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Introduction of Income Tax

Income tax authorities hold the sole responsibility to execute the laws relating to income tax
applicable in the land and to run various departments formed for streamlining the functions like
identification of assesses; computation of taxable income, net tax liability; receiving application in
this regard and appeal, listening to complains hearings; even changing or amending or repealing
various sections etc. To ensure efficient administration and to discharge executive and other
appellate functions, certain necessary provisions are constituted in the ITO, 1984.

Appointment of Income Tax Authority

(1) The Central Government may appoint as many Directors of Inspection, Commissioners of
Income-tax, Appellate or Inspecting Assistant Commissioners of Income-tax and Income-tax
Officers of Class I Service, as it thinks fit.

(2) The Commissioner may, subject to the rules and orders of the Central Government regulating the
conditions of service of persons in public services and posts appoint as many Income-tax Officers of
Class II Service and as many Inspectors of Income-tax as may be sanctioned by the Central
Government.

(3) Subject to the rules and orders of the Central Government regulating the conditions of service of
persons in public services and posts, an Income-tax authority may appoint such executive or
ministerial staff as may be necessary to assist it in the execution of its functions.

Powers of Income Tax Authority

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Powers of the Income Tax Authorities vary with the nature of the position acquired. Given below are
the various tax authorities along with the powers they hold under that position.

Director General/ Director: 

The Director General/ Director, appointed by the Central Government, are required to perform such
functions as maybe assigned by the Central Government, are required to perform such functions as
may be assigned by the Central Board of Direct Taxes. This position enjoys the following powers
under different provisions of the Act:

a.     To give instructions to the Income-Tax officers

b.     To enquire or investigate into concealment

c.     To search and seizure 

d.    To requisite books of account

e.     To survey

f.     To make any enquiry

Commissioners of Income Tax: 

Commissioners are appointed by the Central Government. Generally, they are appointed to head
income-tax administration of a specified area. As the head of administration, a Commissioner of
income-tax enjoys certain administrative as well as judicial powers. A commissioner may exercise
powers of an assessing officer. It has the power to transfer any case from one or more assessing
officers to any other assessing officer. It can grant approval for an order issued by the assessing
officer. Prior approval is required for reopening of an assessment. Its, also, has the power to revise an
order passed by an assessing officer in addition to many other powers as given in the Income Tax
Act, 1961. 

Commissioner (Appeals):  

Commissioners of Income-Tax (Appeals) are appointed by the Central Government. It is an appellate

authority vested with the following judicial powers:

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a. Power regarding discovery, production of evidence etc.

b. Power to call information.
c. Power to inspect registers of companies.
d.    Power to set off refunds against tax remaining payable.

e.     Power to dispose of appeals.

f.     Power to impose penalty.

Joint Commissioners:

Joint Commissioners are appointed by the Central Government. The main function of the authority is
to detect tax- evasion and supervise subordinate officers. Under the different provisions of the Act,
the Joint Commissioner enjoys the power to accord approval to adopt fair market value as full
consideration, instruct income tax officers, exercise powers of income tax officers, the power to call
information, to inspect registers of companies, to make any enquiry among other powers.

Income-Tax Officers: 

While Income-Tax officers of Class I services are appointed by the Central Government, Income-tax
Officers of Class II services are appointed by the Commissioner of Income-Tax. Powers, functions
and duties of Income-Tax officers are provided in many sections, some of which are Power of search
and seizure, Power of assessment, Power to call for information, Power of Survey etc.

Inspectors of Income-Tax: 

They are appointed by the Commissioner of Income-Tax. Inspectors of Income-Tax have to perform
such functions as are assigned to them by the Commissioner or any other authority under whom they
are appointed to work.

THE SCOPE OF EXERCISE OF THE POWERS GIVEN TO THE INCOME-TAX

AUTHORITIES:

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The Income Tax Act, 1961 specifies the scope of the powers handed to the income-tax authorities.
Given below are some of the important powers of the Income Tax Authorities and their scope as
given in the Sections provided under the Income Tax Act, 1961:

Power to Transfer Cases [Section 127]:

CBDT can transfer the case from Assessing Officer to another A.O. subordinate to him after giving a
reasonable opportunity of being heard to the concerned assessed. However, no opportunity of being
heard shall be required if the case is to be transferred from one A.O. to another A.O. within the same
city, town or locality. Disputes regarding jurisdiction shall be resolved by the concerned CCIT or
CIT on mutual understanding. However, for any disagreement, the matter shall be referred to CBDT
and CBDT shall resolve the dispute by way of issuing a notification in the Official Gazette of India.

