THE TAXATION LAWS (CONTINUATION AND VALIDATION OF RECOVERY 
PROCEEDINGS) ACT, 1964 

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ARRANGEMENT OF SECTIONS 

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SECTIONS 

1.  Short title. 
2.  Definitions. 
3.  Continuation and validation of certain proceedings. 
4.  Power to amend the Schedule. 
5.  Act to have retrospective effect. 
6.  Power to remove difficulties. 
7.  Power to make rules. 

THE SCHEDULE. 

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THE TAXATION LAWS (CONTINUATION AND VALIDATION OF RECOVERY 
PROCEEDINGS) ACT, 1964 

ACT NO. 11 OF 1964 

[12th May, 1964.] 

An Act to provide for the continuation and validation of proceedings in relation to Government 

dues and for matters connected therewith. 

BE it enacted by Parliament in the Fifteenth Year of the Republic of India as follows:— 

 1.  Short  title.—This  Act  may  be  called  the  Taxation  Laws  (Continuation  and  Validation  of 

Recovery Proceedings) Act, 1964. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “assessee”, in relation to— 

(i) the Excess Profits Tax Act, 1940 (15 of 1940), or the Business Profits Tax Act, 1947 (21 

of 1947), means a person by whom the tax or any other sum is payable under that Act; 

(ii) the Estate Duty Act, 1953 (34 of 1953), means a person accountable or an  accountable 

person as defined in that Act; 

(iii) any other scheduled Act, means an assessee as defined in that Act; 

(b)  “Government  dues”,  in  relation  to  any  scheduled  Act,  means  any  tax,  duty,  penalty,  fine, 

interest, annuity deposit or any other sum payable to the Government by an assessee under that Act; 

(c) “scheduled Act” means an Act specified in the Schedule; 

(d)  “Taxing  Authority”,  in  relation  to  any  scheduled  Act,  means  an  officer  (by  whatever  name 
called) empowered to serve upon an assessee a notice of demand in respect of any Government dues 
under that Act; 

(e) “Tax Recovery Officer”, in relation to any scheduled Act, means a Tax Recovery Officer as 
defined in that Act and where there is no such definition, means an officer (by whatever name called) 
to whom a certificate for the recovery of arrears of Government dues may be issued under that Act. 

3.  Continuation  and  validation  of  certain  proceedings.—(1)  Where  any  notice  of  demand  in 
respect of any Government dues is served upon an assessee by a Taxing Authority under any scheduled 
Act, and any appeal or other proceeding is filed or taken in respect of such Government dues, then,— 

(a)  where  such  Government  dues  are  enhanced  in  such  appeal  or  proceeding,  the  Taxing 
Authority shall serve upon  the assessee another notice of demand only in respect of the amount by 
which such Government dues are enhanced and any proceedings in relation to such Government dues 
as are covered by the notice or notices of demand served upon him before the disposal of such appeal 
or proceeding may, without the service of any fresh notice of demand, be continued from the stage at 
which such proceedings stood immediately before such disposal; 

(b) where such Government dues are reduced in such appeal or proceeding,— 

(i) it shall not be necessary for the Taxing Authority to serve upon the assessee a fresh notice 

of demand; 

(ii) the Taxing Authority shall give intimation of the fact of such reduction to the assessee, 
and  where  a  certificate  has  been  issued  to  the  Tax  Recovery  Officer  for  the  recovery  of  such 
amount, also to that officer; 

(iii) any proceedings initiated on the basis of the notice or notices of demand served upon the 
assessee  before  the  disposal  of  such  appeal  or  proceeding  may  be  continued  in  relation  to  the 
amount  so  reduced  from  the  stage  at  which  such  proceedings  stood  immediately  before  such 
disposal; 

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(c) no proceedings in relation to such Government dues (including the imposition of penalty or 
charging of interest) shall be invalid by reason only that no fresh notice of demand was served upon 
the assessee after the disposal of such appeal or proceeding or that such Government dues have been 
enhanced or reduced in such appeal or proceeding: 

