Short Content
Part 1
SURVEY, SEARCH AND SEIZURE
Chapter 1 Introducing
Chapter 2 Non-Compliance with Summons
Chapter 3 Omission or Failure to Comply with Notice
Chapter 4 Authorisation for Search and Seizure
Chapter 5 Execution of Search and Seizure
Chapter 6 Seizure from the Custody of other Authorities
Chapter 7 Prohibitory Order
Chapter 8 Applicability of Code of Criminal Procedure
Chapter 9 Summary Assessment
Chapter 10 Special Assessment Procedure inSearch Cases
Chapter 11 Retention of Books of Account or Document
Chapter 12 Application of Retained Assets
Chapter 13 Power of Survey
Chapter 14 Remedies Against Search and Seizure
Chapter 15 Relevant Statutory Provisions
Chapter 16 Relevant Rules and Forms
Chapter 17 Procedure for Sale of Retained Assets

Part 2
SETTLEMENT OF CASES

Chapter 18 Introductory
Chapter 19 Settlement Commission
Chapter 20 Application for Settlement Cases
Chapter 21 Procedure on Reciept of Application for Settlement
Chapter 22 Power of Settlement Commission
Chapter 23 Miscellaneous Matters
Chapter 24 Relevant Proviso

   Detailed Content

PART 1
SURVEY, SEARCH AND SEIZURE
Chapter 1
Introducing

1.       Truth and civilization
2.       State and social security
3.       Man's castle and privacy
4.       Concept of liberty in Constitution
5.       Introduction of power of search and seizure
6.       Power of search and seizure introduced in India
7.       Power to be regulated by law
8.       Conferment of power on income-tax authorities
9.       Legislative experiments in enlargement of powers
      (i) Substitution of section 132 in 1964
           (a) Main features of the substituted provisions
      (ii) Enlargement of powers in 1975
10.     Officers empowered to authorise action for search and seizure
11.     Constitutional validity of provisions of search and seizure
      (i) No violation of Article 14 of Constitution
      (ii) No violation of Article 19(1)(g) of Constitution
      (iii) Legislative competence
      (iv) No violation of Article 20(3)
      (v) Rules 112, 112-A, 112-B and 112-C
12.     'Search'
13.     Seizure
14.     Search and seizure provision under various fiscal enactments

Chapter 2
Non-Compliance with Summons

1.       General
2.       Authorities empowered to issue summons
3.       'For the purposes of the Act'
4.       Power of Director General or Director to issue summons
5.       Income-tax Inspector not empowered
6.       Pendency of proceedings necessary
7.       Director General, etc., empowered even if no proceeding pending
8.       Application of judicial mind essential
9.       Documents requisitioned must have nexus with the purpose of Act
10.     Section 131 v. Section 132
11.     Books for period beyond three years may be summoned
12.     Consequence of non-compliance with summons

Chapter 3
Omission or Failure to Comply with Notice

1.       Introduction
2.       Section 142 (1) of Income-tax Act
3.       Requisite conditions for issuance of notice
      (i) Before assessment
      (ii) Exception
4.       Notice to whom ?
      (i) Person making return
      (ii) Person in whose case time for filing return has expired
      (iii) No other person
      (iv) 'Any person' under section 132
      (v) Notice on employees irrelevant
      (vi) Notice on agent of non-resident
      (vii) Foreign business
      (viii) Gumastha
5.       Combined notice permissible
6.       Assessing Officer is final arbiter
7.       Assessee to comply
8.       Application of mind by Assessing Officer essential
9.       Specification of documents in notice essential
10.     Sufficient time for compliance with notice essential
11.     Books of account must be in assessee's possession or control
12.     Notice to be interpreted on its own terms
13.     Books of account beyond period of three years cannot be called for
14.     No time-limit for statement of wealth
15.     Section 142 (1) v. Section 131

