corrige !·di_~,~ to the hotel-receipts tax bill, 1980 eto be/as int'roduced in lok sabh§ 7 page 6, line 14,-after 811" 9!!il "(i)" new delhi; au9ll~t_ll~ 1980 sravana 20, 1902 (saka)  arrangemilnt of clauses , ";' clauses ci 1 short title and extent 2 definitions '/ ' '  3 application of the act 4 tax authorities ", 5 charge of tax 6 scope of chargeable receipts 7 computation of chargeablp !'eceipts 8 return of chargeable receipts 9 self-assessment 10 assessment 11 best judgment assessment 12 re-opening of assessment at the instance of the assessee 13 receipts escaping assessment 14 advance payment of hotel-receipts tax 15 penalty for failure to furnish returns, comply with notices, concealment of receipts, etc 16 penalty for false estimate of, or failure to pay, hotel-receipts tax payable in advance 17 opportunity of being heard 18 appeals to the commissioner (a()peals) 19 appeals to appellate tribu'lal 20 rectification of mistakes 21 hotel-receipts tax deductiblr in computing total income under income-tax act 22 revision of order prejudicial to revenue 23 revision of orders by commissioner 24 application of provisions of income-tax act 25 income-tax papers to be available for the purposes of this act 26 wilful attempt to evade tax, etc  cuusib27 failure to furnish returns of chargeable receipts 28 failure to prod~ce accounts and documents 29 - j:'''' atmement inv~atipn • e~c 30 abetment of false return, etc 31 punishment for ~(l,,@ci iq~tloec 32 certain offences to be non-cogn'uble 33 bmtitution of proceedings and composition of offences 34 power to make rules 35 power to exempt 36 power to remove difficulties 31 consequential amendments  the hotel-receipl's tax bill, 1960 a billtoimpoile a special &a:c on gros'if'ee8iptslof· certain hot8lt be it enacted by parliament in the thirty-first year of the republic of india as follows:-11- ,(i~ 'llu'act may be cauedl the hotel-receipts tax act, 1980 ,(at' it'ltiii'tejidb 1ti'1hewhdlel df india short title and extent z in tlol~act,uriless ~ c~t otherwise requires,-5 deftnitions <j) "a ___ " means a person by \\thomlwtel,j,reeefpts tax' or a~ otb8r 8uftl!lof rhoiteyr ispaylble under tbis act and include&-to (a) every person in respect of whom any proceeclin:g under this act has been taken for the assessment of his chm-s-ble receipts or of the amount of refund due to him or of the cbargmble- :nfi!ipts of'" other pelon in respeetof which _ it-  s_18 fir of dim i 8mooot'di refuftd due tb i such  other p8llloa;· is (~i -evayt ~'  is deemect to be an usessee in deillllt---y prtitllllondf th~' aet; '{ij f  mift,ifti4ud~' reusessme'llt; (3) "asses8ment year" means the  ~ri~ of twleve months gdpla8l  itt ~c;iapnt ~ry year:  ~  ,,,- ~ the ,~ board' of' direct taxes c0nstituted under the central boards of revenue act, 1983; 54 of 1888 20 (5) "chargeable receipts" means the total amount of all char  referred to in section 6, computed in the manner laid down in section 7; (6) "hotel" includes a building or part of a building where residential accommodation is, by way of business, provided for a 5 monetary consideration; (7) "hotel-receipts tax" or "tax" means the tax chargeable under the provisions of this act; 43 of 198l (8) "income-tax act" means the income-tax act, 1961; (9) "prescribed" means prescribed by rules made under this 10 act; (10) "room charges'" means the charges for a unit of residential accommodation in a hotel and includes the charges for-15 (a) furniture, air-conditioner, refrigerator, telephone, television, and radio, music, (b) such other services as are normally included by a hotel in room rent, ,but ;~es,bot ,include charges for food, drink and any services other tho those·referred to in 3ub-clauses (a) and (b); (11) all other words and expressions used herein but not 20 defined and defined in the income-tax act shall have the meaningb respectively assigned to them, in that act, application of the act 3 (1) subject to the provisions of sub-section (2) and sub-seetlon (3), this act shall awly in relation to every hotel wherein the room charges for residential accommodatron provided to any person at any 25 time during the previous yetlr arc not less than seventy,;,ft\i'e rupees per day per individual " explanation-where the room charges are payable otherwise than on daily basis or per individual; then the rq9mcharges ·hal1,be computed as for a day and per individual based on the period of occupation of 30 the residential accommodation for which the/charges are payable and the number of individuals ordinarily permitted to occupy such accommodation accordtng to th~, rules and cu5tom of the hotel , (2) where a composite cbarge is payable 'm respect of rabidentlal accodudodation and food, the room chargeslneluded therem' shall be 35 determined in the prescribed manqer (:1) where-(i) a composite cha-gei payable, in respect' fjf '1cetidential accomm~tion, foqd, dril;lk and otbe &el'vicee, '01' any of them, and the case is not covered by the provisions of sub-section '(i), or 40 (ii) it appears to the income-tas- qftlcer that  the charges for residential accommoda~n, food" dftdk· or other'  rvtoea  are 10 arranged that the room chargt"f are,~! !~el'ltad aad the other charges are overstated, the income-tax ofticershall, for the 'purposes of iu'-sect»n 'tl)~ ~aeter- 45 mine the room charses on such reasonab~: quia ,88 he ,may deem fit 4 (l) every ~tor of inspection commiaaioller of idc::ome-itax, commissioner 01 income-tax (appeals), idspecting assiatant coid:idii-sioner of income-tax, income--tax ofilcer and inspector of income-tax shad have the like powers and perform the like fudctions under this act as he 5 has and performs under the income-tax act, and for the exerciae of his powers and the performance of his functions his jurisdiction wuler this act shall be the same as he has under the fucome-tax act (2) all officers and persons employed in the execution of this act shall observe and follow the oirders, instructions and directions of the board: i~ provided that no such orders, instructiods or directions &hall be issued-(a) so as to require any tax authority to make a particular  ment or to dispose of a particullll' case in a particular manner; or 15 (b) so as to interfere with the discretion of the commissionet (a ppeals) in the exercise of his appellate functions (3) every income-tax officer employed id the execution of this act shall observe and follow the orders, instructions and directigds isloed for his guidance by the director of inspection or by the commissioner or by the inspecting assistant commissioaer within whose jurisdietien he per-20 foml!> his functions charp of tall 5 (i) subject to the provisions of this act, there shall be charged on every person carrying on the business of a hotel in relation to which this act applies, f<>r every assessment year commencing on or after the 1st day of april, 1981, a tax in respect of his chargeable receipts of the pre-25 vious year at the rate of fifteen per cent of such receipts: provided that where such chargeable receipts include any charges received in foreign exchange, then, the tax payable by the assessee shall be reduced by an amount equal to five per cent of the charges (exclusive of the amounts payable by way of sales tax, entertainment tax, tax on ~o luxuries or tax under this act) so received in foreign exchange ~ erplanaticm-for the purposes of this sub-section,-(a) charges received in indian currency obtain~ by conversion of foreign exchange into indian curre~cy shall, 10 such cases and in such circumstaftces as may be prescribed, be deemed to have been received in foreign exchange; and 75 (0) "foreign exchange" and "indian currency" shall have the  pectively assigned to them 10 clauses (h) and (k) of 46 of 1973 meat~1og2s rfesthe foreign exchange regulation act, 1973 sec 'on 0 - n rrrangement made between a perron carry10g (2) where, under a 1 c~o ~ hich this act applies and any other ~crson on tnt:: busmess of a ~ote with him, any food, drink or other servjces is 40 having do~c connection  of such aotel by the second-mentioned  d d on the premlses h t or are prov1 e om is of opinion that suc arrangemen person and the i~come-t~x t ce;oiding or reducing the liability under made with a view 0 a has been mentioned person, then, this act by the first- ed erson shall also be deerned to be a 45 (a) the second-menbo~ p f a hotel to which this act applies;  the busme'ss 0 person carrymg on and  shall be charged on the second-mentioaed (b) hotel-recelpts tllx fa food drink or other services so prorson in respect of charges r we~ the chargeable receipts of the pe h·m as