Clause 318 - Repeals and savings. - Direct Taxes Code, 2010

Repeals and savings. 318. (1) The Income-tax Act, 1961 and the Wealth-tax Act, 1957 are hereby repealed. (2) Notwithstanding the repeal of the Income-tax Act, 1961 and the Wealth-tax Act, 1957 (hereinafter referred to as the repealed Income-tax Act or the repealed Wealth-tax Act, respectively),— (a) where a return of income or wealth has been filed before the commencement of this Code by any person for any assessment year, proceedings for the assessment of that person for that year may be taken and continued as if this Code had not been enacted; (b) where a return of income is filed after the commencement of this Code, otherwise than in pursuance of a notice under section 148 of the repealed Income-tax Act, by any person for the financial year ending on the 31st day of March, 2012, or any earlier year, the assessment of that person for that year shall be made in accordance with the procedure specified in this Code; (c) where a return of wealth is filed after the commencement of this Code, otherwise than in pursuance of a notice under section 17 of the repealed Wealth-tax Act, by any person for the financial year ending on the 31st day of March, 2012, or any earlier year, the assessment of that person for that year shall be made in accordance with the procedure specified in this Code; (d) any proceeding pending on the commencement of this Code before any income-tax authority, wealth-tax authority, the Appellate Tribunal, the Authority for Advance Ruling and Dispute Resolution, the Settlement Commission or any court, by way of appeal, reference, application or revision, shall be continued and disposed under the repealed Income-tax Act, or as the case may be, the repealed Wealth-tax Act, as if this Code had not been enacted; (e) where in respect of any assessment year after the year ending on the 31st day of March, 2001— (i) a notice under section 148 of the repealed Income-tax Act or under section 17 of the repealed Wealth-tax Act had been issued before the commencement of this Code, the proceedings in pursuance of the notice may be continued and disposed of as if this Code had not been enacted; (ii) any income or wealth liable to tax has escaped assessment within the meaning of that expression in section 159 and no proceedings under section 147 of the repealed Income-tax Act or under section 17 of the repealed Wealth-tax Act in respect of any such income or wealth, as the case may be, are pending at the commencement of this Code, a notice under section 159 may be issued with respect to that financial year and all the provisions of this Code shall apply accordingly; (f) any proceeding for the imposition of a penalty in respect of any assessment completed before the first day of April, 2012, may be initiated and any such penalty may be imposed under the repealed Income-tax Act, or as the case may be, the repealed Wealth-tax Act as if this Code had not been enacted; (g) any proceeding for the imposition of a penalty in respect of any assessment for the financial year ending on the 31st day of March, 2011, or any earlier year, which is completed on or after the 1st day of April, 2011, may be initiated and any such penalty may be imposed under this Code; (h) any election or declaration made, or option exercised, by an assessee under any provision of the repealed Income-tax Act or as the case may be, the repealed Wealth-tax Act and in force immediately before the commencement of this Code shall be deemed to have been an election or declaration made, or option exercised, under the corresponding provision of this Code; (i) where, in respect of any assessment completed before the commencement of this Code, a refund falls due after such commencement, or default is made after such commencement in the payment of any sum due under such completed assessment, the provisions of this Code relating to interest payable by the Central Government on refunds and interest payable by the assessee for default shall apply; (j) any sum payable under the repealed Income-tax Act or as the case may be, the repealed Wealth-tax Act may be recovered under this Code, but without prejudice to any action already taken for the recovery of such sum under such repealed Acts; (k) any agreement entered into under section 90 or section 90A of the repealed Income-tax Act or under section 44A of the repealed Wealth-tax Act shall, so far as it is not inconsistent with section 291 of this Code, be deemed to have been entered into under section 291 of this Code and shall continue in force accordingly; (l) any appointment made under the provisions of the repealed Income-tax Act, or as the case may be, the repealed Wealth tax Act shall be deemed to have been made under the corresponding provisions of this Code and shall continue to remain in force accordingly; (m) any order made under any provision of the repealed Income-tax Act or as the case may be, the repealed Wealth-Tax Act. shall, so far as it is not inconsistent with the corresponding provisions of this Code, be deemed to have been made under the corresponding provisions aforesaid and shall continue in force accordingly; (n) where the period prescribed for any application, appeal, reference or revision under the repealed Income-tax Act or as the case may be, the repealed Wealth-tax Act had expired on or before the commencement of this Code, nothing in this Code shall be construed as enabling any such application, appeal, reference or revision to be made under this Code by reason only of the fact that a longer period therefor is prescribed or provision is made for extension of time in suitable cases by the appropriate authority; (o) the deduction under section 80-IA, section 80-IB (other than sub-section (9), section 80-IC, section 80-ID, section 80-IE or section 80JJA or section 80JJAA of the repealed Income-tax Act shall continue to be allowed under this Code, if the assessee is eligible for such deduction for the assessment year beginning on the 1st day of April, 2012 subject to the conditions— (i) that the amount of profits eligible for deduction under the provisions of aforesaid sections are calculated in accordance with the provisions of this Code other than the provisions in clauses (d) and (e) of paragraph (5) of the Thirteenth