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Wealth Tax Act, 1957 Complete Act - Bare Act

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WEALTH TAX ACT, 1957


WEALTH TAX ACT, 1957

27 of 1957
An Act to provide for the levy of wealth-tax
BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called the Wealth-tax Act, 1957.
(2) It extends to the whole of India.
(3) It shall be deemed to have come into force on the 1st day of April, 1957.
SECTION 02: DEFINITIONS
In this Act, unless the context otherwise requires,-
(a)2[***]
3[(b) "Appellate Tribunal" means the Appellate Tribunal constituted under section 252 of the Income-tax Act;
(c) "assessee" means a person by whom wealth-tax or any other sum of money is payable under this Act, and includes-
(i) every person in respect of whom any proceeding under this Act has been taken for the determination of wealth-tax payable by him or by any other person or the amount of refund due to him or such other person :
(ii) every person who is deemed to be an assessee under this Act ;
(iii) every person who is deemed to be an assessee in default under this Act;
4[(ca) "Assessing Officer " means the Deputy Commissioner of Income-tax or the Assistant Commissioner or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or subsection (2) of section 120 or any other provision of the Income-tax Act which apply for the purposes of wealth-tax under section 8-of this Act and also the Joint Commissioner who is directed under clause (b) of sub-section (4) of the said section 120to exercise or perform all or any of the powers and functions conferred on or assigned to the Assessing Officer under that Act;]
5[(cb)] "assessment" includes reassessment ;
(d) "assessment year" means a period of twelve months commencing on the 1st day of April, every year ;]
6[7(e)8"assets" includes property of every description, movable or immovable, but does not include,-
(1) in relation to the assessment year commencing on the 1st day of April, 1969, or any earlier assessment year-
(i) agricultural land and growing crops, grass or standing trees on such land;
(ii) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land : Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as a dwelling house or a store-house or an out-house;
(iii) animals;
(iv) a right to any annuity in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant ;
(v) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee ;
(2) in relation to the assessment year commencing on the 1st day of April, 1970, or any subsequent assessment year9[but before the 1st day of April, 1993]-
(i) animals;
(ii) a right to any annuity10[(not being an annuity purchased by the assessee or purchased by any other person in pursuance of a contract with the assessee)] in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant ;
(iii) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee :]
11[Provided that in relation to the assessment year commencing on the 1st day of April, 1981,12[and the assessment year commencing on the 1st day of April, 1982], this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely :-
"(i)
(a) agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation ;
(b) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation: Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of the rent or revenue by reason of his connection with the land requires as a dwelling-house or a store-house or an out-house ;
(c) animals;':]
13[Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent assessment year, this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely :-
''(i)
(a) agricultural land and growing crops (including fruits on trees), grass or standing trees on such land ;
(b) one building or one group of buildings owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land: Provided that such buildings or group of buildings is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as store-house or for keeping livestock ;
(c) animals;":]
14[15[16[Provided also] that] in relation to the State of Jammu and Kashmir, this sub-clause shall have effect subject to the modification that for the assets specified in17[item (i)] of this sub-clause, the assets specified in18[items (i) to (iii)] of sub clause (1) shall be substituted and the other provisions of this Act shall be construed accordingly;]
19[(ea) "assets', in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means-
20[(i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes or for the purpose of maintaining a guesthouse or otherwise including a farmhouse situated within twenty-five kilometres from local limits of any municipality (whether known as municipality, municipal corporation or by any other name) or a cantonment board, but does not include-
(1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or director who is in whole time employment, having a gross annual salary of less than two lakh rupees;
(2) any house for residential or commercial purposes which forms part of stock-in-trade ;
(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;] The following sub-clause (i) shall be substituted for the existing sub-clause (i) in clause (ea) of section 2 by the Finance (No. 2) Act, 1998, w.e.f. 1\4\1999 : (i) any building or land appurtenant thereto (hereinafter referred to as "house'), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include
(1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than five lakh rupees;
(2) any house for residential or commercial purposes which forms part of stock-in-trade;
(3) any house which the assessee may occupy for the purposes of any business or profession carried on by him;
(4) any residential property that has been let-out for a minimum period of three hundred days in the previous year;
(5) any property in the nature of commercial establishments or complexes;-
(ii) motor cars (other than those used by the assessee in the business of running them on hire or as stock-in-trade) ;
(iii) jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals: Provided that where any of the said assets is used by the assessee as stock-in-trade, such asset shall be deemed as excluded from the assets specified in this sub-clause ;
(iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes) ;
(v) urban land;
(vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account.21Explanation 1.-For the purposes of this clause,- (a) "jewellery" includes- (i) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel ; (ii) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any wearing apparel ; (b) "urban land" means land situate- (i) in any area which is comprised within the jurisdiction of a municipality (whether
known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the valuation date ; or (ii) in any area within such distance, not being more than eight kilometres from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the extent of, and scope for, urbanisation of That area and other relevant considerations, specify in this behalf by notification22in the Official Gazette, but does not include land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated or the land occupied by any building which has been constructed with the approval of the appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him23[or any land held by the assessee as stock-in-trade for a period of24[five] years from the date of its acquisition by him;]]25 [Explanation 2.-For the removal of doubts, it is hereby declared that "jewellery" does not include the Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.'.]
