CS- FINAL- DIRECT TAX Return of Income and Procedure of Assessment

Transcription

1 CS- FINAL- DIRECT TAX Return of Income and Procedure of Assessment Section 139(1): Submission of return of income: Every person, if his or any person in respect of whom he is liable to tax and whose total income during the previous year exceeds the maximum amount not chargeable to tax, shall on or before the due date, furnish a return of his income in the prescribed form. For individual, HUF, AOP, BOI and artificial juridical person: He has to file return if total income before claiming exemptions under 10A, 10B, 10BA or deduction under chapter VI A exceeds maximum amount not chargeable to income tax. Due date for filing of return: Due date means - (a) 30th September of the assessment year, where the assessee is - (i) a company, other than a company referred to in (aa) below; or (ii) a person (other than a company) whose accounts are required to be audited under the Income-tax Act, 1961 or any other law in force; or (iii) a working partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 or any other law for the time being in force. (b) 30th November of the assessment year, in the case of an assessee being a company which is required to furnish a report referred to in section 92E. (c) 31st July of the assessment year, in the case of any other assessee Mandatory filing of ROI by every resident having any asset (including financial interest in any entity) located outside India [Section 139(1)] (i) Every resident and ordinarily resident having (1) any asset (including financial interest in any entity) located outside India or (2) signing authority in any account located outside India is required to file a return of income in the prescribed form compulsorily, whether or not he has taxable income. (ii) The return of income should be verified in the prescribed manner and provide such particulars as may be prescribed.

2 Various forms required under the Income Tax Act Form No ITR-1 ITR-2 ITR-3 ITR-4 ITR 4S ITR-5 ITR-6 ITR-7 ITR-V [V for verification] Acknowledg ement Heading For Individuals having Income from Salary/ Pension/ family pension & Interest For Individuals and HUFs not having Income from Business or Profession For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship For individuals & HUFs having income from a proprietary business or profession For the assesses who are opting the scheme for presumptive rates of taxes For Partnership Firms For Companies other than companies claiming exemption under section 11 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 39(4D) Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature Acknowledgement for e-return and non e-return If the return is not filed within the due date, i) Interest u/s is payable. ii) Penalty u/s 271F of Rs. 5,000/- may also be levied if return is delayed beyond the relevant assessment year.

3 iii) Willful failure may attract prosecution provisions u/s 276CC. Annexure less return. Manner of filing: Paper, bar-coded paper, electronically under digital signature or electronically along with ITR V Compulsory E-filing: ITR 5 where 44AB applies (compulsory audit), company requiring to file ITR 6 Form ITR 7 by the following institutions: 139(4A) - Trust, 139 (4B) political party, 139 (4C) notified associations or institutions like scientific research 10 (21), news agency 10 (22B), 10(23A), (B), (C) institutions, trade union 10(24); 139 (4D) scientific or social or statistical research Return of loss [section 139(3)]: It is not mandatory to file return of loss as there is no taxable income (except for company or firm). However, losses cannot be carried forward unless a return of loss is submitted and it is duly assessed. (Exception: 71B) Loss of only the current year is not allowed to be c/f. Belated return(sec.139(4)): Any person who has not filed a return within the time allowed may file a belated return before expiry of one year from the end of relevant assessment year or before completion of the assessment (u/s.144) whichever is earlier. Return of income of charitable trust & institutions (Sec.139 (4A)): If there is any income derived from property held under trust or other legal obligation wholly or in part for purpose of charitable or religious purposes or there is any income by way of voluntary contribution on behalf of such trust or institution (computed before claiming deduction u/s.11 & 12 return must be filed within time prescribed u/s.139 (1) in form 3A. Failure s consequences: 272A Rs. 100 per day during which default continues. (And not 5,000 as per 271F) Return of income of political party (Sec.139 (4B)):