Schedule relating to capital expenditure, if applicable; (ii) that the period for which the deduction is allowed under the provisions of aforesaid sections shall not include a period for which the deduction was otherwise not allowable under the repealed Income-tax Act; (iii) that the amount related to capital expenditure if any excluded in (i) above shall not be allowed as deduction under this Code in computing the gross total income; and (iv) that the assessee otherwise continues to satisfy the conditions as specified in the respective sections in the financial year; (p) the deduction under section 80-IAB of the repealed Income-tax Act shall continue to be allowed under this Code, if the assessee, being a developer engaged in the business of developing, operating and maintaining a Special Economic Zone notified on or before 31st day of March, 2012 under the Special Economic Zones Act, 2005, subject to the conditions— (i) that the amount of profits eligible for deduction under the provisions of the aforesaid section are calculated in accordance with the provisions of this Code other than the provisions in clauses (d) and (e) of paragraph (4) of the Twelfth Schedule relating to capital expenditure; (ii) that the period for which the deduction is allowed under the provisions of the aforesaid section shall not include a period for which the deduction was otherwise not allowable under the repealed Income-tax Act; (iii) that the amount related to capital expenditure if any excluded in (i) above shall not be allowed as deduction under this Code in computing the gross total income; and (iv) that the assessee otherwise continues to satisfy the conditions as specified in the respective section in the financial year; (q) the deduction under section 80LA of the repealed Income-tax Act shall continue to be allowed under this Code, if the assessee commences its business operation in the Offshore Banking Unit, or unit of an International Financial Services Centre, in the Special Economic Zone on or before the 31st day of March, 2014, subject to the conditions— (i) that the amount of profits eligible for deduction under the provisions of the aforesaid section are calculated in accordance with the provisions of this Code other than the provisions in clauses (d) and (e) of paragraph (4) of the Thirteenth Schedule relating to capital expenditure; (ii) that the period for which the deduction is allowed under the provisions of the aforesaid section shall not include a period for which the deduction was otherwise not allowable under the repealed Income-tax Act; (iii) that the amount related to capital expenditure if any excluded in (i) above shall not be allowed as deduction under this Code in computing the gross total income; and (iv) that the assessee otherwise continue to satisfy the conditions as specified in the respective section in the financial year; (r) the deduction under section 10AA of the repealed Income-tax Act shall continue to be allowed under this Code, if the assessee, being an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005, begins to manufacture or produce articles or things or provide any service in the unit in the Special Economic Zone on or before the 31st day of March, 2014, subject to the conditions— (i) that the amount of profits eligible for deduction under the provisions of the aforesaid section are calculated in accordance with the provisions of this Code other than the provisions in clauses (d) and (e) of paragraph (4) of the Twelfth Schedule relating to capital expenditure; (ii) that the period for which the deduction is allowed under the provisions of the aforesaid section shall not include a period for which the deduction was otherwise not allowable under the repealed Income-tax Act; (iii) the amount related to capital expenditure if any excluded in (i) above shall not be allowed as deduction under this Code in computing the gross total income; and (iv) that the assessee otherwise continue to satisfy the conditions as specified in the respective section in the financial year; (s) the deduction under sub-section (9) of section 80-IB of the repealed Income-tax Act shall continue to be allowed under this Code, if the undertaking referred to in the said sub-section also fulfills any of the following, namely:— (A) it is engaged in commercial production of mineral oil in any blocks licensed under a single contract, which is awarded under the New Exploration Licensing Policy announced by the Government of India vide Resolution No. O19018/22/95-ONG.DO.DL, dated 10th February, 1999 (hereinafter referred as the NELP) or has been awarded in pursuance of any law for the time being in force or has been awarded by the Central or a State Government in any other manner, before the commencement of this Code; (B) it is engaged in refining of mineral oil and begins such refining on or after the 1st day of October, 1998 but not later than the 31st day of March, 2012; (C) it is engaged in commercial production of natural gas in blocks licensed under the VIII Round of bidding for award of exploration contracts under the NELP and begins commercial production of natural gas on or after the 1st day of April, 2009; (D) it is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009, subject to the conditions— (i) that the amount of profits eligible for deduction under the provisions of the aforesaid section are calculated in accordance with the provisions of this Code other than the provisions in clauses (d) and (f) of paragraph 3 of the Eleventh Schedule relating to capital expenditure; (ii) that the period for which the deduction is allowed under the provisions of the aforesaid section shall not include a period for which the deduction was otherwise not allowable under the repealed Income-tax Act; (iii) that the amount related to capital expenditure if any excluded in (i) above shall not be allowed as deduction under this Code in computing the gross total income; and (iv) that the assessee otherwise continue to satisfy the conditions as specified in the respective section in the financial year. (3) In this section, "assessment year" shall have the same meaning as assigned to it in the repealed Income-tax Act, 1961 or the repealed Wealth-tax Act, 1957 as the case may be as they stood prior to their repeal.