 Opportunity of Being Reheard [Section 129]:

Whenever, an Income Tax Authority ceases to exercise jurisdiction over a particular case and is
being succeeded by another Income Tax Authority, then the successor Income Tax Authority shall
continue the pending proceeding from the same stage at which it was left over by the predecessor
Income Tax Authority. There shall be no requirement on the part of the successor Income Tax
Authority to reissue any notice already issued by his predecessor. However, if theconcerned
assesses demands that before the successor Income Tax Authority continues the proceeding, he shall
be given an opportunity of being reheard to explain his case to the successor Income Tax Authority,
then in such case, an opportunity of being reheard has to be given to the assesses. (However, such an
opportunity of being reheard is required to be given only if the concerned assesses demands for it
and not otherwise).The time of A.O. lost in giving such opportunity of being reheard to the assesses,
shall be excluded while calculating time limit to complete the assessment.

Discovery, Production of Evidence etc. [Section 131]: 

The Assessing Officer, Deputy Commissioner (Appeals), Joint Commissioner, Commissioner

(Appeals), the Chief Commissioner and the Dispute Resolution Panel referred to in section 144C
have the powers vested in a Civil Court under the Code of Civil Procedure, 1908 while dealing with
the following matters:

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(i)    discovery and inspection;

(ii)   enforcing the attendance of any person, including any officer of a banking company and
examining him on oath;

(iii)  compelling the production of books of account and documents; and

(iv)  issuing commissions

Search and Seizure [Section 132]: 

Today it is not hidden from income tax authorities that people evade tax and keep unaccounted
assets. When the prosecution fails to prevent tax evasion, the department has to take actions like
search and seizure.  Under this section, wide powers of search and seizure are conferred on the
income-tax authorities. The provisions of the Criminal Procedure Code relating to searches and
seizure would, as far as possible, apply to the searches and seizures under this Act. Contravention of
the orders issued under this section would be punishable with imprisonment and fine under section
275A.

Power to Requisition Books of Account etc. [Section 132A]:

Where the Director or the Director-General or Commissioner or the Chief Commissioner in

consequence of information in his possession, has reason to believe that (a), (b), or (c) as mentioned
under section 132(1) and the book of accounts or other documents or the assets have been taken
under custody by any authority or officer under any other law, then the Chief Commissioner or the
Director General or Director or Commissioner can authorise any Joint Director, Deputy Director,
Joint Commissioner, Assistant Commissioner, Assistant Director, or Income tax Officer to require
the authority to provide sue books of account, assets or any documents to the requisitioning officer,
when such officer is of the opinion that it is no longer necessary to retain the same in his custody.

Application of Retained Assets [Section 132B]:

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This section provides that the seized assets can be appropriated against all tax liabilities of
the assesses. However, if the nature of source of acquisition of seized assets is explained
satisfactorily by the assesses, then, such assets are required to be released within a period of 120 days
from the date on which last of the authorisations for search under section 132 is executed after
meeting any existing liabilities. For this purpose, it has been provided that the assesses should make
an application to the Assessing Officer within a period of 30 days from the end of the month in
which the asset was seized. The assesses shall be entitled to simple interest at ½% per month or part
of a month, if the amount of assets seized exceeds the liabilities eventually, for the period
immediately following the expiry of 120 days from the date on which the last of the authorisations
for search under section 132 or requisition under section 132A was executed to the date of
completion of the assessment under section 153A or under Chapter XIV-B.

Power to call for information [Sections 133]: 

The Commissioner The Assessing Officer or the JointCommissioner may for the purpose of this Act:

(a) Can call any firm to provide him with a return of the addresses and names of partners of the
firm and their shares;

(b) Can ask any Hindu Undivided Family to provide him with return of the addresses and names
of members of the family and the manager;

(c) Can ask any person who is a trustee, guardian or an agent to deliver him with return of the
names of persons for or of whom he is an agent, trustee or guardian and their addresses;

(d) Can ask any person, dealer, agent or broker concerned in the management of stock or any
commodity exchange to provide a statement of the addresses and names of all the persons to whom
the Exchange or he has paid any sum related with the transfer of assets or the exchange has received
any such sum with the particulars of all such payments and receipts;

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Power of Survey [Section 133A]: 

The term 'survey' is not defined by the Income Tax Act. According to the meaning of dictionary
'survey' means casting of eyes or mind over something, inspection of something, etc. An Income Tax
authority can have a survey for the purpose of this Act. The objectives of conducting Income Tax
surveys are: 

(a)To discover new assesses;

(b)To collect useful information for the purpose of assessment;

(c)To verify that the assessed who claims not to maintain any books of accounts is in-fact
maintaining the books;

(d)To check whether the books are maintained, reflect the correct state of affairs.