Chapter 4
Authorisation for Search and Seizure


1.       Unearthing black money
2.       Concept of authorization
      (i) Administrative act and no arbitrary authority
      (ii) Strict compliance with law
      (iii) No arbitrary authority
      (iv) No search where location or article of thing known
3.       Power of authorisation when to be exercised?
      (i) Officers competent to issue authorization
      (ii) Officers who may be authorized
      (iii) Form of authorization
      (iv) Assessee to prove authorisation to be mala fide
4.       Circumstances enabling issue of authorisation—Conditions precedent
      (i) Non-compliance with summons or notice—Circumstance I
      (ii) Likely non-compliance with summons or notice—Circumstance II
            (a) No notice necessary before authorisation
            (b) Books of account or documents must be useful or relevant
      (iii) Possession of undisclosed money, etc.—Circumstance III
            (a) 'Any person is in possession'
            (b) 'Thing'
            (c) Undisclosed money—Ambit and scope—Clause (c) when not attracted?
      (iv)       Immovable property outside ambit of provision
      (v) Investigation twice before authorisation—No roving or fishing enquir
      (vi) No power of arrest
5.       Specification of documents
6.       Formation of belief—Basis of authorization
      (i) Existence of information essential
      (ii) Information—Ambit and scope
      (iii) Information must be valid and not merely rumour
      (iv) Mere complaint not material
      (v) Belief must be honest
      (vi) Nexus of information with conditions essential
      (vii) Application of mind essential
      (viii) Satisfaction of Officer to be determined on basis of circumstances on date of issuing warrant
7.       Reason to believe—Ambit and scope
      (i) Mere suspicion not sufficient
      (ii) Belief not to be pretence
      (iii) Reason is objective
      (iv) Rational nexus between reasons and belief essential
      (v) Reasonable belief under Section 132 (1) (b)
      (vi) Reasonable belief under section 132 (1) (c)
      (vii) Belief must be of the Authorising Officer and delegation not permissible
      (viii) Necessity of recording reasons
      (ix) Communication of reasons not necessary
      (x) Belief v. Suspicion
8.       Justiciability of reasons for belief
      (i) Belief can be challenged though not sufficiency of reasons therefor
      (ii) Justiciability under section 132 (1) (b)
      (iii) Justiciability under section 132 (1) (c)
      (iv) Bona fide exercise of power with error of judgment
9.       Form and content of authorisation
      (i) Omission to score out inapplicable portion immaterial
      (ii) Non-application of mind
      (iii) General authorisation without names of persons illegal
      (iv) Fresh authorisation against proper person permissible where authorisation against one, recovery from other
10.     Pendency of 'proceeding' on date of authorisation not necessary
11.     No roving or fishing enquiry
12.     Section 69-A v. Section 132(1)
13.     Summarising correct legal position
14.     Caution—Powers to be sparingly exercised
15.     Position under Wealth-tax Act

Chapter 5
Execution of Search and Seizure

1.       Powers and functions of authorised officer
2.       Extension of jurisdiction
      (i) Extension by Chief Commissioner or Commissioner having no jurisdiction over person
      (ii) Form of authorisation
3.       Execution of search
      (i) Search in general
      (ii) Notice before search not necessary
      (iii) No necessity to give copy of authorisation before search
      (iv) Authority to be produced—Duty of person in charge of building, etc.
      (v) Calling two witnesses before search
      (vi) Power of authorised officer where ingress cannot be obtained
      (vii) Building or place in occupation of woman
      (viii) Power if ingress into moving vessel, etc. cannot be obtained
      (ix) Search to be made in presence of witnesses
      (x) Search without witnesses invalid
      (xi) Search of woman to be made by woman
      (xii) Owner of box, locker, etc, to comply
      (xiii) Occupant of building, etc. to be permitted to be present
      (xiv) Copy of list of things to be supplied to person searched
      (xv) Marks of identification
      (xvi) Extent of search in case of firm
4.       Entry and search—Reason to suspect means 'reason to believe'
5.       Validity of search
      (i) Search where not mala fide or excessive
      (ii) Search where valid
      (iii) Search where not valid
6.       Assistance of police
7.       Execution of seizure
      (i) ‘Seizure‘ what connotes ?
      (ii) Search need not preclude seizure
      (iii) Mode of seizure
      (iv) Investigation necessary before seizure of money, bullion, etc.
      (v) Prohibitory order under section 132 (3), not seizure
      (vi) Attachment order where deemed seizure
      (vii) Seizure where valid
      (viii) Seizure where not valid
      (ix) Seizure made on direction of other officer illegal
      (x) No seizure after assessment where it relates to pre-assessment stage
8.       Alternative to seize or not to seize
9.       Seizure of bullion, jewellery, etc., and keeping in sealed package
10.     Deposit of seized material with custodian
11.     Steps by the custodian for safe custody
      (i) Deposit in banks, etc.
      (ii) Crediting or remitting money
12.     Opening of sealed package
      (i) Requisition from custodian
      (ii) Opening before two respectable witnesses after notice to person concerned
      (iii) Person to be allowed to be present throughout
13.     No power to arrest
14.     Extension of authorisation where books of account, etc., kept in any building, etc., not mentioned in authorisation
      (i) Scope of authorisation
      (ii) Form of authorisation
15.     Minor errors in search and seizure not material
16.     Value of evidence collected in illegal search and seizure
17.     Power to remove obstruction in search and seizure
18.     Inquiry where money, bullion, etc, seized
      (i) Notice within 15 days of seizure
      (ii) Notice for production of accounts or documents
      (iii) Examination on oath of any other person
      (iv) Reasonable opportunity to show cause before use of any material gathered in enquiry essential
      (v) Delay in calling for explanation not to vitiate search

