Chapter V RETURN, ASSESSMENT, PAYMENT, RECOVERY AND COLLECTION OF TAX

Returns and Assessment.-(1) Notwithstanding anything contained in section 10, every promoter liable to get himself registered under this Act shall submit a return to the Assistant Commissioner for such period, within such period and in such manner containing such particular as may be prescribed.

1. (2) Before any promoter submits any return under sub-section (1), he shall in the prescribed manner, pay in advance as provided under section 10, the full amount of Tax payable by him under section 6 and shall furnish along with the return satisfactory proof of the payment of such tax, and after the final assessment is made the amount of tax so paid shall be deemed to have been paid towards the tax finally assessed.
2. (3) If the Assistant Commissioner is satisfied that any return submitted under sub-section
3. (1) is correct and complete he shall assess the promoter on the basis thereof.
4. (4) if no return is submitted by the promoter under sub-section
5. (1) before the period prescribed or if the Assistant Commissioner is satisfied that the return submitted to him is incorrect or incomplete, he shall assess the promoter to the best of his judgment recording the reasons for such assessment: Provided that before taking action under this sub-section the promoter shall be given reasonable opportunity of being heard.
6. (5) While making any assessment under sub-section (4), the Assistant Commissioner may also direct the promoter to pay in addition to the tax assessed a penalty equal to two times of the amount of tax due that was not disclosed by the promoter in his return or in the case of failure to submit a return two times of the tax assessed.

Assessment of draw escaping assessment.-(1) If the Assistant Commissioner has reasons to believe that any draw has escaped assessment to tax or has been assessed at a rate lower than the rate at which it is assessable under this Act, the Assistant Commissioner may, notwithstanding the fact that assessment in respect of such draw was already before him at the time of assessment or reassessment, but subject to the provisions of sub-section (3), at any time within a period of four years from the expiry the period to which the tax relates, proceed to assess or reassess to the best of his judgment the tax payable by the promoter in respect of such draw after issuing a notice to the promoter and after making such enquiry as he may consider necessary.

1. (2) In making an assessment under sub-section
2. (1) the Assistant Commissioner may, if he is satisfied that the escapement from assessment is due to willful non-disclosure of the draw by the promoter, direct him to pay in addition to the tax assessed under sub section
3. (1) a penalty equal to two times of the tax so assessed: Provided that no penalty under this sub-section shall be directed to be paid unless the promoter has been given a reasonable opportunity of being heard.
4. (3) In computing the period of limitation for assessment under this section the time during which assessment has been deferred on account of any stay order granted by any Court or other authority or by reason of the fact that an appeal or other proceeding is pending shall be excluded. Provided that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or reassessment may be made, shall apply to an assessment or reassessment made on the promoter in consequence of or to give effect to, any finding direction or order made under Sections 14, 15, 16 and 18 or any judgment or order made by the Supreme Court, the High Court or any other Court.

Payment of tax in advance.-(1) Subject to such rules as may be prescribed, every promoter shall submit on the 1 st day of every month, if the first day being a holiday, on the immediate next working day, to the Assistant Commissioner a statement containing such particulars, as may be prescribed relating to the draws to be conducted during the month commencing from the next succeeding month and shall pay in advance the full amount of tax payable by him under this Act, in respect of the draws shown in the Statement and the amount so payable shall for the purpose of section 12, be deemed to be an amount due under this Act from such promoter.

1. (2) If default is committed in the payment of tax for any month, whether a statement as required under sub-section
2. (1) is filed or not, or if the amount of tax paid is less than the amount of tax payable for any month, the promoter defaulting payment of tax or making short payment of tax shall, in addition to the tax, pay interest calculated at the rate of two per cent per month from the date of such default or short payment to the date of payment of such tax.
3. (3) If no such statement is submitted by a promoter under sub-section
4. (1) before the date specify or if the statement submitted by him appears to the Assistant Commissioner to be incorrect or in complete, the Assistant Commissioner may assess the promoter provisionally for that month to the best of his judgment, recording the reasons for such assessment, and proceed to demand and collect the tax forthwith on the basis of such assessment, the above said tax shall immediately be adjusted towards the security amount paid under sub-section
5. (1) of section 7.
6. (4) Without prejudice to the actions contemplated under sub-sections
7. (2) and
8. (3) above, the Assistant Commissioner shall cancel the registration of the promoter granted under this Act and on such cancellation of registration, the promoter shall not be entitled to sell lottery tickets within the State: Provided that before taking action under this sub-sections
9. (3) and (4), the promoter shall be given a reasonable opportunity of being heard. Provided further that if the promoter makes payment of the defaulted tax with interest the Assistant Commissioner, on application, may register the promoter or such person on payment of registration/renewal fees and security at the prescribed rate.

