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SUPER PROFITS TAX RULES, 1963

SUPER PROFITS TAX RULES, 1963

RULE 01: SHORT TITLE

These rules may be called the Super Profits Tax Rules, 1963.

RULE 02: DEFINITIONS

(1) In these rules, unless the context otherwise requires,

(i) "the Act " means the Super Profits Tax Act, 1963 (14 of 1963)

(ii) " applied section " means a section of the Income-tax Act, 1961 (43 of 1961)-, as applied by section 19-of the Act and rule 3-;

(iii) " the applied Second Schedule " means the Second Schedule of the Income-tax Act, 1961-, as applied by section 19-of the Act and rule 3-;

(iv) " the applied Third Schedule " means the Third Schedule of the Income-tax Act, 1961-, as applied by section 19-of the Act and rule 3-;

(v) in the applied sections and in the applied Second Schedule, " the Act " means the Super Profits Tax Act, 1963 (14 of 1963)-.

(2) All references to " Forms " in these rules shall be construed as references to the forms set out in the Appendix hereto.

RULE 03: ADAPTATIONS OF INCOME-TAX ACT, 1961

The provisions of sections 2(44)-,131-,132-,133-,134-,135-,136-,137-,138-(both inclusive),140- ,156-,160-,161-,162-,163-,166-,167-,170-,173-,175-,176-,178-,179-,220-,221-,222-,223-,224-,225-,226-,227-,228-,229-(both inclusive),231-,232-,233-,237-,238-,239-,240-,241-,242-,243-,244-,245-(both inclusive),254-,255-,256-,257-,258-,259-,260-,261-,262-(both inclusive),265-,266-,267-,268-,269-(both inclusive),281-,282-,284-,286-,287-,288-,289-,290-,291-,292-,293-(both inclusive), the Second Schedule-and the Third Schedule of the Income-tax Act, 1961 (43 of 1961)-, shall apply with the following modifications, namely:-

General modifications.---

(i) All references to “this Act ", except those in clause (vii) of sub-section (2), sub-section (3) and clause (b) of sub-section (4) of section 288, shall be construed as references to " the Act ";

(ii) All references to " income-tax ", except those,---

(a) in the expressions " Income-tax Officer " and " Income-tax Act", wherever they occur;

(b) in the expression "Income-tax Department" occurring in clause (vii) of sub-section (3) of section 137;

(d) in the expression "Income-tax authority" occurring in sub-section (3) of section 288 ; and

(e) in the expressions "Income-tax proceeding" and " Income-tax proceedings " occurring respectively in clause (b) of subsection

(4) and clause (b) of sub-section (5) of section 288; shall be construed as references to " super profits tax ";

(iii) All references to "tax", except those in clause (xii) and clause (xiii) of sub-section (3) of section 137, shall be construed as references to " super profits tax ".

Modification of section 131.---(iv) In section 131, in sub-section (2), for the words, figures and letter "Chapter 17-D ", the words, figures and brackets " the applied sections 220 to 229 (both inclusive), 231 and 232 and the applied Second Schedule and the applied Third Schedule " shall be substituted.

Modification of section 133.---(v) In section 133, clauses (1), (2) and (3) shall be omitted.

Modification of section 137.---(vi) In section 137;

(a) in sub-section (1), for the word and figures " Chapter 22 the words and figures " sections 21, 22, 23 and 24 of the Act " shall be substituted ;

(b) in sub-section (3), in clause (xi), for the word and figures " section 90 ", the words and figures "section 90 of the Income-tax Act" shall be substituted;

(d) in the Explanation, for the words, brackets and figures " sub-sections (1), (2) and (4) ", the words, brackets and figures " sub-sections (1) and (2) " shall be substituted.

Modification of section 138.---(vii) In section 138,---

(a) for the words " either under this Act or the Indian Income-tax Act, 1922, on or after the 1st day of April, 1960", the words " under the Act " shall be substituted ;

(b) for the word and figures "section 137", the words and figures " the applied section 137 " shall be substituted.

