THE INCOME TAX ORDINANCE, 1984. ( PART 9 )

CHAPTER XIA

Transfer Pricing

107A. Definitions.- In this Chapter, unless there is anything repugnant in the subject or context, –

  • “arm’s length price” means a price in a transaction, the conditions (e.g. price, margin or profit split) of which do not differ from the conditions that would have prevailed in a comparable uncontrolled transaction between independent entities carried out under comparable circumstances;”;
  • “associated enterprise”, in relation to another enterprise, means an

enterprise which, at any time during the income year, has the following relationship with the other enterprise-

  • one enterprise participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or
  • the same person or persons participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital, of both enterprises; or
  • one enterprise holds, directly or indirectly, shares carrying more than twenty five percent of the voting power in the other enterprise; or
  • the same person or persons controls shares carrying more than twenty five percent of the voting power in both enterprises; or
  • the cumulative amount of borrowings of one enterprise from the other enterprise constitutes more than fifty percent of the book value of the total assets of that other enterprise; or
  • the cumulative amount of guarantees provided by one enterprise in favour of the other enterprise constitutes more than ten percent of the book value of the total borrowings of the other enterprise; or
  • more than half of the board of directors or members of the governing board of one enterprise are appointed by the other enterprise; or
  • any executive director or executive member of the governing board of one enterprise is appointed by, or is in common with the other enterprise; or
  • the same person or persons appoint more than half of the board of directors or members in both enterprises; or

1 Ins. new chapter “ChapterXIA” by F.A. 2012

  • the same person or persons appoint any executive director or executive member in both enterprises; or
  • one enterprise has the practical ability to control the decision of the other enterprise; or
  • the two enterprises are bonded by such relationship of mutual interest as may be prescribed;
  • “enterprise” means a person or a venture of any nature (including a permanent establishment of such person or venture);
  • “independent enterprise” means an enterprise that is not an associated enterprise;
  • “international transaction” means a transaction between associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any other transaction having a bearing on the profits, income, losses, assets, financial position or economic value of such enterprises, and includes-
  • a mutual agreement or arrangement between two or more associated enterprises for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises;
  • a transaction entered into by an enterprise with a person other than an associated enterprise, if there exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise, or the terms of the relevant transaction are determined in substance between such other person and the associated enterprise;
  • “permanent establishment” includes a place of management, a branch, an agency, an office, a warehouse, a factory, a workshop, a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, a firm or plantation, or any other fixed place through which the business of the enterprise is wholly or partly carried on;
  • “property” includes goods, articles, things or items, patent, invention, formula, process, design, pattern, know-how, copyright, trademark, trade name, brand name, literary, musical, or artistic composition, franchise, license or contract, method, program, software, database, system, procedure, campaign, survey, study, forecast, estimate, customer list, technical data, any aspects or advertising and marketing, any item which has substantial value, or any other intangible property;
  • “record” includes electronically held information, documents and records;
  • “Transfer Pricing Officer” means any income tax authority authorised by

the Board to perform the function of a Transfer Pricing Officer;

  • “transaction” includes an arrangement, understanding or action between

two or more parties, whether or not such arrangement, understanding or action is formal or in writing; or whether or not it is intended to be enforceable by legal proceeding;

  • “uncontrolled transaction” means a transaction undertaken between enterprises not being the associated enterprises.

107B. Determination of income from international transaction having regard to arm’s length price.- Notwithstanding anything contained in Chapter XI of this Ordinance, the amount of any income, or expenditure, arising from an international transaction shall be determined having regard to the arm’s length price.

107C. Computation of arm’s length price.- (1) The arm’s length price in relation to an international transaction shall be determined by applying the most appropriate method or methods selected from the following methods based on the nature of transaction, the availability of reliable information, functions performed, assets employed, risks assumed or such other factors as may be prescribed, namely:—

  • comparable uncontrolled price method;
  • resale price method;
  • cost plus method;
  • profit split method;
  • transactional net margin method;
  • any other method where it can be demonstrated that-
  • none of the methods mentioned in clause (a) to (e) can be reasonably applied to determine the arm’s length price for the international transaction; and
  • such other method yields a result consistent with the arm’s length price.
  • The most appropriate method referred to in sub-section (1) shall be applied for determination of arm’s length price in the manner as may be prescribed:

Provided that the arm’s length price determined under this section shall not result in total income lower than the total income that would have been resulted if the price at which international transaction has actually been undertaken were taken as the price charged or paid in the said international transaction.

