Central

Section 4 of The Central Boards of Revenue Act, 1963

Procedure of the Board.

(1)The Central Government may make rules for the purpose of regulating the transaction of business by each Board and every order made or act done in accordance with such rules shall be deemed to be the order or act, as the case may be, of the Board.
(2)Every rule made under this section 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 or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Summary

The Central Government has the power to make rules to decide how each board should run its daily business and make decisions.
Any decision made or action taken under these rules is legally considered to be the official decision or action of the board itself.
Every new rule made by the government must be presented to both Houses of Parliament as soon as possible after it is made.
Parliament must review the rules for a total of thirty days, which can be done in one single session or spread across two sessions in a row.
If both Houses of Parliament agree to change a rule or cancel it before the end of these sessions, the rule will only work in the changed form or will stop working completely, but any action already taken under that rule before the change remains valid.

Practical examples

1The Central Government makes a rule in 1975 about how the Board of Direct Taxes should hold its weekly meetings. Mr. Kapoor, a taxpayer, questions a board order, but the court confirms the order is valid because it followed these official rules.

2The government introduces a new rule for processing tax appeals. The rule is presented to the Lok Sabha and Rajya Sabha in 1982. Parliament reviews it for thirty days and decides to modify it. The modified rule becomes the new standard, but all appeals decided before the modification remain valid.

FAQ

1. Who makes the rules that decide how the boards conduct their business?

The Central Government makes these rules.

2. What is the legal status of an act done in accordance with the rules?

It is legally considered, or deemed, to be the official act of the board itself.

3. How long must a rule be laid before each House of Parliament?

It must be laid for a total period of thirty days.

4. Can the thirty-day Parliamentary review period be split across sessions?

Yes, it can be completed in one session or across two successive, or back-to-back, sessions.

5. What happens if Parliament modifies or cancels a rule?

The rule will only have effect in the modified form or will have no effect at all, but anything already done under the rule before that point remains legally valid.

Test yourself

1.Who has the power to make rules for regulating the transaction of business by each Board?

2.What is the required total period for which a rule must be laid before each House of Parliament?

3.In how many sessions can the Parliamentary review period of thirty days be completed?

4.If Parliament modifies or cancels a rule, what happens to actions already taken under that rule?

5.What is the effect of an order made in accordance with the transaction of business rules?

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