Section 53 - Amendment of Act 38 of 1974 - Finance (No. 2) Act, 1980

53. Amendment of Act 38 of 1974 In the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, - (a) in section 2, after clause (d), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 10th day of July, 1978, namely :- '(dd) Income-tax Officer has the same meaning as in clause (25) of section 2 of the Income-tax Act, and includes an Inspecting Assistant Commissioner who exercises or performs the powers or functions conferred on, or assigned to, him under section 125 or section 125A of the said Act;'; (b) after section 7, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1975, namely :- 7A. Compulsory deposit to be exempt for purposes of wealth-tax. - For the purposes of exemption under section 5 of the Wealth-tax Act, 1957 (27 of 1957), the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies. ; (c) with effect from the 1st day of April, 1981, section 8 shall be renumbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely :- (2) Where any amount has become repayable or payable under sub-section (1), the depositor may, at his option, not withdraw such amount after it has become so repayable or payable, and if he does so, such amount shall carry interest for the period it is not withdrawn as if it were a compulsory deposit, and the provisions of this Act shall, so far as may be, apply in relation to such amount or interest thereon as they apply in relation to a compulsory deposit or, as the case may be, interest on such deposit. ; (d) in section 10, with effect from the 1st day of April, 1975, - (i) in sub-section (1), - (1) in clause (a), for the words has failed to make , the words has, without reasonable cause, failed to make shall be substituted; (2) in clause (b), for the words the requisite amount , the words the requisite amount and there is no reasonable cause for making such short payment shall be substituted; (3) for the words the Income-tax Officer shall , the words the Income-tax Officer may shall be substituted; (ii) in sub-section (2), - (1) in clause (a), for the words has failed to make , the words has, without reasonable cause, failed to make shall be substituted; (2) in clause (b), - (A) for the words is less than , the words falls short of shall be substituted; (B) for the words his correct income , the words his correct income and there is no reasonable cause for making such short payment shall be substituted; (3) for the words the Income-tax Officer shall , the words the Income-tax Officer may shall be substituted; (e) in section 11, with effect from the 10th day of July, 1978, - (i) in sub-section (1), for the words Additional Commissioner of Income-tax , the words and brackets Commissioner of Income-tax (Appeals) shall be substituted; (ii) in sub-section (2), in clause (b) of the proviso, for the words Appellate Assistant Commissioner , the words and brackets Commissioner (Appeals) or the Appellate Assistant Commissioner shall be substituted; (f) with effect from the 10th day of July, 1978, section 12 shall be re-numbered as sub-section (1) thereof, and, - (i) in sub-section (1), as so re-numbered, for the words Any depositor , the words, brackets and figure Subject to the provisions of sub-section (2), any depositor shall be substituted; (ii) after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely :- '(2) Where an order referred to in sub-section (1) is made by an Inspecting Assistant Commissioner in exercise of the powers or functions conferred on or assigned to him under section 125 or section 125A of the Income-tax Act, the provisions of that sub-section shall have effect as if for the words Appellate Assistant Commissioner , the words and brackets Commissioner (Appeals) were substituted.'; (g) after section 12, the following section shall be inserted with effect from the 1st day of September, 1980, namely :- '12A. Special review in certain cases. - (1) Where any order imposing a penalty under section 10 made by the Income-tax Officer before the date on which the Finance (No. 2) Act, 1980, received the assent of the President (such order being hereafter in this section referred to as pre-amendment penalty order) has not been made the subject matter of any subsequent proceeding by way of appeal or revision under this Act, then, the depositor aggrieved by such order may, if he considers that no such penalty would have been levied if the amendments made to section 10 by the Finance (No. 2) Act, 1980, had been in force on the date of passing of such order, make an application to the Income-tax Officer for a special review. (2) Where a pre-amendment penalty order has been made the subject matter of any subsequent proceeding by way of an appeal or revision under this Act, the depositor aggrieved by the order passed in any such proceeding or, as the case may be, the last of such proceedings may, if he considers that no such penalty would have been levied if the amendments made to section 10 by the Finance (No. 2) Act, 1980, had been in force on the date of passing or the pre-amendment penalty order, make an application to the authority which passed the order in such proceeding or, as the case may be, the last of such proceedings for a special review. (3) The application referred to in sub-section (1) or sub-section (2) shall be presented before the 1st day of January, 1981 : Provided that the Income-tax Officer or the other authority to whom an application for special review is made may admit such application after the said date if he or it is satisfied that the depositor had sufficient cause for not presenting it before the said date. (4) The Income-tax Officer or other authority to whom the application for special review is made under sub-section (1) or sub-section (2), may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such order as he or it thinks fit. (5) The provisions of section 12 shall, so far as may be, apply in relation to an order passed under sub-section (4) as they apply in relation to a pre-amendment penalty order or, as the case may be, an order passed by any other authority under that section. (6) The special review under this section shall be in addition to and not in derogation of any other remedy which an aggrieved depositor may have under this Act. Explanation : For the purposes of this section, authority includes the Appellate Tribunal.'; (h) in section 13, in sub-section (1), after the words the Appellate Assistant Commissioner, , the words and brackets the Commissioner (Appeals), shall be inserted.