  • Where in the course of any assessment under Chapter IX of this Ordinance, the Deputy Commissioner of Taxes is of the opinion that—
  • the price charged or paid in an international transaction has not been determined by the assessee in accordance with sub­sections (1) and (2); or
  • the assessee has failed to maintain the information, documents or records in accordance with the provisions of section 107E; or
  • the information or data based on which the arm’s length price was computed by the assessee is not reliable or correct;

the Deputy Commissioner of Taxes may determine the arm’s length price in relation to the said international transaction in accordance with provisions of sub-sections (1) and (2) on the basis of information or documents or other evidence available to him.

  • In determining the arm’s length price under sub-section (3), the Deputy Commissioner of Taxes shall give an opportunity to the assessee by serving a notice calling upon him to show cause, on a date and time to be specified in the notice, why the arm’s length price should not be so determined on the basis of information or documents or other evidence available to the Deputy Commissioner of Taxes.
  • Where an arm’s length price is determined under sub-section (3) of this section or under sub-section (4) of section 107D, the Deputy Commissioner of Taxes shall, by an order in writing, proceed to compute the total income of the assessee having regard to the arm’s length price so determined.

107D. Reference to Transfer Pricing Officer.- (1) Notwithstanding anything contained in section 107C of this Ordinance,-

  • the Deputy Commissioner of Taxes, with prior approval of the Board, may refer the determination of the arm’s length price under section 107C to the Transfer Pricing Officer;
  • the Transfer Pricing Officer, with prior approval of the Board, may proceed to determine the arm’s length price in relation to any international transaction.
  • Where a reference is made or any proceedings have been initiated under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of his computation of the arm’s length price in relation to the international transaction in question.
  • The Transfer Pricing Officer shall, after considering the evidence produced before him or available to him including the evidence as he may require on any specified points from the assessee or from any other person, and after taking into account all relevant materials which he has gathered shall, by order in writing, determine the arm’s length price in relation to the international transaction in accordance with section 107C of this Ordinance and send a copy of his order to the Deputy Commissioner of Taxes.
  • The Deputy Commissioner of Taxes, upon receipt of the order under sub­section (3), shall proceed to compute the total income of the assessee in conformity with the arm’s length price so determined by the Transfer Pricing Officer.
  • The Transfer Pricing Officer may rectify any order passed by him under sub-section (3) so as to correct any mistake apparent from the record either of his own motion or on the mistake having been brought to his notice by the assessee or any other income tax authority, and the provisions of section 173 of this Ordinance shall, so far as may be, apply accordingly.
  • Where any rectification is made under sub-section (5), the Transfer Pricing Officer shall send a copy of his order to the Deputy Commissioner of Taxes who shall thereafter proceed to amend the order of assessment in conformity with such order of the Transfer Pricing Officer.

107E. Maintenance and keeping of information, documents and records.-

  • Every person who has entered into an international transaction shall keep and maintain such information, documents and records as may be prescribed.
  • Without prejudice to the provisions of sub-section (1), the Board may prescribe the period for which the information, documents and records shall be kept and maintained.
  • The Deputy Commissioner of Taxes may, by notice in writing, require any person to furnish any information, documents and records as prescribed under sub-section (1) within the period as may be specified in the notice.

1[107EE. Statement of international transactions to be submitted.- Every person who has entered into an international transaction shall furnish, along with the return of income, a statement of international transactions in the form and manner as may be prescribed.]

2[107F. Report from an accountant to be furnished.- The Deputy Commissioner of Taxes may, by notice in writing, require that a person who has entered into international transaction or transactions the aggregate value of which, as recorded in the books of accounts, exceeds three crore taka during an income year shall furnish within the period as may be specified in the notice and in the form and manner as may be prescribed, a report from a Chartered Accountant or a Cost and Management Accountant regarding all or of a part of the information, documents and records furnished under section 107E.]

