Chartered Accountant Finance: [aaykarbhavan] Features Part I Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015

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Dear Colleagues,

Before the Bill becomes law, it may be advisable to identify the concerned clients and make proper disclosures about undisclosed foreign income and/or assets. An attempt has been made to summarise salient features of the Bill in two parts. This is Part I. Part II will follow in succeeding email.

Any communication or response by the members is requested to be to : tarunghiaca@yahoo.co.in

Good write ups on any subject concerning the profession or fraternity are most welcome.

Issues concerning the matters relating to the ICAI as also it's functioning are also most welcome.

Regards,
CA. Tarun Jamnadas Ghia
Chairman, Direct Taxes Committee, ICAI
Vice Chairman, Corporate Laws and Corporate Governance Committee, ICAI
tarunghiaca@yahoo.co.in

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Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015
Salient Features

CHAPTER I: SCOPE

(1)
This law would apply to every person, being a resident other than not ordinarily resident in India within the meaning of section 6(6) of the Income-tax Act, 1961, by whom tax is payable under this Act in respect of undisclosed foreign income and assets and also every person who is deemed to be an assessee-in-default  under this Act.

CHAPTER II: BASIS OF CHARGE

Charge of tax :

(1)
Rate of tax - Every assessee to be taxed @ 30% in respect of his undisclosed foreign income and asset from A.Y.2016-17.

(2)
Relevant previous year of chargeability to tax - Undisclosed asset located outside India to be charged to tax on its value in the previous year in which the asset comes to the notice of the Assessing Officer.

Scope of total undisclosed foreign income and asset :

(1)
Total undisclosed foreign income and asset of any previous year to be -

(a)
the income from a source located outside India which has not been disclosed in the return of income filed under the Income-tax Act, 1961 on or before the due date or in the belated return of income or in the revised return of income.

(b)
the income from a source located outside India in respect of which a return is required to be filed under section 139 of the Income-tax Act, 1961, but no return, belated return or revised return has been filed.

(c)
the value of any undisclosed asset located outside India.

(2)
Non-inclusion of income included in undisclosed foreign income and asset in the total income under the Income-tax Act, 1961 - The income included in the total undisclosed foreign income and asset under this law not to form part of total income under the Income-tax Act, 1961.

Computation of total undisclosed foreign income and asset :

(1)
Disallowance of expenditure and set-off of loss - No deduction in respect of any expenditure or allowance or set off of any loss to be allowed

(2)
Permissible deduction from value of undisclosed asset located outside India - From the value of undisclosed asset located outside India, any income which has so far been assessed to tax for any assessment year under the Income-tax Act, 1961 and any income which is assessable or has been assessed to tax for any assessment year under this new Act, will be reduced.

(3)
Permissible deduction from value of immovable property - If such deduction in respect ofincome which is assessable or has been assessed to tax is in relation to an immovable property, the quantum of deduction would be the amount which bears to the value of the asset as on the first day of the financial year in which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessed foreign income bears to the total cost of the asset.

CHAPTER III: TAX MANAGEMENT

Tax Authorities :

(1)
Income-tax authorities specified under section 116 of the Income-tax Act, 1961 to be the tax authorities for the purpose of this Act.

(2)
Jurisdiction of a tax authority under this Act to be the same as under the Income-tax Act, 1961

(3)
Jurisdiction of a tax authority in case of an assessee having no income assessable under the Income-tax Act, 1961 – The tax authority having jurisdiction in his case under this Act to be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business.

Powers regarding discovery and production of evidence :

(1)
Powers vested in a court under the Code of Civil Procedure, 1908 – The prescribed tax authorities to have the same powers as are vested in a court under the Code of Civil Procedure, 1908, while trying a suit in respect of the specified matters.

-

(2)
Inquiry and Investigation – The prescribed tax authorities are vested with the specified powers even for the purpose of making any inquiry or investigation, irrespective of whether any proceedings are pending before it.

(3)
Power to impound - The prescribed tax authorities may impound any books of account or other documents produced before them and retain the same in their custody for such period as they think fit. However, this power is subject to Rules to be made in this regard.

