The Companies (Profits) Surtax Act, 1964
Administered Ministry: Ministry of Finance / Department of Revenue
Section
Section 15 Surtax deductible in computing distributable income under Income-tax Act.
Notwithstanding anything contained in clause (i) of section 109 of the Income-tax Act, in computing the distributable income of a company for the purpose of Chapter XID of that Act, the surtax payable by the company for any assessment year shall be deductible from the total income of the company assessable for that assessment year.
Section 16 Revision of orders prejudicial to revenue.
(1) The 2[Chief Commissioner or Commissioner] may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the 1[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
3[Explanation.--For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the 1[Assessing Officer] shall include an order passed by the 4[Deputy Commissioner] in exercise of the powers or in performance of the functions of an 1[Assessing Officer] conferred on, or assigned to, him under clause (a) of sub-section (1) of section 125 or under sub-section (1) of section 125A of the Income-tax Act as applied by section 18 of this Act.]
5[(2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.]
(3)Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court.
Explanation.--In computing the period of limitation for the purpose of sub-section (2), any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.
3[Explanation.--For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the 1[Assessing Officer] shall include an order passed by the 4[Deputy Commissioner] in exercise of the powers or in performance of the functions of an 1[Assessing Officer] conferred on, or assigned to, him under clause (a) of sub-section (1) of section 125 or under sub-section (1) of section 125A of the Income-tax Act as applied by section 18 of this Act.]
5[(2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.]
(3)Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court.
Explanation.--In computing the period of limitation for the purpose of sub-section (2), any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.
1. Subs. by Act 4 of 1988, s. 187, for "Income-tax Officer" (w.e.f. 1-4-1988).
2. Subs. by Act 4 of 1988, s. 187, for "Commissioner" (w.e.f. 1-4-1988).
3. Ins. by Act 67 of 1984, s. 80 (w.e.f. 1-10-1984).
4. Subs. by Act 4 of 1988, s. 187, for "Inspecting Assistant Commissioner" (w.e.f. 1-4-1988).
5. Subs. by Act 67 of 1984, s. 80, for sub-section (2) (w.e.f. 1-10-1984).
2. Subs. by Act 4 of 1988, s. 187, for "Commissioner" (w.e.f. 1-4-1988).
3. Ins. by Act 67 of 1984, s. 80 (w.e.f. 1-10-1984).
4. Subs. by Act 4 of 1988, s. 187, for "Inspecting Assistant Commissioner" (w.e.f. 1-4-1988).
5. Subs. by Act 67 of 1984, s. 80, for sub-section (2) (w.e.f. 1-10-1984).
Section 17 Revision of orders by Chief Commissioner or Commissioner.
17. Revision of orders by 1[Chief Commissioner or Commissioner].-- (1) The 1[Chief Commissioner or Commissioner] may, either of his own motion or on an application by the assessee for revision, call for the record of any proceeding under this Act which has been taken by an 2[Assessing Officer] 3* * * subordinate to him and may make such inquiry or cause such inquiry to be made and subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit.
(2) The 1[Chief Commissioner or Commissioner] shall not of his own motion revise any order under this section if the order has been made more than one year previously.
(3) In the case of an application for revision under this section by the assessee, the application shall be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier:
Provided that the 1[Chief Commissioner or Commissioner] may, if he is satisfied that the assessee was prevented by sufficient cause from making the application within that period, admit an application made after the expiry of that period.
(4) The 1[Chief Commissioner or Commissioner] shall not revise any order under this section in the following cases--
4[(a) where an appeal against the order lies to the Commissioner (Appeals) but has not been made and the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or
(b) where the order has been made the subject of an appeal to the Commissioner (Appeals).]
(5) Every application by an assessee for revision under this section shall be accompanied by a fee of twenty-five rupees.
Explanation 1.-- An order by the 1[Chief Commissioner or Commissioner] declining to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee.
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(2) The 1[Chief Commissioner or Commissioner] shall not of his own motion revise any order under this section if the order has been made more than one year previously.
(3) In the case of an application for revision under this section by the assessee, the application shall be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier:
Provided that the 1[Chief Commissioner or Commissioner] may, if he is satisfied that the assessee was prevented by sufficient cause from making the application within that period, admit an application made after the expiry of that period.