4 If the total income of a political party before allowing exemption u/s 13A exceeds maximum amt. not chargeable to tax a return has to be filed by prescribed date(30 th Sept where a/cs are audited for claiming 13A exemption; 31 st July otherwise) Sec. 139 (4C) Return of income of associations, institutions be furnished to claim exemption u/s 10. a. Scientific research association 10(21 ) b. News agency [10(22B)] (collection & dissemination if news) c. ICAI, ICSI, ICWA Institutes etc. (other professional institutes) 10(23A) d. Khadigramodyog (K.V.I.) 10(23B) e. University, Education Institution, hospital 10(23C) f. Trade Union - 10(24) Revised return (Sec 139(5)): - An assessee is entitled to revise return originally filed to make such amendments or changes or additions if found necessary, any time before assessment is made or before the expiry of one year whichever is earlier. Certain rules: 1) S.C. held in Kumar Jagdish Chandra Sinha v. CIT that belated return cannot be revised. 2) Revised return can be further revised within the same time period. 3) Revised return substitutes original return. 4) An application or letter cannot substitute revised return. 5) A return filed within time extendable by CBDT may be revised 6) A return furnished in response to notice under section 142 (1) can be revised Defective return (Sec 139(9)) - If assessing officer considers that the return is defective he may give an opportunity to rectify within 15 days or such extended time as he thinks fit from the date of intimation. If assessee fails to rectify the return, the return shall be deemed to be invalid. However, if the rectification is made after the expiry of the aforesaid period but before the assessment, the Assessing officer may condone the delay. A return shall be regarded defective unless: -

5 a. The annexure, statements and columns in the return of income have been duly filled in b. Return is accompanied by proof of tax being paid. c. Where the regular books of accounts are maintained, the return is accompanied byi. Manufacturing account, trading and profit and loss account ii. In case of proprietary business the personal account d. Where the accounts are audited, the return is accompanied by the copies of profit and loss account, Balance sheet and auditor s report. e. Where regular accounts are not maintained, the statement indicating the amount of turnover or gross profits, expenses and net profits and the basis of computation should accompany the return. f. Return of income filed without payment of self-assessment tax (along with interest) under section 140A considered defective (w.e.f. A.Y ) Section 139A & rule 114: A person who has not been allotted PAN no. shall apply for the same in form no.49a in following cases: 1. Total income exceeds maximum amt. not chargeable to tax. [on or before 31 st May of A.Y.] 2. He is carrying on business or profession, whose turnover or gross receipts are or are likely to exceed Rs. 5 lakhs. [on or before the end of accounting year] 3. He is required to file return u/s 139(4A). [on or before the end of accounting year] 4. He is an employer who requires to furnish a fringe benefit tax return under 115WD. Advance tax has to be paid hence the employer has to do it in the relevant financial year 5. The A.O. may allot it to any other person by whom tax is payable. 6. Any person who applies for it as such. Who must apply for PAN will be decided by Central Government. a) Exporter or importer who has to get IE Code number b) Assessee, traders under Central Excise, sales tax and service tax Rule 114 B PAN must be quoted compulsorily in the following transactions: -

6 Sale / Purchase of immoveable property valued at Rs.5L or more. Sale /Purchase of Motor Vehicle (required to be registered), other than 2-wheelers Time Deposit exceeding Rs.50, 000 in Post Office Savings bank Sale / Purchase of Securities exceeding Rs.1,00,000 Opening a Bank Account. Installing a Telephone connection. Payment to Hotels of a bill exceeding Rs.25,000 Payment for getting a draft of more than Rs. 50,000 in a day Deposit Rs. 50,000 or more in a day in Bank Payment in cash in connection with travel abroad [excluding neighbouring countries or a pilgrim] Application for credit card 50,000 or more paid to a Mutual Fund for purchase of units 50,000 or more paid to a company for purchase of its shares or debentures 50,000 or more paid to a RBI for purchase of bonds 139A(5A) PAN to be given to a person deducting TDS ( w. e. f ) (For Banking, Co. Op. Societies w. e. f ) 139A(5B) Person deducting tax at source (payer) shall quote PAN of such person (payee) on all certificates furnished under section 203, 206, or A(5C) Buyer of Alcoholic liquor, timber, forest products (section 206C) shall intimate PAN to seller & seller shall quote the the same on certificate return furnished under section 206C. If a person has not been allotted PAN he shall give such a declaration in Form No.60. If a person has agricultural income only then he should finish declaration in Form No. 61 Non-Residents shall furnish a copy of their passport. Central Govt., State Govt., Consular officers. These provisions are not applicable to categories