(4)
Restrictions on power to impound - A tax authority below the rank of Commissioner can impound any books of account or other documents only after recording reasons for doing so. Further, such authority can retain in his custody the books or documents impounded for a period exceeding 30 days only after obtaining the consent of the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/ Commissioner.

Proceedings before tax authorities to be judicial proceedings :

(1)
Purposes for which a proceeding under this Act would be deemed as a judicial proceeding - Any proceeding under this Act before a tax authority to be deemed as a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code.

Assessment :

(1)
Service of Notice - Where the Assessing Officer receives information from an income-tax authority or any other authority under any other law or any information comes to his notice, he may, for the purpose making an assessment or reassessment under this Act, serve a notice on any person requiring him to produce, on the date to be specified, books of account or documents or evidence which he may require for the purposes of this Act.

(2)
Service of further notices - He may also serve further notices from time to time requiring production of such other accounts or documents or evidence as he may require.

(3)
Making inquiry - The Assessing Officer may, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year(s),make such inquiry as he considers necessary.

(4)
Passing an Assessment Order - After considering the accounts, documents or evidence produced by the assessee, and any relevant material which he has gathered, the Assessing Officer shall pass an order assessing the undisclosed foreign income and asset and determining the sum payable by the assessee.

(5)
Best Judgement Assessment - Where any person fails to comply with all the terms of the notice issued, the Assessing Officer shall, after giving the assessee an opportunity of being heard and after taking into consideration all the relevant material, make the assessment of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee.

Time limit for completion of assessment :

(1)
Two-year time limit – The time limit for passing an order of assessment or reassessment is two years from the end of the financial year in which notice is issued by the Assessing Officer.

(2)
Non-applicability of the two-year time limit – The time limit of two years would not apply in respect of the assessment or reassessment made in the consequence of, or to give effect to, any finding or direction contained in the order of any appellate authority or a court in a proceeding otherwise than by way of appeal.

(3)
Exclusion of specified time period - The time taken in reopening the whole or any part of the proceeding, the period during which the assessment proceeding is stayed by an order or injunction of any court or the period commencing from the date on which the first of the references for exchange of information is made by the competent authority (with reference to, inter alia, section 90/90A of the Income-tax Act, 1961) and ending with the date on which the information requested is last received or a period of one year, whichever is less, shall be excluded in computing the period of limitation.
If, after exclusion of such time period, the period of limitation available to the Assessing Officer for making an assessment order is less than 60 days, the period of limitation shall be deemed to be extended to 60 days.

Rectification of mistake :

(1)
Rectification of a mistake apparent from the record – Any order passed by the tax authority can be amended by it to rectify any mistake apparent from the record.

(2)
Time period for rectification – A four year time period has been prescribed and the same has to be reckoned from the end of the financial year in which the order sought to be amended was passed.

(3)
Opportunity of being heard  - Any amendment which has the effect of enhancing an undisclosed foreign income and asset or reducing a refund or otherwise increasing the liability of the assessee cannot be made without giving the assessee an opportunity of being heard.

(4)
Time limit for deciding an application – Where a tax authority receives an application from the assessee or the Assessing Officer for amendment of an order, the time limit within which such application has to be decided is six months from the end of the month in which the application is received by it. The tax authority may also make an amendment on its own motion.

(5)
Rectification of an order which is a subject matter of appeal or revision - In such a case, the power of the tax authority to amend the order would be restricted to matters other than those decided in appeal or revision.

Notice of Demand :

Service of notice of demand upon the assessee in the prescribed form and manner would be mandatory for a tax authority to demand any sum payable in consequence of an order made under this Act.

No bar on Direct Assessment or Recovery :

The following are not barred by any provision in Chapter III of this Act:

(1)
Direct assessment of the person on whose behalf or for whose benefit the undisclosed income from a source located outside India is receivable.

(2)
Recovery of the tax or any other sum of money payable in respect of such income and asset from such person.

