Finance Act, 1979

Amendment of section 70 (power to require returns as to source of partnership income and amounts derived therefrom) of Income Tax Act, 1967.

30.Section 70 of the Income Tax Act, 1967 , is hereby amended by the insertion after subsection (3) of the following subsections:

“(3A) The precedent partner of any partnership, when required to do so by a notice given to him by an inspector, shall, within the time limited by such notice, prepare and deliver to the inspector a statement in writing, signed by him, stating the amount of the profits or gains arising to the partnership from each and every source chargeable according to the respective schedules, estimated for the period specified in the notice and according to the provisions of this Act and there shall be added to the statement a declaration that such amounts are estimated in respect of all the sources of income mentioned in this Act, describing the same, after deducting only such sums as are allowed.

(3B) Section 174 shall have effect in relation to a partnership carrying on a trade or profession as if in that section—

(a) ‘precedent partner’ were substituted for ‘person’ wherever it occurs,

(b) ‘a partnership’ were substituted for ‘him’ where it firstly occurs, and

(c) ‘or in the possession or power of the partnership’ were inserted after ‘ power’.”.