if such charges so vided by i 'b~ of a hotel deemed" to be carried on by him under claulle (a), and all the provisions ot thijact shalt'apply acconiiq&ly b~n-for the: purpoaes· of· thili 8u~ion,-(i)· a close" connection shall be deemed to exist: between a person 5 carrying on the busfness of a hotel and another person if, in relation to the person carrying on the busihess of a hotel, such other person i_pemon referred·to in! clauae ~b) 01' wb--section (2) af section faa of the :incgdle-tu act; (ii) any food, drink or other services shall be deemed to have 10 been provided on the premises of a hotel if the same is or are provided in the hotel or any place awurtenant thereto and where the hotel is situate in a part· of building, ia any other part of the building scope of chargeable receipts 6 ('1) subject to the provisions of this act, the chargeable receipts of any previous year of an' i!lsbessee shall be the total amount at all 15 charges, by wha~ name callel, received by, or accruing or arising to, the asiessee in· connection with the provijion of residential aceommodatiod, food, drink and other ilerlyices or any dfthem (ineluding such cbarges from persons not provided with sueh aoeommodation) in the coume  of carrying on the ootnns c» a hotel tb which this act applies ~ and shall also include every amount collected by the 88seslee by way of tax under this act, sales tax, entertainment tax and tax ad luxuries (2) for the removal of doubts, it is hereby declared that where any such charges have been included in· the chargeable receipts of any previous year as charges accruing or aribing td the assessee during that pre- 25 vious year, such charge shall net be ibcluded in the chargeable ncat'pts of any subsequent previous year in which they are received by the assessee 7 (1) subject to the provisions of sub-section (2), the following deductions shall be allowed in computing the chargeable receipts of any previous year-30 computation of chargeabw rec:eiptl (i) the amount of charges aacruing or arising in an earlier previous year which is establiihed to have become a bad debt during the previous year: proviged that such charges have been taken into aecount in computing the chargeable receipts of 'beasseaebe of any earlier previous 35 year and the amount baa been written off aj irrecoverable in the accounts of, the assessee for the pnwtous year during whieh it is established to have become abed debt; (ii) any amount payable by way of sales tax,entertainment tax or tax on luxuries in respect 'ofmlycharges included in the chargeable receipts of the previous year; 40 (iii) the amount of 1:0' atzaiogeableunder thia aet explanation-for the removal of boubtb, it is bereby declared that in computing the chargeable receipts of a previous year, no deduction, other than the deductions specified in this sub-section, shan be allovrf!lt!' from the total amount of charges 'received by, or aeurublg or arising to, the- aamssee 45 (2) in computing the chargeable receipts of a previous year, the amount at charges wbic'hisreceived by or wbich aecru" or art_ to the abiessm before the e1ipiry df· om i1wmtb :fiiom 'tbe«id, oftbe madth mwhich tldj act cames in~ 'farce shalbjtrt,lae tbwn tnmo i acaoudt return of charpable receipts b ~,,(1) ~very ,person, who, dul~ng the plleviousyear, carried on ~ ;  uness of a ,hotel in relation to which this act applies or is assessable, 10 respect of the chargeable receipts of any other per8gjlwlde:r this act, s~ f\lrdlsh ·areturn of his chargeable l'eoeipte or the chargeable s receljlts qf such other person of the previous year in tbeprescribed form and verified in the prescribed manner and setting forth such other parti_ culars as may beprescribod"before the expiry of four months from ,the end of the previous year in respect of the business of the hotel or where there is more than one previous year in ·respect ·of such business, 'from i 0 the ,end of the previous year which expired last before the commencement af the assessment year, or before the 30th day ,of june of the assessment year, whichever is later: provided that, on an application made in this behalf, the income-tnc officer may, in his discretion, extend the date for furnishing the return 15 (2) in the case of any person who, in the income-tax officer's opiniol1, is assessable under ·this act, whether in respect of his own chargeable receipts or in ,respect of tre chargeable receipts of any other perscn,·the income-tax officer may, before the end of the relevant assessment year, issue a notice to him and serve the same upon him, requiring him to 2,0 furnish within thirty days from the date of service of the notice a return of his chargeable receipts or the chargeable receiph of bur:h other pm'son of the previous year in the prescribl'd 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-tax 2,5 oftlcer may in his discretion, extend the d'lte for furn!shin~ the return (l) a':ly assessee who has not furnished a return within thctitne allowed l1~der sub-section (1) or sub-aection (2), or having furnished a retu··'1 under sub-section (1) or sub-section (2), discovers any omission or wro" ~ statement therein, may furnish a return or a revised return, 3c the ,~·se may be at any time before the assessment is made as( , | self    ||---------|| assen-  || ment   ||        || )       || asseaa- || ment   |9 (1) where ~ny hotel-receipts tax i~ payable ~ the babis of ~  d t be furnished under sechon 8 or section 13, after taking return require 0 '    d  't t the amount of hotel-receipts tax, if any already paid u, n er in 0 accoun  h t   f this act the assessee shall be hable to pay sue ax anyf pr°tuvisl?nhm·og the ret~rn and the return shall be aecompanied by 35 be ore rms proof of payment of such tax ssment under ~ection 10 or sectign 11 has been made, (2) after andasse dub-section (1) shall be deemed to have been any amount pal un er s paid towards such assessment  f'1 to pay the hotel-receipts tax or any part 40 (3) if any assessee it:i:h provisions of sub-section (1), the incomethereof in accorda~cectthat a esum equal to two per cent of such tax or tjlx officer may du'e be shall be recovered from him by way of part thereof as the cas~~ay ing' ";'hlch the defeult continues: nalty for every moyl ur pe i  g any such penalty, the assessee shall '" 4s provided that before ::l~ of being heard given a reasonable oppor faking an asaeesmem under this act, the 10 (1) for the purpose 0 ~ any person who has ~hed a retard income-tax officer may serve 0 under section 3 or upon whom a notice has been sen-ed under sub-lection (2) of aection 8 (whether a return has been furnished or not) a notice requiring him on a date therein to be specifted, to produce or cause to be produced such accounts or documents or other evidence as the income-tax officer may require for the purpole8 of this act and may, s from time to time, serve further 1i0tices requiring the proctuetion of lueh" further accounts or documents or other evidence as he may require (2) the income-tax ofticer, after considering such accounts, documents or other evidence, if any, as he has obtained under sub·section (1) and after taking into aceount any relevant material which he has 1 0 gathered, shall, by an order in writing, assess the chargeable receipts and the amount of the hotel-receipts tax payable on the basis of such assessment  11 (11) 1£-best judgment auessment (a) any person fails to make the return requited by any notice is 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 under sub-section (1) of seriion 10, or (c) the income-tax officer is not satisfied about the correctness 20 or the completeness of the acc(lunts of the assessee, the income-tax officer, after taking into account all relevant material which he has gathered, shall make the assessment of the chargeable receipts to the best of his judgment aud determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment 25 12 (1) where an assessee asse&sed under section 11 makes an application to the income-tax officer, within one month from the date of service of a notice of demand issued in c:onsequence of the assessment, for the cancellation of the assessment on the ground>-re-opening of assessmentat the instance of the assessee (i) that he was qrevented by sufficient cause from making the ~o return required under sub-section (2) of section 8, or  (ij) that he did not receive the notice issued under sub-section (1) of section 10, or (iii) that he had not a re:lsonable opportunity to comply, or was prevented by sufficient cause from complying, with the terms of the 35 notice referred to in clause (ii), the incometax officer shall, if satisfied about the existence of s'ilch ground, cancel the assessment 'lnd proceed to make a fresh assessment in accordance with the provisions of section 10 or section 11 (2) every application made under lubaecticm (1) shall be disposed of 40 within ninety days from the date of receipt thereof by the income-tax officer: provided that in computing the period of ninety days aforesaid, any delay in disposing of the application which is attributable to the asseaee shall be excluded  13 if-receipt escapilll a3sessment 5 (a) the income-tax oftlcer has reason to believe' that by remon of the omission <!r failure on the part of the assessee to make a return under section 8 for any assessment year or to disclose fully and truly all material facts necessary fur his assessme'llt tor any assessment year, chargeable receipts for that year have escaped assessment or have been under-assessed or have been made the subject of excetsive relief under true act, or 10 (b) notwithstanding that there hal been no omislionor 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 receipts assessable for any assessment year have escaped assessment or have been under-assessed 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 fill ing under clause (b), at any time within four years of the end of 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 8,and may proceed to assess or reassess the amount chargeable to hotel-receipts 20 tax, and the provisions of this act shall, so far as may be, apply, as if the notice were a notice issued under that section 14 (1) hotel-receipts tax shall be payable in advance during the fina'neial year in respect of the chargeable receipts of the period which would be the previous year for the immediately following assessment year 2<; ~n accordance with the provisions of this section advance payment of hotelreceipts tax (2) hotel-receipts tax shall be payable in advance in two instalments on the following dates during the financial year, namely:-(i) the 15th day of september in respect ~f the chargeable receipts attributable to the first half of the previous year; and 3c (ii) the 15th day of march in respect 00 the chargeable receipts attributable to the second half of the previous year: provided that the hotel-receipts tax payable in advance during the fi  i nancla year commencfng on the 1st day of april, 1980 shall be payable in one sum on the 15th day of march, 1981 (3) e assessee shall in each financial year, on or before suth of 3 <i very , i' t t' bi' d -h' h an instalment of hote -recelp s ax is paya e ul a -the dates no;\: t~: income-tax officer, an estimate of the chargeable revance, se table to the relevant part of the previous year and the hotelcelp:s attnbu bl' advance on sjch chargeable receipts and shall pay :ecelpts tax pa~t h~t~-receipts tax as accords with his estimate on or -40 such amount i t date specified in sub-section (z): before the re evan ,  sect of the hotel-receipts tax payable in advailce provided that 10 re p mencing on the 1st day of april, 1980, the during the financial yehar icomme tax officer an estimate of the chargeh 11 end to t e nco -be h -assessee s as i t the period which would t e previous year 45 able receipts attrlbutab e 0 nt year commenc ing on the 1st day of april, 1981 and the bl' ts d for the assessme i' jv;l!;ce 0:1 such chargea e recelp an hotel-receipts tax payab e hint ~-receipts tax as accords with his estimate uch amount of 0 e shall pay s h 15th day of march, 1981 on or before t e (4) every estimate under this section shall be sent in the preacrtbed form anci verifted in the pn8ol"ilged monet (!) tf alli' assessee does not pay on ot before thespeclfted date any instalment of hotel-receipts ta~ payable :ih advatlce, he shall be deemed to be an assessee in default· b1 respect of such 1nstalmenl s ii (1) tf, in the c"urse ef any p!'eeeedin~ under this act, the ineometax officer or the commissioner (appeals) is satisfted that any persen-(a) bu, witbouire&lgil8ble c8uje, failecl to funuh tm return gfcbaqfeable receipts which he wu required to furnish udder 1ubsection (1) of section 8 ur by notice given under sub-eeeutm (2) of lc' section 8 or section 13 '01' lam, without reasonable emile, failed tel fur-dilh it within the time allowed and the im8ilei" required, iubsection (1) of section 8 &r by such jilotice, 118 the cue may be, or penalty for failure to furnish returns, comply with notices, concealment of receipts, etc (b) has, without reasonawe cause, failed to comply with the notice under sub-section (1) of section 10, or 15 (c) has ecmcealed the particulars 01 his chergeable recel})ts or furnished inaccurate particulars of such receipts, he may direct that such person shall pay by way of penalty,-(i) in the cases referred to in clause (a), in addition to the hotelreceipts tax payable by him, a sum equal to two per cent of the 20 assessed tax for every month during which the default contiliued, but not exceeding in the aggregate fifty per cent of the asseseed tax explamtion-in this clause, "assessed tax" means hotelreceipts tax chargeable undet' the provisions of this act, as reduced by the sum, if any, paid in advance under section 14; 25 (ii) in the ckses referred to itl clause (b), i'n adc:litioh to the hotelreceipts tax payable by him, a sum which shall not be less than ten per cent but which shall not exceed fifty per cent of the amount of the hotel-receipts tax which would have been avoided it the return made by him had bhn accepted 85 correct; 30 (iii) in the cases referred to in clause (c), in addition to the hotelreceipts tax payable by him, a sum wbkh shall not be less than, but which shall not exceed twiee, the amount of hotel-l'eceipts tax which would have been avoided if the return made by him had been accepted as correct: 35 provided that in a case 'falling under clause (c), the income-tax oftlcer shall not impose any penalty wtthnut the previous approval of the inspecting assistant commissioner (2) on making an order imposing a penalty under this section, the commissioner (appeals) shall forthwith send a copy of the same to the 40 income-tax officer 16 if, in the course of any proceedings in connection with the ulei8-mtmt under section 10 or section 11, the income-tax offteer is satisfted that any assesse-e-(a) has furnished under section 14, an estimate of the hotel- 45 receipts tax payable in advance by him which he knew or had reason to believe to he untrue, or penalty for false estimate of, or failure to pay, hotel_ receipts tax payable in advance (h) us, wiulout ~le aula failed to tuoljah an ;'u-dltte o~ the hote1-recei~ t4ut ~yawe in advaaee by'!wn in acccriance with the provisions of aeetion 14 - , he may direct that the assessee shall, in addition to the hotel-receipts 5 tax payable by him, pay by way of penalty a sum-(i) which, in the c~e reteneq, to rp cla~ (4), ~ do~, be l~ than ten per cent but shall not exceed one and a hall times the 10 amo~t by which the hotel-receipts tax paid in advance during the ftnanclal year immediately preceding the asaesament year faus ihort of eighty-five per cent of the hotel-receipts tax char"'ble under the provisions of this act; (ii) which, in the case referred to in clause (b), shall not be less than ten per cent but shall not exceed one and a hl'lf times of eighty-five per cert 'of the hotel-neeipta tax charpable wader the provisions of this act 15 17 no order imposing penalty under section 15 or section 16 shall be oppormade unless the assessee has been heard, or has been· given' a reasonable tunity of being opportunity of being heard heard appeals to the commisaoner (appeals) 18 (1) any person objecting to the amount of ho4lel-receipta tax 20 for which he is assessed by the lneqme-tax ofbcer, gl' denying bis liabiu~ to be assessed under this act, f)t objecting to an o!!cier un_r i8ction 12 refusing to re-open an assessment made unler section 11 or objedidg to iny penalty or ftne imposed by the income-ta~ offteer, or to the amount a110wed by the income-tax oftlcer by wayof any relief wider illy pro-2'1 vision of this act, or to any refusal by the lnoojlle-tax oibcer to gradt - relwf, or to an order of rectifl,c~tion having the effect of enh8dl=~b the 2lisessment or reducing the refu~d, or to a~ order refusing to allow t~e clpim made by the assessee fora rectuication un4er section ~ may ,ppeal to the comrpissioper (appeals) 30 (z) every appeal shall be in the prescl"ibed forlj1 and shall be verified in the pcescribed manner (3) an appeal shall be presented within thirty days of the followinl date, that is to 8ay,-35 (a) where the appeal relates to assessment or penalty or fine, &he date of service of the notice of demand relating to the ulle88-ment or penalty or fine, or (b) in any other case, the date on which the intimatiojlof tbe order sought to be appealed against is served: p id d that the commissioner (appeals> may admit an appeal roy e , t'on of the said period jf he is satisfied that the appellant after the explra 1    tha  d 40 b c'! u1ncient cause for not presenijng it within t peno   11 - s c~sigper (appeals) sbtu hear and detenaide the (4) the b t~ the pr~ of·-this act, pass ii,ich orders u he -111 and 811,ec ""', _-1ft· "'--_ -""-1 h orders may lllcluje ajl oi'cier _ncmg -as  ~ fit aru suc ~or~alty: 45 <ler enbanclng tile auessmeat or pedalty hall provi4ed that an ~ rsor a«eetedthereby has been liver a rea-_  be made "nles8 pe apimt sueh enmaeelllftt ina -nftptumty of ghowillf callie tcmawe vl"l""'"  (5) the proeedure to be adopted lin the bearing &!ld determination of me appeals shall, with any neeessary modiftcatton, be in accordance with the procedure applicable' in relation to income-tax appeals to appellate 'l'ribunal 19 (1) any assessee aggriev~cl by an order passed by a commissioner under section 22, or an order passed by a commissioner (appeals) 5 under any provision of this act, may appeal to the appellate tribunal against such order (2) the commissioner may, it he objects to any order passed by the commissioner (appeals) under any provision of this act, direct the i 0 income-tax officer to appeal to the appellate tribunal against the crder (3) every appeal under sub-section (1) or sub-section (2) snall be med within sixty days of the date on wbic:h the order sought to be appealed against is communicated to the assel8ee or to the commissioner, as the case may be j 5 (4) the income-tax ofilcer or the assessee, as the case may be, on receipt of a notice that an appeal against 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 rny part thereof, within thirty days of ~o tnt> receipt of the notice, file a memorandum of cros8~jections, verified 1'1 the prescribed 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 tilx1e specified in sub-section (3) ~5 (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 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 30 form and shall be verified in the prescribed ~anner and shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections referred to in sub-section (4), be accompanied by a fee of one hundred and twenty-fivt" rupees (7") subject to the provisions of this act, in hearing and making an 35 order on any appeal under this section, the appellate tribunal shall exercise the same powers and follow the same procedure as it exercises and follows in hearing and making an order on any appeal under the income-tax act rectification of mistakes zo (1) with a view to rectifying any mistake apparent from the p record, the income-tax officer, the commissioner (appeals), the commissioner and the appellate tribunal may, ·of his or its own motion or on an application by the assessee in this behalf, or where the· authority concerned is the commissioner (appeals), by the income-tax ofticer also, amend any order passed by him or it in any proceeding under 45 this act within four years of the date on which such order was palsed (2) an amendment which has the effect of enhancing the aaaessment or reducing 8 refund or otherwise increasing the liability of the auesaee shall not be made under this section unless the authority concerned has lived notice to the assessee of its intention 80 to do and has allowed ule assessee a reasonable opportunity of bemg heard (3) where an amendment is made \mder thisseciion the order shall be paued in writing by the authority concerned 5 (4) subject to the other provisions of this act, where any such amendment has the effect of reducing the assessment the income-tax ofticer shall make any refund which may be due to 8uch assessee (5) where any such amendment has the effect of enhancing the assessment or reducing the refund already made, the income-tax ofticer i 0 nall serve on the assessee a notice of demand in the prescribed form pecifying the sum payable 21 notwithstanding anything contained in the income-tax act, in computing the income chargeable to income-tax under the head "profits and gains of business or profession" in the case of an assessee carryltg i 5 on the business of a hotel to which this act applies, the hotel-receipts tax payable by the assessee for any assessment year shall be deductible from the profit; and gains of the business of the hotel assessable for that assessment year hotelreceipts tax deductiblein computina total income under incometax act revision of order prejudicialto revenue 22, (1) the commissioner may call for and examine the record ot 20 any proceeding under this act and if he considers that any order 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 enquiry as he deems necessary, pass such order there~n as the cifc~m­stances of the case justify, including an order enhancmg or modifymg 25 the assessment, or cancelling the assessment and directing a fresh a£sessment !,2) no order shall be made under ~b-section (1)-(a) to revise an order of reassessment made under section 13, or (b) after the expiry of two years from the date of the order sought to be revised revision of orders by commilsioner (3) n t 'th tanding anything contamed in sub-section (2), an order 0 wi s t'  th f , , d th's section may be passed at any line m e case 0 in revision un er 1 - if h' h h been passed in consequence of, or to give e eel to, 35 an order, w lc d' as tion contained in an order of the appellate tribuany finding or lrec nnl, the h' h court or the supreme court ig , uting the period of limitation for the purposes explana~wll-in :~mp riod during which any proceeding under this of sub-secbon (2), y ~ r r injunction of any court shall be excluded 40 section is stayed by an or eo,  may either of his own motion or on an 23 (1 ) the commissionefr re~ision call for the record of any pro- b the assessee or i i ta om gpplicatlon y, hich has been taken by an ncomex eer ceeding under t~ls ac~ w make such enquiry or cause such enquiry lubordinate to hun a~ ~ay th provjsions of this act, may pass such 45 to be made and, subject 0 e _cter thereon, not bein, anarder prejudicial to the  e, &hinks fit (2) 'l'hecommiaioner ,ball dot of his own moiioa revile ey oj'der under this section if the order has been made more than ode 1mi' »reviously (3) in the case of an application for revision udder this i8ction by the al8euee, the application shau be made within one year from the aate on whk:h the order in question was communicated to him or the gate on which he otherwise came to know of it, whichever is earlier: provided that the commijsioner may, if he is satisfied that the useuee j c was prevented by sufficient cause from makiag the application within that period, admit an application made after the expiry of that period (4) the commissioner shall not revise any order under this section 1d the following cases:-(a) where an appeal againat the order lies to the commissioner 15 (appeals) but  not been made aad the ~ within which such appeal may be made has not expired, or the  ee has not waived his right of appeal; or (b) where the order has been made the subject of an appeal to the commissioner (appeals) 2:, (5) every application by an assessee for revision under this section shall be accompanied by a fee of twenty-five rupees explanation-an order by the comrniasioner ~eclining to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee ~5 !to the provisions of the fotlowing semons and schedules of the income-tax act and the income-tax (certificate proceedings) rules, application of provisions of incometax act 1~2, a~ in force from time to time, sh!tll apply with neoet88ry modiftcations as if the said provisions and the rules referred to hotel-receipts tax instead of to income-tax:-30 2(43b) ~d (44),41(4),118,125, 12m, 128 to 136 (both inclusive), 138, 140, 144a, 156, 159 to 163 (hath inclusive), 166, 167, 170, 171, 173 to 179 (both inclusive), 187, 183, 189, 219 to 227 (both inclusive), 228a, 229, 231, 232, 237 to 242 (both inclusive), 244, 245, 254 to 282 (both inclusive), 265, 266, 268, 269, 278b, 2'78c, 278d, 2m, 281h', 282, 35 283, 284, 287 288, 288a, 28ab, 289 to 293 (both idcluaive), the second schedule 8iiid the third schedule: provided that references in the said provisions and the rules to the "assessee" shall be construed as references to an assessee as defined in this act 40 25 (1) notwithstandide