(f) "Board" means the26[Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)] ;
(g)27[***]
(gg)28[***]
29[(h) "company'' shall have the meaning assigned to it in clause (17) of section 2 of the Income-tax Act;]
30[(ha) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ;]
(hb)31[***]
(i) "executor" means an executor or administrator of the estate of a deceased person;
32[(ia) "High Court", in relation to the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, means the High Court at Bombay;]
33[(j) "Income-tax Act" means the Income-tax Act, 1961 (43 of 1961);]
(k)34[***]
35[(ka) "India" shall be deemed to include the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry-
(i) as respects any period, for the purposes of section 6-; and
(ii) as respects any period included in the year ending with the valuation date, for the purpose of making any assessment for the assessment year commencing on the 1st day of April, 1963 or for any subsequent year ;]
(l)36[***]
(la)37[***]
38[(lb) "legal representative"39has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908);]
40[(lc) "maximum marginal rate" means the rate of wealth-tax applicable in relation to the highest slab of wealth in the case of an individual as specified in Part I of Schedule I;]
"(m) "net wealth" means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valua- tion date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee42[on the valuation date which have been incurred in relation to the said assets ;]
(n) "prescribed" means prescribed by rules made under this Act ;
(o) "principal officer", used with reference to a company, means the secretary, manager, managing agent or managing director of the company, and includes any person connected with the manage- ment of the affairs of the company upon whom the43[Assessing Officer] has served a notice of his intention of treating him as the principal officer thereof;
45[(oa) "public servant"46has the same meaning as in section 21 of the Indian Penal Code (45 of 1860);]
47[(oaa) "registered valuer" means a person registered as a valuer unders ection 34AB-;]
48[(ob) "regular assessment" means the assessment made under49[sub- section (3) or sub-section (5) of section 16-;]
(p) "Ruler"49a means a Ruler as defined in clause (22) of article 366 of the Constitution;
(q) "valuation date", in relation to any year for which an assessment is to be made under this Act, means the last day of the previous year as defined in51[section 3] of the Income-tax Act, if an assessment were to be made under that Act for that year :52[Provided that-
(i)53[***]
(ii) in the case of a person who is not an assessee within the meaning of the Income-tax Act, the valuation date for the purposes of this Act shall be the 31st day of March imme- diately preceding the assessment year ;
(iii) where an assessment is made in pursuance of section 19A-, the valuation date shall be the same valuation date as would have been adopted in respect of the net wealth of the deceased if he were alive;]
54[(r) "Valuation Officer" means a person appointed as a Valuation Officer under section 12A-, and includes a Regional Valuation Officer, a District Valuation Officer, and an Assistant Valuation Officer;]
56[(s) the expressions "Chief Commissioner, Director-General, Commissioner, Commissioner (Appeals), Director, Additional Director of Income-tax, Additional Commissioner of Income-tax, Joint Director, Joint Commissioner of Income-tax, Deputy Director, Deputy Commissioner, Assistant Commissioner, Assistant-Director, Income-tax Officer, Inspector of Income-tax, and Tax Recovery Officer"
shall have the meanings respectively assigned to them under section 2 of the Income-tax Act.]
SECTION 03: CHARGE OF WEALTH--TAX
57[(1)]58[Subject to the other provisions contained in this Act], there shall be charged for every59[assessment year] commencing on and from the first day of April, 195760[but before the first day of April, 1993], a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company61at the rate or rates specified in62[Schedule I].
63[(2) Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the 1st day of April, 1993, wealth-tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company, at the rate of one per cent of the amount by which the net wealth exceeds fifteen lakh rupees.]
SECTION 04: NET WEALTH TO INCLUDE CERTAIN ASSETS
(1)64[In computing the net wealth-
(a) of an individual, there shall be included, as belonging to that individual, the value of assets which on the valuation date
are held-]
65[(i) by the spouse of such individual to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart, or
(ii) by a minor child, not being66[a minor child suffering from any disability of the nature specified in section 80U of the Income-tax Actor] a married daughter, of such individual,67[***] or
(iii) by a person or association of persons to whom such assets have been transferred by the individual68[directly or indirectly] other- wise than for adequate consideration for the immediate or deferred benefit of the individual, his or her spouse69[***], or]
(iv) by a person or association of persons to whom such assets have been transferred by the individual otherwise than under an irrevocable transfer,70[or] 70[(v) by the son's wife,71[***] of such individual, to whom such assets have been transferred by the individual, directly or indirectly, on or after the 1st day of June, 1973, otherwise than for adequate consideration,]72[or]
72[(vi) by a person or association of persons to whom such assets have been transferred by the individual, directly or indirectly, on or after the 1st day of June, 1973, otherwise than for adequate consideration for the immediate or deferred benefit of the son's wife,73[***] of such individual or both,] whether the assets referred to in any of the sub-clauses aforesaid are held in the form in which they were transferred or otherwise :
74[Provided that where the transfer of such assets or any part thereof is either chargeable to gift-tax under the Gift-tax Act, 1958 (18 of 1958), or is not chargeable under section 5of that Act, for any assessment year commencing after the 31st day of March, 1964,75[but before the 1st day of April, 1972,] the value of such assets or part thereof, as the case may be, shall not be included in computing the net wealth of the individual :]76[Provided further that nothing contained in sub-clause (ii) shall apply in respect of such assets as have been acquired by the minor child out of his income referred to in the proviso to subsection
(1A) of section 64 of the Income-tax Act and which are held by him on the valuation date: Provided also that where the assets held by a minor child are to be included in computing the net wealth of an individual, such assets shall be included,-
(a) where the marriage of his parents subsists, in the net wealth of that parent whose net wealth (excluding the assets of the minor child so includible under this sub-section) is greater ; or
(b) where the marriage of his parents does not subsist, in the net wealth of that parent who maintains the minor child in the previous year as defined in section 3 of the Income-tax Act, and where any such assets are once included in the net wealth of either parent, any such assets shall not be included in the net wealth of the other parent in any succeeding year unless the Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so to do ;]
77[(b) of an assessee who is a partner in a firm or a member of an association of persons (not being a co-operative housing society), there shall be included, as belonging to that assessee, the value of his 78[interest in the assets of the firm] or association determined in the manner laid down in Schedule III :79[Provided that where a minor is admitted to the benefits of partner-ship in a firm, the value of the interest of such minor in the firm, determined in the manner specified above, shall be included in the net wealth of the parent of the minor, so far as may be, in accordance with the provisions of the third proviso to clause (a).]