Power to Collect Certain Information [Section 133B]:

For the purpose of collection of information which may be useful for any purpose, the Income tax
authority can enter any building or place within the limits of the area assigned to such authority, or
any place or building occupied by any person in respect of whom he exercises jurisdiction.

Power to Inspect Registers of Companies [Section 134]: 

The Assessing Officer, the Joint Commissioner or the Commissioner (Appeals), or any person
subordinate to him authorised in writing in this behalf by the Assessing Officer, the Joint
Commissioner or the Commissioner (Appeals), as the case may be, 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 of any entry in such register.

Other Powers [Sections 135 and 136]:

The Director General or Director, the Chief Commissioner or Commissioner and the Joint
Commissioner are competent to make any enquiry under this act and for all purposes they shall have
the powers vested in an Assessing Officer in relation to the making of enquiries. If the Investigating
officer is denied entry into the premises, the Assessing Officer shall have all the powers vested in
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him under sections 131(1) and (2). All the proceedings before Income tax authorities are judicial
proceedings for purposes of section 196 of the Indian Penal Code, 1860, and fall within the meaning
of sections 193 and 228 of the Code. An income-tax authority shall be deemed to be a Civil Court for
the purposes of section 195 of the Criminal Procedure Code, 1973.

Jurisdiction of Income Tax Authority

Income Tax authorities are required to exercise their powers and perform their functions in
accordance with directions given by the Board. Tax authority higher in rank, if directed by Board,
shall exercise the powers and perform tie functions of the Income- Tax authority lower in rank. The
directions of CBDT include direction to authorise any Income Tax authority to issue instructions to
their subordinates. In issuing instruction or orders, the Board or the Income-Tax authority may adopt
any one or more of the following criteria –

(a) Territorial area

(b) Person or classes of persons

(c) Incomes or classes of incomes

(d) Cases or classes of cases

The Board can also authorise Director General or Chief Commissioner or Commissioner to issue
orders in writing to the effect that the functions conferred or assigned to the Assessing Officer in
respect of the above four criteria shall be exercised or performed by Joint Commissioner or Joint
Director. 

Also, the Assessing Officer has been vested with jurisdiction over any area or limits of such area –

1. If a person carries on business or profession only in that area. In respect of that person; or

2. If a person carries on business or profession in more than one place, then the principal place
of business or profession situated in that area; or

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3. In respect of any other person residing within that area.

Any dispute relating to jurisdiction to assess any person by an Assessing Officer shall be determined
by Director General /Chief Commissioner/Commissioner of Income Tax If the dispute is relating to
areas within the jurisdiction of different Director General /Chief Commissioner/ Commissioner, then
such issue is to be solved mutually among themselves. If the above authorities are not in agreement
among themselves such matter has to be decided by the Board or Director General/ Chief
Commissioner/ Commissioner authorised by the Board.

Administrative Authorities: Power & Functions

There are two types of authorities in income tax: a) Administrative and b) Judicial. At first,
administrative authority powers, functions and responsibilities are discussed:

1) National Board of revenue: NBR is responsible for formulation and continuous re-
appraisal of tax-policies and tax-laws in Bangladesh. The NBR is empowered to make
necessary rules concerning income tax matters but not authorized to give any interpretation of
any word used in any selection of IT ordinance.

Powers and functions of NBR-

 To give approval of gratuity fund in accordance with the provisions of Part C of the First
Schedule.
 To give approval of superannuation fund or pension fund in accordance with the provisions
of Part A of the First Schedule.
 Power to declare any unincorporated foreign associated or body to be a company by general
or special order for the purpose of IT Ordinance.
 Power to declare any such period determined as income year in the case of any person.
 Power to appoint as many CCT, DGIs, Commissioners, JCT, DCT, TRO, ACT and other
executive or ministerial officers and staffs as it may think fit.
 To delegate power of certain authorities by notification in the official gazette.

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 To determine the function of the DG of inspector, the commissioner, the Appellate JCT, the
Commissioner (LTU), the Inspecting Joint Commissioner and to determine the jurisdiction of
income tax authority etc.

