Section 27. Attachment of decree

27. Attachment of decree. —(1) The attachment of a decree of a civil court for the payment of money or for sale in enforcement of a mortgage or charge shall be made by the issue to the civil court of a notice requesting the civil court to stay the execution of the decree unless and until— (i) the Tax Recovery Officer cancels the notice, or (ii) the[1] [Tax Recovery Officer] or the defaulter applies to the court receiving such notice to execute the decree. (2) Where a civil court receives an application under clause (ii) of sub-rule (1), it shall, on the application of the[1] [Tax Recovery Officer] or the defaulter and subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), proceed to execute the attached decree and apply the net proceeds in satisfaction of the certificate. (3) The[1] [Tax Recovery Officer] shall be deemed to be the representative of the holder of the attached decree, and to be entitled to execute such attached decree in any manner lawful for the holder thereof. 27. "Owner of house property", "annual charge", etc., defined. —For the purposes of sections 22 to 26— (i) an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred; (ii) the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate ; 3[(iii) a member of a co-operative society, company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of the society, company or association, as the case may be, shall be deemed to be the owner of that building or part thereof; (iiia) a person who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), shall be deemed to be the owner of that building or part thereof; (iiib) a person who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof, by virtue of any such transaction as is referred to in clause (f) of section 269 UA, shall be deemed to be the owner of that building or part thereof;] 4* * * * * (vi) taxes levied by a local authority in respect of any property shall be deemed to include service taxes levied by the local authority in respect of the property. 28 . Profits and gains of business or profession. —The following income shall be chargeable to income-tax under the head "Profits and gains of business or profession",— (i) the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year; (ii) any compensation or other payment due to or received by,— (a) any person, by whatever name called, managing the whole or substantially the whole of the affairs of an Indian company, at or in connection with the termination of his management or the modification of the terms and conditions relating thereto; 1. Subs. by Act 28 of 2016, s. 11 for sections 25A, 25AA and 25B (w.e.f. 1-4-2017). 2. Ins. by Act 41 of 1975, s. 7 (w.e.f. 1-4-1976). 3. Subs. by Act 11 of 1987, s. 6, for clause (iii) (w.e.f. 1-4-1988). 4. Clauses (i v ) and (v) omitted by Act 14 of 2001, s. 20 (w.e.f. 1-4-2002). (b) any person, by whatever name called, managing the whole or substantially the whole of the affairs in India of any other company, at or in connection with the termination of his office or the modification of the terms and conditions relating thereto; 27. Zircon. 1. Ins. by Act 42 of 1970, s. 58 (w.e.f. 1-4-1971). PART B - GROUPS OF ASSOCIATED MINERALS (c) any person, by whatever name called, holding an agency in India for any part of the activities relating to the business of any other person, at or in connection with the termination of the agency or the modification of the terms and conditions relating thereto ; 1[(d) any person, for or in connection with the vesting in the Government, or in any corporation owned or controlled by the Government, under any law for the time being in force, of the management of any property or business;] 2 [(e) any person, by whatever name called, at or in connection with the termination or the modification of the terms and conditions, of any contract relating to his business;] (iii) income derived by a trade, professional or similar association from specific services performed for its members ; 3[(iiia) profits on sale of a licence granted under the Imports (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947 (18 of 1947);] 4[(iiib) cash assistance (by whatever name called) received or receivable by any person against exports under any scheme of the Government of India;] 5[(iiic) any duty of customs or excise re-paid or re-payable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules, 1971;] 27. Crown corks, or other fittings of cork, rubber, polyethylene or any other material. 6[(iiid) any profit on the transfer of the Duty Entitlement Pass Book Scheme, being the Duty Remission Scheme under the export and import policy formulated and announced under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);] 7[(iiie) any profit on the transfer of the Duty Free Replenishment Certificate, being the Duty Remission Scheme under the export and import policy formulated and announced under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);] 8[(iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession;] 9 [(v) any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm: Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under clause (b) of section 40, the income under this clause shall be adjusted to the extent of the amount not so allowed to be deducted;] 10 [(va) any sum, whether received or receivable, in cash or kind, under an agreement for— (a) not carrying out any activity in relation to any business[11] [or profession]; or 1. Ins. by Act 21 of 1973, s. 4 (w.e.f. 1-4-1972). 2. Ins. by Act 13 of 2018, s. 9 (w.e.f. 1-4-2019). 3. Ins. by Act 12 of 1990, s. 6 (w.e.f. 1-4-1962). 4. Ins. by s. 6, ibid . (w.e.f. 1-4-1967). 5. Ins. by s. 6, ibid. (w.e.f. 1-4-1972). 6. Ins. by Act 55 of 2005, s. 3 (w.e.f. 1-4-1998). 7. Ins. by s. 3, ibid . (w.e.f. 1-4-2001). 8. Ins. by Act 5 of 1964, s. 7 (w.e.f. 1-4-1964). 9. Ins. by Act 18 of 1992, s. 11 (w.e.f. 1-4-1993). Earlier clause (v) was inserted by Act 4 of 1988, s. 9 (w.e.f. 1-4-1989) and later omitted by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). 10. Ins. by Act 20 of 2002, s. 13 (w.e.f. 1-4-2003). 11. Ins. by Act 28 of 2016, s. 12 (w.e.f. 1-4-2017) (b) not sharing any know-how, patent, copyright, trade-mark, licence, franchise or any other business or commercial right of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services: Provided that sub-clause (a) shall not apply to— (i) any sum, whether received or receivable, in cash or kind, on account of transfer of the right to manufacture, produce or process any article or thing or right to carry on any business[1] [or profession], which is chargeable under the head "Capital gains"; (ii) any sum received as compensation, from the multi-lateral fund of the Montreal Protocol on Substances that Deplete the Ozone layer under the United Nations Environment Programme, in accordance with the terms of agreement entered into with the Government of India. Explanation .—For the purposes of this clause,— (i) "agreement" includes any arrangement or understanding or action in concert,— (A) whether or not such arrangement, understanding or action is formal or in writing; or (B) whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings; (ii) "service" means service of any description which is made available to potential users and includes the provision of services in connection with business of any industrial or commercial nature such as accounting, banking, communication, conveying of news or information, advertising, entertainment, amusement, education, financing, insurance, chit funds, real estate, construction, transport, storage, processing, supply of electrical or other energy, boarding and lodging;] 2[(vi) any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy. 3[(via) the fair market value of inventory as on the date on which it is converted into, or treated as, a capital asset determined in the prescribed manner;] Explanation .—For the purposes of this clause, the expression "Keyman insurance policy" shall have the meaning assigned to it in clause (10D) of section 10;] 4[(vii) any sum, whether received or receivable, in cash or kind, on account of any capital asset (other than land or goodwill or financial instrument) being demolished, destroyed, discarded or transferred, if the whole of the expenditure on such capital asset has been allowed as a deduction under section 35AD.] 5* * * * * Explanation 2 .—Where speculative transactions carried on by an assessee are of such a nature as to constitute a business, the business (hereinafter referred to as "speculation business") shall be deemed to be distinct and separate from any other business. 1. Ins. by Act 28 of 2016, s. 12 (w.e.f. 1-4-2017). 2. Ins. by Act 33 of 1996, s. 10 (w.e.f. 1-10-1996). 3. Ins. by Act 13 of 2018, s. 9 (w.e.f. 1-4-2019). 4. Ins. by Act 33 of 2009, s. 10 (w.e.f. 1-4-2010). 5. Explanation 1 omitted by 4 of 1988, s. 9 (w.e.f. 1-4-1989).