80[(1A) Where, in the case of an individual being a member of a Hindu undivided family, any property having been the separate property of the individual has, at any time after the 31st day of December, 1969, been converted by the individual into property belonging to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it81[into the common stock of the family or been transferred by the individual, directly or indirectly, to the family otherwise than for adequate consideration (the property so converted or transferred being hereinafter referred to as the converted property)], then, notwithstanding anything contained in any other provision of this Act or in any other law for the time being in force, for the purpose of computing the net wealth of the individual under this Act for any assessment year commencing on or after the 1st day of April, 1972,-
(a) the individual shall be deemed to have transferred the converted property, through the family, to the members of the family for being held by them jointly ;
(b) the converted property or any part thereof82[***] shall be deemed to be assets belonging to the individual and not to the family ;
83[(c) where the converted property has been the subject-matter of a partition (whether partial or total) amongst the members of the family, the converted property or any part thereof which is received by the spouse84[***] of the individual on such partition shall be deemed to be assets transferred indirectly by the individual to the spouse84[***] and the provisions of sub-section (1) shall, so far as may be, apply accordingly:] Provided that the property referred to in clause (b) or clause (c) shall, on being included in the net wealth of the individual, be excluded from the net wealth of the family or, as the case may be, the spouse84[***] of the individual.]
85(2) [Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1\4\1989.]
86(3) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993]
(4) Nothing contained in clause (a) of sub-section (1) shall apply to any such transfer as is referred to therein made by an individual before the 1st day of April, 1956, and the value of any assets so transferred shall not be induced in the computation of his net wealth.
87[(4A) Notwithstanding anything in sub-section (4), nothing contained in clause
(a) of sub-section (1) shall apply to any such transfer as is referred to therein made before the 1st day of April, 1963, by an individual who but for the extension of this Act to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry, would not have been an assessee, and the value of any assets so transferred shall not be included in the computation of his net wealth.]
(5) The value of any assets transferred under an irrevocable transfer shall be liable to be included in computing the net wealth of the transferor as and when the power to revoke arises to him.
88[(5A) Where a gift of money from one person to another is made by means of entries in the books of account maintained by the person making the gift or by an individual or a Hindu undivided family or a firm or an association of persons or body of individuals with whom or which he has business or other relationship, the value of such gift shall be liable to be included in computing the net wealth of the person making the gift unless he proves to the satisfaction of the89[Assessing Officer] that the money has actually been delivered to the other person at the time the entries were made.] 84
[(6) For the purposes of this Act, the holder of an impartible estate shall be deemed to be the individual owner of all the properties comprised in the estate.]
85 [(7) Where the assessee is a member of a co-operative society, company or other association of persons and a building or part thereof is allotted or leased to him under a house building scheme of the society , company or association, as the case may be, the assessee shall, notwithstanding anything contained in this Act or any other law for the time being in force, be deemed to be the owner of such building or part and the value of such building or part, shall be included in computing the net wealth of the assessee; and, in determining the value of such building or part, the value of any outstanding instalments of the amount payable under such scheme by the assessee to the society, company or association towards the cost of such building or part and the land appurtenant thereto shall, whether the amount so payable is described as such or in any other manner in such scheme, be deducted as a debt owed by him in relation to such building or part.
