 the expenditure- tax bill, 1987 (to be/as in troduced in 10k sabha)1 page 3, in the rrarginal heading to clause 5,-after "mean in g" in ser t "0 fit 2 page 3, line 14,-!oi "per son " ~ "p er son s " 3 page 6, line 38,-at:ter "section 9" insert "or section 10" 4 page 6, line 4l,-,-!ol: "section 9" ~ "section 11" 5  pa ge 7, lin e 7,-!ol: "period expires" ~ "is" 6 - pa ge 8, lin e 14,-ilu: "con cea cn en t" ~ "concealmen t" 7 page 8, line 15,-!at ;hargeable" ~ "d1a rgeable" 8 page 9, line 6,_  1bx: "revised" ~ "reviewed" 9 pagr 9, line 1'6-!al: "satisfied after" ~ "satisfied that" 10 ' page 10, in the marginal heading to clause 24,-t:qt "appliuion" ~ "applioe tion" 11 page 11~ in the marginal heading to clause 26,-!qr "presecribed" ~ "prescribed" new deuii; august e6, 1987  nie expenditure-tax bill, 1987 arrangement of clauses clauses1 short title, extent and commencement 2 definitions 3 application of the act 4 charge of expenditure-tax 5 meaning of chargeable7 expenditure i 8 tax authorities 7 collection and rec-overy of expenditure-tax 8 person responsible for collecting tax to furnish prescribed return 9 assessment 10 best judgment assessment 11 chargeable expenditure escaping assessment 12 rectification of mistake 13 time limit for c-ompletion of assessment and reassessment 14 interest on delayed payment of expenditure-tax 15 penalty for failure to collect or pay expenditure-tax 16 penalty for failure to furnish prescribed return 17 penalty for concealment of chargeable expenditure 18 penalty for failure to comply with notice 19 penalty not to be imposed in certain cases 20 notice of payment 21 revision of orders by the commissioner 22 appeals to the commissioner (appeals)  23 appeals to appellate tribunals 24 application of provisions of inoome-tax act 25 wilful attempt to evade tax, etc 26 failure to furnish prescribed returns 27 false statement in verification etc 28 ahetment of false return, etc 29 certain offences to be non-cognizable 30 institution of proceedings and composition of offences 31 power to make rules :32 power to remove difficulties 33 consequential amendments  a billto provide for the levy ota tax on expenditure incurred in certain hotel~ be it enacted by parliament in the thirty-eighth year of the republic of india as follows:-1 (1) this act may be called the expenditure-tax act, 19&7 short title, (2) it extends to the whole ot india ejtcept the state of jammu and extent s kashmir, and commencement (3) it shall come into force on such date as the central government may, by notification in the offlcial gazette, appoint defini tions 2 in this i\ct, ·unless the context qtherwiee requires,-(1) lia~sessfte" means a rersun responsible for collecting the 10 expenditure-tax payable under the provisions of this act; (2) "assessment year" means the period of twelve rronths com-i mencing on the 1st day of april every year; '4 of 1963 (3) "board" means the central board of direct taxes constituted under the central boards of revenue act 1963: 15 (4) "chargeable expenditure" means the expenditure referred to in section 5: (5) "expenditure-tax" or "tax" means the tl;\x char~eabll> und"'l the  urovisions of this act: (i) uhotel" includes a building or part of a building where nsidential accommodation is, by way of business, provided for a monetary consideration; (7) "income-tax act" means the income-tax act, 1961; 43 of 1961 (8) "person responsible for collecting" means a person who is s required to collect tax under this act or is required to pay any other sum of money under this act and includes-(a) every person in respect of whom any proceedings under this act have been taken, and i (b) every person who is deemed to bean assessee-in-default 10 under any provision of this act;  (9) uprescribed" means prescribed by rules made under this act; i (10) "room charges" means the charges for a unit of residential accommodation in a hotel and includes the charges for-(a) furniture air-donditioner, refrigerator, radio ,-nuslc, 15 telephone, television, and (b) such other services as are normally included by a hotel in room rent, but does not inclucle charges for food, drinks and any services other than those referred to· in sub-:clauses· (a) and (b); 20 (11) all other words and expressions used herein but not defined and defined in the income-tax act shall have the meanings respectively assigned to them in that act " ·(1) subject to the provisions of sub-section (2) and sub-section (3), this act shall apply in relation to any chargeable expenditure incurred 2s in a hotel wherein, the room charges for any unit of residential accommodation at the time of the incurring of such expenditure are fourhuridred rupees or more per day per individual , (2) where a composite charge is payable in respect of residential accommodation and food, the room charges included therein shall be 30 detennined in the prescribed manner (3) where-(i) a composite charge is payable in respect of resid~ntial accommodation, food" drinks and other services or nny of them, and the c8$e is not covered by the provisions of sub-section (2r or 35 (ii) it appears to the income-tax officer that the charges for residential accommodation food drinks or other sc!'vices are so arranged that the room charge~ are u",dprstnt~d and the other charges are overstatep the income-tax officer shall for the' putpol'les of sub-section (1) deter- 40 mine the room chl'lrges on sll':!h rea'lo~'3hl~ ba!'