Chapter 6
Seizure from the Custody of other Authorities

1.       General
2.       Judicial controversy
      (i) Seizure not permissible
      (ii) Seizure permissible
3.       Supreme Court settling controversy—Seizure not permissible
4.       Controversy set at rest by legislative intervention
      (i) Issue of warrant of requisition
      (ii) Delivery forthwith or when retention no longer necessary
      (iii) Provisions of section 132 to apply
5.       'Information'
6.       Authorisation for requisition when to be issued regarding assets ?
7.       'Reason to believe'
8.       Application of mind essential
9.       Court not covered by section 132A
10.     Seizure from Court how permissible?
11.     Court cannot embark upon enquiry when approached
12.     Form of authorisation for requisition
13.     Requisition to be in writing
14.     List, packing, identification marks and delivery of copy
15.     Section 132 applicable
16.     Release when directed by writ court?

Chapter 7
Prohibitory Order

1.       General
2.       Constitutional validity of section 132 (3)
3.       'Not practicable to seize'—Sine qua non
4.       'Immediate possession or control
5.       No order if officer is in doubt
6.       Restraint order not seizure
7.       Period of limitation under section 132 (5) not applicable
8.       Failure to issue notice not to render order illegal
9.       Attachment cannot continue beyond 60 days if not extended with Commissioner's approval
10.     Validity of prohibitory order not affected in absence of order under section 132 (5)
11.     Contravention of prohibitory order is an offence
12.     Assets which can be subject-matter of prohibitory order
      (i) Bank accounts
      (ii) Fixed deposits
      (iii) Fixed deposit receipt
      (iv) Promissory notes
      (v) Debts
      (vi) Hundies
      (vii) Articles in custody of custom authorities not liable to restraint order
      (viii) Business premises not liable to restraint order
(ix) Invasion on rights—Expeditious enquiry necessary
      (x) Assets to be released after enquiry
      (xi) Examination of goods permissible
      (xii) Removal of goods covered by prohibitory order through ex parte injunction—Abuse of process of court
12.     Examination of person on oath
      (i) Examination on oath and use in evidence
      (ii) Administering oath not obligatory
(iii) Position in the Indian Oaths Act, 1873
      (iv) Examination before search not contemplated
      (v) General questions not permissible
      (vi) Relief from penalty for concealment

Chapter 8
Applicability of Code of Criminal Procedure

1.       Scope and applicability of Cr. P.C.
2.       Section 132 is a complete Code
3.       Relevant provisions of Cr. P.C.
4.       Issue of search warrants—A grave step
5.       Search in presence of two respectable witnesses
      (i) 'Respectability' what connotes ?
      (ii) Locality what takes in ?
      (iii) "Place"
      6.       Scope and applicability of section 165 of Code
7.       Safeguards in section 165 of Code
8.       Section 165 of Code v. Section 132 of Income-tax Act.
9.       Other provisions of Code not applicable
10.     No power with Magistrate to order disposal of assets seized under section 132