Appeals & Revision :

(1)
Appeal to Commissioner (Appeals) - The Act provides for appeal to Commissioner (Appeals) in the prescribed form and manner by any person who -

(i)
objects to the amount of tax on undisclosed foreign income and asset for which he is assessed by the Assessing Officer; or

(ii)
denies his liability to be assessed under this Act; or

(iii)
objects to any penalty imposed by the Assessing Officer; or

(iv)
objects to a rectification order enhancing the assessment or reducing the refund; or

(v)
objects to an order refusing to allow the rectification claim made by the assessee.

(2)
Time period for filing appeal to Commissioner (Appeals)  – 30 days from the date of service of the notice of demand relating to an assessment or penalty or in any other case, 30 days from the date on which the intimation of the order sought to be appealed against is served.

(3)
Procedure to be followed in appeal and powers of Commissioner (Appeals) – The Act prescribes the procedure to be followed in appeal. It also lays down the powers of Commissioner (Appeals).

(4)
Appeal to Appellate Tribunal – The following persons can made an appeal within 60 days to the Appellate Tribunal -

(i)
Any assessee who is aggrieved by an order passed by the Commissioner (Appeals);

(ii)
Any assessee who is aggrieved by an order passed by the Principal Commissioner or Commissioner under any provision of the Act;

(iii)
The Assessing Officer, on a direction received from the Principal Commissioner or Commissioner objecting to any order passed by the Commissioner (Appeals).

(5)
Appeal to High Court - An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law.
The time limit for filing an appeal is 120 days from the date on which the order appealed against is received by the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner/assessee. The appeal shall be in the form of a memorandum of appeal precisely stating therein the substantial question of law involved.
Provisions of Code of Civil Procedure, 1908, relating to appeals to the High Court shall, so far as may be, apply in the case of appeals under this section.

(6)
Appeal to Supreme Court – An appeal shall lie to the Supreme Court from any judgment of the High Court delivered under section 19 which the High Court certifies to be fit case for appeal to the Supreme Court.
The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in case of appeal to the Supreme Court under this Act as they apply in the case of appeals from decrees of a High Court.

(7)
Revision of orders prejudicial to revenue – The Principal Commissioner/Commissioner may call for and examine all available records for the purpose of revising any order passed in any proceeding under this Act by a tax authority subordinate to him. If he is satisfied that the order sought to be revised 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, pass a revision order.

(8)
Revision of other orders -  The Principal Commissioner/Commissioner may, either on his own motion or on an application made by the assessee, call for and examine all available records for the purpose of revising any order passed by an authority subordinate to him. The time limit for making an application by the assessee is one year from the date on which the order sought to be revised was communicated to him, or the date on which he otherwise came to know of it, whichever is earlier.

(9)
Tax to be paid pending appeal – The tax has to be paid in accordance with the assessment made under this Act, notwithstanding any appeal preferred to the High Court or the Supreme Court

Recovery of Tax Dues :

(1)
(i)
Recovery of tax dues by Assessing Officer – The time period of payment of dues specified in the notice of demand to the credit of the Central Government is 30 days from the service of notice of demand. The period may be reduced by the Assessing Officer, with the previous approval of the Joint Commissioner, if he has reason to believe that allowing 30 day period is detrimental to the interests of revenue. An application for extension of time period or allowing payment by installments may be entertained by the Assessing Officer before the expiry of the 30 day period or the period reduced, subject to such conditions as he may think fit to impose. An assessee shall be deemed as an assessee-in-default for failure to pay tax arrears within the specified period.

(ii)
Recovery of tax dues by Tax Recovery Officer  - The Tax Recovery Officer may draw up under his signature a statement of tax arrears of the assessee in the prescribed form. He has the power to rectify any mistake apparent from the record and the power to extend the time for payment or allow payment by installments, subject to such conditions as he may think fit to impose.

(iii)
Modes of recovery of tax dues – The modes of recovery of tax arrears, such as deduction by employer from payment to the assessee, recovery from the debtor of the assessee have been provided.