<s as h~ may deem fit 4 subject to the provisions of this a~t tht:'r(' !'lhnll be charged on ~"d lrom the commencement of thi!! act a tnx ~t the thte of ten per cent (if thq chargeable cxpenditurl? 5 for the purposes of this act, chargeable expenditure means any expenditure incurred in, or payments made to, a hotel to which this act applies, in conn~tion with the provision of,-meaning charaeable j expenditure (a) any accommodation, residential or otherwise; or 5 (b) food or drink by the hotel, whether at the hotel or outside, or by any other person at the hotel; or (c) any accommodation in such hotel on hire or lease; or (d) any other services at the hotel, either by the hotel or by any other person, by way of beauty parlour, health club, swimming ] 0 pool or other similar services, but does not include-(a) any expenditure which is incurred or the payment for which is made, in foreign exchange; (b) any expenditure incurred by person within the purview of the vienna convention on diplomatic relations, 1961 or the vienna j5 convention on consular relations, 1963; (c) any expenditure incurred in any shop or in any office which is not owned or managed by the person who carries on the business of a hotel; 20 (d) any expenditure by way of any tax, including tax under this act ex/llanation-for the purposes of this section-25 (a) expenditure incurred or any payment made in indian cur~ rency obtained by conversion of foreign exchange into indian cur~ rency shall in such cases and in such circumstances as may be prescribed be deemed to have been incurred or, as the case may be, made in foreign exchange; and (b) "foreign exchange" and "indian currency" shall have the meanings respectively assigned to them in clauses (h) and (k) of section 2 of the foreign exchange regulation act, 1973 46 of 1973 30 tax authorlties 6 (1) every director of inspection, commissioner of income-tax, commissioner of income~tax (appeals), inspecting assistant commissioner of income-tax, income-tax officer and inspector of income-tax shall have the like powers and perform the like functions under this 35 act as he has and performs under the income~tax act, and for the  exercise of his powers and the performance of his functions, his jurisdiction under this act shall be the same as he has under the income-tax act (2) all officers and persons employed in the execution of this act o "hall observe and follow the orders jnstructions and directions of the 4 board: ' provided that no such 'orders, instructions or directions shall be issueo-(~) so as to require any blx fluthority to make a particular 4~ assessment or to di!lpos~ of a particular case in a pnrticul!\r mann~r: dr (b) so as to interfere with the discretion of the commissioner (appeals) in the exercise of his appellate functions (3) every income-tax officer employed in the execution of this act shall observe and follow the orders, instructions and directions issued for his guidanc~ by the director of inspection or by the commissioner s or by the inspecting assistant commissioner within whose jurisdiction he performs his functions 7 (1) where any chargeable expenditure is incurred in a hotel to which this act applies,-collection and recovery of expenditure-tax (i) if such expenditure relates to any of the services ~pecjfied 10 in clauses (a) to (d) of section 5, provided by the hotel the person who carries on the business of such hotel; and (ii) if such expenditure relates to any of the services, specified in clause (b) or clause (d) of section 5, provided by the other person referred to therein, such other person, 1 ~ shall conect the expenditure-tax at the rate specified in section 4 (2) the tax collected during any calend~r month in accordance with the provisions of sub-section (1) shall be paid to the credit of the central government by the 10th day of the month immediately following the said calendar month i 20 (3) any person responsible for collecting the tax who fails to coned the tax in accordance with the provisions of sub-section (1) shau, notwithstanding such failure, be liable to pay the tax to the credit of the central government in accordance with the provisions of sub-section (2) 8 (1) every person responsible for collecting the tax shall before 25 the expiry of four months from the 31st day of march in f"ach year, furnish or cause to be furnished to the income-tax offtcer in the prescribed form and verified in the prescribed manner, a return in respect of the immediately preceding financial year showing- (a) the aglv'egate of the payments received in respect of charge- 30 able expenditure; i person l'eiip<lnsible for colleetins tax to furnish "rescribed return (b) the amount of the tax coliected; (c) the amount