(8) A person-
(a) 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 in92section 53A of the Transfer of Property Act, 1882 (4 of 1882);
(b) 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 269UA of the Income-tax Act, 1961 (43 of 1961), shall be deemed to be the owner of that building or part thereof and the value of such building or part shall be included in computing the net wealth of such person.] Explanation.-For the purposes of this section,- (a) the expression "transfer" includes any disposition, settlement, trust, covenant, agreement or arrangement ;93[***]94[(aa) the expression "child" includes a step-child and an adopted child;]94[(b) the expression "irrevocable transfer" includes a transfer of assets which, by the terms of the instrument effecting it, is not revocable for a period exceeding six years or during the lifetime of the transferee, and under which the transferor derives no direct or indirect benefit, but does not include a transfer of assets if such instrument- (i) contains any provision for the retransfer, directly or indirectly, of the whole or any part of the assets or income there from to the transferor, or(ii) in any way gives the transferor a right to reassume power, directly or indirectly, over the whole or any part of the assets or income there from];95[and]96[(c) the expression "property' includes any interest in any property, movable or immovable, the proceeds of sale thereof and any money or investment for the time being representing the proceeds of sale thereof and where the property is converted into any other property by any method, such other property97[***].]97[***]
SECTION 5 Exemptions in respect of certain assets
99[[***] Wealth-tax shall not be payable by an assessee in respect of the following assets], and such assets shall not be included in the net wealth of the assessee-
(i) any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India :100[Provided that nothing contained in this clause shall apply to any property forming part of any business, not being a business referred to in clause (a) or clause (b) of sub-section (4A) of section 11 of the Income tax
Act in respect of which separate books of account are maintained or a business carried on by an institution, fund or trust referred to in101[clause (22) or clause (22A) or] clause (23B) or clause (23C) of section 10of that Act;]
(ii) the interest of the assessee in the coparcenary property of any Hindu undivided family of which he is a member;
(iii)102[any one building in the occupation of a Ruler, being a building which immediately before the commencement of the Constitution (26 Amendment) Act, 1971, was his official residence by virtue of a declaration by the Central Government] under paragraph 13 of the Merged States (Taxation Concessions) Order, 1949, or paragraph 15 of the Part B States (Taxation Concessions) Order, 1950;
(iv) to103[Omitted by- the Finance Act, 1992, w.e.f. 1-4-1993.] (xiii)
104(iv)105jewellery in the possession of any Ruler, not being his personal property, which has been recognised before the commencement of this Act, by the Central Government as his heirloom or, where no such recognition exists, which the Board may, subject to any rules that may be made by the Central Government in this behalf, recognise as his heirloom at the time of his first assessment to wealth-tax under this Act:106[Provided that in the case of jewellery recognised by the Central Government as aforesaid, such recognition shall be subject to the following conditions, namely :-
(i) that the jewellery shall be permanently kept in India and shall not be removed outside India except for a purpose and period approved by the Board ;
(ii) that reasonable steps shall be taken for keeping the jewellery substantially in its original shape ;
(iii) that reasonable facilities shall be allowed to any officer of Govern- ment authorised by the Board in this behalf to examine the jewellery as and when necessary ; and
(iv) that if any of the conditions hereinbefore specified is not being duly fulfilled, the Board may, for reasons to be recorded in writing, withdraw the recognition retrospectively with effect from the date of commencement of clause (b) of section 5 of the Rulers of Indian States (Abolition of Privileges) Act, 1972, and in such a case, wealth-tax shall become payable by the Ruler for all the assessment years after such commencement for which the jewellery was exempted on account of the recognition. Explanation.-For the purposes of clause (iv) of the foregoing proviso, the fair market value of any jewellery on the date of the withdrawal of the recognition in respect thereof shall be deemed to be the fair market value of such jewellery on each successive valuation date relevant for the assessment years referred to in the said proviso: Provided further that the aggregate amount of wealth-tax payable in respect of any jewellery under clause (iv) of the foregoing proviso for all the assessment years referred to therein shall not in any case exceed fifty per cent of its fair market value on the valuation date relevant for the assessment year in which recognition was with- drawn;]
(xv) to107[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (xxxii)
108[109[(v)]110in the case of an assessee, being a person of Indian origin111[or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys112[within one year immediate- ly preceding the date of his return and at any time thereafter] : Provided that this exemption shall apply only for a period of seven successive assessment years commencing with the assessment year next following the date on which such person returned to India. Explanation113[1].-A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India.]
114[Explanation 2.-For the removal of doubts, it is hereby declared that moneys standing to the credit of such person in a Non- resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made there under, on the date of his return to India, shall be deemed to be moneys brought by him into India on that date;]
115[(vi)116one house or part of a house belonging to an individual or a Hindu undivided family;]The following clause
(vi) shall be substituted for clause (vi) of section 5 by the Finance (No. 2) Act, 1998, w.e.f. 1\4\1999 : (vi) one house or part of a house or a plot of land belonging to an individual or a Hindu undivided family : Provided that wealth-tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred
square meters or less.
(xxxiv)117[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(1A)118[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(2)119[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(3)120[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(4)121[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993]
SECTION 06: EXCLUSION OF ASSETS AND DEBTS OUTSIDE INDIA
In computing the net wealth of an individual123[who is not a citizen of India or of an individual] or a Hindu undivided family not resident in India or resident but not ordinarily resident in India, or of a company not resident in India during the year ending on the valuation date-
(i) the value of the assets and debts located outside India ; and
(ii) the value of the assets in India represented by any loans or debts owing to the assessee in any case where the interest, if any, payable on such loans or debts is not to be included in the total income of the assessee under124 [section 10] of the Income-tax Act: shall not be taken into account. Explanation 1.-An individual or a Hindu undivided family shall be deemed to be not resident in India or resident but not ordinarily resident in India during the year ending on the valuation date if in respect of that year the individual or the Hindu undivided family, as the case may be, is not resident in India or resident but not ordinarily resident in India within the meaning of the Income- tax Act.