(iv)
Tax Recovery Officer by whom recovery of tax dues is to be effected – The Tax Recovery Officer, within whose jurisdiction the assessee carries on business or the principal place of business of the assessee is situated or the assessee resides or any movable or immovable property of the assessee is situated shall be the Tax Recovery Officer competent to recover tax dues of the assessee.

(v)
Recovery of tax dues in case of a company in liquidation – The liquidator shall inform the Assessing Officer, who has jurisdiction to assess the undisclosed foreign income and asset of the company, of his appointment within a period of thirty days of his becoming the liquidator. The Assessing Officer shall, within a period of three months from the date on which he receives the information, intimate to the liquidator the amount which, in his opinion, would be sufficient to provide for any tax arrears or any amount which is likely to become payable thereafter, by the company under this Act.

(vi)
Liability of manager of a company – Every person being a manager at any time during the financial year shall be jointly and severally liable for the payment of any amount due under this Act in respect of the company for the financial year, if the amount cannot be recovered from the company. However, if the manager proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the company, he would not be so liable.

(vii)
Joint and several liability of participants – Every person, being a participant in an unincorporated body at any time during the financial year, or the representative assessee of the deceased participant, shall be jointly and severally liable, along with the unincorporated body, for payment of any amount payable by the unincorporated body under this Act.  In case of a limited liability partnership, if the partner proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the partnership, he would not be so liable.

(viii)
Recovery through State Government – If the recovery of tax in any area has been entrusted to a State Government under clause (1) of article 258 of the Constitution, the State Government may direct, with respect to that area or any part thereof, that tax shall be recovered therein with, and as an addition to, any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is recovered.

(ix)
Recovery by suit or under other law not affected – The modes of recovery in this Chapter would not affect in any manner any other law for the time being in force relating to the recovery of debts due to the Government or the right of the Government to institute a suit for the recovery of the tax arrears from the assessee.

(2)
Interest for default in furnishing return and payment or deferment of advance tax -

(i)
Interest under section 234A of the Income-tax Act, 1961 to be attracted for failure to disclose income from a source outside India in the return filed under section 139(1) or failure to furnish return of income under section 139(1) of the Income-tax Act, 1961.

(ii)
Interest under sections 234B and 234C of the Income-tax Act, 1961 to be attracted for failure to pay advance tax on undisclosed income from a source outside India in accordance with Part C of Chapter XVII of the Income-tax Act, 1961.

__._,_.___

Posted by: CA Tarun Ghia <tarunghiaca@yahoo.co.in>

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Chartered Accountant Finance

Saturday, April 18, 2015

[aaykarbhavan] Features Part I Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015

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CHAPTER I: SCOPE
(1)	This law would apply to every person, being a resident other than not ordinarily resident in India within the meaning of section 6(6) of the Income-tax Act, 1961, by whom tax is payable under this Act in respect of undisclosed foreign income and assets and also every person who is deemed to be an assessee-in-default under this Act.


CHAPTER II: BASIS OF CHARGE
Charge of tax :
(1)	Rate of tax - Every assessee to be taxed @ 30% in respect of his undisclosed foreign income and asset from A.Y.2016-17.
(2)	Relevant previous year of chargeability to tax - Undisclosed asset located outside India to be charged to tax on its value in the previous year in which the asset comes to the notice of the Assessing Officer.


Scope of total undisclosed foreign income and asset :
(1)	Total undisclosed foreign income and asset of any previous year to be -
	(a)			the income from a source located outside India which has not been disclosed in the return of income filed under the Income-tax Act, 1961 on or before the due date or in the belated return of income or in the revised return of income.
	(b)			the income from a source located outside India in respect of which a return is required to be filed under section 139 of the Income-tax Act, 1961, but no return, belated return or revised return has been filed.
	(c)			the value of any undisclosed asset located outside India.
(2)	Non-inclusion of income included in undisclosed foreign income and asset in the total income under the Income-tax Act, 1961 - The income included in the total undisclosed foreign income and asset under this law not to form part of total income under the Income-tax Act, 1961.