Provided that if as a result of any final order such Government dues (other than annuity deposit) 
have been reduced and the penalty imposed on the assessee for default in payment thereof exceeds the 
amount so reduced, the excess shall not be recovered, and if it has already been recovered, it shall be 
refunded to the assessee on an application made by him to the Taxing Authority wihin such time and 
in such manner as may be prescribed by rules made under this Act: 

Provided further that  if the  amount  of penalty  imposed  on  the  assessee  for failure to  make  any 
annuity deposit exceeds one-half of the amount of the annuity deposit required to be made as a result 
of such order, the excess shall not be recovered and if it has already been recovered, shall be refunded 
to the assessee on an application made by him to the Taxing Authority within such time and in such 
manner as may be prescribed by rules made under this Act: 

Provided further that where any Government dues are reduced in such appeal or proceeding and 
the  assessee  is  entitled  to  any  refund  thereof,  such  refund  shall  be  made  in  accordance  with  the 
provisions of that Act. 

(2) For the removal of doubts, it is hereby declared that no fresh notice of demand shall be necessary 
in any case where the amount of Government dues is not varied as a result of any order passed in any 
appeal or other proceeding under any scheduled Act. 

(3) The provisions of this section shall have effect notwithstanding any judgment, decree or order of 

any court, tribunal or other authority. 

4.  Power  to  amend  the  Schedule.—The  Central  Government  may,  by  notification  in  the  Official 
Gazette, add the name of any Central Act providing for the imposition or levy of any tax or duty in the 
Schedule  and  on  the  issue  of  any  such  notification,  the  Act  so  added  shall  be  deemed  to  be  an  Act 
specified in the Schedule within the meaning of clause (c) of section 2. 

 5.  Act  to  have  retrospective  effect.—The  provisions  of  this  Act  shall  apply  and  shall  be  deemed 
always  to  have  applied,  in  relation  to  every  notice  of  demand  served  upon  an  assessee  by  any  Taxing 
Authority under any scheduled Act whether such notice was or is served before or after the commence-
ment of this Act. 

6.  Power  to  remove  difficulties.—If  any  difficulty  arises  in  giving  effect  to  the  provisions  of  this 
Act, the Central Government may, by order published in the Official Gazette, make such provisions not 
inconsistent with the purposes of this Act, as appear to it to be necessary or expedient for removing the 
difficulty. 

7. Power to make rules.—(1) The Central Government may1[by notification in the Official Gazette] 

make rules for carrying out the purposes of this Act. 

(2) Every rule made under this Act shall be laid as soon as may be after it is made, before each House 
of Parliament while it is in session for a total period of thirty days which may be comprised in one session 
or2[in two or more successive sessions, and if, before the expiry of the session immediately following the 
session or the successive sessions aforesaid] both Houses agree in making any modification in the rule or 
both  Houses  agree  that  the  rule should  not  be  made,  that  rule  shall  thereafter  have  effect,  only  in  such 
modified form or be of no effect, as the case may be, so however that any such modification or annulment 
shall be without prejudice to the validity of anything previously done under that rule. 

1. Ins. by Act 4 of 1986, s. 2 and the Schedule (w.e.f. 15-5-1986).  
2. Subs. by s. 2 and the Schedule, ibid., for certain words (w.e.f. 15-5-1986). 

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THE SCHEDULE 

[See section 2(c)] 

1.The Indian Income-tax Act, 1922 (11 of 1922). 

2.The Excess Profits Tax Act, 1940 (15 of 1940). 

3.The Business Profits Tax Act, 1947 (21 of 1947). 

4.The Estate Duty Act, 1953 (34 of 1953). 

5.The Wealth-tax Act, 1957 (27 of 1957). 

6.The Expenditure-tax Act, 1957 (29 of 1957). 

7.The Gift-tax Act, 1958 (18 of 1958). 

8.The Income-tax Act, 1961 (43 of 1961). 

9.The Super Profits Tax Act, 1963 (14 of 1963). 
1[10. The Companies (Profits) Surtax Act, 1964 (7 of 1964).] 

1. Added by Notification No. S.O. 1914, dated 1-6-1964. 

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