of the tax paid to the credit of the central government; and (dj such other particular~ as may be prescribed (2) in the case of any person who in the opinion of the income-taxi officer, is responsible for collecting tax under this act and who has not furnished a return under sub-section (1), the income-tax officer may, before the expirv of the finapcilll year in which the return is to be furnished issue a notice tl"l him and serve ~he ~nme upon him requiring him 'i0 to furnish within thirtv days from the (hltf~ of service of the notice the return in the prescribed form and verified in the nrescribed manner setting forth such other particulars as mny be prescribed (3) any person responsible for cojlecting the tax who has not furnished the return within the time allowed under sub-section (1) or 4 s sub-section (2), or having furnished a ire turn under sub-section (1) or sub-section (2) discovers any omission or wrong statement therein, may furnish a return or a revised return, as ,the case may be, at any time before the assessment is made 5 9 (1) for the purpose of making an assessment under this act, the assess income-tax officer may serve on any person who has furnished a return men! under section 8 or upon whom a notice has been served under sub-section (2) of section 8 (whether a return has been furnjshed or not) a notice requiring him on a date therein to be specified, to produce or cause to be 10 produced such accounts or documents or other evidence as the incometax officer may require for the purposes of this ac~ 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, docu-15 ments or other evidence, if any, as he has obtained under sub-section (1) and after taking into account any relevant material which he has gather~ ed, shall, by an order in writing, assess the chargeable expenditure and the amount of tax payable on the basis of such assessment 10 1£-best juda-ment assessment 20 (a) any person fails to make the return required by any notice given under sub-section (2) of section 8 and has not made a return or a revised return under sub-section (3) of that section, or ! (b) any person having made a ,return fails to comply with all the terms of a notice issued unde~ sub-section (1) of section 9, or 25 (c) the income-tax officer is not satisfied with the correctness or the completeness of the accounts of the assessee, the income-tax officer, after taking into account all the relevant material which he has gathered, shall, by an order in writing, make the assessment of the chargeable expenditure to the best of his judgment and determine 30 the sum payable by the assessee or refundable to the assessee on the basis of such assessment 11 if-35 chargeable expenditure escaping assessment (a) the iincome-tax officer has reason to believe that by reason of omission or failure on the part of the assessee to make a return under section 8 for any assessment year or to disclose wholly and truly all material facts necessary for his assessment for any assessment year, chargeable expenditure for that year has escaped assessment or has been under-assessed, or (b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the incometax officer has, in consequence of information in his possession, reason to believe that chargeable' expenditure assessable in any assessment year has escaped assessment or has been under-assessed, he may, in cases falling under clause (a), at any time, and in cases falling 4s under clause (b), at any time within four years from the end of that assessment year, serve on the assessee a jilotice containing all or any of the requirements which may be included in a notice under section 8 and may proceed to assess or reassess the chargeable expenditure, and the provisions of this act shall so far as may be apply" as if the notice was a notice issued under that section rectification of mistake 12 (1) with a view' to rectifying any mistake apparent from the record, the tax authority referred to in section 6 which passed any order under the provisions of this act may wtithin four years of the date on 5  which such order was passed, amend the ord~r (2) where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend 'the 10 order under that sub-section in relation to any matter other than the - matter which has been so considered and decided (3) subject to the other provisions of this section the authority concerned-(a) may make an amendmen~ under sub-section (1) of its own 15 motion, and (b) shall make such amendment if any mistake is brought to its notice,-' (i) by the assessee; or (ii) where the authority concerned is the commissioner 20 (appeals), by the income-tax officer (4) an amendment, which ,has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the 25 assessee a reasonable opportunity of being neard (5) where an amendment is made under this section, an order shall be passed in writing by the tax authority concerned (6) subject to the other provisions of this act where any such amendment has the effect of reducing the assessment, the income-tax officer 30 shall make any refund which may