Ins. new section 107EE by FA. 2014

2 Subs. by F.A. 2015

107G. Penalty for failure to keep, maintain or furnish information, documents or records to the Deputy Commissioner of Taxes.- Where any person fails to keep, maintain or furnish any information or documents or records as required by section 107E of this Ordinance, without prejudice to the provisions of Chapter XV of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding one per cent of the value of each international transaction entered into by such person.

107H. Penalty for failure to comply with the notice or requisition under section 107C.- Where any person fails to comply with the notice or requisition under section 107C of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding one percent of the value of each international transaction entered into by such person.

1[107HH. Penalty for failure to comply with the provision of section 107EE.-

Where any person fails to comply with the provision of section 107EE of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding two per cent (2%) of the value of each international transaction entered into by such person.]

107I. Penalty for failure to furnish report under section 107F.- Where any person fails to furnish a report from a Chartered Accountant as required by section 107F of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty of a sum not exceeding three lakh taka.

107J. Applicability of this Chapter.- The provisions of this Chapter shall come into force from the date specified by the Board through notification in the official Gazette. ]

1 Ins. new section 107HH by F.A. 2015

CHAPTER XII

REQUIREMENT OF FURNISHING CERTAIN
INFORMATION

  1. Information regarding payment of salary.- Every person responsible for making any payment constituting income classifiable under the head “Salaries” not being payment made by the Government, and the prescribed officer in cases where such payments are made by the Government, shall, before the first day of September each year, furnish to the Deputy Commissioner of Taxes, a statement prepared in the prescribed form and verified in the prescribed manner so as to give the following information, namely :-
  • the name and address of every person to whom such payment has been made, or was due, during the preceding financial year if the payment exceeds such amount as may be prescribed;
  • the amount of payment so made, or due;
  • the amount deducted as tax from such payment; and
  • such other particulars as may be prescribed:

Provided that the Deputy Commissioner of Taxes may extend the date for the delivery of the statement.

  1. Information regarding payment of interest.- Every person responsible for making any payment of interest constituting income not classifiable under the head “Interest on securities” shall, if such payment exceeds ‘[fifteen thousand taka], before the first day of September each year, furnish to a prescribed officer a statement prepared in the prescribed form and verified in the prescribed manner so as to give the following information, namely:-
  • the name and address of every person to whom such payment has been made, or was due, during the preceding financial year;
  • the amount of payment so made or due; and
  • such other particulars as may be prescribed.

1 Subs. for “five thousand taka” by F.O. 1986

I.TManual, Part-1

  1. Information regarding payment of dividend.- The principal officer of every company shall, before the first day of September each year, furnish to the prescribed officer, a statement prepared in the prescribed form and verified in the prescribed manner, so as to give the following information, namely:-
  • the name and address of every shareholder, as entered in the register of shareholders, to whom a dividend or the aggregate of dividends has been paid or distributed during the preceding financial year if such payment exceeds such amount as may be prescribed;
  • the amount of dividend or dividends so paid or distributed; and
  • such other particulars as may be prescribed.


1 [(111. Registration of firms:–)***]

CHAPTER XIII
REGISTRATION OF FIRMS

1 Omitted by F.A. 1995

CHAPTER XIV

POWERS OF INCOME TAX AUTHORITIES

  1. Powers under this Chapter not to prejudice other powers.- The powers exercisable by income-tax authorities under this Chapter shall not prejudice, unless otherwise provided in the provisions thereof, the powers exercisable under the other provisions of this Ordinance.
  2. Power to call for information.- The Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, ‘[the Commissioner, the Director General, Central Intelligence Cell,] or any other officer authorised in this behalf by the Commissioner or the Board may, for the purposes of this Ordinance, by notice in writing, require-
  • any firm, to furnish him with a statement of the names and addresses of the partners and their respective shares;
  • any Hindu undivided family, to furnish him with a statement of the names and addresses of the manager and the members of the family;
  • any person, whom he has reason to believe to be a trustee, guardian or agent to furnish him with a statement of the names and addresses of the persons for or of whom he is trustee, guardian or agent;
  • any assessee to furnish him with a statement of the names and address of all persons to whom he has paid in any income year any rent, interest, commission, royalty or brokerage, or any annuity, not being an annuity classifiable under the head “Salaries”, amounting to more than three thousand taka, together with particulars of all such payment;
  • any dealer, broker or agent, or any person concerned in the management of a Stock Exchange, to furnish a statement of the names and addresses of all persons to whom he or the Exchange has paid any sum in connection with the transfer of capital assets, or on whose behalf or from whom he or the Exchange has received any such sum, together with the particulars of all such payments and receipts; or
  • any person, including a banking company, to furnish information in relation to such points or matters, or to furnish such statements or accounts giving such particulars, as may be specified in the notice:

1 Subs. for “the Commissioner” by F.A. 2004.

Provided that no such notice on a banking company shall be issued by the Deputy Commissioner of Taxes or the Inspector, without the approval of the Commissioner. ‘[***]

  • Power to Inspect registers of companies.- The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes or any person authorised in writing in this behalf by either of them, may inspect and, if necessary, take copies, or cause copies to be taken, of any register of the members, debenture-holders or mortgagees of any company or any entry in such register.
  • Power of survey.- (1) For the purpose of survey of liability of any person to tax under this Ordinance, an income tax authority may, notwithstanding anything contained in other provisions of this Ordinance but subject to such directions or instructions as the Board may issue in this behalf, enter any place of premises within the limits or its jurisdiction and-
  • inspect any accounts or documents and check or verify any article or thing;
  • make an inventory of any cash, stock or other valuable articles or things checked or verified by it;
  • place marks of identification on or stamp the books of accounts or other documents inspected by it and make or cause to be made extracts or copies therefrom;
  • record the statement of any person which may be useful for, or relevant to, any proceeding under this Ordinance; and
  • make such enquiries as may be necessary.
  • Subject to the provisions of section 117, any income-tax authority exercising powers under sub-section (1), shall not remove or cause to be removed from any place or premises wherein he has entered, any books of accounts or other documents, or any cash, stock or other valuable article or thing.

1 Omitted by F.O. 2007

  • Every proprietor, employee or other person who may be attending in any manner to, or helping in, the carrying on of any business or profession, or every person who may be residing in the place or premises in respect of which an income tax authority may be exercising power under sub-section (1), shall in aid of the exercise of such power,-
  • afford the authority necessary facilities for inspection of books of accounts or other documents, or for checking or verifying the cash, stock or other valuable article or thing found in such place or premises; and
  • furnish such information as the authority may require in respect of any matter which may be useful for, or relevant to, any proceeding under this Ordinance.
  1. Additional powers of enquiry and production of documents.- (1) The

1[***] [1] [2][Director-General of Inspection], [3][the Commissioner, the director General, Central Intelligence Cell,] and the Inspecting Joint Commissioner may, without prejudice to other powers which they may have under other provisions of this Ordinance, make any enquiry which they consider necessary as respects any person liable, or believed by them to be liable, to assessment under this Ordinance, or [4][require any such person or any other person in relation to such enquiry to appear before him at the time and place as directed for providing any information or to produce or cause to be produced necessary documents, accounts or records including any electronic records and systems referred to in the Explanation of sub-section (2) of section 117 under the possession or control of such person or such other person]

  • For the purposes of sub section (1), [5][***] the Directors-General of Inspection, [6][the Commissioner, the Director General, Central Intelligence Cell,] and the Inspecting Joint Commissioner shall have the same powers as the Deputy Commissioner of Taxes has under this Ordinance for the purposes of making enquiry or requiring the production of accounts or documents including the powers under section 117(2).
  • 1[The Commissioner, the director General, Central Intelligence Cell,] the Inspecting Joint Commissioner, the Deputy Commissioner of Taxes or an Inspector, if he is so authorised in writing, may, for the purpose of making any enquiry which he considers necessary, enter the premises in which a person liable or believed by him to be liable to assessment, carries on his business or profession, and may call for and inspect any such person’s accounts or any documents in his possession, and may stamp any accounts or documents so inspected, and may retain such accounts or documents for so long as may be necessary for examination thereof or for the purposes of a prosecution:

Provided that the Deputy Commissioner of Taxes or an Inspector shall not make any enquiries from any scheduled bank regarding any client of such bank except with the prior approval of [7] [8][the [9][***]Commissioner, the Director General, Central intelligence Cell,].

