General provisions relating to determination of tax – Demands And Recovery
(1) Where the service of notice or issuance of order is stayed by an order of a Court, the period of such stay shall be excluded in computing the period specified in sub-sections (2) and (8) of section 66 or subsections (2) and (8) of section 67, as the case may be.
(2) Where any Appellate Authority or Tribunal or Court concludes that the notice issued under sub-section (1) or (3) of section 67 is not sustainable for the reason that the charges of fraud or any wilful mis-statement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person for the period of three years, deeming as if the notice were issued under sub-section (1) or (3) of section 66.
(3) Where any order is required to be issued in pursuance of the direction of the Tribunal or a Court, such order shall be issued within two years from the date of communication of the said direction.
(4) An opportunity of personal hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time, from time to time, to the said person and adjourn the hearing for reasons to be recorded in writing:
PROVIDED that no such adjournment shall be granted more than three times to a person during the proceeding.
(6) The proper officer, in his order, shall set out the relevant facts and the basis of his decision.
(7) The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on grounds other than the grounds specified in the notice.
(8) Where the Appellate Authority or Tribunal or Court modifies the amount of tax determined by the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax so modified.
(9) Interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability.
(10) The adjudication proceedings shall be deemed to be concluded if the order is not issued within three years as provided for in sub-section (8) of section 66 or within five years as provided for in sub-section (8) of section 67.
(11) An issue on which the First Appellate Authority or the Appellate Tribunal or the High Court has given its decision which is prejudicial to the interest of revenue in some other proceedings and an appeal to the Appellate Tribunal or the High Court or the Supreme Court against such decision of the First Appellate Authority or the Appellate Tribunal or as the case may be, the High Court is pending, the period spent between the date of the decision of the First Appellate Authority and the date of decision of the Appellate Tribunal or the date of decision of the Appellate Tribunal and the date of the decision of the High Court or as the case may be, the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period referred to in sub-section (8) of section 66 or sub-section (8) of section 67, as the case may be, where proceedings are initiated by way of issue of a show cause notice under this section.
(12) Notwithstanding anything contained in section 66 or 67, where any amount of self-assessed tax in accordance with a return furnished under section 34 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of section 72.
Explanation 1.- The expression “all proceedings in respect of the said notice” shall include proceedings under chapter XX.
Explanation 2.- Where proceedings against the main noticee liable to pay tax has been concluded under section 66 or 67, the proceedings against all co-noticees liable to pay penalty under sections 85, 86, 89, 90 or 91 in the same proceedings shall be deemed to be concluded.
(13) Where any penalty is imposed under section 66 or 67, no penalty for the same act and/or omission shall be imposed on the same person under any other provision of the Act.