2) Chief Commissioner of Taxes, Director General of Inspector: Director General

of Inspector is appointed by the NBR and works under the direct supervision of NBR.

Powers and functions of DGI-

 Carry out inspection of income tax cases;

 Investigate or cause investigation to be carried out in respect of cases involving leakage of
revenue or evasion of taxes;
 Carry out audit of cases of offices involving income tax cases only;
 Furnish annual report about the working of income tax offices dealing with revenue matters
to the Board by the thirty first day of December following the end of the financial year to
which it relates; and
 Such other functions as may be assigned to them by the board;

3) Chief Commissioner of Taxes Director General, Central Intelligence Cell :

As per section 6(b)(aaa) the Director General of CIC shall perform the following functions:

 Carry out intelligence works to gather information about tax payers;

 Analyze information gathered through intelligence work vis-à-vis concerned income
tax records;
 Detect tax evasions, concealments of income and offences;
 Carry out investigations to prove tax evasion or concealment or any other frauds for
recovery of tax with penalty and to supersets prosecution in fit cases;
 To carry out functions as authorized by any other law.

4) Commissioner of Taxes and Commissioner of Taxes (Large Taxpayer Unit) :

They work as per the direction of NBR and holds liable for the functioning of the department
by them.

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Powers and functions of Commissioner-

 Power to call for information under section 113

 Additional power of enquiry and production of documents under section 116
 Power of giving order for not removing property under section 116A
 Power of search and seizure under section 117
 Revisional power under section 121A
 Power to take evidence on Oath, etc.
 Power of having reference from High Court Division under section 160

5) Additional Commission of Taxes : ACI is subordinate to the Commissioner within

whose jurisdiction he is appointed to perform his function. But the Board may also empower
him to exercise the powers of a CT. He is entrusted with the following responsibilities:-
 He provides necessary instructions to the JCT and the DCT
 He can seize the books of accounts and other relevant documents of a defaulter assessee
authorized by the Board.
 He may demand relevant information from the assessee by issuing notice.

6) Joint Commissioner of the taxes (Inspecting) : There main function is to supervise

the work of the DCT tacking tax evasion under his jurisdiction. His other powers are:

 He can demand required information by issuing a written notice as per section

113.
 He can inspect any register of the members, debenture, holders or mortgagees of
any company or any entry in such register as per Section 114.
 He enjoys special power to conduct investigation and collection of relevant
document as per Section 116.
 He has the power to revise any order of the DCT within four years as per Sec.
120.

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 He may accept appeal against a TRO works under his jurisdiction and give a
final decision as per section 157.
 Power of previous approval for imposing penalty by the DCT within four years
as per Sec. 131.

Judicial Authorities: Power & Functions

 The Directors-General of Inspection shall perform the following

functions, namely:-

(i) carry out inspection of income tax cases;

(ii) investigate or cause investigation to be carried out in respect of cases involving

leakage of revenue or evasion of taxes;

(iii) carry out audit of cases of offices involving income tax cases only;

(iv) furnish annual report about the working of income tax offices dealing with revenue
matters to the Board by the thirty first day of December following the end of the financial
year to which it relates; and

(v) such other functions as may be assigned to them by the Board;

 The Director General of Central Intelligence Cell shall perform the

following functions, namely:-

(i) carry out intelligence works to gather information about taxpayers;

(ii) analyse information gathered through intelligence work vis-a-vis concerned income
tax records;

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(iii) Detect tax evasions, concealments of income and offences as described in chapter
XXI of Income Tax Ordinance, 1984;

(iv) carry out investigations to prove tax evasion or concealment or any other
irregularities relating to taxes and to collect evidences in support of tax offences or tax
frauds for recovery of tax with penalty and to suggest prosecutions in fit cases;

(v) to carry out functions as authorised by any other law.

 The Commissioners or the Commissioner (Appeals) and the Appellate

Joint Commissioners shall perform their functions in respect of such areas, or
such persons or classes of persons, or such cases or classes of cases, or such incomes or
classes of incomes, as the Board may assign to them;

 The Commissioner (Large Taxpayer Unit) shall perform his functions in

respect of such areas, or such persons or classes of persons, or such cases or classes of
cases or such incomes or classes of incomes, as the Board may assign to him;

 The Inspecting Joint Commissioners and the Deputy Commissioners of

Taxes shall perform their functions in respect of such areas, or such persons or
classes of persons, or such cases or classes of cases, or such incomes or classes of
incomes as the Commissioner to whom they are subordinate may assign to them ; and

Other income tax authorities shall perform such functions as may be assigned to them by the
income tax authority to whom they are subordinate.