4[116A. Power of giving order for not removing property.- (1) Where, in the course of performing functions under this Ordinance, the Director General, Central Intelligence Cell or the Commissioner has definite information in his hands that any person has concealed the particulars of income or investment, he may, by order in writing, require any person who is in immediate possession or control of any money, bullion, jewellery, financial instrument, financial asset, valuable article or any other property not to remove, part with, or otherwise deal with it without obtaining previous permission of the concerned authority passing such order.

  • Every such order shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).
  • The income tax authority mentioned in sub-section (1) may extend such period or periods with the approval of the Board:

Provided that the total period of extension shall in no case exceed one year.

  • In computing the period referred to sub-section (2) and sub-section (3), the period, if any, for which the order under sub-section (1) has been stayed by any court, shall be excluded.]
  1. Power of search and seizure.- (1) Where 1[***]the 2[Directors-General of Inspection] or 3[the Commissioner, the Director General, Central Intelligence Cell] or such other officer empowered in this behalf by the Board, has, on account of information in his possession, reason to believe that-
  • any person, to whom a summons or notice under this Ordinance has been or might be issued to produce, or cause to be produced, any books of accounts or other documents, 4[or electronic records and systems,] has failed to, or is not likely to, produce or cause to be produced such books of accounts or other documents, 5[or electronic record and system,] or
  • any person is in possession of any money, bullion, jewellery or other valuable article or thing which represents, wholly or partly, income or property which is required to be disclosed under this Ordinance but has not been so disclosed, he may authorise any officer subordinate to him, being not below the rank of the 6[Assistant Commissioner of Taxes] to exercise the powers under sub-section (2)
  • An officer authorised under sub-section (1) (hereinafter referred to as the authorised officer) may, notwithstanding anything contained in any other law for the time being in force,-
  • enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that any books of accounts, documents, [10][electronic records and systems,] money, bullion, jewellery or other valuable article or thing referred to in sub-section
  • are or have been kept ;
  • break-open the lock of any door, box, locker, safe, almirah or other receptacle for the purpose of the said entry, and search, if keys thereof are not available;
  • search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if he has reason to suspect that such person has secreted about his person any such books of accounts, documents, [11][electronic records and systems,] money, bullion, jewellery or other valuable article or thing;
  • seize any such books of accounts, documents, [12][electronic records and systems,] money, bullion, jewellery or other valuable article or thing found as a result of such search;
  • place marks of identification on or stamp any books of accounts or other document or make or cause to be made extracts or copies therefrom; and
  • make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing [13][;
  • extract the data, images or any inputs stored in the electronic records and systems or enter the systems by breaking through password protection or copy or analyse the data, books of accounts, documents, images or inputs.]

I.T. Manual, Part-1

1[Explanation.- For the purpose of this section, ‘electronic records and systems’ include data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche and also include an electronic device. ]

  • The authorised officer may requisition the services of any police officer or other officer of the Government [14] [15][or any professional expert from outside the government] to assist him for all or any of the purposes specified in sub­section (2); and it shall be the duty of every such officer [16][or professional expert] to comply with such requisition.
  • The authorised officer may, where it is not practicable to seize any such books of accounts, documents, [17][electronic records and systems,] money, bullion, jewellery or other valuable article or thing, by order in writing, require the owner or the person who is in immediate possession or control thereof not to remove, part with or otherwise deal with it without obtaining his previous permission; and the authorised officer may take such steps as may be necessary for ensuring compliance with the order [18][:

Provided that if the owner or the person concerned, with out any reasonable cause, fails to comply with the provisions of this sub-section ,the Deputy Director General, Central Intelligence Cell or the Deputy Commissioner of Taxes may realize from him the money or the value of the bullion, jewellery, valuable article or thing, if any, removed, parted with or otherwise dealt with; and in such a case the said person shall be deemed to be an assessee in default under this Ordinance.]