(4) The 1[Chief Commissioner or Commissioner] shall not revise any order under this section in the following cases--
4[(a) where an appeal against the order lies to the Commissioner (Appeals) but has not been made and the time within which such appeal may be made has not expired, or the assessee has not waived his right of appeal; or
(b) where the order has been made the subject of an appeal to the Commissioner (Appeals).]
(5) Every application by an assessee for revision under this section shall be accompanied by a fee of twenty-five rupees.
Explanation 1.-- An order by the 1[Chief Commissioner or Commissioner] declining to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to the assessee.
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1. Subs. by Act 4 of 1988, s. 187, for "Commissioner" (w.e.f 1-4-1988).
2. Subs. by s. 187, ibid., for "Income-tax Officer" (w.e.f. 1-4-1988).
3. The words "or Appellate Assistant Commissioner" omitted by Act 29 of 1977, s. 39 and the Fifth Sch. (w.e.f. 10-7-1978).
4. Subs. by s. 39 and the Fifth Sch., ibid., for clauses (a), (b) and (c) (w.e.f. 10-7-1978).
5. Explanation 2 omitted by s. 39 and the Fifth Sch. (w.e.f. 10-7-1978).
2. Subs. by s. 187, ibid., for "Income-tax Officer" (w.e.f. 1-4-1988).
3. The words "or Appellate Assistant Commissioner" omitted by Act 29 of 1977, s. 39 and the Fifth Sch. (w.e.f. 10-7-1978).
4. Subs. by s. 39 and the Fifth Sch., ibid., for clauses (a), (b) and (c) (w.e.f. 10-7-1978).
5. Explanation 2 omitted by s. 39 and the Fifth Sch. (w.e.f. 10-7-1978).
Section 18 Application of provisions of Income-tax Act.
The provisions of the following sections and Schedules of the Income-tax Act and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with such modifications, if any, as may be prescribed, as if the said provisions and the rules referred to surtax instead of to Income-tax 1 ***:--
2 [2(44)], 3 [ 4 [116, 117, 118, 119, 120, 129], 131, 132, 132A, 5[132B],133 to 136 (both inclusive)], 138, 140, 156, 160, 161, 162, 163, 166, 167, 170,173, 175, 176, 178, 179, 6[218 to 229] (both inclusive), 231, 232, 233, 237 to 242 (both inclusive) 244, 245, 254 to 262 (both inclusive) 265, 266, 268, 269, 281, 5[281B], 282, 284, 3 [287, 288, 288A, 288B, 289 to 293 (both inclusive),] the Second Schedule and 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.
2 [2(44)], 3 [ 4 [116, 117, 118, 119, 120, 129], 131, 132, 132A, 5[132B],133 to 136 (both inclusive)], 138, 140, 156, 160, 161, 162, 163, 166, 167, 170,173, 175, 176, 178, 179, 6[218 to 229] (both inclusive), 231, 232, 233, 237 to 242 (both inclusive) 244, 245, 254 to 262 (both inclusive) 265, 266, 268, 269, 281, 5[281B], 282, 284, 3 [287, 288, 288A, 288B, 289 to 293 (both inclusive),] the Second Schedule and 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.
1. The words "and super-tax" omitted by Act 10 of 1965, s. 74 (w.e.f. 1-4-1965).
2. Subs. by Act 4 of 1988, s. 189, for "2(43B) and 44" (w.e.f. 1-4-1989).
3. Subs. by Act 20 of 1967, s. 36, for "131 to 136 (both inclusive)" (w.e.f. 1-4-1967).
4. Subs. by Act 4 of 1988, s. 189, for "118, 125, 125A, 129, 130, 130A" (w.e.f. 1-4-1988).
5. Ins. by Act 41 of 1975, s. 124 (w.e.f. 1-10-1975).
6. Subs. by Act 16 of 1981, s. 41, for "220 to 229" (w.e.f. 1-4-1981).
2. Subs. by Act 4 of 1988, s. 189, for "2(43B) and 44" (w.e.f. 1-4-1989).
3. Subs. by Act 20 of 1967, s. 36, for "131 to 136 (both inclusive)" (w.e.f. 1-4-1967).
4. Subs. by Act 4 of 1988, s. 189, for "118, 125, 125A, 129, 130, 130A" (w.e.f. 1-4-1988).
5. Ins. by Act 41 of 1975, s. 124 (w.e.f. 1-10-1975).
6. Subs. by Act 16 of 1981, s. 41, for "220 to 229" (w.e.f. 1-4-1981).
Section 19 Income-tax papers to be available for the purposes of this Act.