Modification of section 140.---(viii) For section 140, the following section shall be substituted, namely:--- "140.

Return by whom to be signed.---The return under section 6 of the Act shall be signed and verified by the principal officer of the company, or where in the case of a non-resident company any person has been treated as its agent under section 163 of the Income-tax Act, by such person. "

Modification of section 160.---(ix) In section 160, in sub-section (1),---

(a) in clause (i),---

(i) for the words, brackets and figures " in respect of the income of a non-resident specified in clause (i) of sub-section (1) of section 9 ", the words, brackets and figures " in respect of the chargeable profits relating to the income of a non-resident specified in clause (i) of sub-section (1) of section 9 of the Income-tax Act " shall be substituted;

(ii) for the word and figures "section 163", the words and figures " section 163 of the Income-tax Act " shall be substituted;

(b) clauses (ii) and (iv) shall be omitted; (c) In clause (iii),---

(i) for the word " income ", the words " chargeable profits " shall be substituted ;

(ii) the words " the Court of Wards, the Administrator-General, the Official Trustee or " and the words " Court of Wards,

Administrator-General, Official Trustee ", shall be omitted.

Modification of section 161.---(x) In section 161,---

(a) for the word " income ", wherever it occurs, the words "chargeable profits " shall be substituted ;

(b) for the words " this Chapter ", wherever they occur, the words, brackets and figures " sub-section

(2) of this section and the applied sections 160, 162, 163, 166, 167, 170, 173, 175, 176, 178 and 179 " shall be substituted;

Modification of section 162.---(xi) In section 162, in sub-section (2), for the words " this Chapter ", the words, brackets and figures " the applied sections 160 to 163 (both inclusive), 166, 167, 170, 173, 175, 176, 178 and 179" shall be substituted.

Modification of section 166.---(xii) For section 166, the following section shall be substituted, namely:--- 166.

Direct assessment or recovery not barred.---Nothing in the applied sections 160, 161, 162, 163 (both inclusive) shall prevent either the direct assessment of the company on behalf of which or for the benefit of which chargeable profits therein referred to are receivable, or the recovery from such company of the tax payable in respect of such chargeable profits".

Modification of section 170.---(xiii) In section 170,---

(a) the words " or profession ", wherever they occur, shall be omitted ;

(b) for the word " income ", wherever it occurs, the words " chargeable profits " shall be substituted;

Modification of section 173.---(xiv) For section 173, the following section shall be substituted, namely:--- "173.

Recovery of tax in respect of non-resident from his assets.---Without prejudice to the provisions of subsection (1) of the applied section 161 or of the applied section 167, where the person entitled to the chargeable profits relating to the income referred to in clause (i) of sub-section (1) of section 9 of the Income-tax Act is a non-resident, the tax chargeable thereon, whether in his name or in the name of his agent who is liable as a representative assessee, may be recovered in accordance with the provisions of the applied sections 220 to 229 (both inclusive), 231 and 232 and the applied Second Schedule, and the applied Third Schedule from any assets of the non-resident which are, or, may at any time come, within India."

Modification of section 175.---(xv) For section 175, the following section shall be substituted, namely:--- "175.

Assessment of persons likely to transfer property to avoid tax.---

(1) Notwithstanding anything contained in section 4 of the Act, if it appears to the Income-tax Officer during any current assessment year that any/person is likely to charge, sell, transfer, dispose of or otherwise part with any of his assets with a view to avoiding payment of any liability under the provisions of the Act, the chargeable profits of such person for the period from the expiry of the previous year for that assessment year to the date when the Income-tax Officer commences proceedings under this section shall be chargeable to tax in that assessment year.

(2) The chargeable profits of each completed previous year or part of any previous year included in such period shall be chargeable to tax at the rate or rates in force in that assessment year, and separate assessments shall be made in respect of each such completed previous year or part of any previous year.

(3) The Income-tax Officer may estimate the chargeable profits of such person for such period or any part thereof, where such profits cannot be readily determined in the manner provided in the Act.