7 Form No.60, 61 collected from the above categories in course of transactions, should be forwarded to Director Of Income Tax (Investigation) (except for opening bank a/c) In 2 installments: collected upto 30 th September By 31 st October : collected upto 31 st March - 30th April If the person fails to comply with 139A penalty of Rs. 10,000/- u/s 272B (1) Returns through Tax Return Preparers 139B Not applicable for company non-resident or those assessees where audit is compulsory. Her will assist and put his signature on return. The following persons can not work as TRP: a law practitioner, CA, an officer of scheduled bank. Due date of return of Income for corporate assesses who are required file a transfer pricing report in Form 3CEB, extended to 30 th November: Section 139 of the Income-tax Act stipulates 30th September of the assessment year as the due date for filing of return of income in case of corporate assessees. In addition to filing a return of income, assessees who have undertaken international transactions are also required (under the provisions of section 92E) to prepare and file a transfer pricing report in Form 3CEB before the due date for filing of return of income. Corporate assessees face practical difficulties in accessing contemporary comparable data before 30th September in order to furnish a report in respect of their international transactions. It is, therefore, proposed to amend section 139 to extend the due date for filing of return of income by such corporate assessees to 30th November of the assessment year. TRP scheme 2006 Educational Qualification: Graduate of a recognised university Revised return will be filed through TRP only if original return was filed through him. TRP shall prepare and furnish return to the AO or any other agency as may be directed by Resource Centre with the approval of CBDT.

8 Incentive to TRP Commission for the 1 st year; 3% of tax paid, 2 nd year 2%, 3 rd year 1% with min 1,000/- for new assessees [payable by Resource Centre] and for old assessees it is 250 [payable by individual or HUF] Section 140: Signing of return: In case of an individuali. by himself or ii. where he is absent from India by a person duly authorised or iii. Where he is mentally retarded, by his guardian or any other person competent to act or iv. For any other reason by any person duly authorised. In case of Hindu Undivided Family- By the Karta or in his absence or mentally incapacitated, by any other adult member of such family. In case of Local authority, the Principal officer. In case of firm- by managing partner or in his absence any other partner. In case of association -by member or Principal officer In case of company- by managing director or where such person is not available, by any other Director In case of a political party- Chief Executive Officer. Type of assessment: 1. Self assessment- S.140A: The assessee is required to make a self assessment and pay tax on the basis of return required to be furnished u/s 139 or 142(1) or 148. Tax due [i.e. tax payable (advance tax + TDS along with interest), if any for any delay in furnishing the return or any default or delay in payment of advance tax], is to be paid before furnishing the return and where the amount paid falls short, it should first be adjusted towards interest and balance if any, towards tax payable. Return should be accompanied by proof of payment of such tax. Failure to do so, he shall be deemed to be an assessee in default and all provisions of the Act

9 shall apply accordingly. Any tax paid under self-assessment is deemed to have been paid under regular assessment. The provisions re. fringe benefits are on the same lines. Consequences of failure to pay whole or part of Self Assessment tax: Liability: 1% per month or a part of month. From: 30 days after filing return (i.e. he should pay tax within 30 days of filing return) To: Date of Payment Section 221: - Penalty Maximum to the extent of tax avoided. No penalty if good and sufficient reason is showed. Section 142: - Inquiry before Assessment: (1) Assessing Officer may issue a notice. 1] To furnish a return 2] If return is already furnished, Assessing Officer may ask for accounts and statement of all assets and liabilities for any number of years with the prior approval of Joint Commissioner. Or else max 3 years. Even assets and liabilities not showed in Books can be called for. (2) Inquiry with other sources (2A) to (2D): - Audit of Accounts: Assessing Officer can ask the Assessee to furnish or refurnish Audited Accounts (Form No. 6B) within 180 days. [only with the prior approval of CIT/CCIT] If assessee fails then Assessing Officer can get these audited and the expenses can be recovered from the Asssessee. The assessee can be given an opportunity of being heard in respect of any information to be gathered by the A.O. Audit expenses shall be determined by CIT or CCIT and paid by Central Government. No appeal is possible against this order u/s 142(2A) If there is non-compliance then: a) Best Judgment Assessment under section 144. b) Penalty under section 271(1)(b) - 10,000 c) Prosecution under section 276D may upto 1year or fine Rs.4 to 10 every day