  • The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of accounts, documents, [19][electronic records and systems,] money, bullion, jewellery or other valuable article or thing and any statement made by such person during the examination may thereafter be used in evidence in any proceeding under this Ordinance, or the Income-tax Act, 1922 (XI of 1922).
  • Where any books of accounts, documents, ^electronic records and systems,] money, bullion, jewellery or other valuable article or thing is found in the possession or control of any person in the course of a search, it may be presumed that-
  • the books of accounts, documents, [20] [21][electronic records and systems,] money, bullion, jewellery, article or thing belongs to such person;
  • the contents of [22] [23][the books of accounts, documents, electronic records and systems,] are true ; and
  • the signature on, or the handwriting in, any such books or documents is the signature or handwriting of the person whose signature or handwriting it purports to be.
  • The person from whose custody any books of accounts or other documents 4[or electronic records and systems,] are seized under sub-section (2) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person designated by him, at such place and time as the authorised officer may appoint in this behalf.
  • The books of accounts or other documents [24][or electronic records and systems,] seized under sub-section (2) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless for reasons recorded in writing, approval of [25][the Commissioner, the Director General, Central intelligence Cell,] has been obtained for such retention:

Provided that [26][ the Commissioner, the Director General, Central intelligence Cell] shall not approve such retention for a period exceeding thirty days after all the proceedings under this Ordinance in respect of the years for which the books of accounts or other documents, [27][electronic records and systems,] as are relevant, have been completed.

  • If any person, legally entitled to the books of accounts or other documents 1[or electronic records and systems,] seized under sub-section (2) objects to the approval given by 2[the Commissioner the Director General, Central Intelligence Cell] under sub-section (8), he may make an application, stating therein the reasons for his objection, to the Board for the return of the books of accounts or other documents 3[or electronic records and systems;] and the Board may, after giving the applicant an opportunity of being heard, pass such orders thereon as it may think fit.
  • Subject to the provisions of this Ordinance and the rules, if any, made in this behalf by the Board, the provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), relating to search and seizure shall apply, so far as may be, to search and seizure under sub-section (2).

Explanation.- For the purposes of this section, the word “proceeding” means any proceeding in respect of any year under this Ordinance which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and also includes all proceedings under this Ordinance which may be commenced after such date in respect of any year.

4[117A. Power to verify deduction or collection of tax.- Notwithstanding anything contained in this Ordinance or any other law for the time being in force, the Board or any other authority empowered by the Board in this behalf may enter the premises of a deducting or collecting authority to examine, monitor or verify books of accounts and relevant records in relation to-

  • deduction or collection of tax by the concerned authority in accordance with the provisions of chapter VII of this Ordinance; and
  • deposit of the tax so collected or deducted to the credit of the government as per rules,
  1. Retention of seized assets.- (1) Where any money, bullion, jewellery or other valuable article or thing (hereinafter referred to as assets) is seized under section 117, the authorised officer shall, unless he himself is the Deputy Commissioner of Taxes, forward a report thereof, together with all relevant papers, to the Deputy Commissioner of Taxes.
  • Where he has seized any asset under section 117 or, as the case may be, he has received a report under sub-section (1), the Deputy Commissioner of Taxes shall, after giving the person concerned a reasonable opportunity of being heard and making such enquiry as [28][***]the [29][Directors-General of Inspection or the Commissioner may direct, within ninety days of the seizure of the assets, and with the previous approval of the Commissioner,-
  • estimate the undisclosed income (including income from the undisclosed property), in a summary manner to the best of his judgment on the basis of such materials as are available with him;
  • calculate the amount of tax payable under this Ordinance on the income so estimated; and
  • specify the amount that will be required to satisfy any existing liability under this Ordinance, the Income tax Act, 1922 (XI of 1922), the Gift tax Act, 1963 (XIV of 1963), and the Wealth-tax Act, 1963 (XV of 1963), in respect of which such person is in default or is deemed to be in default:

Provided that if, after taking into account the materials available with him, the Deputy Commissioner of Taxes is of the view that it is not possible to ascertain to which particular income year or years such income or any part thereof relates, he may calculate the tax on such income or part, as the case may be, as if such income or part were the total income chargeable to tax at the rates in force in the financial year in which the assets were seized.

