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TAXATION LAWS (EXTENSION TO MERGED STATES AND AMENDMENT) ACT, 1949
67 of 1949
31st December, 1949
STATEMENT OF OBJECTS AND REASONS "The main object of the Bill is to replace by an Act the two Ordinances, namely, the Taxation Laws Amendment Ordinance, 1949 (IX of 1949) and the Taxation Laws (Extension to Merged States) Ordinance, 1949 (XXI of 1949). The first Ordinance was promulgated on the 10th June, 1949 and contained mainly such provisions of the Taxation Laws Amendment Bill (which is being withdrawn) as were non controversial and were immediately necessary. The second Ordinance was promulgated on the 26th August 1949 for extending the Taxation Laws, after necessary amendments, to the merged States which by Orders under section 290A of the Government of India Act, 1935, formed part of a Governor's Province or were formed into a separate Chief Commissioner's Province. Opportunity has also been taken to include In the Bill two other amendments to the Indian Income-tax Act, 1922. One amendment relates to exemption of the income of Scientific Research Associations which are approved for the purposes of section 10 (2) (xiii) of the Indian Income-tax Act. The other amendment is to enable the President of the Income-tax Appellate Tribunal or any selected member thereof singly to dispose of appeals in small cases in which the total income determined by the Income-tax Officer does not exceed Rs. 15.000."-Gaz. of Ind 1949, Pt. V, p. 385.
An Act to extend certain laws relating to taxation on Income to certain areas ad- ministered as parts of Governors' Provinces or as Chief Commissioners' Provinces and further to amend certain laws relating to taxation on income. WHEREAS it is expedient to extend certain laws relating to taxation on income to certain areas administered as parts of Governors' Provinces or as Chief Commissioners' Provinces; AND WHEREAS it is expedient further to amend certain laws relating to taxation on income for the purposes hereinafter appearing; It is hereby enacted as follows:-
SECTION 01: SHORT TITLE
This act may be called the taxation laws (extension to merged states and amendment) act, 1949.
SECTION 02: DEFINITIONS
In this Chapter- (1) the expression "merged States" means all the States and parts of States which are administered by virtue of the States' Merger (Governors' Provinces) Order, 19492, as if they formed part of a Governor's Province or administered by virtue of the States' Merger (Chief Commissioners' Provinces) Order 19493, as if they were a Chief Commissioner's Province, (2) "appointed day" means- (a) the 1st day of August, 1949, in relation to the State specified- (i) in Schedules I to VI of the States' Merger (Governors' Provinces)Order, 1949, and (ii) in paragraph (1) of Article 2 of the States' Merger (Chief Commissioner's Provinces) Order, 1949; and (b) the 1st day of December, 1949, in relation to the States of Banaras and Tehri-Garhwal.
SECTION 03: EXTENSION OF TAXATION LAWS TO MERGED STATES
(1) The following Acts, namely:-
(i) the Indian Income-tax Act, 1922 ,
(ii) the Government Trading Taxation Act, 1926 ,
(iii) the Business Profits Tax Act, 1947 -,
(iv) the Taxation on Income (Investigation Commission) Act, 1947,
(v) the Indian Finance Act, 1949,
(vi) the Payment of Taxes (Transfer of Property) Act, 1949 -, and all rules and orders made thereunder which are in force immediately before the commencement of this Act, are hereby extended to, and shall be in force in, all the merged States.
(2) The Indian Income-tax Act, 19224, the Business Profits Tax Act, 1947-, and the Indian Finance Act, 1949, and all rules and orders made thereunder, shall operate as if they had been extended to, and brought into force in, all the merged States on the 1st day of April, 1949.
SECTION 04: INTERPRETATION OF LAWS AS EXTENDED
In any Act, rule or order extended by section 3 to the merged States, notwithstanding anything contained in the General Clauses Act, 1897
(a) any reference, by whatever form of words, to the Acceding States or the Indian States shall be construed as not including a reference to any of the merged States;
(b) any reference, by whatever form of words, to British subjects shall be deemed to include a reference to persons who, immediately before the appointed day, were subjects of any of the merged States;
(c) any reference, by whatever form of words, to any Governor's Province shall be construed as including a reference to those merged States which are now administered as if they formed part of that Province; and
(d) any reference by whatever form of words, to the Provinces generally or to the Chief Commissioner's Provinces generally shall be construed as' including a reference to those merged States which are now administered as if they were a Chief Commissioner's Province.
SECTION 05: GENERAL NOTICE FOR RETURN OF INCOME IN THE CASE OF MERGED STATES
The provisions of sub-section (1) of S. 22 of the Indian Income-tax Act, 1922as extended to the merged States shall, in respect of the year ending on the 31st day of March, 1950, be deemed to have been complied with if the notice in terms of that sub-section is given within a period of two months of the appointed day.
SECTION 06: REMOVAL OF DIFFICULTIES
If any difficulty arises in giving effect to the pro- visions of any Act, rule or order extended by section 3-to the merged States, the Central
Government may by order, make such provisions or give such directions as appear to it to be necessary for removal of the difficulty.
SECTION 07: REPEAL OF CORRESPONDING LAWS AND SAVINGS
(1) If, immediately before the 26th day of August, 1949, there was in force in any of the merged States any law relating to income tax, super-tax or business profits tax, that law shall cease to have effect except for the purposes of the levy, assessment and collection of income tax and super-tax in respect of any period not included in the previous year for the purposes of assessment under the Indian Income-tax Act, 1922, as extended to that State by section 3-or, as the case may be, the levy, assessment and collection of business profits tax for any chargeable accounting period ending on or before the 31st day of March, 1948, and for any purposes connected with section 3-to that merged State : Provided that any reference in any such law to an officer, authority, tribunal or Court shall be construed as a reference to the corresponding officer, authority, tribunal or Court appointed or constituted by or under the Indian Income-tax Act, 1922, or, as the case may be, the Business Profits Tax Act, 1947, as extended by section 3 to that merged State: Provided further that if any question arises as to who such corresponding officer, authority, tribunal or Court, the decision of the Central Government thereon shall be final.
(2) Notwithstanding anything contained in any Order made by the Government of any Province under the Extra Provincial Jurisdiction Act, 1947, applying the Indian Income-tax Act, 1922, or the Business Profits Tax Act, 1947, to any of the merged States now administered as part of that Province, and repealing the corresponding enactment, if any, of that merged State in force therein immediately before such application, that enactment shall be deemed to be a law in force in that merged State immediately before the 26th day of August, 1949, and the provisions of this sub-section (1) of this section shall apply accordingly in relation to that law and all references to the Indian Income-tax Act, 1922 and the Business Profits Tax Act, 1947, shall be omitted from, and Shall be deemed never to have been included in, the said Order.
(3) If, immediately before the 26th day of August, 1949, there was in force in any of the merged States any law corresponding to the Government Trading Taxation Act, 1926, the Taxation on Income (Investigation Commission) Act, 1947, or the Payment of Taxes (Transfer of Property) Act 1949, whether by virtue of an order under the5Extra-Provincial Jurisdiction. Act, 1947, or by virtue of any other legislative power, such corresponding law is hereby repealed: Provided that section 6 of the General Clauses
Act, 1897-, shall apply in relation to such repeal as if the corresponding law bad been an enactment.
SECTION 08-33
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