(4) For the purposes of making an assessment under sub-section (1), the Income-tax Officer may serve a notice upon such person requiring him to furnish, within such time, not being less than seven days, as may be specified in the notice, a return in the same form and verified in the same manner as a return under sub-section (2) of section 6 of the Act, setting forth the chargeable profits for each completed previous year comprised in the period referred to in sub-section (1) and his estimated chargeable profits for any part of the previous year comprised in that period ; and the provisions of the Act shall, so far as may be, and subject to the provisions of this section, apply as if the notice were issued under sub-section (2) of section 6 of the Act.

(5) The tax chargeable under this section shall be in addition to the tax, if any, chargeable under any other provision of the Act. (6) Where the provisions of sub-section (1) are applicable, any notice issued by the Income-tax Officer under sub-section (2) of section 6 or section 9 of the Act in respect of any tax chargeable under any other provision of the Act may, notwithstanding anything contained in sub-section (2) of section 6 or section 9 of the Act, as the case may be, require the furnishing of the return by such person within such period, not being less than seven days, as the Income-tax Officer may think proper."

Modification of section 176.---(xvi) In section 176,---

(a) in sub-section (1),

(i) for the word and figure " section 4 ", the words and figure " section 4 of the Act " shall be substituted;

(ii) the words " or profession " shall be omitted;

(iii) for the word " income ", the words " chargeable profits " shall be substituted ;

(b) in sub-section (2), for the words " total income ", the words "chargeable profits " shall be substituted;

(d) sub-section (4) shall be omitted;

(e) for sub-section (5), the following sub-section shall be substituted, namely:--- " (5) Where an assessment is to be made under the provisions of this section, the Income-tax Officer may serve on the principal officer of the company, or where in the case of a non-resident company any person has been treated as its agent under section 163 of the Income-tax Act, on such person, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 6 of the Act and the provisions of the Act shall, so far as may be, apply accordingly as if the notice were a notice issued under sub-section (2) of section 6 of the Act."

(f) in sub-section (7), for the words, brackets and figures " sub-section (2) of section 139 or sub-section

(1) of section 148 ", wherever they occur, the words, brackets and figures " sub-section (2) of section 6 or section 9 of the Act " shall be substituted.

Modification of section 178.---(xvii) In section 178, in sub-section (1), for the word " income ", the words " chargeable profits " shall be substituted.

Modification of section 179.---(xviii) In section 179, for the word " income " the words " chargeable profits " shall be substituted.

Modification of section 220.---(xix) In section 220,

(a) in sub-section (1), for the words and figures " Any amount, otherwise than by way of advance tax, specified as payable in a notice of demand under section 156 ", the words and figures " Any amount specified as payable in a notice of demand under the applied section 156 " shall be substituted;

(b) in sub-section (2),---

(i) for the word and figures " section 156 ", the words and figures " the applied section 156 " shall be substituted ;

(ii) in the proviso for the words and figures " section 154, or section 155, or section 250, or section 254, or section 260, or section 262, or section 264 ", the words and figures " section 12 or section 14 or section 15 or section 18 of the Act, or the applied section 254, or the applied section 260 or the applied section 262 " shall be substituted;

(c) in sub-section (6), for the word and figures " section 246 ", the words and figures " section 12 of the Act " shall be substituted;

(d) in sub-section (7),---

(i) for the words " in respect of income ", the words " in respect of chargeable profits relating to income " shall be substituted;

(ii) for the words " which is due in respect of that amount of his income ", the words " which is due in respect of that amount of his chargeable profits that relate to income " shall be substituted.

Modification of section 221.---(xx) In section 221, in sub-section (1), for the word and figures " section 220 ", the words and figures " the applied section 220 " shall be substituted.

Modification of section 222.---(xxi) In section 222, in sub-section (1), for the words " the Second Schedule ", the words " the applied Second Schedule " shall be substituted.