Chapter 9
Summary Assessment

1.       General
2.       Presumption
      (i) Scope of presumption
      (ii) Rebuttal of presumption
      (iii) 'Possession'
      (iv) Presumption where available or otherwise
3.       Provisions of section 132 (5) of Income-tax Act
      (i) Constitutional validity
      (ii) Object of provision
      (iii) Provision not confiscatory in nature
4.       Scope of section 132 (5)
      (i) Summary enquiry and determination of extent of retention of seized assets
      (ii) Nothing to do with goods of third party
      (iii) Condition precedent—Valid seizure of assets
      (iv) Extent of retention of assets and release of balance, if any
      (v) Retention of documents of title not contemplated
      (vi) No authority to realise the seized assets and convert them into cash till tax liability finally quantified by assessment
      (vii) Order for premature encashment of fixed deposits not permissible without assessment
5.       Reasonable opportunity of being heard to 'person concerned' essential
      (i) 'Person concerned'
      (ii) Notice to person concerned
      (iii) Different notices under rule 112A
      (iv) No provision to issue notice to all claimants—Remedy
      (v) Service of notice
      (vi) Principles of natural justice not to be violated
6.       Order of summary assessment
      (i) Basis of order—Valid seizure of assets
      (ii) Assessing Officer to act fairly and honestly
      (iii) Opportunity to cross-examine witnesses
7.       Period of limitation for order
      (i) Waiver by aggrieved person possible
      (ii) Computation of period of limitation
      (iii) Limitation applies only to initial order
      (iv) Period of stay of proceedings to be excluded—Explanation I to section 132 superfluous
      (v) No order after completion of regular assessment
8.       Objection to jurisdiction of Assessing Officer
9.       Scope and nature of order
      (i) Order amounts to attachment before judgment
      (ii) Order not permissible in respect of assets attached under section 132 (3)
10.     Previous approval of Deputy Commissioner essential for order of summary assessment
      (i) No mechanical approval by Deputy Commissioner
      (ii) No necessity to state that previous approval obtained
      (iii) Deputy Commissioner need not peruse all accounts before approval
      (iv) Order not binding not third party
      (v) Order revisable by Commissioner
      (vi) Order appealable
11.     Retention and release of assets
      (i) No retention of assets without authority of law
      (ii) No retention of more than requisite amount
      (iii) Release of assets if all amounts due paid or satisfactory arrangements for payment made
      (iv) Specified Acts
      (v) Demand of bank guarantee before release of goods
      (vi) Assets to be released in presence of two witnesses
      (vii) No realisation of liabilities for subsequent years
      (viii) Penalty
      (ix) No retention till regular assessment
      (x) No release if no seizure
      (xi) Release after regular assessment
      (xii) Interest on refund
12.     Normal procedure of assessment not wiped out by section 132 (5)
13.     Power to proceed against real owner of assets seized
14.     Department bailee in respect of seized assets 15.     Property in assets retained does not immediately pass to Assessing Officer
16.     Non-adjustment of tax liability from primary gold seized proper
17.     Writ
18.     Objections to order of summary assessment
      (i) Legislative changes
      (ii) Grounds of objection
      (iii) Person competent to object—Person aggrieved
      (iv) Final assessment no bar for raising objection
      (v) Objection lies even after issue of notice of revision by Commissioner
      (vi) Objection not regular appeal but opportunity to be given
      (vii) Limitation of 30 days for objection
      (viii) Writ
19.     Order on objection
      (i) The Commissioner competent to make order on transfer of file
      (ii) Order not subject to regular assessment
      (iii) Validity of order

Chapter 10
Special Assessment Procedure inSearch Cases

1.     Legislative history
      (i) Salient features
      (ii) Amendments
            (a) 1996
            (b) 1997
            (c) 1998
2.       Applicability of provisions
3.       Relevant concepts
      (i) Undisclosed income
      (ii) Block period
4.       Computation of undisclosed income of block period
      (i) Certain provisions to apply
      (ii) Burden on assessee
      (iii) No set off of brought forward losses or unabsorbed depreciation
5.       Procedure for making block assessment
      (i) Clarification
      (ii) Caution by Board
      (iii) Non-inclusion in undisclosed income
      (iv) Time-limit for completion of block assessment
      (v) It has been clarified that the authorisation referred to above is deemed to have been executed
      (vi) Time-limit for completion of block assessment in case of undisclosed income of any other person
      (vii) Exclusion of time for limitation
      (viii) Authority competent to make block assessment
      (ix) Charge of tax at 60 per cent.
      (x) Block assessment and regular assessment both not permissible
6.       Interest and penalty
      (i) Interests or penalties which not leviable?
      (ii) Levy of interest where permissible?
      (iii) Penalty
      (iv) Conditions for imposing penalty
      (v) Time-limit for imposition of penalty
      (vi) Exclusion of time for limitation
      (vii) Penalty where not imposable
      (viii) Communication of order of penalty to Assessing Officer
7.       Appeal

Chapter 11
Retention of Books of Account or Document


1.     General observations
2.     Important safeguard to taxpayers
3.     Period of limitation for retention mandatory
4.     Object of retention not to penalise assessee
5.     Conditions precedent for retention beyond 180 days
    (i) Twin conditions must be complied with before expiry of 180 days
      (ii) No ex post facto approval by Chief Commissioner
      (iii) Recording of reasons before 180 days essential
      (iv) Approval of Chief Commissioner or Commissioner before 180 days necessary
      (v) Approval of Chief Commissioner or Commissioner more than once permissible
      (vi) No opportunity of being heard necessary before Chief Commissioner's or Commissioner's approval
6.     Making copies of seized book beyond 180 days not prohibited
7.     Expeditious communication of Commissioner's approval and recorded reasons to aggrieved person essential
8.     Retention where valid or otherwise
9.     No law to direct to assessee to attest copies
10.     Who is 'authorised officer' for purposes of retention of books of account, etc.
11.     Maximum period of retention
12.     Right to make copies or take extracts from seized books of account or documents
      (i) Summary assessment under section 132 (5) not valid if right of inspection denied
      (ii) Inspection of other record cannot be denied
13.     Objection to approval of Chief Commissioner, Commissioner, etc.
      (i) No time-limit for objection
      (ii) Grounds of objection
      (iii) Opportunity to applicant necessary

