Chapter IV Assessment

(1) Every person liable to pay tax under this Act shall submit to the assessing authority a return in such form and within such time as may be prescribed : Provided that a person in respect of whom the tax has been deducted under the provisions of S. 11 shall, subject to the provisions in sub-S. (3) thereof, be exempted from the liability to submit a return under this sub-section. (2) In the case of any person who has not furnished a return under sub-S. (1) in spite of his liability to pay tax under this Act for any financial year, the assessing authority may serve in that year a notice, in the prescribed form, on such person requiring him to furnish the returns ; and such person shall thereupon furnish the return within the period specified in the notice : Provided that any person offering to pay tax at the highest rate specified in the Schedule shall not be required to submit any return or to produce any evidence.

(1) If the assessing authority is satisfied that a return furnished under S. 7 is correct and complete he shall, by an order in writing, make the assessment and determine the tax payable by him on the basis of such return, (2) If the assessing authority is not satisfied that a return furnished under S 7 is correct and complete he shall serve on the person concerned a notice requiring him, on the date, and at the hour and place to be specified therein either to attend in person or to produce or cause to be produced evidence in support of the return. (3) On the days specified in the notice under sub-S. (2) or as soon afterwards as may be, -the assessing authority, after hearing such evidence as may be produced and such other evidence as he may require shall, by an order in writing, assess the person and determine the tax payable by him. (4) If any person fails to make a return as required by S. 7 or having made the return fails to comply with the .terms of the notice issued under sub-S. (2), the assessing authority shall, by an order in writing, assess to the best of his judgment the person and determine the tax payable by him : Provided that before making assessment, the assessing authority may allow the person such further time as he thinks fit to make the return or comply with the terms of notice issued under sub-S. (2).

If for any reason any person has not been assessed or has been under-assessed for any financial year, the assessing authority may, notwithstanding anything contained in sub-S. (2) of S. 7, at any time within three years of the end of that year, serve on the person liable to pay the tax, a notice containing all or any of the requirements which may be included in a notice under sub-S. (2) of S. 7 and may proceed to assess or reassess him and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were issued under that sub-section : Provided that the tax shall be charged at the rate at which he would have been charged if the person would not have escaped assessment or full assessment, as the case may be.

(1) The authority which made an assessment or passed an order on appeal or revision in respect thereof, may, of his own motion, and shall, if an application is filed in this behalf, within three years from

(1) The tax payable in advance under this Act within the financial year next preceding the assessment year by any person in the employment of any Government, local authority, company, firm or other association of persons, shall be deducted in the manner prescribed by the principal officer thereon from any amount payable to such person on behalf of such Government, local authority, company, firm or other association of persons : Provided that the advance tax deductible or payable under this sub-section in respect of the total gross income of the previous year relating to the assessment year commencing from the 1st day of April, 1976 shall be deducted or paid in one installment by 30th day of March, 1976. (2) The principal officer making any deduction under sub-S. (1) shall submit to the assessing authority such returns and within such time as may be prescribed. (3) The assessing authority may take action, if he thinks fit in the manner provided by sub-S. (2) of S. 7 and by S. 8, in the case of any person in respect of whom he is satisfied that no return under sub-S. (2) has been furnished or a return furnished under that sub-section is inaccurate or deficient. (4) Where any principal officer fails to deduct any tax or after deducting fails to pay it as required by or under this Act, he shall without prejudice to any other consequences he may incur under this Act be deemed to be a person in default in respect of the tax not deducted or paid and all the provisions of S. 19 shall apply to him : Provided that the assessing authority shall not make a direction under sub-S. (2) of S. 19 for the recovery of any penalty from such person unless it is satisfied that such person has willfully failed to deduct and pay the tax.

The assessing authority may require a principal officer to deduct, from any payment to a person, any tax or penalty due from him and the principal officer shall comply with such requisition.

The principal officer deducting or paying any tax under the provisions of this Act is hereby indemnified for such deduction or payment thereof.

The tax shall be payable in advance by an assessee who is not covered by S. 11 of the Act within the financial year next preceding the assessment year in two installments on the 15th day of March in respect of his estimated total gross income of the previous year : Provided that the advance tax deductible or payable under this section in respect of the total gross income of previous year relating to the assessment year commencing from the 1st day of April, 1976 shall be paid in one installment by the 30th day of March, 1976.