125[Explanation 1A.-Where in the case of an individual the value of an asset in India is represented by any debt owing to him, being any moneys to his credit in a Non-resident (External) Account, the interest payable on which is not to be included in his total income under126[sub-clause (ii) of clause (4)] of section 10 of the Income-tax Act, the provisions of this section shall, in relation to such asset, apply subject to the modification that the reference in this section to an individual not resident in India shall be construed as a reference to a person resident outside India as defined in clause (q) of section 2127of the Foreign Exchange Regulation Act, 1973 (46 of 1973)]. Explanation 2-A company shall be deemed to be resident in India during the year ending on the valuation date, if- (a) it is a company formed and registered under the Companies Act, 1956 (1 of 1956), or is an existing company within the meaning of that Act; or (b) during that year the control and management of its affairs is situated wholly in India.
SECTION 07: VALUE OF ASSETS, HOW TO BE DETERMINED
(1) Subject to the provisions of sub-section (2), the value of any asset, other than cash, for the purposes of this Act shall be its value as on the valuation date determined in the manner laid down in Schedule III.
(2) The value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date, may, at the optition of the assessee, be taken to be the value determined in the manner laid down in Schedule III as on the valuation date next following the date on which he became the owner of the house or the valuation date relevant to the assessment year commencing on the 1st day of April, 1971, whichever valuation date is later :130[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
Explanation.-For the purposes of this sub-section,- (i) where the house has been constructed by the assessee, he shall be deemed to have become the owner thereof on the date on which the construction of such house was completed; (ii) "house" includes a part of a house being an independent residential unit.]
SECTION 08: WEALTH--TAX AUTHORITIES AND THEIR JURISDICTION
The income-tax authorities specified in section 116 of the Income-tax Act shall be the wealth-tax authorities for the purposes of this Act and every such authority shall exercise the powers and perform the functions of a wealth-tax authority under this Act in respect of any individual, Hindu undivided family or company, and for this purpose his jurisdiction under this Act shall be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120of that Act (including orders or directions assigning concurrent jurisdiction) or under any other provision of that Act. Explanation.-For the purposes of this section, the wealth-tax authority having jurisdiction in relation to a person who is not an assessee within the meaning of the Income-tax Act shall be the wealth-tax authority having jurisdiction in respect of the area in which that person resides.]
SECTION 08A: POWERS OF COMMISSIONER RESPECTING SPECIFIED AREAS, CASES, PERSONS, ETC
.
132[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 08AA: CONCURRENT JURISDICTION OF INSPECTING ASSISTANT COMMISSIONER AND WEALTH--TAX OFFICER
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 08B: POWER TO TRANSFER CASES
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 09: CONTROL OF WEALTH--TAX AUTHORITIES
Section 118 of the Income-tax Act and any notification issued there under shall apply in relation to the control of wealth-tax authorities as they apply in relation to the control of the corresponding income-tax authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise direct in respect of any wealth-tax authority.]
SECTION 09A: COMMISSIONERS OF WEALTH--TAX (APPEALS)
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 10: INSTRUCTIONS TO SUBORDINATE AUTHORITIES
(1) The Board may, from time to time, issue such orders, instructions and directions to other wealth-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board : Provided that no such orders, instructions or directions shall be issued-
(a) so as to require any wealth-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or
(b) so as to interfere with the discretion of the Deputy Commissioner (Appeals) or Commissioner (Appeals) in the exercise of his appellate functions.
(2) Without prejudice to the generality of the foregoing power,-
(a) the Board may, if it considers it necessary or expedient so to do, for the purpose of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time, (whether by way of relaxation of any of the provisions of sections138[14, 15, 16, 17, 17B,] 18 and 35 or otherwise), general or special orders in respect of any class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other wealth-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information;
(b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any wealth-tax authority, not being a Deputy Commissioner (Appeals) or Commissioner (Appeals), to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on merits in accordance with law.]
SECTION 10A: DIRECTORS OF INSPECTION
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 11: JURISDICTION OF ASSESSING OFFICERS AND POWER TO TRANSFER CASES
.
140[
(1) The provisions of sections 124and127 of the Income-taxAct shall, so far as may be, apply for the purposes of this Act as they apply for the purposes of the Income-tax Act, subject to the modifications specified in sub-section (2).
(2) The modifications referred to in sub-section (1) shall be the following, namely:-
(a) in section 124 of the Income-tax Act,-
(i) in sub-section (3), references to the provisions of the Income-tax Act shall be construed as references to the corresponding provi- sions of the Wealth-tax Act ;
(ii) sub-section (5) shall be omitted ;
(b) in section 127 of the Income-tax Act, in the Explanation below sub- section141[(4)], references to proceedings under the Income-tax Act shall be construed as including references to proceedings under the Wealth-tax Act.]
SECTION 11A: INSPECTOR OF WEALTH--TAX
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988]
SECTION 11AA: COMMISSIONER COMPETENT TO PERFORM ANY FUNCTION OR FUNCTIONS
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. l-4-1988.]
SECTION 11B: WEALTH--TAX OFFICER COMPETENT TO PERFORM ANY FUNCTION OR FUNCTIONS
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. l-4-1988.]