Payment and recovery of tax.—(1) The tax or any other amount due under this Act shall be paid in specified manner and within the fixed time, as may be prescribed.

1. (2) If default is made in making payment in accordance with sub section (1),--
   • (i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the property of the promoter including any person appointed for selling lottery tickets jointly and severely liable to pay tax under this Act;
   • (ii) the promoter liable to pay the tax or any other amount due under this Act shall pay an interest equal to two per cent of the amount of tax or any other amount due remaining unpaid for each month after the expiry of the time specified under sub-section (1). Explanation.-For the purposes of clause (ii), the interest payable for a part of a month shall be proportionately determined.
2. (3) Any amount, which remains unpaid under this Act after the due date of payment, shall be recoverable from a promoter including any person appointed for selling lottery tickets jointly and severely in the manner specified under this Act.
3. (4) Any tax due or assessed or any other amount due under this Act from a promoter or any other person, may without prejudice to any other mode of collection be recovered, as if it were any arrear of land revenue.

Recovery of Tax, penalty or any other amount, from, certain other persons.-

1. (1) The Assistant Commissioner may at any time or from time to time by notice in writing, a copy of which shall be forwarded to the promoter, at his last address known to the Assistant commissioner, require any person from whom money is due or may before due to the promoter or other person who holds or any subsequently hold money for or on account of the promoter or other person to pay to the Assistant Commissioner, either forthwith upon the money become due or being held at or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due by the promoter or other person in respect or arrears of tax or penalty or the whole of the money when it is equal to or less than that amount.
2. (2) Any person making any payment in compliance with a notice under sub-section
3. (1) shall be deemed to have made the payment under the authority of the promoter or other person and the receipt of the Assistant Commissioner shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.
4. (3) Any person discharging any liability to the promoter or other person after receipt of the notice referred to in this section shall be personally liable to the Assistant Commissioner to the extent of the liability discharged or to the extent of the liability of the promoter for the amount due under this Act, whichever is less.
5. (4) Where any person to whom a notice under this section is sent, proves to the satisfaction of the Assistant Commissioner issuing such notice, that the sum demanded or any part thereof is not due and payable by him to the promoter or other person or that he does not hold any money for or on account of the promoter, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, to the Assistant Commissioner.
6. (5) Any amount which a person is required to pay to the Assistant Commissioner or for which he is personally liable to the Assistant Commissioner under this section shall, if it remains unpaid, be charge on the properties of the said person and may be recovered as if it were an arrear of land revenue.
7. (6) For the purpose of this section, the amount due to a promoter or money held for or on account of a promoter or other person by any person shall be computed after taking into account such claims, if any, as may have fallen due for payment by such promoter or other person to such person and as may be lawfully subsisting.

Tax payable on transfer of business assessment of legal representatives, etc.-

1. (1) When the ownership of the business of a promoter other than a Government is transferred, the transfer or and the transferee shall jointly and severally be liable to pay any tax or penalty or any other amount remaining unpaid at the time of transfer or that may become payable in respect of such business after the date of transfer but relating to the periods up to the date of transfer and for the purpose of recovery from the transferee, such transferee shall be deemed to be the promoter liable to pay the tax or penalty or other amount due under this Act.
2. (2) Where any firm is liable to pay any tax or penalty or any other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
3. (3) When a firm liable to pay the tax or penalty is dissolved the assessment of the tax and imposition of penalty shall be made as if no dissolution of the firm has taken place and the legal representative of any such partner who is deceased shall be jointly and severally liable to pay the tax or penalty assessed or imposed.
4. (4) where a partner of firm liable to pay any tax or penalty or any other amount under this Act retires, he shall, notwithstanding any contract to the contrary be liable to pay any tax or penalty or any other amount remaining unpaid at the time of his retirement, and any tax or penalty; or any other amount due up to the date of retirement, though un-assessed.
5. (5) Where a promoter dies, the executors, administrators or other legal representatives or legal heirs shall be deemed to be the promoter for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased promoter.