Computation of total undisclosed foreign income and asset :
(1)	Disallowance of expenditure and set-off of loss - No deduction in respect of any expenditure or allowance or set off of any loss to be allowed
(2)	Permissible deduction from value of undisclosed asset located outside India - From the value of undisclosed asset located outside India, any income which has so far been assessed to tax for any assessment year under the Income-tax Act, 1961 and any income which is assessable or has been assessed to tax for any assessment year under this new Act, will be reduced.
(3)	Permissible deduction from value of immovable property - If such deduction in respect ofincome which is assessable or has been assessed to tax is in relation to an immovable property, the quantum of deduction would be the amount which bears to the value of the asset as on the first day of the financial year in which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessed foreign income bears to the total cost of the asset.

CHAPTER III: TAX MANAGEMENT
Tax Authorities :
(1)	Income-tax authorities specified under section 116 of the Income-tax Act, 1961 to be the tax authorities for the purpose of this Act.
(2)	Jurisdiction of a tax authority under this Act to be the same as under the Income-tax Act, 1961
(3)	Jurisdiction of a tax authority in case of an assessee having no income assessable under the Income-tax Act, 1961 – The tax authority having jurisdiction in his case under this Act to be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business.

Powers regarding discovery and production of evidence :
(1)	Powers vested in a court under the Code of Civil Procedure, 1908 – The prescribed tax authorities to have the same powers as are vested in a court under the Code of Civil Procedure, 1908, while trying a suit in respect of the specified matters.
	-
(2)	Inquiry and Investigation – The prescribed tax authorities are vested with the specified powers even for the purpose of making any inquiry or investigation, irrespective of whether any proceedings are pending before it.
(3)	Power to impound - The prescribed tax authorities may impound any books of account or other documents produced before them and retain the same in their custody for such period as they think fit. However, this power is subject to Rules to be made in this regard.
(4)	Restrictions on power to impound - A tax authority below the rank of Commissioner can impound any books of account or other documents only after recording reasons for doing so. Further, such authority can retain in his custody the books or documents impounded for a period exceeding 30 days only after obtaining the consent of the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/ Commissioner.

Proceedings before tax authorities to be judicial proceedings :
(1)	Purposes for which a proceeding under this Act would be deemed as a judicial proceeding - Any proceeding under this Act before a tax authority to be deemed as a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code.


Assessment :
(1)	Service of Notice - Where the Assessing Officer receives information from an income-tax authority or any other authority under any other law or any information comes to his notice, he may, for the purpose making an assessment or reassessment under this Act, serve a notice on any person requiring him to produce, on the date to be specified, books of account or documents or evidence which he may require for the purposes of this Act.
(2)	Service of further notices - He may also serve further notices from time to time requiring production of such other accounts or documents or evidence as he may require.
(3)	Making inquiry - The Assessing Officer may, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year(s),make such inquiry as he considers necessary.
(4)	Passing an Assessment Order - After considering the accounts, documents or evidence produced by the assessee, and any relevant material which he has gathered, the Assessing Officer shall pass an order assessing the undisclosed foreign income and asset and determining the sum payable by the assessee.
(5)	Best Judgement Assessment - Where any person fails to comply with all the terms of the notice issued, the Assessing Officer shall, after giving the assessee an opportunity of being heard and after taking into consideration all the relevant material, make the assessment of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee.

Time limit for completion of assessment :
(1)	Two-year time limit – The time limit for passing an order of assessment or reassessment is two years from the end of the financial year in which notice is issued by the Assessing Officer.
(2)	Non-applicability of the two-year time limit – The time limit of two years would not apply in respect of the assessment or reassessment made in the consequence of, or to give effect to, any finding or direction contained in the order of any appellate authority or a court in a proceeding otherwise than by way of appeal.
(3)	Exclusion of specified time period - The time taken in reopening the whole or any part of the proceeding, the period during which the assessment proceeding is stayed by an order or injunction of any court or the period commencing from the date on which the first of the references for exchange of information is made by the competent authority (with reference to, inter alia, section 90/90A of the Income-tax Act, 1961) and ending with the date on which the information requested is last received or a period of one year, whichever is less, shall be excluded in computing the period of limitation. If, after exclusion of such time period, the period of limitation available to the Assessing Officer for making an assessment order is less than 60 days, the period of limitation shall be deemed to be extended to 60 days.