Chapter 12
Application of Retained Assets


1.     Introductory
2.     Constitutional validity of section 132B
3.     Scope and applicability of section 132B
4.     Manner of application
      (i) Recovery of entire tax liability
      (ii) Assets consisting solely or partly of money
      (iii) Application of other assets
      (iv) The Third Schedule—Distraint and sale
      (v) Liabilities for assessments years subsequent to date of seizure not realisable
5.     Ownership in retained assets still in owner till their sales
6.     Retention of assets after setting aside of regular assessment and remand for fresh assessment permissible
7.     Other modes of recovery not precluded
8.     Return of surplus forthwith
9.     Interest on surplus
      (i) Interest when to run?
      (ii) Calculation of interest
      (iii) Interest where allowable?

Chapter 13
Power of Survey


1.     Introduction
2.     Officers empowered to conduct survey
3.     Survey of business premises in jurisdiction of officers
4.     Time of survey
5.     Proprietor, employee, etc, to afford necessary facility
6.     Power to enforce compliance
7.     Power to collect information and record statement regarding expenditure on function, etc.
8.     Other incidental powers
9.     'Proceeding'
10.     No power to remove or impound documents
11.     No sealing of business premises
12.     Power to collect information
      (i) Power of entry into business premises for collecting prescribed information
      (ii) Penalty for non-compliance
      (iii) Prescribed form

Chapter 14
Remedies Against Search and Seizure


1.     General remarks
2.     Measures to avoid search and seizure
      (i) Precaution before search and seizure
            (a) Comply with summons or notice
            (b) File return in time
           (c) Do not keep any unaccounted money
      (ii) Precautions during search and seizure
           (a) Demand authority
           (b) Identify the search party
           (c) Search should be allowed only in presence of two respectable witnesses
           (d) Make statement cautiously
           (e) Do not resist search
           (f) Obtain assistance of legal advisor
           (g) Statement to escape penalty
3.     Remedies
4.     Departmental remedies
      (i) Objection to approval by Chief Commissioner or Commissioner for retention of books of accounts, etc. beyond 180 days
      (ii) Appeal against block assessment
5.     Writs
      (i) General
      (ii) Articles 32 and 226 of the Constitution
—Article 32—Remedies for enforcement of rights conferred by this part
—Article 226—Power of High Courts to issue certain writs
6.     Scope of Article 32
      (i) Enforcement of only fundamental rights
      (ii) Alternative remedy no bar
      (iii) Petition under Article 226 whether res judicata?
      (iv) Right under Article 32 unfettered
      (v) Powers of Supreme Court under Article 32
7.     Scope of Article 226
      (i) Discretion of High Court in writs for ‘other purposes’
      (ii) Petition under Article 226 for enforcement of fundamental rights
      (iii) Disputed facts in petition under Article 226
           (a) Fundamental rights affected
           (b) Fundamental rights not affected
           (c) Delay
           (d) Alternative remedy not absolute bar
           (e) Writ of prohibition or certiorari and alternative remedy
           (f) Stage of petition under Article 226
8.     Nature of writs relevant for sections 132 and 132A
      (i) Mandamus
           (a) Conditions
      (ii) Prohibition
      (iii) Certiorari
           (a) Conditions
           (b) Proceedings of Administrative Tribunal or authority
           (c) Certiorari when to lie ?
           (d) High Court can interfere with the finding of fact
9.     Writ jurisdiction and sections 132 and 132A—Scope of interference
      (i) Formation of belief for authorisation
      (ii) Exercise of power bona fide—Error of judgment not to vitiate action
      (iii) Grounds of challenge to the validity of authorization
      (iv) Order of summary assessment under section 132 (5)
      (v) Retention of books of account etc. beyond 180 days
      (vi) Order for disposal of application
      (vii) Expeditious conclusion of enquiry after restraint order essential
      (viii) Authorised officer responsible for safe custody of seized records
      (ix) Injunction
10.     Contempt of Court
11.     Civil suit