anythina coiltained in the income-tax act, au idformaiion contaiced in any statement or return made or furnished under the provisions of that act or obtained or collected for the purposes of that act may be used for the purpoijel of this act (2) all informatkm contained in any btatement ~r return made or f!lrnimed under the provisions of this ad or obtaibed or coueculd for 45 ute purposes of this act may be uaed ror the purpetei fjf the itloome-talf act incometax papers to be available for the purpoees of this act wilful attempt t" evade tax etc • (1) if a person wnfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this act, ,he shall, without prejudice to any penalty that may be imposable on h1ln under any other provision of this act, be punishable,-5 (i) in a case where the kmount sought to be evaded exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with ftne' , 10 (ti) in any other case, with rigorous impril!lonment fer a term which shall not be less than three months but which may extend to three years and with fine (2) if a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this act, he shall, without prejudice to any penalty that may be imposable on him under 15 any other provision of this act, he iyunishable with rigorous imprilod-ment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine explanation-for the purposes of this section, a wilful attempt to 20 evade any tax, penalty or interest chargeable or imposable under this act or the payment thereof shall 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 25 statement; or (iii) makes or causes to be made any false entry or statemeat in such books of account or other documents; or (iii) wilfully omits or causes to be omitted any relevant entry or statement in sum books of account or other documents; or (iv) causes any other circumstance to exist which will h~ve the f bl'ng such person to evade any tax, penalty or mterest effect a ena 1 bl 'mposable under this ad or the payment thereof chargea e or 1 'lfull fails to furnish in due time the return of 27 if a person wl y d l --to  'ts h'ch he is required to furnish un er suu-dq; ion chargeable ,recelp : 1 tice ojven under sub-section (2) of section 8 ~ (1) of sectlon 8 or y no o ;,5   or section 13 ho shall be pw11shable,-, ~ failure to furnish returns of chargeable  receipts h (i) in a case were the amo'ullt of tax which would have been " undred f '1 had not been dlscovered, exceeds one h  evaded if the al ur~th ri oro us imprisonment for a term which thousand rupees, wi  g on+hs but which may extend to seven shall not be less than six m - 40  years and with fine; case with imprisonment for a term which (ii) in any other h 'months but which may extend to thr" hall not be less than t ree ~ears and with fine: provided that a person shall not be proceeded ajainst under this section for failure to furnish in d~e time the ret~ of chargeable receipts under sub-se<:tion (if of sections if-(4) the return is ·furnishcd by him before the expiry of the assessment year; or 5 (b) the tax payable by him on the chargeable receipts determined on assessment as reduced by the tax paid in advance under se<:tion 14, if any, does not exceed three tbouadd rupees 28 if a person wilfully fws to produce, or cause to be produced, on failure to produce accounts and documents or before the date specified in any notice served on him under bub- 10 section (1) of section 10, such accounts and documents u are referred to in the notice, he shall be punishable with rigorous imprisonment for a term which may extend to one year, or with fine equal to a bum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with r 5 both 29 if a person makes a statement in any verification under this act or under any rule made thereunder, or delivers an account or 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,-20 false statement in verification, etc (i) in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds one hundred tho"lsand rupees, with rigorous imprisonment for a term which shall qot be less than six months but which may extend to seven years and with fine; 25 (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine abetment of false return, etc 30 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 30 chargeable receipts which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section 26, he shall be puni~hable,-(i) in a case where the ar\ount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had 3s been accepted as true, or which is wilfully attempted to be evaded, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term 40 which shall not be less than three monthe but which may ~xtend to three years and with fine punishmentfor s'!'rond andsu  !'rqunt offence • 31 if any person convicted of an offence under 8ub-section (1) of rction 26 or section 27 or section 2' or section 30 is again convicted for an offence under any of the aforesaid provisions, he shall be pulllshable 4s for the second and for every subsequent offence with rigorous imprisonment for a term which shad not be less than six months but which may extend to seven years and with fine z ot 1974 32 notwithstanding anyt,hing contained in the code of criminal pro-~ure, 1973, an offence punishable under section 26 or sectian 27 or section 29 or section 30 shall be deen1cd to be non-cognizable within the meaning of that code certain ~ tobe don-co,-nizable 5 33 (1) a persan sqall not be proceeded against for any offence under aectiwl 26 or section 27 or section 28 or section 29 or section 30 for any 45 ot 1860 o~ence under the indian penal code relating to any platter ~onnected wlth or arising out of this act, except at the instance of the commissibner (2) the commissioner may, either before or after the institution of idititutiod of proceedinpand compoal-tion of offences 10 proceedings, compound any offence punishable under section 26 or section 27 or section 28 or section 29 or section 30 power to make rul_ 34 (1) the board may, subject to the control of the central government, by notification in the official gazette, make rules for carrying out the purposes of this act is (2) in partic'ujar, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-(a) the manner in which the room charges may be determined under sub-sedion (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 i'nto indian currency shall be deemed to have been made in foreign exchange for the purposes of sub-section (1) of section 5; (e) the form in which returns under section 8 may be fur~ished, the manner in which they may be verified and the other particulars which a form may contain; (d) the form in which an estimate u~der section 14 may be sent and the manner in which it may be verified; (e) the form in which appeals under section 18 or ~ection 19 fil d d the manner in which they may be verlfied; may be e an 35 f  which a memorandum of cross-objections under (f) the orm m 'fi d' t· sub-sec ion (4) of section 19 may be veri e , d t be followed on applications for rectifica-(q) the proce ure 0,  tion ~f mistakes under section 20,  h· h no+ice of demand may be served on (h) the form ld w ic a    dub-section (5) of section 20, the assessee un cr s  h'ch by this act is to be or may be (i) any other matter w i ,  prescribed   h 11 the inferred by this section s a on t make ru es co  t (3) the power 0  th eof include the power to give re ros-an f th exercise er l' th  fi  t ccasion 0 e f them from a date not ear ter an 11 et 0 t the rules or any 0  pective effect 0 ment of this act h date of commence t e t shall cause every rule made under (4) the central governmen av be, after it is made before each  tion to be laid, as so~n asj m ~sion for a total period of thirty thl~ sec  t while it is n s 4s house of parhamen days mtch may be comptiaed in one jesldeil or m t1n or tbore euccea· siye sessions, and if, before the expiry of the eetiion i~wy following the session or the successive 'ssidfts aforeilai4, beth treglea agree in making any modification in the rule or both hcnlieb tine that the rule should not be made, the rule shall thereafter have effect s only in such modlfted form or be of no effect, as the eme may be; 80, however, that any such modification or annltlment mall be 'wfthout prejudice to the validity of anything previausiy done under that rule -power to exempt 35 where the central government is of the opinion that it ianeces-dry or expedient so to do either in the pubjie interat or' having recant 10 to the peculiar circumstances of the ease, it may by notifteaticm :in the official gazette and subject to such conditions, it any, as may be specified in the