1. (a) Any area or other jurisdiction or function assigned to an income tax authority under sub-
section (1) may be modified or varied, or may be transferred to any other income tax
authority with respect to areas, persons or classes of persons, or cases or classes of cases, or
proceeding or classes of proceedings;
2. (b) any such transfer as is referred to in clause (a) may be made at any stage of the
proceedings and further proceedings may be commenced from the stage at which such
transfer takes place.

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(3) Where more income tax authorities than one have been assigned the same functions in respect of
any area, or persons or classes of persons, or cases or classes of cases, or incomes or classes of
incomes, they shall perform those functions in accordance with such allocation or distribution of
work as the authority assigning the functions may make.

(4) The powers of the Board, Commissioners and Deputy Commissioners of Taxes, to assign any
case to any authority, or to transfer any case from one authority to another, or to perform any
function or functions under this section, shall include the power in respect of all or any proceedings
relating to such case; and except as provided in sub-section (5), no such assignment, transfer or
performance of functions shall be called in question by or before any court or other authority.

(5) Any person aggrieved by any order passed under this section may, within thirty days of such
order, make a representation –

1. (a) to the Inspecting Joint Commissioner if the order was passed by a Deputy Commissioner
of Taxes;
2. (b) to the Commissioner, the Commissioners (Appeals), if the order was passed by an
Inspecting Joint Commissioner; and
3. (c) to the Board if the order was passed by a Commissioner; and any order passed on such
representation shall be final.

Taxes Appellate Tribunal

According to section 2(5),"Appellate Tribunal "means the Taxes Appellate Tribunal established
under section 11 of ITO-1984 as a judicial body.The provisions regarding the formation,
qualification of members and functioning are as follows :

1.Formation of Taxes Appellate Tribunal :For the purpose of exercising the functions of the
Appellate Tribunal under this ordinance, the government shall establish a Taxes Appellate Tribunal
consisting of a president and such other members as the Government may,from time to time, appoint.
[Section -11]

2.Qualification of the members :As per section 11(3), a person shall not be appointed as a member
of the Taxes Appellate Tribunal unless -

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 He was or is a member of the Board or holds the current charge of a member of the Board ;or

 he was a Commissioner of Taxes ;or

 he is a Commissioner of Taxes ;or

 he is a chartered accountant and practiced professionally for a period not less than eight years ;or

 he is a cost and management accountant and practiced professionally for a period not less than
eight years ;or

 he is an income tax practitioner within the meaning of section 174(2)(f)and practiced

professionally for not less than twenty years ;or

 he is a professional legislative expert having not less than eight years experience in the process of
drafting and making financial and tax laws;

 he is an advocate and practiced professionally for not less than ten years in any income tax
office ;or

 he is,was or has been a district judge.

3. Appointment of the president:

Government shall appoint one of the members of the Appellate Tribunal to be the president of the
Tribunal who is a member of the Board or holds the current charge of a member of the Board
[Section 11(4)]

4. Exercise of power: As per section 12,generally the powers and functions of the Appellate
Tribunal (AT)shall be exercise by Benches of the AT,to be constituted by the president having not
less than two members. Moreover, as per section 14,the government may direct that the powers and
functions of the AT shall be exercised by any one of its members, or by two or more members jointly
or severally.

5. Decision of Bench: As per section 13,the decision of a bench in any case or on any point shall be
given in accordance with the opinion of the majority of its members. But if the members are equally
divided in any point, they will refer it to the president who may refer the case to one or more other
members of the Tribunal for hearing and the point shall be decided according to the majority of the
members of the Appellate Tribunal who have heard it including those who first heard it.

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However, where there are only two members of the appellate Tribunal and they differ in any case,
the Government may appoint an additional member of the Appellate Tribunal for the purpose of
hearing the case and the decision of the case shall be given in accordance with the opinion of the
majority of the members of the Appellate Tribunal as constituted with such additional member.

6.Powers and Functions :

 It can accept appeal of an assessee who is aggrieved by an order of an Appellate JCT or the CT
(Appeals)as the case may be, u/s128 or 158(1)(a).

 It can also accept appeal of the DCT against the order of an Appellate Joint Commissioner or the
Commissioner (Appeals)under section 156.[Sec.158(2a)].

 On a valid ground appeal is admitted after the expiry of 60 days[Sec.158(4)].

