion from taxable expenditure  chapter itr expenditure-tax authoiutizs, expenditure-tax officers 8 appellate assistant commissioners of expenditure-tax 9 commissioners of expenditure-tax 10 inspecting assistant commissioners of expeniiiture-tax u expenditure-tax officers to be subordinate to the co~ sioner of expenditure-tax and the inspecting aasiatui j commissioner of expenditure-tax u expenditure-tax authorities fo follow onsel'l, etc 01 m bome  chapter iv ass~!md'r13 return of expenditure 1 • return after the due date and amendment 01 refurn 1' aalessment 18 expenditure escaping assessment !t penalty for concealment (i) 18 tax of deceased persons payable by legal representative 19 assessment after partition of a hindu undivided family  chapter vi appeals, revisions and references20 appeal to the appellate assistant commissioner from orders of expenditure-tax officers 21 appeal to the appellate tribunal from orders of the appellate assistant commissioners 22 power of commissioner to revise orders of expenditure-tax -officers in the interests of revenue 23 appeal to the appellate tribunal from orders of enhancement of commissioner 24 reference to high court 25 hearing by high court 26 appeal to the supreme court  chapter vii payment and recovery of iexpenditure--tax27 notice of demand 28 recovery of tax and penalties 29 mode of recovery  chapter viii miscellaneous30 rectification of mistakes 31 prosecutions 32 power to take evidence on oath, etc 33 information returns and statements 34 effect of transfer of authorities on pending proceedings 35 computation of periods of limitation 36 service of notice 37 prohibition of disclosure of information 38 bar of jurisdiction 39 appearance before expenditure-tu authorities by authorised representatives 40 power to make rules the schedule  the expenditure-tax bill, 1957,a bill to provide for the levy oj a tax on expenditure s be it enacted by parliament in the eighth year of the republic of india as follows:-chapter i p!wdunary 1 (1) this act may be called the expenditure-tax act, 1957 short eztcdt (2) it extends to the whole of india except the state of jammu coijiimellteei and kashmir mail (3) it shall come into force on the 1st day of april, 1958 2 in this act, unless the context otherwise requires,-10 (a) "appellate assistant commissioner" means· a ~erson empowered to exercise the functions of an appellate assistant commissioner of expenditure-tax under section 8; (b) "appellate tribunal" means the appellate tribunal appointed under section 5a of the income-tax act; ]s (c) "assessee" means an individual or a hindu undivjded family by whom expenditure-tax or any other sum of money is payable under this act, and includes every individual or hindu undivided family against whom any proceeding under this act has been taken for the assessment of his expenditure; < d) "assessment year" means the year for which tax is chargeable under section 3;  of 19240 (e) "board" means the central board of revenue constituted under the central board of revenue act, 1924;  <i) "commissioner" means a person empowered to exercise 2s ulefunctions of a commissioner o~ expenditure-tax under section 9; t7) "4ependanrl ~ (i) when the usessee il an individual, a son or daugh wholly or mainly dependant on the alsessee tor support and ll&intenanee; mi> wiler the assessee » a hindu undivided tamily-, {a) every coparcener other than the karta; and (b) any other member of the family who under adj mw' or order or dicree of a court is entitled to maint-nance rrom the joint family property; f') "expenditure" means the aggregate of all sums in ie ~y or money' worth apent or disbursed by an assessee, and irldudee any amount which under the provisiona ot thit act ii ~ired eo be included in the taxable expenditure; til ''expenditure-tax officer" meana the income-tax officer auuloriled to perform the functions of an expenditure-tax om- j,  under lection 7; t1) "income-tax act" meana tha indian income-tax aet 522; (1t') "income--t8x officer" means a person appointed to be an meome-tax ofticer under the income-tax act; ad (i) "inspecting assistant commissioner of expenditure-tu" aeans a person empowered to exercise the functions of an inspecting assistant commissioner of expenditure-tax under llcuon 10; (m) "prescribed" means prescribed by rules made under this 3f aft; <n) "previoull year" in relation to any assessment year, meana  previous year as defined in clause (11) of section 2 of the lneom~tu act if an assessment were to be made under the said act for that year: io provided that where in the case of an assessee there are d11!erent previbus years under the income-tax act for different it)urces of income, the previous year shall be that previous year which expired last before the commencement of that asaessment year i5 chapi'er ii ea·_ c upmfdjtt1d-tax and expendi1't1u st1bj'ec'1' to sua c:haac • subject to the otlier provisions contained in this act, there ball be charged tor every financial year commencing on and from  in day of april, 1958, - tax (hereinafter referred to as expen- 40  lb rate 01' ra'es specified in the schedule in respect ci   upendun irlcued by all1 iiddlual or h __ aiividd ~,~ til previous year: provjded that no expenditu~tax itlall