Explanation.- In computing the period of ninety days for the purposes of sub-section (2), any period during which any proceeding under this section is stayed by an order or injunction of any Court shall be excluded.

  • After completing the proceedings under sub-section (2), the Deputy Commissioner of Taxes shall, with the approval of the Commissioner, make an order requiring the person concerned to pay the aggregate of the amounts referred to in sub-section (2) (b) and (c) and shall, if such person pays, or makes satisfactory arrangement for the payment of, such amounts or any part thereof, release the assets seized under section 117 or such part thereof as he may deem fit in the circumstances of the case.
  • Where the person concerned fails to pay, or to make satisfactory arrangements for the payment of, any amount required to be paid in pursuance of the order under sub-section (3) or any part thereof, he shall be deemed to be an assessee in default in respect of the amount or part, and the Deputy Commissioner of Taxes may retain in his custody the assets seized under section 117 on any part thereof as are in his opinion sufficient for the realisation of the said amount or, as the case may be, of such part thereof as has not been paid.
  • If the Deputy Commissioner of Taxes is satisfied that the assets seized under section 117 or any part thereof were held by a person for or on behalf of any other person, he may proceed under this section against such other person, and all the provisions of this section shall apply accordingly.
  • If any person objects, for any reason, to an order made under sub-section (3), he may, within thirty days of the date of such order, make an application, stating therein the reasons for his objection, to the Commissioner for appropriate relief in the matter; and the Commissioner may, after giving the applicant an opportunity of being heard, pass such orders thereon as he may think fit.
  1. Application of retained assets.- (1) Where the assets retained under sub­section (4) of section 118 consist solely of money, or partly of money and partly of other assets,-

(a) the Deputy Commissioner of Taxes shall first apply such money towards payment of the amount in respect of which the person concerned is deemed to be an assessee in default under that sub­section; and thereupon such person shall be discharged of his liability to the extent of the money so applied; and

(b) where, after application of the money under clause (a), any part of the amount referred to therein remains unpaid, the Deputy Commissioner of Taxes may recover the amount remaining unpaid, by sale of such of the assets as do not consist of money in the manner movable property may be sold by a Tax Recovery Officer for the recovery of tax; and for this purpose he shall have all the powers of a Tax Recovery Officer under this Ordinance.

  • Nothing contained in sub-section (1) shall preclude the recovery of the amount referred to in section 118 (4) by any other mode provided in this Ordinance for the recovery of any liability of an assessee in default.
  • Any assets or proceeds thereof which remain after the discharge of the liability in respect of the amount referred to in section 118 (4) shall forthwith be made over or paid to the persons from whose custody the assets were seized.
  1. Power of Inspecting Joint Commissioner to revise orders of Deputy Commissioner of Taxes.- (1) The Inspecting Joint Commissioner may call for from the Deputy Commissioner of Taxes and examine the record of any proceeding under this Ordinance, and , if he considers that any order passed therein by the Deputy Commissioner of Taxes is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard, and after making or causing to be made, such inquiry as he thinks necessary, pass such order thereon as in his view the circumstances of the case would justify, including an order enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment to be made.

(2) No order shall be made under sub-section (1) after the expiry of four years from the date of the order sought to be revised.

i[(121.)***]

1[121A. Revisional power of Commissioner.- (1) The Commissioner may on an application made by the assessee, call for the record of any proceeding under this Ordinance in which an order has been passed by any authority subordinate to him and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Ordinance, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit.

  • The application for revision of an order under this Ordinance passed by any authority subordinate to the Commissioner shall be made within sixty days of the date on which such order is communicated to the assessee or within such further period as the Commissioner may consider fit to allow on being satisfied that the assessee was prevented by sufficient cause from making the application within the said sixty days.
  • The Commissioner shall not exercise his power under sub-section (1) in respect of any order-
  • where an appeal against the order lies to the Appellate Joint Commissioner or to the Commissioner (Appeals) or to the Appellate Tribunal and the time within which such appeal may be made has not expired or the assessee has not waived his right of appeal; or
  • where the order is pending on an appeal before the Appellate Joint Commissioner or it has been made the subject of an appeal to the Commissioner (Appeals) or to the Appellate Tribunal.
  • No application under sub-section (1) shall lie unless-
  • it is accompanied by a fee of two hundred taka; and
  • the undisputed portion of the tax has been paid.