Modification of section 223.---

(xxii) In section 223,---

(a) in sub-section (1),

(i) for the word and figures " section 222 " the words and figures " the applied section 222 " shall be substituted ;

(ii) in clause (a), the words " or profession ", wherever they occur, shall be omitted.

(b) in sub-section (2), for the words " this Chapter ", the words and figures " the applied sections 222, 224 and 225 and the applied Second Schedule " shall be substituted.

Modification of section 224.---(xxiii) In section 224,---

(a) in sub-section (1), for the word and figures " section 222 ", the words and figures " the applied section 222 " shall be substituted;

(b) in sub-section (3), for the word and figures " section 225 the words and figures " the applied section 225 " shall be substituted.

Modification of section 226.---(xxiv) In section 226,---

(a) in sub-section (1), for the word and figures " section 222 ", the words and figures " the applied section 222 " shall be substituted;

(b) sub- section (2) shall be omitted;

(i) for the words and figures " sections 222 to 225 ", the words and figures " the applied sections 222 to 225 and the applied Second Schedule " shall be substituted;

(ii) for the word and figures " section 222 ", the words and figures " the applied section 222 " shall be substituted;

(d) in sub-section (5), for the words " the Third Schedule " the words " the applied Third Schedule " shall be substituted.

Modification of section 228.---(xxv) In section 228, in sub-section (1), for the word and figures " section 222 ", the words and figures " the applied section 222 " shall be substituted.

Modification of section 229.--(xxvi) In section 229, for the words " this Chapter ", the words, brackets and figures " the applied sections 220 to 228 (both inclusive), 231 and 232 and the applied Second Schedule and the applied Third Schedule " shall be substituted.

Modification of section 231.---(xxvii) In section 231,---

(a) for the word and figures " section 173 " the words and figures " the applied section 173 " shall be substituted ;

(b) for the word and figures " section 220 ", wherever they occur, the words and figures " the applied section 220 " shall be substituted,

Modification of section 232.---(xxviii) In section 232, for the words " this Chapter ", wherever they occur, the words, brackets and figures " the applied sections 220 to 229 (both inclusive), 231 and 233 and the applied Second Schedule and the applied Third Schedule " shall be substituted.

Modification of section 233.---(xxix) In section 233,---

(a) for the word and figures " section 220 " the words and figures " the applied section 220 " shall be substituted;

(b) for the words and figures " sections 221 to 229 " the words and figures " the applied sections 221 to 229 and the applied Second Schedule and the applied Third Schedule " shall, be substituted ;

(d) for the words and figures " section 143 or section 144 ", the words and figure " section 7 of the Act " shall be substituted.

Modification of section 238.---(xxx) In section 238, sub-section (1) shall be omitted.

Modification of section 239.---(xxxi) In section 239,---

(a) in sub-section (1), for the words " this Chapter ", the words and figures " the applied section 237 " shall be substituted;

(b) in sub---section (2), for the words " income in respect of which the claim is made was assessable ", the words " chargeable profits in respect of which the claim is made were assessable " shall be substituted.

Modification of section 242.---(xxxii) In section 242, for the words " this Chapter ", the words and figures " the applied section 237 " shall be substituted.

Modification of section 243.---(xxxiii) In section 243, for sub-section (1), the following sub-section shall be substituted, namely:--- "

(1) If the Income-tax Officer does not grant the refund within six months from the date on which the claim for refund is made under the applied section 237, the Central Government shall pay the assessee simple interest at four per cent. per annum on the amount directed to be refunded from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted.

Explanation.---If the delay in granting the refund within the period of six months aforesaid is attributable to the assessee, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable."

Modification of section 244.----(xxxiv) In section 244,---

(a) in sub-section (1), for the word and figures " section 240 " the words and figures " the applied section 240 " shall be substituted;

(b) in sub-section (2), for the word and figures " section 241 ", wherever they occur, the words and figures " the applied section 241 " shall be substituted.

Modification of section 254.---(xxxv) In section 254,---

(a) sub-section (2) shall be omitted;

(b) in sub-section (4), for the words and figures " section 256 ", the words and figures " the applied section 256 " shall be substituted.