be payab by an aaaesaee in rasped of any aseessmens year if hia total income under the - income-tax act durina the previous year doell !;l0' exceed iooy thou-iuld l"ijpeel , in computine tae expenditure liable to tax under thil act, the amoun •• tollowing amounts shall be included, namely, any expenditure incur-:: =~~ed red, whether directly or indirectly, by a penon other than the assessee expenditiui 10 in respect of any obligation qr personal requiremen of the all6euee or any of hia dependant which, but for the expenditure having been incurred by that other person, wouki have been incurred by the assessee i (1) no expenditure-tax shall be payable under thil act in res- &~ ii pect 01 any such expenditure as is referred to in the following clauses =:; • _ieh has been incurred by ~he assessee, namely: -m certain cim {a) any expenditure, whether in the nature of current expenditure or capital expenditure, incurred by the assessee wholly and exclusively for the purposes of the business, profession, voc  30 tion or occupation carried on by him, but not jncludina any perlonal expenditure; (b) any expenditure incurred in the acquisition or construction of any immovable property; (c) any expenditure incurred by way 01 investment ijl current and fixed deposits, loans, shares and securities; (d) an1 expenditure incurred by way of contribution u capital to a firm or other association of persons in considefation 01 share in the profits of the firm or association; (e) any expenditure incurred by way of repqment o afty ,0 ]pan or other borrowing; (n any expenditure incurred in respect of any gift, donation or settlement on trust or oth-wise for the benefit 01 "y othel' person; (g) any expenditure incurred for paying premiums in respect sf of any policiel of insurance on the life of the assessee or ot any of his dependants or in respect of any health, accident or disability policies of insurance; (h) any expenditure incurred by way ~ contributions to a provident, thrift or superannuation fund; 40 (i) any expenditure incurred by an assessee, who is not a citizen of india, outside india from any income or capital, accrued or rlu_ o,"ide lndil (~) where any expenditure is not wholly and exclusively incurred for any of the purposes specified in sub-section (1), the provisions of that sub-section shall apply in respect of so much of that expenditure as is reasonably attributable to any such purpose blrdualon 6 in compu~ing the taxable expenditure, the following deductions s ~~e and allowances shall be made, namely:-(a) any taxes including the expenditure-tax payable under tpis act, duties, cesses or fees paid to the government or a local authority, but not including-(i) taxes or fees in respect of any conveyance or other 10 movable asset intended for the personal use of the assessee or any of his dependants; (ii) customs duties on articles imported for the personal use of the assessee or ,any of his dependants; (iii) any fine or penalty in respect of an offence under any is law relating to the levy of taxes, duties, cesses or fees; (b) any expenditure incurred by the assessee in respect ot the marriage of any of his dependants, to the extent of rs 5,000 in respect of each such dependant; (c) four-fifths of any expenditure incurred by way of capital 20 expenditure on the purchase of jewellery, ornaments, works of art, furniture and other household goods, motor cars and other conveyances or any other article for the personal use of the assessee or any of his dependants: provided that where a deduction as aforesaid is made, one- 2s fifth of the said capital expenditure shall be deemed to be! incurred by the assessee in each of the four years succeeding the previous year in which the expenditure was actually incurred and no deduction shall be made under this clause in the assessment for any succeeding year in respect of expen~iture so deemed to 30 have been incurred in any earlier year;  (d) a basic allowance of rs 24,000 and a further allowance, if claimed, of rs 5,000 in respect of each dependant: provided that the allowance under this clause in respect of any dependant shall be reduced by the amount, if any, of the 3s separate income of such dependant, but so as not to exceed rs 5,000 in any case: provided further th,at where any expenditure claimed by any individual as having been incurred in respect of any of his dependants has been allowed as a deduction from his taxable 40 ' expenditure, the allowance pennissib£e under this clause in the case of a hindu undivided family of which the dependant is a coparcener shall be rs 2,000 / chapter iii  5 (' expenditufte-tax authoritil's'1 every income-tax officer having jurisdiction or exercising &pedditure pqwers as such under the income-tax act in respect of any individual tu omcan o hindu undivided family shall perform the functions of an expendi re-tax officer under this act in respect of such individual or 10 hi u undivided family 8 the board may empower as many persons as it thinks fit to ap~e exerci under this act the functions of an appellate assistant com- ~: missioner of expenditure-tax, and on being jo empowered the appel-=m:re late assistant commissioners of expenditure-tax shall perform their to 15 functions in respect