Report No. 12

B- Rules.

329. Power to make rules.-

(1) The Central Board of Revenue may, subject to the control of the Central Government, by notification in the Gazette of India, make rules for carrying out the purposes of this Act and for the (ascertainment and determination of any class of income. Such rules may be made for the whole of India or for such part thereof as may be specified.

(2) Without prejudice to the generality of the foregoing power, such rules may-

(a) prescribe the manner in which, and the procedure by which, the income shall be arrived at in the case of-

(i) income derived in part from agriculture and in part from business;

(ii) persons residing out of India;

(b) provide for the determination of the value of any perquisite chargeable to tax under this Act in such manner and on such basis as appears to the Central Board of Revenue to be proper and reasonable;

(c) prescribe the procedure to be followed on applications for refunds;

(d) prescribe the procedure for giving effect to the terms of any agreement for the granting of relief in respect of double taxation or for the avoidance of double taxation which may be entered into by the Central Government under this Act;

(e) provide for the maintenance of a register of persons other than legal practitioners or accountants as defined in section 324(2), Explanation [61], practising before Income-tax authorities and for the constitution of, and procedure to be followed by, the authority referred to in sub-section (4) of section 324 [61];

(f) provide for the issue of certificates verifying the payment of tax by assessess;

(g) provide for any matter which by this Act is to be or may be prescribed.

(3) In cases coming under clause (a) of sub-section (2), where the income liable to tax cannot be definitely ascertained, or can be ascertained only with an amount of trouble and expense to the assessee which in the opinion of the Central Board of Revenue is unreasonable, the rules made under that sub-section may-

(a) prescribe methods by which an estimate of such income may be made, and

(b) in cases coming under sub-clause (i) of clause (a) of sub-section (2), prescribe the proportion of the income which shall be deemed to be income liable to tax;

and an assessment based on such estimate or proportion shall be deemed to be duly made in accordance with the provisions of this Act.

(4) All rules made under this section shall be laid before each House of Parliament as soon as may be after they are made, and shall be subject to such modifications as Parliament may make in the session in which they are so laid or the session immediately following.

[Section 59]