notification, exempt any hotel or any clasa of hotels from the levy of hotel-receipts tax 31 if any difficulty arises in giving effect to the provisions ef this j ~ act, the central government may, by order, not iftconsisteot with the  provisions of this act, remove the difficulty: power to remove diftlculties provided that no such order shall be made after the expiry of a period of two years from the commencement of this act 37 (1) in section 2 of the central boards of revenue aet, 1963, in 20 54 of 1981 sub-clause (1) of clause (c) ,-consequential amendmedta (a) in item (mi), the word "ane!" oecutttng at the ~c! whall be omitted; and (b) after item (mi) as so amended, the fol1gwiftg item shall be inserted, namely:-2s "(viii) the hotel-receipts tax act, 1980; and" 12 of 19'14 (2) in the ecoj!1omic offences (inapplicability of limitation) act, lq74, in the schedule, after entry 2a relatlng to the interest-tax act, 197', the foltowtftg entry snau be inserted, ftame1'y:-45 of 11'1'" "2b the hotel-receipts tax act, 1980" the ebjeet of tile bill is to impese a speciu tjb on gron mceipta of certain eatepries of hotels the provisitlns ctf the bm will apply in rewion to wels in which tre room charges !or residential accommodation provided to any person at any time during the relevant accoujliing year are rs 75 or more per day per individual the tax will be levied at the rate of 15 per cent on thl9 chargeable receipts of the hotel which witl( inelude au charges received or accruing or arising during the ftcf>\ldting yeat a rebate equal to ftve per eent wih, however, be aaovted in respect of charges received in foreign exchange the charges received or accrumg or arising before the expiry of one month from the end of the month in which the l~gislation comes into fotce will not be liable to tax the tax will be allowed as deduction in computing the taxable income under the income-tax act, 1961 2 the notes on clauses exp13in the varwus provisions· of the bill new delhi; r venkataraman the 7th august, 1980 clause 2 contains definitions of certain terms and expressionj uled in the bill sub-cl4use (6) dein a "hotel''; according tid the deftni'tionj "hotel" includes a building or part of a building where residential fecommodation is by way of business provided for  a menetary coiiiideration,  sub-czause (10) defines "room charges", according 1;0 the definition, icroom charges" means charges for a unit of residential aaconunodatiod in ii hotel and includes charges for furniture"ir-conditioner, refrigerator, radio, music, telephone television and for such other services as are normally included by a hotel i'n room rent, but does not include charges for food, drink and any other services, thp other deftnitions are self-explanatory, clause 3 seeks to provide that the provisions of the bill will apply in relation to any hotel wherein the room charges for residential accommodation provided to any person during the previous year are seventy-five rupees or more per day per individual where a compo· site charge is payable for residential accommodation and food, the room charges included therein will be determined according to the rules to be framed by the central board of direct taxes where the assessee has understated the room charges and over-stated other charges in order to escape liability under the provisions of the bill or where a composite charge is payable not only in respect of residential accommodation and food but also other services, the income-tax officer will be empowered to determine the room charges included therein on a reasonable basis clause 4 !leeks to give jurisdiction in respect of hotel-receipts tax to the same authorities as have jurisdiction under the income·tax act clause 5 leeks to make a provision for charging a tax named "hotelreceipt tax" in respect of the chargeable receipts of a hotel at the rate of 15 per cent for the assessment year 1981-82 and subsequent years, a rebate o'f five per cent has, however, b~n allowed in respect of charges received in foreign exchange, where under an arrangement between a person carrying on the business of such hotel and any other person who is closely connected with him any food, drink or otht!r services is or are provided on the premises of the hotel by the latter and the income-tax officer is of the view that this arrangement has been made with a view to enabling the former to avoid or reduce the liability to hotel-receipts tax, the person providing food, drink or other services will also be liable to hotel-receipts tax in rc~pect of the charges received by him for this purpose, a person will be deemed to be closely connected with the person carrying on the business of the hotel, if, in relation to the person calt)'llng on such business, he is the person referred to in clause (b) of section <loa (2) of the income-tax act for the pur~ of this, proviiio" food drink or othe ---i ---" · r iki4nces wtl1 be deemed to have been provided on the p~ ml~ of the hotel if ·they are provided in any part of the buuding in which the hotel is situate or at any place appurtenant thereto · clause 6 seeks to define the scope of "chargeable receipts" under this clause, chargeable receipts will be the total amo'unt of all charges ~elved by, or accruing or arising to, the assessee in the previous year in connection with the provision of residential accommodation food drink and other services in the course of carrying on the busin~s of ~ hotel   <:lause 7 provides the manner for computing the chargeable receipts sub-clause (1) provides that the amount of chargeable receipts will be computed by deducting the amounts payable by the assessee by way of sales tax, entertainment tax or any tax on luxuries, as also the tax leviable under the bill from the total amount of the charges retelted to in clwse 6 sub-clause (2) provides that clny charges received o'r accruing to the assessee before the expiry of one month from the end of the month in which thi:> legislation comen into force will not be included in the chargeable receipts clause 8 provides for filing of the return of chargeable receipts sub-clause (1) requires every assessee who carries on the business of a hotel covered by this bill or who is assessable in respect of the chargeable receipt<; of any othel' person under this bill to furnish a return of the chargeable receipts of the hotel, before the end of four months from the end of the previous year in respect of the business of the hotel, or 30th june of the assessment year, whichever is later sub-clause (2) seeks to empower the income-tax officer to fssue a notice to any person who is asses~able under this act requiring him to furnish a return of the chargeable receipts within th;irty days from the date of service of the notice under both these sub-clauses, the income-tax officer has been authorised to extend the time for furnishing the return sub-clause (3) seeks to enable an assessee who h~ not tumiahecltbe ·thi the time allowed or who having furnished the return return wi n  ftl · mission or wrong statement therem to e a return or discovers any 0  b f h )  d t n as the case may be, at any time e ore t e comp etlon a revise re ur , of the assessment clause 9 provides for payment of hotel-receipts tax on se!fass-essment (1) eks to provide that where the hotel-receipts tax sub-clause b ~ f the return exceeds the tax already paid under payable on th~  asls fothis bill the assessee shall pay the hotel-receipts th prcvlslon 0 ,  i h f f h aoy a ~r f filing the return and enc ose t e proo, 0 sue p~~~~   tax so ·th the return a ment along wi p y 2) vides that hotel-receipts tax paid onte!f  uae  sub-clcluse ( pr: to have been paid towards the ment jl\ent shall be dee me 9ub~  (a)  , prmide tlbat if ad a  mot pay tw aotel-receipts we in a~'with the provtsiclla of tuhl  (1), _ shall be liable to a pentityat the rate of two-per cent par j»nib of the tax payabje oil sel£-aaeesment if tk defagh is in j'1tiip8ct of a part of the tax payable on self-assessment, the amount of penalty shall !»e two per eent per month of that part in respeet of which the default is committed clause 10 provides that the income-tax officer may call for accounts, documents or other evidence from the assessee for the purpose of his assessment, and shall make the assessment after considering the account5, documents or other evidence so obtained and any relevant material gathered by him   clause 11 relates to the beat judgment al8c!jslment it any person fails to furnish the return in resj'ollse to the ~ given under elause 8 (2) or hal not made a return (lr a revised retum under clause 8 (31) , or having made the return fails to comply with all the terms of the notice issued under clawe 10 (1), or the income-tax officer is not satisfied about the correctness or the completeness oithe accclwlts of the assessee, the income-tax officer, after taking into account all the relevant materialshe has gathered, whl make a best judgment ajaessmellt of the chargeable receipts and detc'rmine the amount of tax payable or re'fundable- to- the assessee clause 12 provides for re-opening of the best judgment assesment at the instance of the assessee s&c:l4ruse (1) provides that where an asiiusee bi8e9leci \ldlier dmiie 11 makes an applieatign to the ldcome-t"ax oacer within one moath from the date of service of a notice of demand for the cancellation of the assessment on the ground that he was prevehted by suftlcient cause from making the return required under cl8'use 8 (2) or that he did not re'ceive the notice under clause 10 (1) or that he had not a reasonable opportunity to comply or was prevented by sufticient cause from eomplyiftl with the notice udder clause 16(11), tbe incojde-tlax oilcer shall cancel the best judgment aasessmeot if he is satisfied about the existence of such ground and proceed to make a fresh assessment under clause 10 or clause l'l sub-cloose (2) provides that e:very application for re-opening ot dest judgment assessment shall be disposed of within 90 days from the date of receipt of the application by the income-tax officer for this purpose, any delay in dlspesing of the applicaion attributable to the assessee will be excluded cla'ule 13 relates to the assessment or reassessment of charjeable receipts which have escaped assessment or have been under-assessed this clause provides that in the case' of an omission or failure on the part of the assessee to file a return or to disclose fully and truly alt the material facts necessary for his assessment, such proceedings may lie initisteci many' tiae,  in cather c!8i8s, within f01lr , of the end ot the ftmaat allelslmdt year  clause 14 :provides for payment of hotel-receipts tax in advancesub-cjause (1) seeks to provide that hotel-receipts tax payable in ~ "of the, chargeable receipts of any previous year shall be paid utmg the financial year immediatelv preceding the relewnt 8iieii-ment year - ,s~b-clause (2) seeks to provide that the botel-receipts tax shall be paid in advance in two instalments on the specified dates the specified, dates are 15th september in respect of the chargeable receipts attrlbutable to the first half of the previous year and '15th march in respect of the chargeable receipts attributable to the second half of the previ<tus year sub-clause (3) seeks to provide that every assessee shall send to the income-tax officer an estimate of the chargeable receipts attributable to the relevant part of the previous year and the hotel-receipts tax payable thereon and shall pay the tax so payable on or before the due dates specified in sub-clause (2) the estimate is to be sent to the income-tax officer on or before the date on which the relevant instalment of the hotel-receipts tax is due it has been further provided that in respect of the hotel-receipts tax payable in advance during the financial year 1980-81 the assessee shall send to the income-t~x officer nn estimate of the <:hargeable receipts of the previous year relevant for the assessment year 1981-82 on or before 15th march, 1981 and pay such hotel-receipts tax in one sum on or before 15th march, 1981 sub-clause (4) provides that the estimate of the chargeable receipts and the tax payable thereon in advance shall be made in the form and verified in the manner prescribed for these purposes sub-cla'u'le (5) seeks to provide that in cases of delay or default in making payment of any instalment of hotel-receipts tu payable 121 advance, the assessee s'hall be deemed to be an assessee in default in respect of such instalment cla'u'le 15 seeks to malte a provis:o!1 for the imposition of penalty on an assessee for his failure, without reasonable cause, to furnish a f hargeable receipts or to produce the accounts, documents or return 0 c ·  at h 'd c required by the income-tax officer, and for any conce -ot er evl en e   __ ~  ment 0 f h geable receipts or furmshmg of inaccurate particwars of c ar , f  - t 'i'he penalty for concealment or furmshmg 0 maccurate such recelp s - ed b h i particulars of chargeable receipts shall not fbehlmpyos t~ t eanciotmet--th ut the prior approval 0 t e nspec mg ss s an tax officer wi 0 commissioner cla'u'le 16 seeks to make a provisj~n fo: tsthet imposltbio1n in°f ped nalty fie estimate of hotel-recelp ax pay e - vance for fumish~ng a a ':ho~t reasonablel'ause, to furnish such estimate and for fallure, wi 'd that the assessee shall be given a reasonable cla'u'l~ 17 pro:l e~eard before any penalty under clause 15 or clause opportumty of being  16 is imposed upon him  to ppeals by the assessee to the com, mumoner _ e 1~ relates a nr \-laus, rder passed by the income-tax umcer (appeals) against any 0 'clause 1~relates to appeals to the appeaate tribunal by 8sses8ees and to appeals by the ldcome-tajc officer (under the direction ofjhe commissioner of income-tax) against any order made by the codudia  sioner" (a~) it has ~ provided that in dispoiing of ~ appeals, the tribunal shall exercise the same powers and foll~w the same procedure as it exercises and follows in disposing of any appeals under the income-tax act clause 20 provides for the rectification of mistakes apparent :fn1m the record in any proceedings by the income-tax officer, the commissioner (appeals), the commissioner and the appellate tribunal" at&o motu or at the instance of the asses-;ee, or where the authority concerned is the commissioner (appeals), at the instance of the incometax officer also, within four years of the date on which the order sough t to be rectified has been passed clause 21 seeks to provide that in computing the income of the assessee chargeable to income-tax under the head "profits and gains of business or profession" for any assessment year, the hotel-receipts tax payable by him for that assessment year shall be deducted from the profits and gains of the hotel clause 22 empow(!rs the commissioner of income-tax to revise any order not being an order of reassessment passed by the income-tax officer which is prejudicial to revenue, within a period of two years from the date of the order sought to hc revised clause 23 empowers the commissioner of income-tax to give relief to the ossessee on revision either of his own motion or on an application by the assessee of any order passed by the income-tax officer clause' 24 seeks to make applicable to the proceedings in relation to hotcl-receipts tax, certain provisions of the income-tax act, pertaining to various matters for which no separate provisions nave been made in the bill, eg, control of income-tax authorrties, issue and service of notice of demand collection and recovery of tax, reference to high court, appeal to supreme court etc it also seeks to apply the provisions of the income-tax (certificete proceedings) rules, 1962 to the proceedings of recovery of arrears of hotel-receipts tax clause 25 provides that all information contained in any statement or return made by the assessee or furnished in any proceeding under the income-tax act, may be used for the purposes of proceedings relating to hotel~recejpts tax and vice versa ' ' clause 26 seeks to make a wilful attempt to evade any tax,penalty or interest chargeable or imposable under the legislation or to evade the payment of any such tax, penalty or interest punishable under the law any person-  , (i) who has in his posses~ion or control any books of aeeount 01' other documents (heing books of account or other doc1j,men~ relevant tq any proceeding under the legialatio'll containing a f~ae entsy or statement, or  " (u), who makes or causes to be made any false entry in suell - boob or aecodnt or tjftier ti~utbet1ta' at , ,(~~~ ~~o \vilfully omi~ or caus~ to ho mnittad nny ent"' w,',', bta~rnent in liuch boob of ceount or ot~ dci~t;: qr -il (iv) who causes any other circumstance to exist which will have the e~ct of enabling him to evade ilhy tax or pflyni6nt th~nof, shall be guilty of off'ence under this provision , where the amount sought to be evaded through the wilful tltt~t ex~~ rupees orie lloth, the punishment ,will be tigortfus ittiprlldhment idia minimum term of six months and a rlufiirtiiliti tehfi' of seven ~ ~n~ fine in a?y other case, th~ punishment ,will be rif,>rous imprison jllent for a mlnlixlum term of three