of such areas or such classes of persons as the board may direct, and where such directions have assigned to two or more appellate assistant commissioners the same area or the same classes of persons, they shall perform their functions in accordance with such orders as the board may make for the distribution and 20 allocation of the work to be performed i 9 the board may empower as many persons as it thinks fit to~­exercise under this act the functions of a commissioner of expen- ~di:re­diture-tax, and on being so empowered the commissioners of expen- to diture-tax shan perform their functions in respect of such areas or 25 such classes of persons as the board may direct, and where such directions have assigned to two or more commissioners of expenditure-tax the same area or the same classes of persons, they shall have concurrent jurisdiction subject' to such orders, if any, as the board may make for the distribution and allocation of the work to 30 be performed 10 the commissioner of expenditure-tax may empower as many i~ persons as he thinks fit to' exercise under this act the functions of ~; an inspecting assistant commissioner of expenditure-tax and on ~ of being so empowered the inspecting assistant commissioners of ex- tu lure-35 penditure-tax shall perform their functions in respect of such areas or such classes of persons' as the commissioner of expenditure-tax may direct, and where such directions have assigned to two or more inspecting assistant commissioners of expenditure-tax the same area or the same classes of persons ihey shall perform their functions 40 in accordance with such orders as the commissioner of expendituretax may make for the distribution and allocation of the work to be performed , jixpeodimre 11 the expenditure-tax omcera shall be subordinate to the com-:x be ':= missioner of expenditure-tax and the inspecting assistant commis-~::u~ the sioner of expenditure-tax within whose jurisdiction they perfol'lll =:nue- their tunctiona tax and ~~ tina auii-tant commillion 01 bxpendi-rue-tax &pend!-ture-tu: authoritica so follow orden, etc  the aorcs lz all officers and other persons employed in the execution! ef 5 this ac t shall observe ahd follow the orders, instructions anldoo tions of the board: provided that no orders, instructions, ~ directions mall b given by the board so as to interfere with the discretion of the ppell  , assistant commisioner 01 expenditure-tax in the exercise 01 all 10 appella1e functions  chapi'er iv assb88mbnt~etura ~ 13 (1) l!yvy person whole expenditure for the previous yea ~&tare was of such an amount al to render him liable to expenditure-tax i, under this act shall bewre the thirtieth lilay ot june of the correeponding assessment year furnish to the expenditure-tax officer a return in the prescllibed form and verified in the prescribed manner setting forth his expenditure for the previous year (2) if the expendtture-tax officer is satisfied that the expenditure -of any person for any year is of such an amount as to render him liabla to expenditure-tax, then, notwithstanding anything contained in sub-section (1), he may aerve a notice upon such a person requiring him to furnish within such period, not being lest than thirty day, as may be specifit!ld in the notice, a return in the prescribed form a, and verified in the prescribed manner and setting forth iuch other particulars as may be required in the notice relating to the expenditure of such person for the previous year mentbned in the notice (3) the expenditure-tax offtcer may, if he is satisfied that jt - necessary to do so, extend the date :l>r the delivery of the return j -  under this se~~on 14 if any person has not furnished a return within tbe time allowed under section 13, or having furnished a return under that section discovers any omission or a wronit statement therein, he may furnish a return or a' revised return, as the cue may be, atm any ¥me before ~e a __ meld 11 made is (1) tf the expenditure-tax officer is satisfied without requiring  t the presence of the assessee or production by him of any evidence that a return made under section 13 or section 14 is correct and complete, he shall assess the taxable expenditure of the assessee and 5 determine the amount payable by him as expenditure-tax (2) if the expenditure-tax officer is not so satisfied, he shall serve a notice on the assessee, requiring him either to attend in person at his office on a date to be specified in the notice, or to produce or cause to be produced on that date any evidence on which 10 the assessee may rely in support of his return (3) the expenditure-tax officer, after hearing such evidence as the person may produce and such other evidence as he may require on any specified points, shall, by order in writing, assess the taxable expenditure of the assessee and determine the amount payable by 15 him as expenditure-tax (4) for the purpose of making an assessment under this act, the expenditure-tax officer may ~erve on any person, whether he has made a return or not, a notice requiring him to produce or cause to be produced on a date specified in the notice such accounts, records 20 or other documents as the expenditure-tax officer may require (5) if any person fails to