SECTION 12: CONTROL OF WEALTH--TAX AUTHORITIES
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 12A: APPOINTMENT OF VALUATION OFFICERS
147(1) The Central Government may appoint as many Valuation Officers as it thinks fit. (2) Subject to the rules and orders of the Central Government regulating the conditions of sen-ice of persons in public services and posts, a wealth-tax authority may appoint as many overseers, surveyors and assessors as may be necessary to assist the Valuation Officers in the performance of their functions].
SECTION 13: WEALTH--TAX AUTHORITIES TO FOLLOW ORDERS, ETC., OF THE BOARD
[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.]
SECTION 13A: POWERS OF
150[Director-General or Director],151[Chief Commissioner or Commissioner] and152[Joint Commissioner] to make enquiries The150[Director-General or Director], the153[Chief Commissioner or Commissioner] and the154[Joint Commissioner] shall be competent to make any enquiry under this Act, and for this purpose shall have all the powers that an155[Assessing Officer] has under this Act in relation to the making of enquiries.]
SECTION 14: RETURN OF WEALTH
157[(1) Every person, if his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date exceeded the maximum amount which is not chargeable to wealth-tax, shall, on or before the due date, furnish a return of his net wealth or the net wealth of such other person as on that valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of such net wealth and such other particulars as may be prescribed. Explanation. -In this sub-section, "due date" in relation to an assessee under this Act shall be the same date as that applicable to an assessee under the Income-tax Act under the Explanation to sub-section (1) of section 139 of the Income-tax Act.
(2) Notwithstanding anything contained in any other provisions of this Act, a return of net wealth which shows the net wealth below the maximum amount which is not chargeable to tax shall be deemed never to have been furnished : Provided that this sub-section shall not apply to a return furnished in response to a notice under section 17-.] (3)158[Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1\4\1989.]
SECTION 15: RETURN AFTER DUE DATE AND AMENDMENT OF RETURN
If any person has not furnished a return within the time allowed under sub- section (1) of section 14-or under a notice issued under clause (i) of sub- section (4) of section 16-, or having furnished a return discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier: Provided that- (a) where such return or revised return relates to the assessment year commencing on the 1st day of April, 1987, or
any earlier assessment year, it may be furnished at any time up to and inclusive of the 31st day of March, 1990 or before the completion of the assessment, whichever is earlier;
(b) where such return or revised return relates to the assessment year commencing on the 1st day of April, 1988, it may be furnished at any time up to and inclusive of the 31st day of March, 1991 or before the completion of the assessment, whichever is earlier.]
SECTION 15A: RETURN BY WHOM TO BE SIGNED
The return made under section 14-orsection 15-shall be signed and verified-
162[(a) in the case of an individual,- (i) by the individual himself : (ii) where he is absent from India, by the individual himself or by some person duly authorised by him in this behalf ; (iii) where he is mentally incapacitated from attending to his affairs, by his guardian or any other person competent to act on his behalf; and (iv) where, for any other reason, it is not possible for the individual to sign the return, by any person duly authorised by him in this behalf: Provided that in a case referred to in sub-clause (ii) or sub-clause (iv), the person signing the return holds a valid power of attorney from the individual to do so, which shall be attached to the return;]
(b) in the case of a Hindu undivided family, by the karta, and, where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family ; and
163[(c) in the case of a company, by the managing director thereof, or where for any unavoidable reason such managing director is not able to sign and verify the return or where there is no managing director, by any director thereof:]164[Provided that where the company is not resident in India, the return may be signed and verified by a person who holds a valid power of attorney from such company to do so, which shall be attached to the return : Provided further that,-
(a) where the company is being wound up, whether under the orders of the court or otherwise, or where any person has been appointed as the receiver of any assets of the company, the return shall be signed and verified by the liquidator referred to in sub-section (1) of section 178 of the Income-tax Act;
(b) where the management of the company has been taken over by the Central Government or any State Government under any law, the return of the company shall be signed and verified by the principal officer thereof.]
SECTION 15B: SELF--ASSESSMENT
(1) Where any tax is payable on the basis of any return furnished under section 14-orsection 15-or in response to a notice under clause (i) of sub- section (4) of section 16-or under section 17-, after taking into account the amount of tax, if any, already paid under any provision of this Act, the assessee shall be liable to pay such tax, together with interest payable under any provision of this Act, for any delay in furnishing the return, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest. Explanation.-Where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable.
(2) After the regular assessment under section 16-has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards such regular assessment.
(3) If any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid and all the provisions of this Act shall apply accordingly.]
166[(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]
SECTION 15C: PROVISIONAL ASSESSMENT
[Omitted by the Direct Tax Laws (Amendment)Act, 1987, w.e.f. 1\4\1989. Original section was inserted by the Wealth-tax. (Amendment)Act, 1964, w.e.f. 1-4-1965}
SECTION 16: ASSESSMENT
100(1) Where a return has been made under Section 14 or Section 15 or in response to a notice under clause (i) of sub-section (4),-
(i) if any tax or interest is found due on the basis of such return, after adjustment of any amount paid by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under Section 30 and all the provisions of this Act shall apply accordingly; and
(ii) if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee: Provided that except as otherwise provided in this sub-section, the acknowledgment of the return shall be deemed to be an intimation under this sub-section where either no sum is payable by the assessee or no refund is due to him: Provided further that no intimation under this sub-section shall be sent after the expiry of two years from the end of the assessment year in which the net wealth was first assessable.