Modification of section 255.---(xxxvi) In section 255,---

(a) in sub-section (3), for the words " whose total income as computed by the Income-tax Officer in the case does not exceed twenty-five thousand rupees ", the words " whose chargeable profits as computed by the Income-tax Officer in the case do not exceed seventy-five thousand rupees " shall be substituted;

(b) in sub-section (6), for the words and figures " section 131 ", the words and figures " the applied section 131 " shall be substituted.

Modification of section 256.---(xxxvii) In section 256, in sub-section (1), for the word and figures " section 254 ", the words and figures " the applied section 254 " shall be substituted. Modification of section 257.---(xxxviii)

In section 257, for the word and figures " section 256 ", the words and figures " the applied section 256 " shall be substituted.

Modification of section 259.---(xxxix) In section 259, for the word and figures " section 256 ", the words and figures " the applied section 256 " shall be substituted.

Modification of section 261.---(xl) In section 261, for the word and figures " section 256 ", the words and figures " the applied section 256 " shall be substituted.

Modification of section 262.---(xli) In section 262,---

(a) in sub-section (1),---

(i) for the word and figures " section 261 ", the words and figures " the applied section 261 " shall be substituted;

(ii) in the proviso, for the words and figures " section 260 or section 265 " the words and figures " the applied section, 260 or the applied section 265 " shall be substituted ;

(b) in sub-section (3), for the word and figures " section 260 " the words and figures " the applied section 260 " shall be substituted.

Modification of section 269.---(xlii) In section 269, for the words " this Chapter ", the words, figures and brackets " the applied sections 256 to 262 (both inclusive) and the applied sections 265 to 268 (both inclusive) " shall be substituted.

Modification of Section 284.---(xliii) For section 284, the following section shall be substituted, namely:--- "

284. Service of notice in the case of discontinued business.--- Where an assessment is to be made under the applied section 176, the Income-tax Officer may serve on the principal officer of the company, or where in the case of a non-resident company any person has been treated as its agent under section 163 of the Income-tax Act-, on such person, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 6 of the Act, and the provisions of the Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that section."

Modification of section 287.---(xliv) In section 287,---

(a) in sub-section (1),---

(i) in clause (a), for the words, brackets, letter and figures " under clause (c) of sub-section (1) of section 271 ", the words and figures " under section 10 of the Act for concealment of the particulars of the chargeable profits or for deliberately furnishing inaccurate particulars of such profits shall be substituted;

(ii) in clause (b), for the word and figures " section 277 ", the words and figures " section 22 of the Act " shall be substituted:

(b) in sub-section (2),---

(i) in clause (4), for the words, brackets, letters, and figures " clause (a) or clause (b) of sub-section (1) of section 271 ", the words, brackets and figures " section 10 of the Act for failure, without reasonable cause, to furnish the return required under section 6 of the Act, or to produce or cause to be produced the documents, accounts or other evidence required by the Income tax Officer under sub-section (1) of section 7 of the Act " shall be substituted;

(ii) in clause (b), for the words, brackets, letter, and figures " clause (c) of sub-section (1) of section 271 ", the words and figures " under section 10 of the Act for concealment of the particulars of the chargeable profits or for deliberately furnishing inaccurate particulars of such profits " shall be substituted ;

(iii) in clause (c), for the word and figures " section 277 ", the word and figures " section 22 " shall be substituted;

(i) for the words, brackets, letters, and figures " section 246 or clause (b) of sub-section (1) of section 253 ", the words and figures " section 12 of the Act " shall be substituted ;

(ii) the words, brackets, letter and figures " or, in the case of an appeal filed under clause (b) of sub-clause (1) of section 253, by the Appellate Tribunal " shall be omitted;

(d) in sub-section (6), for the words and figures " sections 137 and 280 ", the words and figures " the applied section 137 " shall be substituted;

(e) sub-section (7) shall be omitted;

(f) for the Explanation, the following Explanation shall be substituted:--- "Explanation.--

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