make a return in response to any notice under sub-section (2) of section 13 or fails to comply with the terms of any notice issued under sub-section (2) or sub-section (4), the expenditure-tax officer shall make the assessment to the best of 25 his judgment and determine the amount payable by the person ~s expenditure-tax on the basis of such assessment 16 if the expenditure-tax officer-bxpeaditure eec:apida __ 30 35 (a) has reason to believe that by reason of the omission or 1ci8iidedt failure on the part <?f the assessee to make a return of his expenditure under section 13 for any assessment year, or to disclose fully and truly' all material facts necessary for his assessment for that year, the expenditure chargeable to tax has escaped assessment for that year, whether by reason of underassessment or assessment at too iowa rate or otherwise; or (b) has in consequence of any information in his possession reason to believe, notwithstanding that there has been no such omission or failure as is referred to in clause (a), that the expenditure chargeable to tax has escaped assessment for any assessment year, whether by reason of under-assessment or' assessment at too iowa rate or otherwise; he ~ay, in cases falling under clause (a) at any time, and in cases falling under clause (b) at any time within six years of the end of 327 l b-2 that quessment year, serve on the assessee a notice containing a11 or any of the requirements which may be included in a notice under sub-section (2) of section 13, and may proceed to assess or reassess such expenditure, and the provisions of this act shall, so far as may be, apply as if the notice had issued under that sub-section 5 17 (1) if the expenditure-tax officer is satisfied that any person-·alty for cac:ealment (a) has without reasonable cause failed to furnish the return of his expenditure which he is required to furnish under sul>-section (1) or sul>-section (2) of section 13 or section 16, or has without reasonable cause failed to furnish it within the 10 time allowed and in the manner required; or (b) has without reasonable cause failed to comply with a notice under sub-section (2) or sub-section (4) of section 15; or (c) has concealed the particulars of any expenditure or deliberately furnished inaccurate particulars thereof, he may, is by order in writing, direct that such person shall pay by way of penalty-(t) in the case referred to in clause (a), in addition to the amount of expenditure-tax payable by him a sum not exceeding one-and-a-half times the amount of such tax, and 20 (ii) in the case referred to in clause (b) or clause (c), in addition to the amount of expenditure-tax payable by him a sum not exceeding one-and-a-half times the amount of the tax, if any, which would have been avoided if the expenditure returned by such person had been accepted as correct 25 (2) no order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of being heard (3) no prosecution for an offence under this act shall be instituted in respect of the same facts in relation to which a penalty 30 has been imposed under this section (4) the expenditure-tax officer shall not impose any penalty under this section without the previous approval of, the inspecting assistant commissioner of expenditure-tax  chapter v liabnity to assessment in special casestu of de-18 (1) where a person dies, his executor, administrator or, other :-s; legal representative shall be liable to payout of the estate of the ible by deceased person to the extent to which the estate is capable of ~:_ meeting the charge, the expenditure-tax assessed as payable by such 40 perso~, or any tax which would have been payable by him under this act if he had not died (2) where a person dies without having furnished a return under the provisions of section 13 or after having furnished a return which 5 the expenditure-tax officer has reason to believe to be incorrect or incomplete, the expenditure-tax officer may tpake an assessment of the expenditure of such person and determine the expendituretax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice which would 10 have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of section 15 have been required from the deceased person is (3) the provisions of section 14 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in that section 19 (1) where, at the time of making an assessment, it is brought as8e8idlej?-t to the notice of the expenditure-tax officer that a partition has =r ra-20 taken place among the members of a hindu undivided family, and~:s unthe expenditure-tax officer, after inquiry, is satisfied that such family partition has taken place, he shall make assesjiments on the expenditure of the undivided family as such for the assessment year or years including the year relevant to the previous year in which the 25 partition has taken place, and each member or group of members shall be liable jointly and severally for the tax assessed on the expenditure of the joint family as such (2) where the expenditure-tax officer is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes 30 of this act to continue to be a hindu undivided family liable to be assessed as such  chapter vi appeals, revisions and ruerencesz' (1) any person,-3s (a) objecting to the amount of his taxable expenditure ~:,:j;;om determined under this act; or orders ~f expenditure-(b) objecting to the amount of expenditure-tax determined tax oftic:en as payable by him under this act; or  (c) denying his liability to be assessed under this act; or ~) objecting to any penalty imposed by the expendituretax officer under section 17; or (e) objecting to any order of the expenditure-tax officer under sub-section (2) of section 19; may appeal to the appellate assistant commissioner against the 5 assessment or order, as the case may be, in the prescribed form and verifted in the prescribed manner (2) an appeal shall be presented within thirty days of the receipt of the notice of demand relating to the assessment or penalty objected to, or the date on which any order objected to is communi- 10 cated to him, but the appellate assistant commissioner may admit an appeal after the expiration of the period aforesaid if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period (3) the appellate assistant commissioner shall fix a day and is place for the hearing of the appeal and may from time to time adjourn the hearing (4) the appellate assistant commissioner may, before disposing of any appeal, make such further inquiry as he thinks fit or cause further inquiry to be made by the expenditure-tax officer 20 (5) any order passed by the appellate assistant commissioner on appeal may include an order enhancing the assessment or penalty: provided that no order enhancing an assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement z5 (~) a copy of every order passed by the appellate assistant commissioner under this section shall be forwarded to the appellant and the commissioner 21 (1) any assessee objecting t'o an order passed by an appellate appeal to me appellate tdou-dil from orden ~ the appellate alai  wit commiaiaden assi~tant commissioner under section 20 may appeal to the appellate 30 tribunal within sixty days of the date on which he is served with notice of such order (2) the commissioner may, if he is not satisfied as to the correctness of any order passed by an appellate assistant commissioner under section 20, direct the expenditure-tax officer to appeal to the 35 appellate tribunal against such order, and such appeal may be made at any time before the expiry of sixty days or the date on which the order is communicated to the commissioner (3) an appeal to the appellate tribunal shall be in the prescribed form, and shall be verified in the prescribed manner and shall 40 except in the case of an appeal referred to in sub-section (2), be accompanied by a fee of one hundred rupees (4) the appellate tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enhancing the assessment or penalty: 5 provided that no order enhancing an assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement (5) a copy of every order passed by the appellate tribunal under this section shall be forwarded to the assessee and the commissioner 10 (6) save as provided in section 24 any order passed by the appellate tribunal on appeal shall be final (7) the provisions of sub-sections (5), (7), and (8), of section 5a of the income-tax act shall apply to the appellate tribunal in the discharge of its functions under this act as they apply to it in 15 the discharge of its functions under the income-tax act 22 (1) the commissioner may call for and examine the record ~!j~ of any proceeding under this act and, if he considers that any order aioner to passed therein by an expenditure-tax officer is erroneous in so far ~v~p~~t as it is prejudicial to the interests of revenue, he may, after giving ture-ux, u) the assessee an opportunity of being heard and after making or ~~~~t8 causing to be made such inquiry as he deems necessary, pass such of revenue orders thereon as the circuplstances of the case justify, including an order enhancing or modifying the assessment or cancelling it and directing a fresh assessment 25 (2) no order shall be made under sub-section (1) after the expiry of two years from the date of the order sought to be revised 23 (1) any assessee objecting to an order of enhancement made ~~:if~~ the by the commissioner under section 22 may appeal to the appellate p'dbunal tribunal within sixty days of the date on which the order is com- ~rn ~_ 30 municated to him ment , by  comdu8-(2) an appeal to the appellate tribunal under sub-section (1) 8ioner shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of rupees one hundred (3) the tribunal may, after giving the appellant an opportunity 35 of being heard, pass such order thereon as it thinks fit, and shall communicate any such order to the assessee and to the commissioner m (1) within ninety days of the date upon which he is served ref~c:e with an order under section 21 or section 23, the assessee or the com- ~ missioner may present an application in the prescribed form accom-40 panied, where application is made by the assessee, by a fee of one hundred rupees to the appellate tribunal requiring the appellate tribunal to refer to the high court any question of law arising out of such order, ",'and the appellate tribunal shall, if in its opinion a question of law arises out of such order, state