172[(1A)[**101*]
175[(1B) [**102*]
(2)176[Where a return has been made under section 14-orsection 15-, or in response to a notice under clause (i) of sub-section (4) of this section, the Assessing Officer shall, if he] considers it necessary or expedient to ensure that the assessee has not understated the net wealth or has not underpaid the tax in any manner,177[* * *] serve on the assessee a notice requiring him, on a date to be specified therein, either to attend at the office of the Assessing Officer or to produce, or cause to be produced there, any evidence on which the assessee may rely in support of the return:178[Provided that no notice under this sub-section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.]
(3) On the day specified in the notice issued under sub-section (2) or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by order in writing, assess the net wealth of the assessee and determine the sum payable by him on the basis of such assessment.
(4) For the purposes of making an assessment under this Act, the Assessing Officer may serve, on any person who has made a return under section 14-orsection 15-or in whose case the time allowed under sub-section (1) of section 14-for furnishing the return has expired, a notice requiring him, on a date to be specified therein,-
(i) where such person has not made a return179[within the time allowed under sub-section (1) of section 14-] to furnish a return of his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date, in the prescribed form and verified in the prescribed manner, setting forth the particulars of such net wealth and such other particulars as may be prescribed, or
(ii) to produce or cause to be produced such accounts, records or other documents as the Assessing Officer may require. (5) If any person,-
(a) fails to make the return required under sub-section (1) of section 14-and has not made a return or a revised return under section 15-, or
(b) fails to comply with all the terms of a notice issued under sub-section (2) or sub-section (4), the Assessing Officer, after taking into account, all relevant material which he has gathered, shall, after giving such person an opportunity of being heard, estimate the net wealth to the best of his judgment and determine the sum payable by the person on the basis of such assessment : Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the person to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgment: Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section (4) has been issued prior to the making of the assessment under this sub-section.]
71[(6) Where a regular assessment under sub-section (3) or sub-section (5) is made,-
(a) any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment ;
(b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly.
(7) [**103*]
SECTION 16A: REFERENCE TO VALUATION OFFICER
183
(1) For the purpose of making an assessment (including an assessment in respect of any assessment year commencing before the date of coming into force of this section) under this Act,184[where under the provisions of section 7-read with the rules made under this Act, or, as the case may be, the rules in Schedule III, the market value of any asset is to be taken into account in such assessment,] the185[Assessing Officer] may refer the valuation of any asset to a Valuation Officer-
(a) in a case where the value of the asset as returned is in accordance with the estimate made by a registered valuer, if the185 [Assessing Officer] is of opinion that the value so returned is less than its fair market value;
(b) in any other case, if the185[Assessing Officer] is of opinion-
186(i) that the fair market value of the asset exceeds the value of the asset as returned by more than such percentage of the value of the asset as returned or by more than such amount as may be prescribed in this behalf ; or
(ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do.
(2) For the purpose of estimating the value of any asset in pursuance of a reference under sub-section (1), the Valuation Officer may serve on the assessee a notice requiring him to produce or cause to be produced on a date specified in the notice such accounts, records or other documents as the Valuation Officer may require.
(3) Where the Valuation Officer is of opinion that the value of the asset has been correctly declared in the return made by the assessee under section 14-orsection 15-, he shall pass an order in writing to that effect and send a copy of his order to the189 [Assessing Officer] and to the assessee.
(4) Where the Valuation Officer is of opinion that the value of the asset is higher than the value declared in the return made by the assessee under section 14-or,section 15-, or where the asset is not disclosed or the value of the asset is not declared in such return or where no such return has been made, the Valuation Officer shall serve a notice on the assessee intimating the value which he proposes to estimate and giving the assessee an opportunity to state, on a date to be specified in the notice, his objections either in person or in writing before the Valuation Officer and to produce or cause to be produced on that date such evidence as the assessee may rely in support of his objections.
(5) On the date specified in the notice under sub-section (4), or as soon thereafter as may be, after hearing such evidence as the assessee may produce and after considering such evidence as the Valuation Officer may require on any specified points and after taking into account all relevant materials which he has gathered, the Valuation Officer shall, by order in writing, estimate the value of the asset and send a copy of his order to the189[Assessing Officer] and to the assessee.
(6) On receipt of the order under sub-section (3) or sub-section (5) from the Valuation Officer, the189[Assessing Officer] shall, so far as the valuation of the asset in question is concerned, proceed to complete the assessment in conformity with the estimate of the Valuation Officer.]
SECTION 17: WEALTH ESCAPING ASSESSMENT
190[(1) If the Assessing Officer80[has reason to believe] that the net wealth chargeable to tax in respect of which any person is assessable under this Act has escaped assessment for any assessment year (whether by reason of underassessment or assessment at too low a rate or otherwise), he may, subject to the other provisions of this section and section 17A-. serve on such person a notice requiring him to furnish within such period,193[****], as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner setting forth the net wealth in respect of which such person is assessable as on the valuation date mentioned in the notice, along with such other particulars as may be required
by the notice, and may proceed to assess or reassess such net wealth and also any other net wealth chargeable to tax in respect of which such person is assessable, which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section for the assessment year concerned (hereafter in this section referred to as the relevant assessment year), and the provisions of this Act shall, so far as may be, apply as if the return were a return required to be furnished under section 14-:
Provided that where an assessment under sub-section (3) of section 16-or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any net wealth chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 14-orsection 15-or in response to a notice issued under sub-section (4) of section 16-or this section or to disclose fully and truly all material facts necessary for his assessment for that assessment year :195[Provided further that the Assessing Officer shall, before issuing any notice under this sub-section, record his reasons for doing so.]
