Section 23. Presumption about accuracy of balance-sheet and profit and loss account of corporations and companies.

(1) Where, during the course of proceedings before any arbitrator or Tribunal under the Industrial Disputes Act, 1947 (14 of 1947), or under any corresponding law relating to investigation and settlement of industrial disputes in force in a State (hereinafter in this section ^2[and in ^3[sections 24 and 25] referred to as the “said authority”) to which any dispute of the nature specified in section 22 has been referred, the balance-sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the Comptroller and Auditor-General of India or by auditors duly qualified to act as auditors of companies under sub-section (1) of section 226 of the Companies Act, 1956 (1 of 1956), are produced before it, then, the said authority may presume the statements and particulars contained in such balance-sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an affidavit or by any other mode:

Provided that where the said authority is satisfied that the statement and particulars contained in the balance-sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.

(2) When an application is made to the said authority by any trade union being a party to the dispute or where there is no trade union, by the employees being a party to the dispute, requiring any clarification relating to any item in the balance-sheet or the profit and loss account, it may, after satisfying itself that such clarification is necessary, by order, direct the corporation or, as the case may be, the company, to furnish to the trade union or the employees such clarification within such time as may be specified in the direction and the corporation or, as the case may be, the company, shall comply with such direction.

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Page 3

1. The Act has been extended to Goa, Daman and Diu by Act 6 of 1977, s. 2 and the Schedule.
2. Subs. by Act 43 of 1977, s. 3, for the long title (w.e.f. 3-9-1977).
3. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
4. The proviso added by Act 23 of 1976, s. 3 (w.e.f. 25-9-1975).
5. The proviso added by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
6. The proviso inserted by Act 23 of 1976, s. 3 (w.e.f. 25-9-1975).
7. The words, brackets, letter and figure “under clause (b) of sub-section (3)” omitted by s. 3, ibid. (w.e.f. 25-9-1975).
8. Certain words, brackets and figure added by s. 3, ibid. (w.e.f. 25-9-1975).*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammuand Kashmir and the Union territory of Ladakh.

Page 4

1. Ins. by Act 66 of 1980, s. 2 (w.e.f. 21-8-1980).
2. The words, brackets and figures “and includes any amount treated as such under sub-section (2) of section 34” omitted byAct 23 of 1976, s. 4 (w.e.f. 25-9-1975).
3. Ins. by s. 4, ibid. (w.e.f. 25-9-1975).

Page 5

1. Subs. by Act 6 of 2016, s. 2, for “ten thousand rupees” (w.e.f. 1-4-2014).

Page 6

1. Subs. by Act 66 of 1980, s. 3, for section 4 (w.e.f. 21-8-1980).

Page 7

1. The proviso added by Act 8 of 1969, s. 2 (w.e.f. 26-3-1965).
2. Subs. by Act 66 of 1980, s. 4, for “development rebate or development allowance” (w.e.f. 21-8-1980).
3. Subs. by s. 4, ibid., for “Second Schedule” (w.e.f. 21-8-1980).
4. Subs. by Act 8 of 1969, s. 3, for “For the purpose of clause (c) of section 6, any direct tax payable by the employer”(w.e.f. 26-3-1965).

Page 8

1. Subs. by Act 66 of 1980, s. 5, for “(other than development rebate or development allowance)” (w.e.f. 21-8-1980).
2. Subs. by s. 6, ibid., for section 10 (w.e.f. 21-8-1980).
3. Ins. by Act 67 of 1985, s. 3 (w.e.f. 7-11-1985).
4. Subs. by Act 6 of 2016, s. 3, for “three thousand and five hundred rupees” (w.e.f. 1-4-2014).

Page 9

1. Subs. by Act 6 of 2016, s. 3, for “three thousand and five hundred rupees” (w.e.f. 1-4-2014).
2. The Explanation inserted by s. 3, ibid. (w.e.f. 1-4-2014).
3. Subs. by Act 66 of 1980, s. 8, for section 13 (w.e.f. 21-8-1980).
4. Subs. by s. 9, ibid., for section 15 (w.e.f. 21-8-1980).
5. Subs. by Act 23 of 1976, s. 12, for sub-section (1) and the Explanation thereto (w.e.f. 25-9-1975).

Page 10

1. Subs. by Act 66 of 1980, s. 10, for “Third Schedule” (w.e.f. 21-8-1980).
2. Subs. by Act 23 of 1976, s. 12, for “sub-section (1)” (w.e.f. 25-9-1975).