be due to such assessee (7) where any such amendment has the effect 'of enhancing the assessment o,r reducing the refund already made, the income-tax officer shall serve on the assessee a notice of demand in the prescribed fonn specifying the sum payable and such notice of demand shall be deemed 3s to be issued under section 20 and the provisions of this act shall apply accordingly i 13 (1) no order of assessment shall be made under section 9 at any time after the expiration of a period of four years from the end of the assessment year in which the chargeable expenditure was first assessable, 40 or one year from the date of the filing of the return or revised return under section 8, whichever is later (2) no order of assessment or reassessment shall be made under section 9,-(a) where the assessment or reassessment is to be made in a 4s case falling within clause (a) of section 11 for which a notice has been served upon the assessee, at any time after the expiration ofa period of four years from the end of the assessment year in which the said notice was served; (b) where the assessment or reassessment is to be made in a case falling within clause (b) of section 1'1, for which a notice has been served, after the expiration of a period of-(i) four years from the end of the assessment year in which s the chargeable expenditure was first assessable, or (ii) one year from the date of service of such notice, i whichever period expires later (3) notwif;hstanding anything contained in sub-sections (1) and (z) an order of fresh assessment in pursuance of an order passed under 10 section 21, section 22 or section 23, setting aside or cancelling an assessment, may be made at any time before the expiry of four years from the eru:l of the financial year in which the order under section 21 is passed by the commissioner, or, as the case may be, the order under section 22 or section 23 is received by the commissioner 15 (4) the provisions of sub-sections (1) and (2} shall not apply to the assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in an order under section 21, section 22, section 23 or any order of a high court or supreme court in a proceeding by way of reference or appeal under this act or any order 20 of any court in a proceeding otherwise than by way of an appeal or reference under this act and such assessment or reassessment may, subject to the provisions of sub-section (3), be completed at any time explanation_in computing the period of limitation for the purposes of this section, the period during which the assessment proceeding is 2s stayed by an order or injunction of any court shall be excluded interest on delayed pa)'1lledt of oltpeuditure-tax 14 every person responsible for collecting expenditure-tax and paying it to the credit of the central government in accordance with the provisions of section 7, who fails to credit the tax to the account of the central government within the period specified in that section, shall 30 pay simple interest at the rate of one and one half per cent for every month or part of a month by which such crediting of tax is delayed 15 any person responsible for collecting expenditure-tax in accordance with the provisions of sub~tion (1) of section 7, who-penalty for failuro 3s (a) fails to collect such tax; or &0 couecl arpay upcddi· klre-tax (b) having collected the tax, fails to pay such tax to the credit of the central government in accordance with the provisions of sub-section (2) of that section, shall pay,-40 (i) in the case referred to in clause (4), in addition to paying tax in accordance with the provisions of sub-section (3) of that section, by way of penalty, a sum equal to the amount of tax that he failed to collect; and  (ii) in the case referred to in clause (b), in ilddition to payin!f interest in accordance with the provisions of section 14, by way ot penalty a sum which shall not be less than one hundred rupees, but which may extend to two hundred rupees for every day during which the failure continuft failure to furnish prcscribal return  16 if a person fails to furnish in due time the return which he is 'requiredto furnish under sub-section (1) of sections or by notice given under sub-section (2) of that section, he shall pay, by way of penalty a s11m which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure 5 cominues 17 h the income-tax officer or the commissioner (appeals) in the course of any proceedings under this act is satisfied that any person has concealed particulars of chargeable expenditure or has 'furnished in-penalty for concealmentof chargeable ex penditu  : ac~urate particulars of such chargeable expenditure, he may direct that 10 such person shall pay by way of penalty, in addition to any expenditl;1retax pay"ble by him, a sum which shall not be less than, but which sha~l n,:>t exc~ed twice, the amount of tax sought to be evaded by reason of conceacnent of particular3 of chargeable expenditure or the furnishing of inaccurate particulars of such hargeable expenditure: 15 provided that if the amount of chargeable expenditure (as determined by the income-tax officer on assessment)· in respect of which particulars have been concealed or inaccurate particulars have been furnished exceeds a sum of twenty-five thousand rupees, the income-tax officer shall not issue any direction for payment by way of penalty without 20 the previous approval of the inspecting assistant commis5ioner penalty for failure to comply with notice 18 if the income-tax officer in the course of any proceedings under this act is satisfied that any person has failed to comply with a notice under sub--section (1) of section 9, he may direct that such person ~ha1l pay, by way of penalty, in addition, to any tax payable by him, a sum 25 which shall not be less than ten per cent but which shall not exceed fifty per cent of the amount of the tax if any, which would have been ,  avoided if the chargeable expenditure returned by such person had been accepted as the correct chargeable expenditure 19 notwithstanding anything contained in the provisions of section }o 15, sectior, 16,3ect!on 17 or section 18, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if he p:oves that there was reasonable cause for the said failure  penally no()t t() he imposed in certain case! notice of payment 20 when any tax, interest, penalty 'or any other sum is payable under this act, the income-tax officer shall  serve upon the assessee a 15 notice of demand in the prescribed form, specifying the sum so payable -and the amount of chargeable expenditure in relation to which such sum is fiyable 21 (1) the commissioner may, either of his own motion or' on appli-  cation by the assessee for revision call fot the record of a proceeding under this act which has been taken by the income--tax officer subordi- 4'} nate to him and may make such enquiry or cause such enquiry to be made and subject to the provisions of this act may pass s,uch order thereon as he thinks fit revision of orders by the c-ommissioner ( 2) no order which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity 45 of being heard '  (3) no order under this section shall be passed by the commissioner, if an appeal against the notice of demand issued by the income-tax officer under section 20 is pending before the commissioner (appeals) (4) no order under this section shall be passed after the expiry of 5 two years from the end ·of the financial year in which the 'order sought to  be revised has been passed 22, (1) any person objecting to the amount of expenditure-tax for which he is assessed by the income-tax officer, or denying his liability to be assessed under this act, or objecting to an order levying penalty 10 under this act may appeal to the commissioner (appeals) appeals to the commis-5ioner (appeals) (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 receipt of the notice of demand relating to tax, interest or penalty under this 15 act: provided· that the commissioner (appeals) may admit an appeal afcer the expiration of the said period if he is satisfied after the appellant had sufficient cause for not presenting it within that period (4) the commissioner (appeals) shall hear and determine the appeal 20 and subject to the provisions of this act, pass such orders as he thinks fit and such orders may include an order enhancing the assessment or penalty: provided that an order enhancing the assessment or penalty shall not be made unless the person affected thereby has been given a reason-25 ablt;! 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 10 appellate tribun,,1& 23 (1) any assc'ssee aggrieved by an order passed by a commissioner 30 under section 21, or an order passed by a commissioner (appeals) under any provision of this act, may appeal to the appellate tribunal against such order (2) the commissioner may, if he objects to any order passed by the commissioner (appeals) under any provision of this ad, direct the in-35 ('orne-tax officer to appell to the appellate tribunal against the order p) 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 communicate'd to the assessee or to the commissioner as the case may be 40 (4) the income-tax officer or th~ assessee as the case may b~ on receipt of a noti':e that an appeal agamst the order of the commissioner (appeals) has been preferred under sub-section (1) or sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt 45 of the notice, file a memorandum of cross-objections, verified in the prescriber! manner, against any part of the order of the commissioner (appeals) and such memorandum shall be disposed of by the appellate tribunal as if it were an appeal presented within the time specified in sub· flection (3) (5) the appellate tribunal may admit an appeal or pennit the filing of a memorandum of cross-objections after the expiry of the relevant s period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period (6) an appeal to the appellate tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of 10 cross-objections refe~ed to in sub-section (4), be accompanied by a fee of two hundred rupees  (71 subject to the provisions of this act, in hearing