10 d) Issue of warrant under section 132 (for search) Estimate by Valuation Officer Sec. 142A(1): [W.r.e.f ] In Amiya Bala Paul v CIT (2003) Supreme Court held that the A.O. did not have the power to refer the matter to Valuation Officer in reference to construction of the house property. With a view to nullify the same, this section has been inserted. This section does not apply for completed assessments. 2. Regular assessment - on the basis of return of income [Sec.143 (1)] and after hearing additional evidence [Sec.143 (3)] - i. 143(1): On the basis of return furnished by the assessee an intimation shall be sent [deemed to be notice of demand u/s 156] informing him about tax or interest [not after expiry of one year from end of year in which return was made] payable or refundable to him. There will be a centralized processing scheme for all returns u/s 143(1). ii. 143(3): Compulsory service of notice: Where the return is made under 139 or 143(1) and the AO wants to confirm that income is not showed less or tax is not paid less or loss is not claimed more then AO may serve a notice u/s 143(2) for furnishing additional evidence fin support of his return. The notice can not be given after 6 months from the end of year in which it has been filed. Notice not to be invalid because of mistake, default or omission in such notice. 292B Notice deemed to be valid 292BB If assessee has not raised any objection before the completion of assessment then he can not raise the same afterwards. Failure to comply with the notice is liable for 271(1)(b) penalty and also shall result into Best Judgment Assessment u/s 144. Similarly where assessee is a member of association of persons or body of individuals and as a result of order passed u/s 185 and 186 any variation occurs then for tax or interest found

11 due or refund to be granted, intimation shall be made within 4 years from the end of financial year in which any adjustment was made or any order passed. As per sub-section 1B, where an assessee furnishes revised return after issue of intimation by assessing officer, the additional tax or interest shall be amended on the basis of said revised return. If the assessee has already paid such additional tax or interest, then if the amendment has the effect of enhancing or reducing the amount already paid, such excess amount shall be demanded or refunded as the case may be. If the refund has already been granted, the excess refund if any shall be paid and if refund is reduced on the basis of revised return, the excess refund already paid shall be demanded as tax payable. [sub. Sec 1B omitted with effect from i.e. F.A. 1999] iii. An assessing officer may serve a notice within 12 months from the end of month in which return is furnished, requiring the assessee to attend his office [assessing officer s] or produce any evidence, to ensure that assessee has not understated his income or computed excessive loss. After hearing the evidence produced the assessing officer shall make an assessment of total income or loss of the assessee, and determine the amount payable by him. 3. Best Judgement Assessment: Section 144 In Best Judgement Assessment the assessing officer should really base the assessment on his best judgement i.e. he must not act dishonestly, vindictively or capriciously. It is of two types: Compulsory and Discretionary i. Compulsory Best Judgement Assessment: shall be made by the assessing officer in cases of non-co-operation on the part of the assessee or when assessee is in default as regards supplying of information. Section 144 has specified following circumstances in which best judgement assessment shall be made: a) Any person fails to file a return u/s 139 (1) or belated return or revised return. b) Fails to comply with terms and conditions of notice u/s 142. c) Fails to get accounts audited by an accountant nominated by Commissioner or fails to submit report of such audit.(u/s 142(2A)).

12 d) Having filed a return fails to comply with the terms and conditions of notice requiring to produce evidence or his presence (143(2)). Assessing officer shall make the assessment of the total income or loss and determine the sum payable or refundable to him on the basis of assessment. Before making assessment under this section opportunity should be given to assesssee to show cause why assessment should not be completed to best of his judgement. ii. Discretionary Best Judgement Assessment: Sec.145 (2): Assessment can be made if the Assessing Officer is not satisfied; a. about correctness or completeness of accounts of assessee b. where no method of accounting has been regularly and consistently employed by the assessee. c. Where accounting standards notified by C.G. have not been followed. Where accounts are complete and correct but method employed does not deduce the income proper computation shall be made on such basis as Assessing Officer deems fit. Consequences of Best Judgement Assessment: 1. Assessee becomes liable to penalties u/s 271 and/or prosecution and fine u/s 276CC and 276D 2. Assessee is prevented from bringing on record any new facts before Appellate Authorities. Remedies against Best Judgement Assessment 1. Assessee can file appeal against such assessment 2. Deputy Commissioner may on his own motion or on a reference being made by assessing officer or an application of an assessee call for and examine the record of any proceedings in which the assessment is pending and may issue such directions as he thinks fit for guidance of Assessing Officer to enable him to complete the assessment. Such directions shall be binding on Assessing Officer.[Sec 144A]