Page 11

1. Subs. by Act 23 of 1976, s. 13, for “(1) Subject to this provisions of this section, all amounts” (w.e.f. 25-9-1975).
2. Sub-sections (2) to (7) omitted by s. 13, ibid. (w.e.f. 25-9-1975).
3. Sub-section (8) omitted by Act 55 of 1973, s. 2 (w.e.f. 1-9-1973).
4. Section 20 renumbered as sub-section (1) thereof by Act 66 of 1980, s. 11 (w.e.f. 21-8-1980).
5. Ins. by s. 11, ibid. (w.e.f. 21-8-1980).

Page 12

1. Subs. by Act 66 of 1980, s. 12, for “sections 22, 23 and 25” (w.e.f. 21-8-1980).
2. Subs. by Act 23 of 1976, s. 16, for “and in sections 24 and 25” (w.e.f. 25-9-1975).
3. Subs. by Act 66 of 1980, s. 13, for “section 25” (w.e.f. 21-8-1980).
4. Ins. by s. 14, ibid. (w.e.f. 21-8-1980).

Page 13

1. Ins. by Act 66 of 1980, s. 15 (w.e.f. 21-8-1980).

Page 14

1. Ins. by Act 66 of 1980, s. 16 (w.e.f. 21-8-1980).
2. Ins. by Act 23 of 1976, s. 19 (w.e.f. 25-9-1975).
3. Ins. by Act 66 of 1980, s. 17 (w.e.f. 21-8-1980).

Page 15

1. Subs. by Act 66 of 1980, s. 17, for “Provided that” (w.e.f. 21-7-1980).
2. The words in brackets shall stand omitted (date to be notified) by Act 62 of 1968, s. 41.
3. Clause (vi) omitted by Act 45 of 2007, s. 4 (w.e.f. 1-4-2006).
4. Clause (vii) omitted by Act 66 of 1980, s. 18 (w.e.f. 21-7-1980).
5. Subs. by Act 61 of 1981, s. 61 and the Second Schedule, for sub-clause (d) (w.e.f. 2-7-1982).
6. Ins. by Act 39 of 1989, s. 53 and the Second Schedule (w.e.f. 7-3-1990).
7. Ins. by Act 53 of 1987, s. 56 and the Second Schedule (w.e.f. 9-7-1988).

Page 16

1. Ins. by Act 66 of 1980, s. 18 (w.e.f. 21-8-1980).
2. Clause (x) omitted by Act 23 of 1976, s. 20 (w.e.f. 25-9-1975).
3. Subs. by s. 22, ibid., for section 34 (w.e.f. 25-9-1975).
4. Subs. by Act 6 of 2016, s. 4, for sub-section (1) (w.e.f. 1-4-2014).
5. Subs. by Act 23 of 1976, s. 24, for “or in two successive sessions” (w.e.f. 25-9-1975).
6. Subs. by s. 24, ibid., for “in which it is so laid or the session immediately following” (w.e.f. 25-9-1975).

Page 18

1. Ins. by Act 66 of 1980, s. 19 (w.e.f. 21-8-1980).
2. Where the profit subject to taxation is shown in the Profit and Loss Account and the provision made for taxes on incomeis shown, the actual provision for taxes on income shall be deducted from the profit.

Page 22

1. The First Schedule renumbered as the Second Schedule by Act 66 of 1980, s. 19 (w.e.f. 21-8-1980).
2. Subs. by s. 19, ibid., for “(See section 4)” (w.e.f. 21-8-1980).
3. Subs. by s. 19, ibid., for entry (d) (w.e.f. 21-8-1980).
4. Ins. by Act 23 of 1976, s. 26 (w.e.f. 25-9-1975).

Page 25

1. Subs. by Act 23 of 1976, s. 26, for sub-item (g) (w.e.f. 25-9-1975).
2. Explanation inserted by s. 26, ibid. (w.e.f. 25-9-1975).

Page 26

1. The Second Schedule renumbered as the Third Schedule by Act 66 of 1980, s. 20 (w.e.f. 21-8-1980).
2. Subs. by s. 20, ibid., for “Company” (w.e.f. 21-8-1980).
3. Ins. by s. 20, ibid. (w.e.f. 21-8-1980).

Page 29

1. Subs. by Act 66 of 1980, s. 20, for “1(iii) and 3(ii)” (w.e.f. 21-8-1980).

Page 30

1. Subs. by Act 66 of 1980, s. 21, for the Third Schedule (w.e.f. 21-8-1980).