months 'and a maximum term of three years and firie punishment ,for wilful attempt to evade ~he fayment bf ta~" penalty or interest shall be i'lgorotis iifiptf§6ritrl~nt fot a mhiimlirrt ferm of three months and a maximum term of three years and fth~ clause 27 seeks tu provide the punishm~nt far wilful failure to furnish returns of chargeable receipts liild~r sti1:)·~lfiilse (i) of ~lguge 8 or in response to no,ices under sub·dauae (2) of that clause or claqli 13 the punishment under this clause will depend on the amount of tjx whicll wo"uld have been evaded if the failure had not been dlseove~ed when the amount of such tax exceeds rupees one lakh, the puniahrrient ~n be r1llorous imprisonment for a minimum term of six monthatw a jilaxi· mum term of seven years and fine and, in aay othet cue, rigoro(8 imprisonment for a minimum term of t~tee months and a maximum term of three years and fine these provlsioll8 win not apply if the ratum is furnished before the ead of the relevant asaesmnem year or it the tax payable on the chargeable receipts determined on aseeament u redueed by advance tax paid, if any, d'oes not exceed rs 3,000 clause 28 seek~ to, flrovide that in case of failure (jf' an asil~ilsee to pt oduce books of account, documents, etc, that n1ly be called f'at by ttte income-tax officer bv a ';10lice issued under clause to(i), th~ a~"'~ shall be liable to punishment with rigorous, irni?rison,?ent for a term which may ex',·nd to one year or with fine or with both clause 29 ~f'eks to provide the punishment for a false verifil::ation in a stateme~t or for delivery of a false acc'"lfjt,pr, '"ta~~n~ where the am'ount of iax which would have been evaded if the statement or ac· count had been accepted as true exceeds rupees one lakh, the punishment shall be rigorous imprisonment for a minimum term of six months and to maximum term of seven years and fine in any other case, the p1jttishment shall be rigorous imprisonment for a minimum term df three months and maximum term of three years _fiae clause 30 set-ks to provide for the p~~!shnifm! r~~ ~~t of making ~m d~iivet-y d~ ~ faille ac~dtrnt, st~te~~t or aec~m'itttm, rel~t'tilg tt' ~e ~hbrg~8ble reeetpfs lis also the abfltffient of wftflll ii~tefil'pt~, tv, tix under this provision the abetment of the aforesaid offent'es 1ft 'cde'8 h were th amount of tax penalty or interest which would have been e '  evaded if the ,1ccount, statement or declaration had been accepted as h'ch is wilfully attempted to be evaded exceeds rupees one lakh, true, or w 1 the punishment shall be rigoroua impriaoament iilra idlmmum period of six months and a maximum period of seven years and fine in any other case, the punishment shall be rigorous imprisonment for a mini-j'qum term of three months and a maximum term of three years nci fine clause 31 ~ks to provide that where a person who has been canvicted of an offence under clause 26 or clause 27 or clause 29 or clause 30 is again convicted for an offence under any of these provisions he i'ball be punishable for  he second and every subsequent offence with nggrous imprisonment for a minimum term of six months and a maximum term of seven yean and fine cza'ilse 32 ~ks to provide that notwithstanding anything contained ill the provisions of the code of criminal procedure, 1973, the following qftences shall be deemed to be non-cognizable within the meaning of that code: (i) wilful attempt to evade tax, etc (clause 26); (ii) failure to furnish returns <yf chargeable receipts (clause 27); (iii) false statement in veriflcation (clause 29); (iv) abetment of false return, etc (clause 30) clauae 33 seeks to provide tha • no person shall be proceeded against for any offence under clause 26, clause 27, clause 28 clause 29 or cla"ue 30 or for any offence under the indian penal code relating to any matters connected with or ariaing out of this legislation, except at the instance of the commissioner l!qwever, the commissioner has been empowered to compound any offence punishable under any of the clawte8 referred to above, either before or after the institution of proceed:lng • clause 34 seeks to empower the central board of direct taxes to make rules for carrying out the purposes of this enactment and in this behalf, inut alia, to prescribe varic1us forms such as the form of return of chargeable receipts clause 35 seeks to empower the central government to exempt any hotel or any class of hotels from the levy of the hotel-receipts tax clause 38 seeks to empower the central government to remove any dlfficulty arising in giving effect to the provisions of this bill this power shall be available to the central government for a perioi of two years from the commenceme'nt of t!1e enactment clauae 37 seeb to amend the central boards of revenue act, i_ to include the new tax in the list of direct taxes enumerated in sub-clau8e (1) of clause (c) of section 2 the clauae alto seeks to amend the economic offences (inappli-('ability of limitation) act, 1974 to make the proviaioda of the code 01 criminal procedure, 1973 s to limitation inapplicable to offences provided f, in the bill the proposed hotel-receipts tax will be administered by the incometax department ac<:orclingly, clause 4 of the bill provides that the tax authorities under the income-tax act will be the tax authorities for the purposes of the pro!posed legislation it is proposed to carry on the administration of the act by augmenting the strength of the income-tax department, to the minimum extent necessary 2 "'he administrative expenditure likely to be involved in the initial stages in implementing the hotel-!'ecelpts tax is estimated to be of the order of rs 8 lakhs for a full year as indicated in the following chart:  a recurring expenditure1 pay ami allowances of officers rs in lakhs l48 ii pay and al10wances df staff 377 iii incidental expenses (including class iv staff) 078 iv office accommodation 143 total 738 b non-recurring expenditure v furniture, office equipment, etc 060 total 798 rounded off to rs 800 lakhs clwse 24 of the ~ptcri1~ ibf tbe ~tdoft of certain proviaiom ~ ~be ~tax act, as if the said provisions referred to hotelt!c~+pis ' ~  _~e~4 ,of ~o iri~,?me:-t~ ,$ogle of tlie p~~isf?:~  of ,~ ~c~e;'~ af;t ~~ed ~~ t~~ c1a~e pro'yiqe ~r the  r~!lg ~f~ [eg -cti0lj 132 (i4)  in relation to any s~h ,or seizllte ~fe\ilarl1 ita ~~4 to ~e procedure to be fo~lo~~ fc?~ ~~tainin~ e~try" iri~ ~ building or place to be, ,~!u'c;ped 1p:~ior ~~'ag ~e cu~¥~ of any -books o{ account, or otlier documents or assets seized; section 158 in zeaard to tilt fdrm of notice of demand of ~, inter·, peu~ty, fine, ar mher iunta payllble; _tion ~ as _ tb& fo~m ill 'ld~~cb cla~j;for r~fwu!s 1jl~ be made and the manner i~ which they may be ver~~,d; rule 91 of he second schedule as to the form to be used for any wder, notice, warrant or certificate and m era of t~ same ~~le ,~ to the proc~<:l':lre to ~e followed by tax recovery commissioners, tax recovery oftlcers abd other officers) matters in respect of which rules may be made under these provisiansi are matters of <k!tail or procedure and have already been approved by parliament as matters which may be regula  ed by rul~ clause 34 of the bill seeks to empower the board \0 make rules for carrying ~ut the purposes ~f the legislation the matters in respect of which rules m~y b~ made relate to matters of detail or procedure such as the manner {ii which room charges may be determined in cases where composite charges are levied in respect of residential accommodation' and food, the cases and circumstances in whjch paymenti made hi indian curretiey by conversion of foreign exchange sba11 be deemed it) have been made in foreign exchange fo!' the purposes of sub-section (1) of section 5, the fetm in wl\ich returns may be furnished or estimates may be sent and the mbfttler ;n -hich thf>y may be verified the form in whlch appeals may be filed and the m°m-ner in wh!ch th~y may be, verified and the procedure to be followed on applications for rectification of mistakes af, ·he maters in re!'lpert of which rules may be made under the provisions of the income-tax act made applicable- by clause u or under clause 34 are matters of detail or procedure, the delegation of legislative power is of a nonnal character  annexure extract from the central boards of revenue act, 1963(54 of 1963) - - - - - definitions  z in this act, unless the context otherwise requires-- - - - - (c) "direct tax" means-(1) any duty leviable or tax chargeable under-- - - - - 45 of 1974 (vii) the interest-tax act, 1974; and - - - - (shti r, venkataraman, minister of finance) 