Section 531 — Power to rescind exemption in relation to certain Union territories already granted under section 294A of the Income-tax Act, 1961. Successor to s.294A of the 1961 Act.
Section 531 is in Chapter XXIII — Miscellaneous, which runs from section 499 to section 536.
The section preserves a power of rescission over concessions granted under the earlier law. Where the Central Government considers it necessary or expedient so to do, it may, by general or special order, rescind an exemption, a reduction in rate, or any other modification in respect of income-tax or super-tax made under section 294A of the Income-tax Act, 1961, whether granted in favour of any assessee or class of assessees, or in regard to the whole or any part of the income of any assessee or class of assessees.
Concessions given under section 294A of the 1961 Act in relation to certain Union territories would otherwise survive the repeal of that Act with nothing in the new Act able to touch them. The section keeps the door open in one direction only — it confers no power to grant or extend such a concession, only to rescind one already made — so the Central Government retains control over benefits it did not create under this Act.
The power is one-way: it rescinds, and the section says nothing about granting, restoring or modifying a concession, so nothing in it can be relied on to obtain relief. Its subject matter is fixed by the earlier law — only an exemption, reduction in rate or other modification in respect of income-tax or super-tax made as per section 294A of the Income-tax Act, 1961 is within reach. It may be exercised by a general order affecting a class or by a special order affecting one assessee, and it may be directed at the whole or any part of the income covered. The only stated precondition is the Central Government's own view that it is necessary or expedient to do so.
A class of assessees holds the benefit of a reduced rate granted by an order made under section 294A of the Income-tax Act, 1961. The Central Government, considering it expedient, issues a general order rescinding that reduction. The benefit ends by force of that order; the section supplies no route back, because it confers a power to rescind and none to grant or restore.
Not in a return or an assessment, but in a general or special order of the Central Government withdrawing a concession that an assessee had been enjoying under the earlier law. An assessee meets it as the legal basis cited in that order.
rescind an exemption, reduction in rate or other modification in respect of income-tax or super-tax in favour of any assessee or class of assessees
made as per the provisions of section 294A of the Income-tax Act, 1961 (43 of 1961)
See the full 1961 to 2025 concordance.