and making an order on ajily appeal under this section, the appellate tribunal shall exercise the same powers and follow the same procedure as it exercises and 1 s follows in hearing and making an order on any appeal under the incometax act "pplicajon of irovilions of incometax act 24 the provisions of the following sections and schedules of the income-tax act and the income-tax (certificate proceedings) rules, 1962, as in force from time to time, shall app1,y with necessary modifications as 20 if the said provisions and the rules referred to expenditure-tax instead of to income-tax:-2 (43b) and (44),118 125, 125a, 128 to 136 (both inclusive), 138, 140, 144a 159 to 163 (both inclusive), 166, 167, 170, 171, 173 to 179 (both inclusive), 187, 188, 189, 220 to 227 (both inclusive), 229, 231, 232, 237 to 245 2s (both inclusive), 254 to 262 (both inclusive), 265, 266, 268, 269, 278b, 278c, 278d, 278e, 281 281b, 282, 283, 284, 287, 288, 288a, 2'88b, 289 to 293 (both inclusive), the second schedule and the third schedule: provided that references in the said provisions and rules to the "assesc;ee" shall be construed as references to an assessee as defined in 30 this act wilful attempt to ovade tax, etc  zer; if a person wilfully attempts in any manner whatsoever to evade collection or payment of any tax, penalty or interest chargeable or impo':-able under this act, or to understate the aggregate of the chargeable axpenditure he shall, without prejudice to any penalty that may be impos- 35 able on him under any otter provision of this act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine explanation-for the purposes of this section, a wilful attempt to evade collection or payment of any tax, penalty or interest chargeable or 40 imposablt under this act srall include a case where any person-(i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this act) containing a false entry or statement; or 45 (it) makes or causes to be made any false entry or statement in such books of account or other documents; or (iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or (iv) cautjes any other circumstances to exist which will have tl':e effect of enabling such person to evade collection or payment of any tax, penalty or interest chargeable or imposable under this act failuro to furnisb presecribed returns 26 if a person fails to furnish in due time the return which he is s required to furnish under sub-section (1) of section 8 or by a notice given under sub-section (2) of that section, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years 10 and with fine false statement in verification, etc 27 if a person makes a statement in any verification under this act or any rule made thereunder, or delivers an account or statement which is falre, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with rigorous imprisonment for a 1 s term which shall" not be less than three months but which may extend to seven years and with fine ' abetment of false return, etc 28 if a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to any chargeable expenditure which is false and which he either knows to be 20 false or does not believe to be true or to commit an offence under section 25, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine 2 of 1974 29 notwithstanfling anything contained in the code 'pf criminal 2s procedure, 1973, an offence punishable under section 25 or section 26 or section 27 or section 28 shall be deemed to be non-cognizable within the meaning of that code certain offences to be non·cogni_ zable 45 of )860 30 (1) a person shall not be proceeded against for any offence under section 25 or section 26 or section 27 or section 28, except with the 30 previous sanction of the commissioner: provided that no such sanction shall be required where the complainant before the court is a commissioner (appeals) institution of proceedings and composition of offences (2) the commissioner may, either before or after the institution of proceedings, compound any offence punishable under section 25 or section 35 26 or section 27 or section 28 power ~o make rulce 31 (1) the board may, subject to the control of the central government, by notification in the official gazette, make rules for carrying out the provisions of this act (2) in particular, and without prejudice to the generality of the fore-40 going power, such rules may provide for all or any of the following matters namely:-04s (0) the manner in which the room charges may be determined under sub-section (2) of section 3 in cases where composite charges are payable in respect of residential accommodation and food; (b) the cases and the circumstances in which payments made in indian currency by conversion of foreign exchange into indian currency shall be deemed to have been made in foreign exchange for the purposes of clause (a) of the explanation to section 5; (c) the form in which return's under section 8 may be furnished the manner in which they may be verified and the other particulars which a form may contain; (d) the form in which a notice of demand may be