(1) Notwithstanding anything contained in the Income-tax Act, all information contained 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 purposes of this Act.
(2) All information contained in any statement or return made or furnished under the provisions of this Act or obtained or collected for the purposes of this Act may be used for the purposes of the Income-tax Act.
(2) All information contained in any statement or return made or furnished under the provisions of this Act or obtained or collected for the purposes of this Act may be used for the purposes of the Income-tax Act.
Section 20 Failure to deliver returns, etc.
If any person fails without reasonable cause to furnish in due time any return under sub-section (2) of section 5, or to produce, or cause to be produced, any accounts or documents required to be produced under section 6, he shall be punishable with fine which may extend to five hundred rupees, and with a further fine which may extend to ten rupees for every day during which the default continues.
Section 21 False statements.
If a person makes in any return furnished under section 5, any statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with simple imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Section 22 Abetment of false returns, etc.
If a person makes or induces in any manner another person to make and deliver any account, statement or declaration relating to chargeable profits liable to surtax which is false and which he either knows to be false or does not believe to be true, he shall be punishable with simple imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Section 23 Institution of proceedings and composition of offences.
(1) A person shall not be proceeded against for an offence under section 20 or section 21 or section 22 or under the Indian Penal Code (45 of 1860) except at the instance of the 1 [Chief Commissioner or Commissioner.]
(2) The 1 [Chief Commissioner or Commissioner] may, either before or after the institution of proceedings, compound any offence punishable under section 20 or section 21 or section 22.
(2) The 1 [Chief Commissioner or Commissioner] may, either before or after the institution of proceedings, compound any offence punishable under section 20 or section 21 or section 22.
1. Subs. by Act 4 of 1988, s. 187, for "Commissioner" (w.e.f. 1-4-1988).
Section 24 Power to make exemption, etc., in relation to certain Union territories.
If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of this Act to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu and Pondicherry, the Central Government may, by general or special order, make an exemption, reduction in rate or other modification in respect of surtax in favour of any class of assessees or in regard to the whole or any part of the chargeable profits of any class of assessees.
Section 24A Agreement with foreign countries.
1 [24A. Agreeement with foreign countries.-- The Central Government may enter into an agreement with the Government of any country outside India--
(a) for the granting of relief in respect of chargeable profits on which have been paid both surtax under this Act and tax of a similar character or income-tax on such profits in that country, or
(b) for the avoidance of double taxation of chargeable profits under this Act and under any law relating to the taxation of income or profits in force in that country, or
(c) for exchange of information for the prevention of evasion or avoidance of surtax chargeable under this Act or the tax chargeable under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or
(d) for recovery of tax under this Act and under any law relating to the taxation of income or profits in force in that country,
and may, by notification in the Official Gazette, make such provision as may be necessary for implementing the agreement.]
(a) for the granting of relief in respect of chargeable profits on which have been paid both surtax under this Act and tax of a similar character or income-tax on such profits in that country, or
(b) for the avoidance of double taxation of chargeable profits under this Act and under any law relating to the taxation of income or profits in force in that country, or
(c) for exchange of information for the prevention of evasion or avoidance of surtax chargeable under this Act or the tax chargeable under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or
(d) for recovery of tax under this Act and under any law relating to the taxation of income or profits in force in that country,
and may, by notification in the Official Gazette, make such provision as may be necessary for implementing the agreement.]
1. Subs. by Act 16 of 1972, s. 57, for section 24A (w.e.f. 1-4-1972).
Section 24AA Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils.
1[24AA. Power to make exemption, etc., in relation to participation in the business of prospecting for extraction, etc., of mineral oils.--(1) If the Central Government is satisfied that it is necessary or expedient so to do in the public interest, it may, by notification in the Official Gazette, make an exemption, reduction in rate or other modification in respect of surtax in favour of any class of foreign companies specified in sub-section (2) or in regard to the whole or any part of the chargeable profits of such class of companies.
Explanation.--For the purposes of this sub-section, "foreign company" shall have the meaning assigned to it in clause (4) of section 80B of the Income-tax Act.