Rectification of mistake :
(1)	Rectification of a mistake apparent from the record – Any order passed by the tax authority can be amended by it to rectify any mistake apparent from the record.
(2)	Time period for rectification – A four year time period has been prescribed and the same has to be reckoned from the end of the financial year in which the order sought to be amended was passed.
(3)	Opportunity of being heard - Any amendment which has the effect of enhancing an undisclosed foreign income and asset or reducing a refund or otherwise increasing the liability of the assessee cannot be made without giving the assessee an opportunity of being heard.
(4)	Time limit for deciding an application – Where a tax authority receives an application from the assessee or the Assessing Officer for amendment of an order, the time limit within which such application has to be decided is six months from the end of the month in which the application is received by it. The tax authority may also make an amendment on its own motion.
(5)	Rectification of an order which is a subject matter of appeal or revision - In such a case, the power of the tax authority to amend the order would be restricted to matters other than those decided in appeal or revision.

Notice of Demand :
Service of notice of demand upon the assessee in the prescribed form and manner would be mandatory for a tax authority to demand any sum payable in consequence of an order made under this Act.

No bar on Direct Assessment or Recovery :
The following are not barred by any provision in Chapter III of this Act:
(1)	Direct assessment of the person on whose behalf or for whose benefit the undisclosed income from a source located outside India is receivable.
(2)	Recovery of the tax or any other sum of money payable in respect of such income and asset from such person.

Appeals & Revision :
(1)	Appeal to Commissioner (Appeals) - The Act provides for appeal to Commissioner (Appeals) in the prescribed form and manner by any person who -
	(i)		objects to the amount of tax on undisclosed foreign income and asset for which he is assessed by the Assessing Officer; or
	(ii)		denies his liability to be assessed under this Act; or
	(iii)		objects to any penalty imposed by the Assessing Officer; or
	(iv)		objects to a rectification order enhancing the assessment or reducing the refund; or
	(v)		objects to an order refusing to allow the rectification claim made by the assessee.
(2)	Time period for filing appeal to Commissioner (Appeals) – 30 days from the date of service of the notice of demand relating to an assessment or penalty or in any other case, 30 days from the date on which the intimation of the order sought to be appealed against is served.
(3)	Procedure to be followed in appeal and powers of Commissioner (Appeals) – The Act prescribes the procedure to be followed in appeal. It also lays down the powers of Commissioner (Appeals).
(4)	Appeal to Appellate Tribunal – The following persons can made an appeal within 60 days to the Appellate Tribunal -
	(i)		Any assessee who is aggrieved by an order passed by the Commissioner (Appeals);
	(ii)		Any assessee who is aggrieved by an order passed by the Principal Commissioner or Commissioner under any provision of the Act;
	(iii)		The Assessing Officer, on a direction received from the Principal Commissioner or Commissioner objecting to any order passed by the Commissioner (Appeals).
(5)	Appeal to High Court - An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. The time limit for filing an appeal is 120 days from the date on which the order appealed against is received by the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner/assessee. The appeal shall be in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. Provisions of Code of Civil Procedure, 1908, relating to appeals to the High Court shall, so far as may be, apply in the case of appeals under this section.
(6)	Appeal to Supreme Court – An appeal shall lie to the Supreme Court from any judgment of the High Court delivered under section 19 which the High Court certifies to be fit case for appeal to the Supreme Court. The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in case of appeal to the Supreme Court under this Act as they apply in the case of appeals from decrees of a High Court.
(7)	Revision of orders prejudicial to revenue – The Principal Commissioner/Commissioner may call for and examine all available records for the purpose of revising any order passed in any proceeding under this Act by a tax authority subordinate to him. If he is satisfied that the order sought to be revised 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, pass a revision order.
(8)	Revision of other orders - The Principal Commissioner/Commissioner may, either on his own motion or on an application made by the assessee, call for and examine all available records for the purpose of revising any order passed by an authority subordinate to him. The time limit for making an application by the assessee is one year from the date on which the order sought to be revised was communicated to him, or the date on which he otherwise came to know of it, whichever is earlier.
(9)	Tax to be paid pending appeal – The tax has to be paid in accordance with the assessment made under this Act, notwithstanding any appeal preferred to the High Court or the Supreme Court

