Finance Act, 1927

Relief against over-assessments on estimated income.

5.—(1) If any person has been assessed and charged to tax in respect of income, the tax on which is, under the Rules applicable to Case IV. or Case V. of Schedule D of the Income Tax Act, 1918 as amended by any subsequent enactment, directed to be computed on the full amount thereof arising in the year of assessment and the amount of his actual income so assessable which arose in that year is less than the amount on which he has been assessed, such person may within a period of one year from the end of the year of assessment apply to the Special Commissioners for an adjustment of his liability by reference to the difference between the amount of his actual income so assessable and the amount on which he was so assessed.

(2) Every application under this section shall be made to the Special Commissioners by giving notice in writing to the inspector setting out particulars of the amount of such actual income so assessable as aforesaid which arose in the year of assessment, and the Special Commissioners shall be entitled to call for such evidence as they may deem necessary to enable them to ascertain the correctness of such particulars.

(3) The Special Commissioners, on proof to their satisfaction that the amount of the actual income of an applicant under this section was less than the amount on which such applicant was assessed as aforesaid and of payment of the tax so assessed, shall direct repayment to be made of any sum which has been overpaid.

(4) Section 149 of the Income Tax Act, 1918 shall apply to the determination of the Special Commissioners on an application under this section in like manner as it applies to their determination on an appeal against an assessment.

(5) This section shall apply in relation to tax chargeable for the year beginning on the 6th day of April, 1926 or any subsequent year.