Section 63 - Insertion of new Chapter XIV-B - Direct Tax Laws (Amendment) Act, 1987

63. Insertion of new Chapter XIV-B. After section 158A of the Income-tax Act, the following Chapter shall be inserted, namely :- CHAPTER XIV-B CHARGE OF ADDITIONAL INCOME-TAX IN CERTAIN CASES 158B. Additional income-tax. (1) Where, in the case of any person, the total income determined in the regular assessment for any assessment year (hereafter in this section referred to as assessed income) exceeds the total income declared in the return of income furnished by such person for that assessment year (hereafter in this section referred to as returned income) by any amount, the Assessing Officer shall make an order in writing that such person shall, apart from the sum determined as payable by him on the basis of the assessment under section 143 or section 144, be liable to pay, by way of additional income-tax, in respect of the said assessment year, a sum calculated on such excess amount at the rate of thirty per cent. (2) For the purposes of sub-section (1),- (a) where such person has furnished two or more returns of income for the same assessment year, the total income declared in the return furnished last before the service of a notice under sub-section (2) of section 143 on such person shall be treated as the returned income; (b) where such person fails to furnish the return of income in respect of any assessment year and the assessment for that year is made under section 144, the returned income shall be taken to be the total income on which tax, by way of advance tax, deduction of tax at source and otherwise, has been paid, and where no such tax has been paid, the returned income shall be taken to be nil; (c) where such person fails to furnish a return of income for any assessment year under section 139, but furnishes such return after he is served with a notice under section 148, the returned income shall be taken to be the total income on which tax, by way of advance tax, deduction of tax at source and otherwise, has been paid, and where no such tax has been paid, the re- turned income shall be taken to be nil; (d) where such person has furnished a return of loss under sub-section (3) of section 139 for any assessment year, the additional income-tax under sub-section (1) shall be calculated at the rate specified in that sub-section on the sum or, as the case may be, the aggregate of the sums by which the loss is reduced to a lower amount or, as the case may be, converted into a positive amount of income in the regular assessment. (3) Where, as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of settlement passed under sub-section (4) of section 245D, the amount on which the additional income-tax is payable under sub-section (1) has been increased or reduced, as the case may be, the additional income-tax shall be increased or reduced accordingly, and,- (i) in a case where the additional income-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and all the provisions of this Act shall apply accordingly; (ii) in a case where the additional income-tax is reduced, the excess amount paid, if any, shall be refunded. (4) The Chief Commissioner or Commissioner may, in his discretion, whether on his own motion or otherwise, waive or reduce the amount of additional income-tax payable under sub-section (1) by any person, if he is satisfied that the whole or, as the case may be, any part of the excess amount referred to in that sub-section is attributable to any amount added or disallowed in computing the assessed income or loss as a result of the rejection of any explanation (by way of interpretation of any provision of this Act or otherwise) offered by such person, if such explanation is bona fide and all the facts relating to the same and material to the computation of the assessed income or loss have been disclosed by him: Provided that- (i) where an appeal before the Deputy Commissioner (Appeals) or the Commissioner (Appeals) has also been filed by the assessee against the order of assessment, the petition for waiver or reduction of the amount of additional income-tax can be filed by the assessee only after the decision on such appeal; (ii) the petition for waiver or reduction of the amount of additional income-tax shall be accompanied by a fee of one hundred rupees. - (5) Where, in the course of a search under section 132, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing and the assessee claims that such assets have been acquired by him by utilising (wholly or in part) his income, - (a) for any previous year which has ended before the date of the search, but the return of income for such year has not been furnished before the said date or, where such return has been furnished before the said date, such income has not been declared therein; or (b) for any previous year which is to end on or after the date of the search, then, notwithstanding that such income is declared by him in any return of income furnished on or after the date of the search, such Income shall not, for the purposes of liability to the additional income tax under this section, be treated as forming part of the returned income, unless,- (i) such income is, or the transactions resulting in such income are, recorded,- (A) in a case falling under clause (a), before the date of the search; and (B) in a case falling under clause (b), on or before the date of the search, in the books of account, if any, maintained by him for any source of income or such income is otherwise disclosed to the Chief Commissioner or Commissioner before the said date; or (ii) the assessee, in the course of the search, makes a statement under sub-section (4) of section 132 that the money, bullion, jewellery or other valuable article or thing found in his possession or under his control, has been acquired out of his income which has not been disclosed so far in his return of income to be furnished before the expiry of the time specified in sub-section (1) of section 139, and also specifies in the statement the manner in which such income has been derived and pays the tax together with interest, if any, in respect of such income. (6) The additional income-tax payable under this section shall not be included - (i) in the amount of the tax payable on the total income as determined on regular assessment, for the purposes of sub-section (1) of section 234A; or (ii) in the amount of the assessed tax, for the purposes of sub-section (1) of section 234B. .