the case for the opinion of the high court 5 (2) an application under sub-section (1) may be admitted art~r the expiry of the period of ninety days aforesaid if the tribunal is satisfied that there was sufficient cause for not presenting it within the said period (3) if on an application made under sub-section (1) the appellate 10 tribunal-(a) refuses to state a case on the ground that no question of law arises: or (b) rejects it on the ground that it is time barred; the applicant may, within three months from the date on which he 15 is served with a notice of refusal or rejection, as the case may be, apply to the high court, and the high court may, if it is not satisfied with the correctness of the decision of the appellate tribunal, require the appellate tribunal to state the case to the high court, and on receipt of such requisition the appellate tribunal shall state 20 the case: provided that if in any case where the appellate tribunal has been required by an assessee to state a case the appellate tribunal refuses to do so on the ground that no question of law arises,' the assessee may, within thirty days from the date on which he 25 receives notice of refusal to state the case, withdraw his application, and ,if he does so, the fee paid by him under sub-section (1) shall be' refunded to him (4) the statement to the high court shall set forth the facts, the determination of the appellate tribunal and the question of law 30 which arises out of the case (5) if the high court is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised thereby, it may require the appellate tribunal to make such modifications therein as it may direct 35 (6) the high court, upon hearing any such case, shall decide the question of law raised therein, and in doing so may, if it thinks fit alter the form of the question of law and shall deliver" judgment thereon containing the ground on which such decision is founded and shall send a copy of the judgment under the seal of, the court 40 and the signature of the registrar to the appellate tribunal and the appellate tribunal shall pass such orders as' are necessary to dispose of the case conformably to such judgment (7) the costs of any reference to the high court shall be in the discretion of the court (8) section 5 of the indian limitation act, 1908, shall apply to an application to the high court under this section  5 25 where a case has been stated to the high court under section 24, tl~y it shall be heard by a bench of not less than two judges of the lih rt high court and shall be decided in accordance with the opinion of such judges or of the majority of such judges: provided that where there is no such majority, the judges shall 10 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 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 15 26 (1) an appeal shall lie to the supremecou~ from any judg- appeal to ment of the high court delivered on a case stated under section ~ ~~~pftdlc in any case which the high court certifies as a fit case for appeal to the supreme court (2) where the judgment of the high court is varied or reversed 20 on appeal under this section, effect shall be given to the order of the supreme court in the manner provided in sub-section (6) of section 24 (3) the high court may, on application made to it for the execution of any order of the supreme court in respect of any costs 25 awarded by it, transmit the order for execution to any court subordina te to the high court  chapi'er vii payment and recovery of expenditure-tax27 when any tax or penalty is 'due in consequence of any ord~r nodcedof 30 passed under this act, the expenditure-tax officer shall serve' upon dejdid - the assessee or other person liable to pay such tax or penalty a notice of demand in the prescribed form specifying the sum so payable and the, time within which it shall be paid '28 (1) any amount specified as payable in a notice of demand recovery of 35 issued under section 27 shall be paid within the time, at the place, ~~ and to the person mentioned in the notice, or if no time is so mentioned, then on or before the first day of the second month following, the day of service of the notice and any assessee failing so to pay shall be deemed to be in default (2) notwithstanding anything contained in this section where an assessee has presented an appeal under section 20 the expenditure-tax officer may in his discretion treat the assessee as not being in default as long as such appeal is undisposed of mode of recovery 29 the provisions of sub-sections (1), (ia), (2), (3), (4), (s), (sa), s (6) and (1) of section 46 of the income-tax act shall apply as if the said provisions were provisions of this act and referred to expenditure-tax instead of to income-tax and to expenditure-tax officer and commissioner of expenditure-tax instead of to income-tax officer and commissioner of income-tax 10  chapi'er viii miscellaneousrec:dficauon 30 at any time within four years from the date of any order of mistakesj passed by him, or it, the commissioner, the expenditure-tax officer, the appellate assistant commissioner or the appellate lribunal is may, on his, or its, own motion rectify any mistake apparent from the record and shall, within a like