Report No. 12

Transitional provisions

A number of orders, notifications etc. issued under the existing Act, will have to be continued for the purposes of the new Act, until the appropriate action is taken under the new Act. The actual form of the clause on the subject would, of course, depend on how the repeal clause is framed. If the usual repeal clause is adopted, section 24 of the General Clauses Act would have the effect of continuing appointments, notifications, orders, schemes, rules, forms, "bye-laws etc. But still a number of other things which do not fall under section 24 of the General Clauses Act would have to be dealt with. If straight-away repeal is not effected, the continuation clause will, of course, have to mention orders, notifications and, rules etc. also.

It may be necessary to make some provisions as to how far the Act is retrospective. Section 129(6) of the Canadian Income-tax Act, may be compared.

Provision for ensuring that income taxed under the existing Act is not taxed again under the new Act might also be necessary.

Since the Tribunal is proposed to be abolished, it may be necessary to make elaborate provisions in respect of proceedings pending under the existing Act before the Tribunal. These proceedings may include not only appeals, but also applications for making a reference under section 66 of the existing Act. It will also be necessary to provide how references pending in the High Court under section 66 or applications pending in the High Court under section 66(2) or section 66(3) should be dealt with, and also as to the authority which should carry out the decisions passed by the High Court on these references.

Where an application under section 66(1) has been rejected before the commencement of the new Act, it would also be necessary to provide that the assessee or the Commissioner may apply to the High Court as regards the merits or as regards the issue of limitation. Provision will also have to be made as regards decisions given by the Commissioner or A.A.C. (before the new Act) in respect of which an appeal could have been filed to the Tribunal if it had not been abolished.

The usual clause relating to power to remove difficulties in achieving the transition or giving effect to the provisions of the Act will also have to be embodied.