Chapter 15
Relevant Statutory Provisions


1.     Provisions of search and seizure in the 1922 Act
2.     Legislative history of search and seizure provisions in the 1961 Act
      (i) Provisions as originally enacted in 1961
      (ii) Substitution of section 132 in 1964
      (iii) Substitution in 1965
      (iv) Extensive amendments in 1975
      (v) Amendments in 1984
      (vi) Amendments in 1987
      (vii) Amendments in 1988
      (viii) Section 132 as at present
3.     Other relevant provisions
      (i) Section 131 : Power regarding discovery, production of evidence, etc.
      (ii) Section 132A : Powers to requisition books of account, etc.
      (iii) Section 132B : Application of retained assets
      (iv) Section 133 : Power to call for information
      (v) Section 133A : Power of survey
      (vi) Section 133B : Power to collect certain information
      (vii) Section 134 : Power to inspect registers of companies
      (viii) Section 135 : Power of Director General or Director, Chief Commissioner or Commissioner and Deputy Commissioner
      (ix) Section 142 : Inquiry before assessment
      (x) Section 158B : Definitions
      (xi) Section 158A : Assessment of undisclosed income as a result of search
      (xii) Section 158BB : Computation of undisclosed income of the block period
      (xiii) Section 158BC : Procedure for block assessment
      (xiv) Section 158BD : Undisclosed income of any other person
      (xv) Section 158BE : Time limit for completion of block assessment
      (xvi) Section 158BF : Certain interests and penalties not to be levied or imposed
      (xvii) Section 158BFA : Levy of interest and penalty in certain cases
      (xviii) Section 158BG : Authority competent to make block assessment
      (xix) Section 158BH : Application of other provisions of this Act
4.     Search and seizure provisions in the Wealth-tax Act, 1957
      (i) Section 37A : Power of search and seizure
      (ii) Amendments in section 37A w.e.f. 1.4.1989
      (iii) Section 37 B: Power to requisition books of account, etc.
      (iv) Legislative history
      (v) Amendment in section 37B w.e.f. 1.4.1989
      (vi) Authorising officers
      (vii) Insertion of new section 37C w.e.f. 1.4.1989

Chapter 16
Relevant Rules and Forms


1.     Relevant rule of Income-tax Rules, 1962
      (i) Rule 112 : Search and seizure
      (ii) Rule 112A : Inquiry under section 132
      (iii) Rule 112B: Release of articles under section 132(5)
      (iv) Rule 112C: Release of remaining assets
      (v) Rule 112D: Requisition of books of account, etc.
2.     Relevant Forms relating to search and seizure under the Income-tax Act
      (i) Forms for warrant of authorisation
      (ii) Form of authorisation for requisition from custody of other officer or authority
3.     Relevant rules and Forms under Wealth-tax Rules, 1957
      (i) Relevant rules
           (a) Rule 10: Search and seizure
           (b) Rule 10A: Requisition of books of account, etc.
      (ii) Forms

Chapter 17
Procedure for Sale of Retained Assets


1.     Introduction
2.     Schedule II, Part II of Income-tax Act
           —Warrant
           —Service of copy of warrant
           —Attachment
           —Property in defaulter's possession
           —Agricultural produce
           —Provisions as to agricultural produce under attachment
           —Debts and shares, etc
           —Attachment of decree
           —Share in movable property
           —Salary of Government servants
           —Attachment of negotiable instrument
           —Attachment of property in custody of court or public officer
           —Attachment of partnership property
           —Inventory
           —Attachment not to be excessive
           —Seizure between sunrise and sunset
           —Power to break open doors, etc.
           —Sale
           —Issue of proclamation
           —Proclamation how made
           —Sale after fifteen days
           — Sale of agricultural produce
           —Special provisions relating to growing crops
           —Sale to be by auction
           —Sale by public auction
           —Irregularity not to vitiate sale, but any person injured may sue
           —Negotiable instruments and shares in a corporation
           —Order for payment of coin or currency notes to the Assessing Officer

PART 2
SETTLEMENT OF CASES
Chapter 18
Introductory


1.     Need for legislation
2.     Recommendations of Wanchoo Committee
3.     Legislative history
      (i) 1977
      (ii) 1979
      (iii) 1982
      (iv) 1984
      (v) 1985
      (vi) 1986
      (vii) 1987
      (viii) 1988
      (ix) 1991
      (x) 1995

Chapter 19
Settlement Commission


1.     Settlement Commission
      (i) Constitution by Central Government
      (ii) Subordination
      2.     Appointment of Chairman, etc.
3.     Jurisdiction and powers
      (i) Benches
      (ii) Presiding Officer of Bench
      (iii) Principal and additional Benches
      (iv) Vice-Chairman and member of one Bench may discharge functions of another Bench
      (v) Remaining two members when competent to constitute Bench ?
      (vi) Location of Benches
4.     Specified Bench
5.     Vice-Chairman when to act as Chairman ?
      (i) Vacancy in office of chairman by reason of death, etc.
      (ii) Chairman unable to discharge his function owing to illness, etc.
6.     Chairman competent to transfer cases from one Bench to another
7.     Decision by majority
8.     Proceedings before Settlement Commission to be judicial proceedings
9.     Commission is a Tribunal