period, rectify any such mistal~e which has been brought to the notice of the commissioner, the expenditure-tax officer, the appellate assistant commissioner or the appellate tribunal, as the case may be, by an assessee: 20 provided that no such rectification shall be made which has the effect of enhancing an assessment unless the assessee has been given a reasonable opportunity of being heard in the matter 31 (1) if a person fa us without reasonable cause--proiecutiodl (a) to furnish in due time any return mentioned in section 2s 13, (b) to produce, or cause to be produced on or before the date mentioned in any notice under sub-section (2) or sub-section (4) of section 15 such accounts, records and documents as are referred to in the notice; 30 he shall, on conviction before a' magistrate be punishable with fille which may extend to ten rupees for every day during which the default continues (2) if it person makes a statement in a verification ment;oned in section 13, section 20, section 21, or section 23, which is false, and 3s 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 one year or with fine which may extend to one thousand rupees or with both (3) a person shall not be proceeded against for an ollence under,o this seetion except at the instance of the coptmissioner (4) the commissioner may either before or after the instituti» of proceedings compound any such offence explanation-for the purposes of this section 'magistrate' meaa~ a presidency magistrate, a magistrate of the first class, or a magts-, trate of the second class specially empowered by the central government to try offences under this act ' 32 the commissioner, the expenditure-tax officer, the appellate powet to assistant commissioner and the appellate tribunal shall, for the::e ~ purposes of this act, have the same powers as are vested in a court etc j 01 ltol 10 under the code of civil procedure, 1908, when trying a suit in respect o~ ,the following matters, namely:-(a) enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; is (c) receiving evidence on affidavit; (d) issuing commissions for the examination of witnesses; and any proceeding before the commissioner, the expenditure-tax offieer, the appellate assistant commissioner or the appellate tribunal shall be deemed to be a judicial proceeding within the meaning , of 1160 20 of sections 193 and 228 of the indian penal code 33 where for the purposes of determining the expenditure-tax informadea payable by any person, it appears necessary for the expenditure-lax :=a~ officer to obtain any statement or information from any individual, hindu undivided family, company or any other person, the expendi-2s ture-tax officer may serve a notice requiring such individual, hindu undivided family, company or other person on or before a date to be therein specified, to furnish such statement or information on the points specified in the notice, and the individual, the manager of the hindu undivided family, the principal officer of the 30 company or other person, as the case may be, shall, notwithstanding anythmg in any law to the contrary, be bound to furnish such statement or information to the expenditure-tax officer 34 whenever in respect of any proceeding under this act any bffcct of expenditure-tax authority ceases to exercise jurisdiction and is sue-=0: 3s ceeded by another who has and exercises such jurisdiction, the 00 peo~ authority so succeeding may continue the proceedina from the stage proceed", at which the proceeding was left by his predecessor 35 in computing the period of limitation prescribed for an appeal ~tati08 under this act or for an application under section 24, the day od = c:::a 40 which the order complained of was made and the time requisite lor obtaining a copy of such order shall be excluded 127 l b-3 service of notice 36 (1) a notice 01' a requisition under this act may be served on the person therein named either by post or as if it were a summons issued by a court under the code of civil procedure, 1908 s of 1901 (2) any such notice or requisition may, in the case of a hindu undivided family be addressed to the manager or any adult male 5 member of the family problbition of dildolure olinformatiod 37 (1) subject to the provisions contained in sub-section (2), the provisions of section 54 of the income-tax act shall apply to all accounts or in relation to statements, documents, evidence or affidavits given, produced or obtained in connection with or in the course of 10 any proceeding under this act, as they apply to or in relation to similar particulars under that act, subject to the modification that the reference to 'any income-tax authority' in clause (d) of subsection (2) and to the commissioner in sub-section (5) of section 54 of that act shall be construed as a reference to any expenditure-tax is authority and to the commissioner of expenditure-tax respectively (2) nothing contained in section 54 of the income-tax act sh~l apply to the disclosure ot any such particulars as are referred to in sub-section (1) to any person acting in the execution of this act or the income-tax act or the estate duty act, 1953, or the wealth tax 20 34 of 1953 act, 1957, where it is necessary or desirable to disclose the same to