Recovery of Tax Dues :
(1)	(i)		Recovery of tax dues by Assessing Officer – The time period of payment of dues specified in the notice of demand to the credit of the Central Government is 30 days from the service of notice of demand. The period may be reduced by the Assessing Officer, with the previous approval of the Joint Commissioner, if he has reason to believe that allowing 30 day period is detrimental to the interests of revenue. An application for extension of time period or allowing payment by installments may be entertained by the Assessing Officer before the expiry of the 30 day period or the period reduced, subject to such conditions as he may think fit to impose. An assessee shall be deemed as an assessee-in-default for failure to pay tax arrears within the specified period.
	(ii)		Recovery of tax dues by Tax Recovery Officer - The Tax Recovery Officer may draw up under his signature a statement of tax arrears of the assessee in the prescribed form. He has the power to rectify any mistake apparent from the record and the power to extend the time for payment or allow payment by installments, subject to such conditions as he may think fit to impose.
	(iii)		Modes of recovery of tax dues – The modes of recovery of tax arrears, such as deduction by employer from payment to the assessee, recovery from the debtor of the assessee have been provided.
	(iv)		Tax Recovery Officer by whom recovery of tax dues is to be effected – The Tax Recovery Officer, within whose jurisdiction the assessee carries on business or the principal place of business of the assessee is situated or the assessee resides or any movable or immovable property of the assessee is situated shall be the Tax Recovery Officer competent to recover tax dues of the assessee.
	(v)		Recovery of tax dues in case of a company in liquidation – The liquidator shall inform the Assessing Officer, who has jurisdiction to assess the undisclosed foreign income and asset of the company, of his appointment within a period of thirty days of his becoming the liquidator. The Assessing Officer shall, within a period of three months from the date on which he receives the information, intimate to the liquidator the amount which, in his opinion, would be sufficient to provide for any tax arrears or any amount which is likely to become payable thereafter, by the company under this Act.
	(vi)		Liability of manager of a company – Every person being a manager at any time during the financial year shall be jointly and severally liable for the payment of any amount due under this Act in respect of the company for the financial year, if the amount cannot be recovered from the company. However, if the manager proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the company, he would not be so liable.
	(vii)		Joint and several liability of participants – Every person, being a participant in an unincorporated body at any time during the financial year, or the representative assessee of the deceased participant, shall be jointly and severally liable, along with the unincorporated body, for payment of any amount payable by the unincorporated body under this Act. In case of a limited liability partnership, if the partner proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the partnership, he would not be so liable.
	(viii)		Recovery through State Government – If the recovery of tax in any area has been entrusted to a State Government under clause (1) of article 258 of the Constitution, the State Government may direct, with respect to that area or any part thereof, that tax shall be recovered therein with, and as an addition to, any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is recovered.
	(ix)		Recovery by suit or under other law not affected – The modes of recovery in this Chapter would not affect in any manner any other law for the time being in force relating to the recovery of debts due to the Government or the right of the Government to institute a suit for the recovery of the tax arrears from the assessee.

(2)	Interest for default in furnishing return and payment or deferment of advance tax -
	(i)	Interest under section 234A of the Income-tax Act, 1961 to be attracted for failure to disclose income from a source outside India in the return filed under section 139(1) or failure to furnish return of income under section 139(1) of the Income-tax Act, 1961.
	(ii)	Interest under sections 234B and 234C of the Income-tax Act, 1961 to be attracted for failure to pay advance tax on undisclosed income from a source outside India in accordance with Part C of Chapter XVII of the Income-tax Act, 1961.