Chapter 20
Application for Settlement Cases


1.     Application when to be made ?
2.     Conditions for making application
3.     Requirements of application
4.     Form of application
5.     Fee for application
6.     Application how to be made ?
7.     Duty of applicant
8.     Case
      (i) What means ?
      (ii) Proceedings not covered
9.     Pendency of proceeding before income-tax authority or wealth-tax authority essential
10.     Application when to be made in search cases ?
11.     Only voluntary disclosure contemplated
12.     Provision procedural—Amendment applicable
13.     Computation of additional amount of income-tax or wealth-tax
      (i) Computation in regard to income relating to only one previous year
      (ii) Computation regarding income relating to more than one previous year
14.     Pendency of application not to affect Assessment proceedings
15.     Assessing Officer can continue proceeding
16.     No withdrawal of application
17.     Bar on subsequent application for settlement
18.     Writ

Chapter 21
Procedure on Reciept of Application for Settlement


1.     General
2.     Consideration of settlement application
      (i) Calling for report from Commissioner
      (ii) Commissioner to report within 45 days
      (iii) Material collected by department need not necessarily be before date of application
      (iv) Consideration of Commissioner's report and order to proceed with or reject application
3.     Rejection of application
      (i) Hearing applicant before rejection essential
      (ii) Rejection without hearing nullity
4.     Objection by Commissioner till 26.9.1991 not to proceed with application
5.     Order to allow application to be proceeded with
      (i) High Court cannot direct to proceed with application
      (ii) Application where wrongly admitted
      (iii) Communication of copy of order
      (iv) Effect of order not to render invalid order passed by income-tax auhtority prior to admission
6.     Payment of additional amount of tax on disclosed income
      (i) Payment to be made within 35 days or within extended time or by instalments
      (ii) Liability to pay interest
      (iii) Recovery of tax and penalty
7.     Procedure on allowing application to be proceeded with
      (i) Calling for relevant records
      (ii) Further enquiry or investigation, if necessary
      (iii) Hearing
8.     Jurisdiction of Commission
      (i) Jurisdiction when commences
      (ii) Disposal of application
      (iii) Jurisdiction confined to matters relating to application
      (iv) Commission cannot grant relief under the different Act
      (v) Consideration by Bench and decision by majority
9.     Order on settlement application and other allied concepts
      (i) Contents of final order
      (ii) Power to waive interest
      (iii) High Court not to direct Commission to deal with application expeditiously
      (iv) Supreme Court not to interfere with the findings of fact
      (v) No review
      (vi) Writ
10.     Liability for interest
11.     Revival of proceedings on settlement becoming void
12.     Period of limitation not to apply
13.     Criminal proceedings incompetent
14.     Recovery of sums due under order of settlement

Chapter 22
Power of Settlement Commission


1.     General
2.     Power to order provisional attachment to protect interests of revenue
      (i) Provisional attachment of property of applicant for protection of revenues's interest
      (ii) Continuation of provisional attachment under section 281B
      (iii) Period of attachment and its extension
3.     Power to reopen completed proceedings
      (i) Conditions
      (ii) Provision can be invoked at any stage after admission of settlement application
      (iii) Period upto which reopening of past assessments permissible
4.     Power of income-tax authority vested in Settlement Commission
      (i) Exclusive jurisdiction of Settlement Commission
      (ii) Operation of other provisions not affected in absence of express direction to contrary
      (iii) Power to regulate its own procedure
      (iv) Sanction for prosecution not covered by provision—Commissioner can accord sanction
5.     Power to grant immunity from prosecution and penalty
      (i) Scope of immunity from prosecution
      (ii) Immunity from penalty
      (iii) Conditions for grant of immunity
      (iv) Commission bound to exercise discretion if conditions fulfilled
      (v) Restriction on powers
      (vi) No separate application or order contemplated
      (vii) No stay of prosecution already launched
      (viii) Stay of criminal proceedings when permissible?
      (ix) Automatic withdrawal of immunity on failure to make payment or comply with terms of immunity
      (x) Withdrawal of immunity by Commission in specified circumstances
6.     Power to send back case to Assessing Officer or W.T.O. if assessee does not co-operate
      (i) Jurisdiction restored to Assessing Officer
      (ii) Use of materials and information produced before Commission permissible
      (iii) Exclusion of time
7.     Order of settlement to be conclusive
      (i) Order amenable to appeal by special leave under Article 136
      (ii) Judicial review of Commissioner's order
      (iii) No bar to writ,

Chapter 23
Miscellaneous Matters


1.     General376
2.     Inspection etc., of reports
3.     Persons who had filed appeals to Tribunal when entitled to make application to Settlement Commission ?