Explanation.- The “undisputed portion of the tax” means the tax payable under section 74.

  • For the purposes of this section, an order by the Commissioner declining to interfere shall not be construed as an order prejudicial to the assessee.
  • Notwithstanding anything contained in this Ordinance, an application for revision made under sub-section (1) shall be deemed to have been allowed if the Commissioner fails to make an order thereon within a period of sixty days from the date of filing the application.

Explanation.- For the purposes of this section, the Appellate Joint Commissioner of Taxes shall be deemed to be an authority subordinate to the Commissioner to whom the Deputy Commissioner of Taxes, whose order was the subject-matter of the appeal order under revision, is subordinate.]

  1. Power to take evidence on oath, etc.- (1) The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes, the Commissioner, 1[the Director General, Central Intelligence Cell,] the Commissioner (Appeals) and the Appellate Tribunal shall, for the purposes of this Ordinance, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Act V of 1908), when trying a suit in respect of the following matters, namely:-
  • discovery and inspection;
  • enforcing the attendance of any person and examining him on oath or affirmation;
  • compelling the production of accounts or documents (including accounts or documents relating to any period prior or subsequent to the income year); and
  • issuing commissions for the examination of witness.

(2) The Deputy Commissioner of Taxes shall not exercise his powers under this section for the purpose of enforcing the attendance of an employee of a scheduled bank as a witness or compelling the production of books of account of such a bank except with the prior approval of the Commissioner.

I.T. Manual, Part-1

  • Any authority mentioned in sub-section (1) may impound and retain in its custody for such period as it considers fit, any books of accounts or other documents produced before it in any proceeding under this Ordinance. [30]

[1] Omitted by F.A. 1995

[2]

Subs. for Director of Inspection by F.A. 1993

[3]

Subs. for “the Commissioner” by F.A. 2004

[4] Ins. by F.A. 2013

[5] Omitted by F.A. 1995

[6]  Subs. for “the commissioner” by F.A. 2004

[7] Subs. for “the commissioner” by F.A. 2004.

[8]

Subs. for “the commissioner” by F.A. 2004.

[9]

The words ” Senior Commissioner or” Deleted by F.A. 1995

Ins. sub-sec. (116A) by F.A. 2013.

The words ” Senior Commissioner or” Omitted by F.A. 1995 Subs. for “Director of Inspection” by F.A. 1993 Subs. for “the commissioner” by F.A. 2004.

Ins. by F.A. 2010 Ins. by F.A. 2010

Subs for “Deputy Commissioner of Taxes” by F. A. 2012

[10]             Ins by F.A. 2010

[11]             Ins by F.A. 2010

[12]             Ins by F.A. 2010

[13]

Subs.”semi-colon” for “full-stop” and ins. new clause (g) by F.A. 2011

fns by F. A. 2012

[15]Ins by F.A. 2011

[16]Ins by F.A. 2011

[17]Ins by F.A. 2010

[18]Subs. “colon” for “full-stop” and ins. new proviso by F.O 2007

[19]Ins by F.A. 2010

[20] Ins. by F.A. 2010

[21] Ins. by F.A. 2010

[22]

Subs. for “the books of accounts and documents” by F.A. 2010

[23] Ins. by F.A. 2010

[24] Ins. by F.A. 2010

[25]Subs. for “the commissioner” by F.A. 2004

[26]

Subs. for “the commissioner” by F.A. 2004

[27] Ins. by F.A. 2010

Added by F.A. 2010

Subs. for “the commissioner” by F.A 2004 Added by F.A. 2010 Ins. by F.A. 2003

[28] Deleted by F.A. 1995

[29]

Subs. for “Director of Inspection ” by F.A. 1993

[30]  Any proceeding under this Ordinance, before any authority mentioned in sub-section (1), shall be deemed to be a judicial proceeding within the meaning of section 193 and 228, and for the purposes of section 196, of the Penal Code (Act XLV of 1860).

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