(2)The foreign companies referred to in sub-section (1) are the following, namely:--
(a) foreign companies with whom the Central Government has entered into agreement for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils; and
(b) foreign companies providing any services or facilities or supplying any ship, aircraft, machinery or plant (whether by way of sale or hire) in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried on by that Government or any person specified by that Government in this behalf by notification in the official Gazette.
(3) Every notification issued under this section shall be laid before each House of Parliament.
Explanation.--For the purpose of this section, "mineral oil" includes petroleum and natural gas.]
Explanation.--For the purposes of this sub-section, "foreign company" shall have the meaning assigned to it in clause (4) of section 80B of the Income-tax Act.
(2)The foreign companies referred to in sub-section (1) are the following, namely:--
(a) foreign companies with whom the Central Government has entered into agreement for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils; and
(b) foreign companies providing any services or facilities or supplying any ship, aircraft, machinery or plant (whether by way of sale or hire) in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried on by that Government or any person specified by that Government in this behalf by notification in the official Gazette.
(3) Every notification issued under this section shall be laid before each House of Parliament.
Explanation.--For the purpose of this section, "mineral oil" includes petroleum and natural gas.]
1. Ins. by Act 16 of 1981, s. 42 (w.e.f. 1-4-1981).
Section 25 Power to make rules.
(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.
(2) In particular, 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 form in which returns under section 5 may be furnished and the manner in which they may be verified.
(b) the form in which notice for making provisional assessment shall be given;
(c) the form in which appeals under section 11 or section 12 may be filed and the manner in which they shall be verified;
1[(cc) the circumstances in which, the conditions subject to which and the manner in which, the 2[Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the 3[Assessing Officer]];
(d) the procedure to be followed on applications for rectification of mistakes and applications for refunds;
4[(dd) the procedure to be followed in calculating interest payable by assessees or interest payable by the Government to assessees under this Act including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be ignored;]
(e) any other matter by this Act is to be, or may be, prescribed.
5[(2A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.]
(3) The Central Government shall cause every rule made under this section to be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session 6[or in two or more successive sessions], and if, before the expiry of the session 7[immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, that rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
(2) In particular, 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 form in which returns under section 5 may be furnished and the manner in which they may be verified.
(b) the form in which notice for making provisional assessment shall be given;
(c) the form in which appeals under section 11 or section 12 may be filed and the manner in which they shall be verified;
1[(cc) the circumstances in which, the conditions subject to which and the manner in which, the 2[Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the 3[Assessing Officer]];
(d) the procedure to be followed on applications for rectification of mistakes and applications for refunds;
4[(dd) the procedure to be followed in calculating interest payable by assessees or interest payable by the Government to assessees under this Act including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be ignored;]
(e) any other matter by this Act is to be, or may be, prescribed.
5[(2A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.]
(3) The Central Government shall cause every rule made under this section to be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session 6[or in two or more successive sessions], and if, before the expiry of the session 7[immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, that rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
1. Ins. by Act 16 of 1972, s. 58 (w.e.f. 1-4-1972).
2. Subs. by Act 29 of 1977, s. 39 and Fifth Sch., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1977).
3. Subs. by Act 4 of 1988, s. 187, for "Income-tax Officer" (w.e.f. 1-4-1988).
4. Ins. by Act 42 of 1970, s. 74 (w.e.f. 1-4-1971).
5. Ins. by Act 26 of 1974, s. 21 (w.e.f. 18-8-1974).
6. Subs. by Act 41 of 1975, s. 125, for "or in two successive sessions" (w.e.f. 1-4-1976).
7. Subs. by s. 125, ibid., for "in which it is so laid or the session immediately following" (w.e.f. 1-4-1976).
2. Subs. by Act 29 of 1977, s. 39 and Fifth Sch., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1977).
3. Subs. by Act 4 of 1988, s. 187, for "Income-tax Officer" (w.e.f. 1-4-1988).
4. Ins. by Act 42 of 1970, s. 74 (w.e.f. 1-4-1971).
5. Ins. by Act 26 of 1974, s. 21 (w.e.f. 18-8-1974).
6. Subs. by Act 41 of 1975, s. 125, for "or in two successive sessions" (w.e.f. 1-4-1976).
7. Subs. by s. 125, ibid., for "in which it is so laid or the session immediately following" (w.e.f. 1-4-1976).
Section 26 Saving.
Nothing contained in this Act shall apply to any company which has no share capital.