Chapter 24
Relevant Proviso


1.     Income-tax Act, 1961
      (i) Provisions prior to 10.9.1986
           -245A. Definition
           -245B. Income-tax Settlement Commission
           -245C. Application for settlement of cases
           -245D. Procedure on receipt of an application under section 245C
           -245E. Power of Settlement Commission to reopen complete proceedings
           -245F. Powers and procedure of Settlement Commission
           -245G. Inspection, etc. of reports
           -245H. Power of Settlement Commission to grant immunity from prosecution and penalty
           -245-I. Order of settlement to be conclusive
           -245J. Recovery of sums due under order of settlement
           -245K. Bar on subsequent application for settlement in certain case
           -245L. Proceedings before Settlement Commission to be judicial proceedings
           -245M. Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission
      (ii) Provisions operative w.e.f. 10.9.1986
           -245A. Definitions
           -245B. Income-tax Settlement Commission
           -245BA. Jurisdiction and powers of Settlement Commission
           -245BB. Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances
           -245BC. Power of Chairman to transfer cases from one Bench to another
           -245BD. Decision to be by majority
           -245C. Application for settlement of cases
           -245D. Procedure on receipt of an application under section 245C
           -245DD. Power of Settlement Commission to order provisional attachment to protect revenue
           -245E. Power of Settlement Commission to reopen completed proceedings
           -245F. Powers and procedure of Settlement Commission
           -245G. Inspection, etc., of reports
           -245H. Power of Settlement Commission to grant immunity from prosecution and penalty
           -245HA. Power of Settlement Commission to send a case back to the Assessing Officer if the assessee does not co-operate
           -245-I. Order of settlement to be conclusive
           -245J. Recovery of sums due under order of settlement
           -245K. Bar of subsequent application for settlement in certain cases
           -245L. Proceedings before Settlement Commission to be judicial proceedings
           -245M. Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission (omitted)
      (iii) Income-tax Settlement Commission Rules upto 31st May, 1987
           1. Short title and commencement
           2. Definitions
           3. Language of the Commission
           4. Signing of notices, etc.
           5. Procedure for filing settlement application
           6. Commissioner's report, etc. under section 245D (I)
           7. Filing of statement of facts and terms of settlement (omitted)
           8. Filing of affidavit
           9. Commissioner's further report
           10. Date and place for hearing of application to be notified
           11. Filing of authorization
           12. Verification of additional facts
           13. Proceedings not open to the public
           14. Adjournment of hearing of application
           15. Commission's proceedings in absence of any member
      (iv) Income-tax Settlement Commission (Procedure) Rules, 1987
           2. Wealth-tax Act, 1957
           (i) Relevant provisions of Act
           -22A. Definitions
           -22B. Wealth-tax Settlement Commission
           -22BA. Jurisdiction and powers of Settlement Commission
           -22BB. Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances
           -22BC. Power of Chairman to transfer cases from one Bench to another
           -22BD. Decision to be by majority
           -22C. Application for settlement of cases
           -22D. Procedure on receipt of an application under section 22C
           -22DD. Power of Settlement Commission to order provisional attachment to protect revenue
           -22E. Power of Settlement Commission to reopen completed proceedings
           -22F. Powers and procedures to Settlement Commission
           -22G. Inspection etc. of reports
           -22H. Powers of Settlement Commission to grant immunity from prosecution
           -22HA. Power of Settlement Commission to send a case back to the Assessing Officer if the assessee does not co-operate
           -22I. Order of Settlement to be conclusive
           -22J. Recovery of sums due under order of settlement
           -22K. Bar on subsequent application for settlement in certain cases
           -22L. Proceedings before the Settlement Commission to be judicial proceedings
           -22M. Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission (omitted
           (ii) Relevant rules and form
           (a) Rules
           -4A. Form of application for settlement of cases
           -4AA. Disclosure of information in the application for settlement of cases
           -4B. Fee for furnishing copy of report
           (iii) Wealth-tax Settlement Commission (Procedure) Rules, 1976
           1. Short title and commencement
           2. Application of the Income-tax Settlement Commission (Procedure) Rules, 1976
           (i) Modification of rule 2
           (ii) Modification of rule 6
           (iii) Modification of rule 9
           (vi) Wealth-tax Settlement Commission (Procedure) Rules, 1987 (From 1st June, 1987)