Modification of the provisions relating to proceedings before Income-tax authorities - Income Tax - Circular No. 421

Circular on section 136 Circular No. 421 dated 12/6/85: C. Other Important Relevant Circulars / Instructions. Modification of the provisions relating to proceedings before income-tax authorities. 35.1 Under section 136 of the Income-tax Act, proceedings, before an income-tax authority are deemed to be judicial proceedings within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code. The Finance Act, 1985, has amended the said section to also provide that an income-tax authority shall be deemed to be a Civil Court for the purposes of section 195, but not for the purposes of Chapter XXVI, of the Code of Criminal Procedure, 1973. This amendment; is intended to secure that; prosecution proceedings for offenses under the relevant provisions of the Indian Penal Code may be launched on the complaint of the concerned income-tax authority. 35.2 The amendment takes effect from 1st April, 1974, that is, the date from which the Code of Criminal Procedure, 1973, came into force. (Please see Chaturvedi Pitisaria fifth edition volume III page 4536)