| [Passed by the Indian Legislature.] |
| (Received the assent of the Governor General on the 31st March, 1941.) |
An Act further to amend the Excess Profits Tax Act, 1940.
Whereas it is expedient further to amend the Excess Profits Tax Act, 1940 (V of 1940), for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1. Short title.- This Act may be called the Excess Profits Tax (Amendment) Act, 1941.
2. Amendment of section 2, Act XV of 1940.- In section 2 of the Excess Profits Tax Act, 1940 (V of 1940) (hereinafter referred to as the said Act), after clause (16) the following clause shall be inserted, namely:-
‘(16A) "ordinary share capital" has the meaning assigned to that expression in sub-section (8) of section 9;
3. Amendment of section 4, Act XV of 1940.- Section 4 of the said Act shall be re-numbered as sub-section (1) of that section, and to the section as so re-numbered the following sub-section shall be added, namely:-
"(2) Where a chargeable accounting period falls partly before and partly after the end of March, 1941, the foregoing provisions of this section shall apply as if so much of that chargeable accounting period as falls before, and so much of that chargeable accounting period as falls after, the said end of March were each a separate chargeable accounting period, and as if the excess of profits of that separate chargeable accounting period were an apportioned part of the excess of profits arising in the whole period; and any apportionment required to be made by this sub-section shall be made by reference to the number of months or fractions of months in each of the parts of the whole chargeable accounting period."
4. Amendment of section 7, Act XV of 1940.- To section 7 of the said Act the following provisoes shall be added, namely:-
"Provided that a deficiency of profits occurring in a chargeable accounting period beginning on or after the 1st day of April, 1941, shall first be applied so as to reduce profits chargeable to tax arising in another chargeable accounting period beginning on or after the said 1st day of April, and a deficiency of profits occurring in a chargeable accounting period ending on or before the 31st day of March, 1941, shall first be applied so as to reduce profits chargeable to tax arising in another chargeable accounting period ending on or before the said 31st day of March; and where owing to an insufficiency of profits for chargeable accounting periods ending on or before the said 31st day of March, or, as the case may be, beginning on or after the said 1st day of April, the whole or any part of the deficiency is applied otherwise than as aforesaid,-
(a) the application shall be treated as provisional only; and
(b) if it thereafter appears that there is no longer such an insufficiency as aforesaid, such adjustment shall be made as the Central Board of Revenue may by written order direct:
Provided further that where a chargeable accounting period falls partly before and partly after the end of March, 1941, the provisions of the preceding proviso shall apply as if so much of the chargeable accounting period as falls before, and so much of the chargeable accounting period as falls after, the said end of March, were each a separate chargeable accounting period, and as if the deficiency of profits of that separate chargeable accounting period were an apportioned part of the deficiency of profits occurring in the whole period; and any apportionment required to he made by this proviso shall be made by reference to the number of months or fractions of months in each of the parts of the whole chargeable accounting period."
5. Amendment section 17, Act XV of 1940.- In sub-section (1) of section 17 of the said Act,-
(a) in the first proviso, for the words "first proviso" the words "second proviso" shall be substituted;
(b) in the second, proviso, for the word "modifications" the following words shall be substituted, namely:-
"refusal to make modifications or against any modifications".
6. Amendment of role 1, First Schedule, Act XV of 1940.- In the first proviso to rule I of the First Schedule to the said Act, after the words "Provided that any sums" the brackets and, words "(other than any interest paid by a firm to a partner of the firm)" shall be inserted and shall be deemed always to have been inserted.