Amendment status not verified — confirm the current text below against the official source.
Special provision regarding liability to pay tax including any penalty or interest in certain cases (1) INktere a '[proprietor], liable to pay tax under this Act, dies, then:— (a) if the business carried on by the '[proprietor] is continued after his death by his legal representative or any other person such legal representative or other person shall be liable to pay the tax due from such [proprietor] under this Act in the like manner and to the same extent as the deceased '[proprietor]; or (b) if the business carried on by the '[proprietor] is discontinued, whether before or after his death, his legal representative shall be liable to pay out of the estate of the deceased, in the like manner and to the same extent as the deceased l[proprietor] would have been liable to Fay if he had not died, the tax due from such '[proprietor] under this Act, whether such tax has been assessed before his death but has remained unpaid or is assessed after his death. Explanation: For the purpose of this sub-section, the expression "legal representative" has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (V of 1908). (2) Where a l[proprietor] liable to pay tax under this Act is a Hindu undivided family and the joint family property is partitioned amongst the varicnis members or group of members then each member or group of members shall be join tly and severally liable to pay the tax due from the '[proprietor] under this Act upto the time of partition whether such tax has been assessed before partition but has remained unpaid or is assessed after partition. (3) Where a '[proprietor], liable to pay tax under this Act is a firm and the firm is dissolved, then every person who was a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 5, the tax due from the firm under 1 Substituted for "hotelier" by the Delhi Tax on Luxuries (Arndt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012. 2 Substituted for "hoteliers", ibid. SECTION 7 THE DELHI TAX ON i. UXURIES ACT, 1996 5 this Act upto the time of dissolution, whether such tax has been assessed before such dissolution but has remained unpaid or is assessed after dissolution. (4) Where a '[proprietor], liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, then the '[proprietor] and the person succeeding shall jointly and severally be liable to pay the tax due from the '[proprietor] under this Act upto the time of such transfer, disposal or change, whether such tax has been assessed before such transfer, disposal or change but has remained unpaid, or is assessed thereafter. (5) Where a '[proprietor], liable to pay tax under this Act— (a) is the guardian of a ward on whose behalf the business is carried on, or (b) is the trustee who carries on the business under a trust of a beneficiary, then, if the guardianship or trust is terminated the ward or, as the case may be, the beneficiary shall be liable to pay the tax due from the '[proprietor] upto the time of termination of the guardianship or trust, whether such tax has been assessed before the termination of the guardianship or trust, but has remained unpaid or is assessed thereafter. (6) Where a '[proprietor], liable to pay tax under this Act, is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or in sub-section (4), then such person, unless he already holds a certificate of registration, shall, within thirty days thereof, apply for registration.