13 Income Escaping Assessment or Re-assessment [Sec147]: If the assessing officer has a reason to believe that any income has escaped assessment for any assessment year he may, subject to provisions of Sections assess or re-assess such income chargeable to tax. No action shall be taken after expiry of 4yrs from end of relevant assessment year, unless failure is on the part of the assessee to file return u/s 139 or 142 or 148. Following shall be deemed to be the cases where income chargeable to tax escaped assessment. 1. Where no return has been furnished although total income of the assessee exceeded maximum amount not chargeable to tax. 2. Where return is furnished but it is noticed by Assessing Officer that assessee has understated income or claimed excessive loss, deduction allowance or relief in return. 3. Where assessment is made but; a. income chargeable to tax has been under assessed or b. assessed at too low a rate or c. excessive relief, loss or depreciation has been computed Before making any assessment or re-assessment notice requiring the assessee to furnish within such period [not less than 30 days] a return of income in such form and verified in such manner as may be prescribed.[sec.148] No notice u/s 148 shall be issued by the assessing Officer below the rank of Assistant Commissioner unless Deputy Commissioner is satisfied that it is fit case for issue of such notice. No notice after expiry of four years from the relevant assessment year shall be issued unless the Chief Commissioner or Commissioner is satisfied that it is fit to issue such notice. [Sec.151] Notice u/s 148 can be issued (a) within 4 years from relevant A.Y. s end or (b) within 6 years from relevant A.Y. s end where income escaping assessment is Rs. 1,00,000 or more S.NO. Upto 4 years from end of relevant Beyond 4 but upto 6 years

14 Where an assessment order has been passed u/s.143(3) or 147 A.Y. (i) Any amount (ii) Notice issued by AO. Of the rank of Asst. Commissioner or Deputy comm. Any officer below this rank can issue if J.C. is satisfied. from end of relevant A.Y. (i)if income escape is more than Rs. 1 lakhs (ii)notice issued by Asst. Comm. or Deputy comm. Is to be obtained if notice is issued by any office below the rank of Asst. comm.. (iii)notice can be issued only if C.C, C D.C. is satisfied about the reason. No assessment (i) Any A.O. can issue (i) Any A.O. can issue order is passed u/s 143 (3) or 147 (ii) Notice can be issued for any amount (ii) Notice to be issued if income escaping Assessment is likely to be Rs. 1 lacs or more (iii) Notice can be issued by A.O. below the rank of J.C. only if J.C. is satisfied about the fitness of the case. Sections 147 and 149 Reassessment of income: These two sections dealing with income-escaping assessment and time limit for reopening assessment have been amended w.e.f (i) At present, the time limit for reopening assessments is 6 years. In a case where assessment is made u/s.143(3) and the income-escaping assessment is not due to failure of the assessee to disclose fully and truly all material facts necessary for assessment for that year, the time limit for reopening is 4 years. This time limit is now enhanced in specified cases.

15 (ii) It is now provided that if the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any year, the time limit for reopening the assessment shall be 16 years. For this purpose, where a person is found to have any asset or any financial interest in any entity located outside India, shall be deemed to be a case where income chargeable to tax has escaped assessment. This provision will apply to a resident or a nonresident. In the coming years, this provision will have far-reaching implications. (iii) It is now provided that if a person has failed to furnish the Transfer Pricing Report u/s.92e in respect of any international transaction, income shall be deemed to have escaped assessment. In such a case the AO can send notice for reopening assessment within the prescribed period. (iv) Similar amendments are made in the Wealth Tax Act also. (v) In a transaction similar to the case of the famous VODAFONE the assessments of a foreign company which has made taxable capital gains or other income can be reopened for 16 years instead of 6 years as in such cases some assets will be located outside India. Precautionary Assessment: Where it is not clear as to who has received the income and prima facie it appears that income may have been received either by A or B or by both together then the Assessing Officer can commence proceedings against both so as to determine who is liable to pay tax. [Lalji Haridas V/s ITO] Time Limit for completion of assessment or re-assessment Sec153: These amendments will apply to any assessment year beginning on or before The effect of these amendments is as shown in Table. Table: Time Limits for Completing Assessments Proceedings under sections Present time limit for completion of assessment (Months) Revised time limit w.e.f (Months) from end of A.Y. 24 months