served on the assessee under sub-section (7) of section 12; 5 (e) the form in which appeals under section 22 or under subsection (6) of section 23 may be filed and the manner in which they may be verified; (f) the manner in which a memorandum of cross-objections under sub-section (4) of section 23 may be verified; 10 (g) any other matter which by this act is to be or may be prescribed (3) the power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospectivf ~ffect to the rules or any of them from a date not earlier than the is date of commencement of this act (4) the central government shall cause every rule made under this section to be laid as '30nn as may be after it is made before each house of parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and 20 if, before the expiry of the session immediately following the session or the sliccessive sessions aforesaid both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the ruie shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or 25 annulment shall be without prejudice to the validity of anything previously done under that rule 32 if any difficulty arises in glvmg effect to the provisions of this act, the central government may, by order not inconsistent with the provisions of this act, remove the difficulty: 30 'ower to remove difficulties provided that no such order shall be made after the expiry of a period of two years from the commencement of this act ~4 of 1963 :13 (1) in section 2 of the central boards of revenue act, 1s63, in sub-clause (1) of clause (c)-consc luential amendments (a) in item (viii) the word "and" occurring at the end shall be vi omitted;    (b) after item (viii) as so amended the following item shall be im:;erted namely:- "(ix) the expenditure-tax act, 1987; and"120r 1974-(2) in the economic offences (inapplicability of limitation) act 4() 1974, ill the schedule, after entry 2b' relating to the hotel  receipts tax act, 193(), the following entry ,shall be inserted, namely:-54 of 1980 "2c the expenditure-tax act, 1987"  statement of objects and reasonsthe bill seeks to impose a tax on expenditure incurred in hotels wht!re the room charges for any unit of residential accommodation are fo~r hundred rupees or more per day per individual this tax will be levied at the rate of ten per cent of the expenditure incurred in conmiction with provision of any accommodation, food, drinks, and certain othel categories of services this tax will not apply to expenditure incurred in foreign exchange or in the case of a person enjoying diplomatic privileges new delhi; rhe 21st august, 1987 narayan dati tiwari  president's recommendation under article 117 of the constitution of india[copy of letter no 22ifbi87-tpl dated 21-8-1987 from shri narayan datt tiwari, minister of finance to the secretary-general lok sabha] the president, having been informed of the subject matter of the proposed bill which seeks to provide for levy of a tax on expenditure incurred in certain hotels has recommended under article 117 (1) of the constitution of india introduction of the bill in lok sai)ha  ~orandum regarding delegated legislationcla\u:ie 31 of the bill empowers the central board of direct taxes to mw rules for carrying out the provisions of the proposed legislation sub-clause (2) of that clause enumerates the matters in relation to which rules may be made such rules may be made inter atia for laying down the manner in which the room charges may be determined under clause '3 (2) in cases where composite dharges ~ payable ib resp,ect of residential accommodation and food; for specifying the cases and the circumstances in which payments made in indian currency by conversion of foreign exchange into indian currency shall be deemed to have been made in foreign exchange for the purposes of clause 5; specifying the form in which returns under clause 8 may be furnished and the manner in which such returns may be verified and the particulars which such form may contain; specifying the form in which a noti~ of demand may be served on the assessee under clause 12 (7); specifying the form in which appeals may be filed under clause 22 or clause 23 and the manner in which they may be verified; specifying the manner in which a memorandum of cross-objections under clause 23 (4) may be verified the central board of direct taxes is also being empowered to mllke rules, on the first occasion, with retrospective effect from a date not earlier than the date of commencement of the proposed legislation i , 2 the matters in respect of which rules may be made are matters of administrative detail which cannot be incorporated in the proposed legislation the delegation of legislative power is therefore, of a normal character - - - - - 2 in this act, unless the context otherwise requires,'-definitions, - - - - (e) "direct tax" means-(1) any duty leviable or tax chargeable under-- - - - - (viii) the hotel-receipts tax act" 1980; and - - - - -  a billto provide for the levy of a tax on expenditure incurred in certain hotels (shri narayan datt tiwari, minister of ~nance) 