 It may pass orders as it thinks fit after giving both the parties a chance of being heard.
[Sec.159(2)].

 It may call for relevant particulars or cause further inquiry by the DCT before disposing any
appeal. [Sec.159(2)].

 It may direct the DCT to amend the assessment of an assessee. [Sec.159(3)].

 It has the same powers as are vested in a Court under the Code of.Civil Procedure, 1908(Act
V),when trying a suit of certain matters [Sec.122(1)].

 It may impose a penalty for concealment of income by the assessee [Sec.128].

 Send copy of the order of penalty on an assessee, to the DCT[Sec.132].

 The orders from the Appellate Tribunal on the appeal shall be final [Sec.159(5)].

 It will communicate its order on the appeal to the assessee and to the commissioner within thirty
days from the date of such order.[Sec.159(4)].

7. Regulation of Procedure: Subject to the provisions of this Ordinance, the Appellate Tribunal
shall regulate its own procedure and the procedure of its Benches in matters arising out of the
discharge of its functions including the places at which a Bench shall hold its sittings[Sec.15].

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Revisional power of the Commissioner of taxes

1[ 121A. (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 fir.

(2) 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.

(3) The Commissioner shall not exercise his power under sub-section (1) in respect of any order-
(a)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

(b)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.

(4) No application under sub-section (1) shall lie unless-

(a) it is accompanied by a fee of two hundred taka; and

(b) the undisputed portion of the tax has been paid.

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

(5) 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.

(6) 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.

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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.]

Penalties for failure to file a return etc

1[ 124. (1) Where any person has, without reasonable cause, failed to file a return of income required
by or 2[ under sections 75, 77, 89, 91 or 93], the Deput Commissioner of Taxes may impose upon
such person a penalty amounting to ten per cent of tax imposed on last assessed income subject to a
minimum of 3[ taka one thousand], and in the case of a continuing default a further penalty of 4[ taka
fifty] for every day during which the default continues.

5[ :Provided that such penalty shall not exceed—

(a) in case of an assessee, being an individual, whose income was not assessed previously five
thousand taka;

(b in case of an assessee, being an individual, whose income was assessed previously, fifty per cent
(50%) of the tax payable on the last assessed income or taka one thousand, whichever is higher.]

6[ (2) Where any person has, without reasonable cause, failed to-

(a) file or furnish any return, certificate, statement or information required under sections 58, 75A,
108, 108A, 109, or 110; or

(b) display the tax payer's identification number (TIN) certificate in accordance with the provisions
of section 184C,the Deputy Commissioner of Taxes may impose upon such person-

(a) where the return, statement or information under sections 75A, 108 or 108A has not been filed or
furnished, a penalty amounting to ten per cent of tax imposed on last assessed income or five
thousand taka, whichever is higher, and in the case of a continuing default, a further penalty of one
thousand taka for every month or fraction thereof during which the default continues;

(b) in other cases of non-compliance, a penalty amounting to five thousand taka, and in the case of a
continuing default, a further penalty of one thousand taka for every month or fraction thereof during
which the default continues.

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(3) Where any person has, without any reasonable cause, failed to furnish information as required
under section 113, the income tax authority requiring the information under section 113 may impose
a penalty of twenty five thousand taka and in case of a continuing default a further penalty of five
hundred taka for each day.]

Rule of civil courts regarding income tax

(1) this Act may be called the taxation Tribunal (undisclosed wealfh)Act,1953

(2)It extends to the whole of bangladesh

(3) It shall come into force at once

Definitions:In this act, unless there is anything repugnant in the shbject or context

(1) "previous year" means -

(a)In relation to any assessment to tax under the Income tax ordinance 1984 any period which is or
has been determined as the previous year for the purpose of the act.

(b)In relation to any assessment to tax under the exess profits tax act,1940the chargeable
accounting period as defined in that act. and

(c)in relation to any assessment under the business profits tax act,1947,the accounting period as
defined in thaf act and

(2)"tax" means any tax chargeable under the income tax ordinance 1984 the excess profits tax act,
1940 and the excess profits tax act 1940 and the business profits tax act,,1947.

#Constitution and function of the tribunal

(3) the Government may constitute a tribunal to be called the taxation.. tribunal to exercise the
functions conferred on the tribunal by this act.

Composition of the tribunal:

4.(1) the tribunal shall consist of a president and one other member being an income tax expert,as
hereinafter defined.

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Course Name: Fundamental of Taxation Course Code:
222
these are the role of civil courts regarding income tax.

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