16 143 read with 92CA 33 from end of A.Y. 36 months from end of F.Y. in which notice is issued 12 months 148 read with 92CA 21 from end of F.Y. in which notice issued 24 months 250, 254 or from end of F.Y. in which order is passed 12 months 250, 254 or 263 read with 92CA 21 months from end of F.Y. in which order is passed 24 months Time Limit shall not apply in following cases: 1. Where assessment, re-assessment or recomputation is to be made to give effect to any finding or direction contained in order passed in appeal, reference, revision or order of court in any other proceeding. 2. Where in case of a firm an assessment is to be made of the partner of the firm in consequence of the assessment already made u/s 147 to reassess the escaped income. Time taken in following cases shall be excluded: 1. In reopening the whole or part of proceedings or in giving opportunity to the assessee to be heard u/s Period during which the assessment proceeding is stayed by an order or injunction of any court. 3. Period commencing from date on which Assessing Officer directs to get accounts audited and ending with date when he furnishes report of such audit. RECTIFICATION OF MISTAKES (Sec.154):

17 With a view to rectify any mistakes apparent from the records an Income Tax Authority referred to in Section 116 may amend on its own motion or on appeal by assessee any order passed by it under the provisions of this Act and also amend any intimation sent by it u/s 143 (1), or enhance or reduce the amount of refund granted by it under that sub-section. Section 155 deals with circumstances under which mistake must be rectified. This includes: 1. Rectification of the assessment of partner of firm in case where remuneration paid to him is not allowed to be deducted u/s 40(b) after re-assessment; recomputation or rectification of assessment is made on the firm. 2. Withdrawal of investment allowance or development allowance granted for non-compliance with requirement of section 32 A (5) or 33A and 34 respectively. 3. Amendment of order levying additional income tax on a closely held company for the purposes of recomputing the distributable income of company and its liability to additional income tax. 4. Where assessee has invested the capital gains arising from transfer of a LTCA within the meaning of section 54EA, within six months after date of such transfer, the assessing officer shall amend the assessment so as to exclude the amount of capital gains not chargeable to tax. COLLECTION AND RECOVERY OF TAX: a. Notice of Demand, Section 156, Rule 15, 38, Forms 7 and 28: When any tax, interest, penalty, fine or other sum is payable in consequence of an order passed under this Act, the assessing officer shall serve upon the assessee a notice of demand in prescribed form specifying sum so payable. b. Intimation of Loss [Section 157]: In the course of assessment if it is established that a loss has taken place which assessee is entitled to carry forward and set off against income in subsequent years, the assessing officer shall notify the assessee by an order in writing the amount of loss so computed. c. Collection and recovery: The amount specified in the notice of demand shall be paid within 30 days of service of the notice. If it is detrimental to the revenue, Deputy Commissioner may reduce the period of 30 days. [section 220]

18 Failure to pay interest at the rate of 1.5% for every month or part thereof, if the assessee is not in a position to pay the amount he may make an application to the Assessing Officer before the expiry of the due date of payment. Assessing Officer may extend the time for payment or allow payment by instalment, subject to such conditions as he may think fit. Failure to pay the amount as mentioned above, the assessee shall be liable to pay penalty of such amount as the Assessing Officer may direct. Penalty shall not exceed amount of tax in arrears. Tax Recovery Officer may recover the amount by any of the following ways: a. Section 220 i. Attachment and sale of assessee s property. ii. Arrest and Detention of assessee in prison. iii. Appointing receiver for management of assesses property b. Section 226 i. Attachment of salary ii. Garnishee Order iii. From a court iv. Sale of movable property c. Section 227: Through State Government. d. Section 228A: in pursuance of agreement with foreign countries. e. Section 232: By suit or under other law.

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