him for the purpose of this act or any of the other acts aforesaid 38 save as otherwise provided in this act, no suit shall lie in any civil court to set aside or modify any assessment made under this act, and no prosecution, suit or other legal proceeding shall lie 25 againliit any officer of the government for anything in good faith done or intended to be done under this act s9 any assessee who is entitled to or required to attend before any expenditure-tax authority or the appellate tribunal in connection with any proceeding or inquiry under this act, except where 30 he is required under this act to attend in person, may attend by a person authorised by him in writing in this behalf, being a relative of, or a person regularly employed by, the assessee, or a legal practitioner or a chartered accountant explanation-for the purposes of this section,-35 (a) the expression 'a person regularly employed by the assessee' includes any officer of a scheduled bank with which the assessee maintains a current account or has other regular dealings; (b) 'chartered accountant' means a chartered accountant as ~ defined in the chartered accountants act, 1949 to (1) the board may, by notification in the official gazette, power to make rules make rules for carrying out the purposes of this act (2) in particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for--s (a) the form in which returns under this act shall be made, and the manner in which they shall be verified; (b) the form in which appeals and applications under this act may be made, and the manner in which they shall be verified; 10 (c) the form of any notice of demand under this act; (d) any other matter which has to be or may be prescribed for the purposes of this act (3) all rules made under this act shall be laid before each house of parliament, as soon as may be, after they are made, and shall be is subject to such modifications as parliament may make durir-g the session in which they are so laid or the session immediately following  (see section 3)rates or explendlture-tax in the case of every individual and hindu undivided family, on that portion of the taxable expenditure-(i) which does not exceed rs 10,000; 10% (ii) which exceeds rs 10,000, but does not exceed rs 20,000; 20% exceed (iii) which exceeds rs 20,000 but does not rs30,000; 40% exceed (iv) which exceeds rs 30,000 but does not rs 40,000; 60% exceed (v) which exceeds rs 40,000 but does not rs 50,000; (vi) which exceeds rs 50,000 80% 100%  statements of objects and reasonsthe object of this bill is to imp5e iu1 annual tu on pel'llonal itiqiipmiituret above a presaribed level, of individuals ~d h1adu undivided tamilieljl such a tax in addition to being a deterredt to ppqlilive pereoll,! qxpenditure and an incentive for savings also fonaa a jligpuicant ~ ot an integrated tax structure new delhi; t t kjusanamacllari this bill proposes a levy of tax with effect from 1st april, 1958, on expenditure of individuals and hindu undivided famiues though this is a new tax, the procedure for assessment and collection of this tax is very much allied 'to that of taxes on income it is accordingly proposed that for the time being the tax be administered by the income-tax department and that no separate administrative machinery need be set up the existing pressure of work on the income-tax department, is however, already quite heavy this pressure is likely to increase further on acilcount of the proposed lowering of the minimum tax-· able limits it will, therefore, be necessary to expand adequately the staff at various levels of the departmental cadres the increase of personnel, along with incidental expenses of admjnistration is estimated to cost rs 8 lakhs per annum ultimately actual recruitment of staff will, however, be made as and when it is found really necessary etimatednumber of assessment : () individual8 (b) hindu undivided families  ii requirements of personnel and finance ojftcers- i no of inspecting asst co'mmissioners & appellate asllt  commissioners (1+2) 3 3xi200xi2 = rs 43,200 2 no of income-tax officers taking the average disposal per i t o per annum at 300 20 20x 500 x 12 = rs 1,20,000 sf4fj 3 no of inspectors 10 lox 2s0x 12 ::::a rs 30,000 4 no of supe1visors 4 4x 3s0x 12 = rs 16,800 5 no of head clerks 10 lox 2s0xi2  rs 30,000 6 no of upper division clerks 50 sox isoxi2 = rs 90,000 7 no of lower division clerks 30 30x i20x 12 == rs 43,200 8 no of stenographers 3 3x isox 12 == rs 5t400 9 no of stenotypists 20 20x 140x 12 == rs 33,600 rs 5 lakhs say incidental expenses including class iv staft' and contingencies etc  rs 3 lakhs total ra 8 lakhs clause 40 of the bill authoria tlie central board of reveilue to make rules with respect to matters like the fcmn in which the returns may be made under the ad, the form in w1rl& the appeals should be ftled or notices of demand issued the rule making power is thus of a normal character  billto provide for the levy of a tax on expenditure the president has, in pursuance of clauses (1) and (3) of article ii7 of the constitution of india, recommended to' the lok sabha, the introduction and consideration of the bill m n kaul, secretary ($iwi t t krisnntjmachari, jli"i", of finance) gipnd-ls 1-327 ls-16-5-s7-i" 