Explanation.-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso.
(1A) No notice under sub-section (1) shall be issued for the relevant assessment year, -196
"(a)if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); 196
(b)if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the net wealth chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees ten lakh or more for that year.".
(1B)
(a) In a case where an assessment under sub-section (3) of section 16 or sub- section (1) of this section has been made for the relevant assessment year, no notice shall be issued under sub-section (1) [by an Assessing Officer, who is below the rank of Assistant Commissioner [or Deputy Commissioner], unless the197[Joint] Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice] : Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice.
(b) In a case other than a case falling under clause (a), no notice shall be issued under sub-section (1) by an Assessing Officer, who is below the rank of197 [Joint] Commissioner, after the expiry of four years from the end of the relevant assessment year, unless the197[Joint] Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.]
198[(2) Nothing contained in this section limiting the time within which any proceeding for assessment or reassessment may be commenced, shall apply to an assessment or reassessment to be made on such person in consequence of or to give effect to any finding or direction contained in an order under section 23-,24-,25-,27-or29-199[or by a Court in any proceedings under any other law] : Provided that the provisions of this sub-section shall not apply in any case where any such assessment or reassessment relates to an assessment year in respect of which an assessment or reassessment could not have been made at the time the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made by reason of any provision limiting the time within which any action for assessment or reassessment may be taken.]
SECTION 17A: TIME LIMIT FOR COMPLETION OF ASSESSMENT AND REASSESSMENT
201[(1) No order of assessment shall be made under section 16-at any time after the expiry of two years from the end of the assessment year in which the net wealth was first assessable :202[Provided that-
(a) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or before the 31st day of March, 1991;
(b) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992.]
(2) No order of assessment or reassessment shall be made under section 17-after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of that section was served : Provided that-
(i) where the notice under clause (a) of sub-section (1) of section 17-was served during the financial year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, such assessment or reassessment may be completed on or before the 31st day of March, 1990 ;
(ii) where the notice under clause (b) of sub-section (1) of section 17-relates to the assessment for the assessment year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, such assessment or reassessment may be completed on or before the 31st day of March, 1990, or the expiry of two years from the end of the financial year in which such notice was served, whichever is later. Explanation.-References to section 17 in the proviso shall be construed as references to that section as it stood before amendment by the Direct Tax Laws (Amendment) Act, 1987.]
(3) Notwithstanding anything contained in sub-sections (1) and (2), an order of fresh assessment in pursuance of an order passed on or after the 1st day of April, 1975, under section 23-,section 24-orsection 25-setting aside or cancelling an assessment, may be made at any time before the expiry of203[two years] from the end of the financial year in which the order under section 23-orsection 24-is received by the204[Chief Commissioner or Commissioner] or, as the case may be, the order under section 25-is passed by the Commissioner :205[Provided that where the order setting aside or cancelling an assessment was passed during the financial year commencing on the 1 st day of April, 1985, or the 1st day of April, 1986, the order of fresh assessment may be made on or before the 31st day of March, 1990.]
(4) The provisions of sub-sections (1) and (2) shall not apply to the assessment or reassessment made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under section 23-,section 24-,section 25-,section 27-orsection 29-or in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act, and such assessment or reassessment may, subject too to the provisions of sub-section (3), be completed at any time.
Explanation 1.-In computing the period of limitation for the purposes of this section- (i) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be reheard under the proviso to section 39, or (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court, or206[(iia) the period (not exceeding sixty days) commencing from the date on which the207[Assessing Officer] received the declaration under sub- section (1) of section 18C and ending with the date on which the order under sub-section (3) of that section is made by him, or] (iii) in a case where an application made before the Wealth-tax Settlement Commission under section 22C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such application is made and ending with the date on which the order under sub-section (1) of section 22D is received by the Commissioner under subsection
(2) of that section, shall be excluded: "Provided that where the notice under sub-section (1) of section 17-was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment or reassessment may be made at any time up to the 31st day of March, 2002.";
SECTION 17B: INTEREST FOR DEFAULTS IN FURNISHING RETURN OF NET WEALTH
(1) Where the return of net wealth for any assessment year under sub- section (1) of section 14-orsection 15-, or in response to a notice under clause (i) of sub-section (4) of section 16-, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one and one-fourth per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,-
(a) where the return is furnished after the due date, ending on the date of furnishing of the return, or
(b) where no return has been furnished, ending on the date of completion of the assessment under sub-section (5) of section
16-, on the amount of tax payable on the net wealth as determined210[under sub- section (1) of section 16-or] on regular assessment. Explanation 1.-In this section, "due date" means the date specified in sub- section (1) of section 14 as applicable in the case of
the assessee.
211[Explanation 2.-In this sub-section, "tax payable on the net wealth as determined under sub-section (1) of section 16" shall not include the additional wealth- tax, if any, payable under section 16.]
Explanation 3.-Where, in relation to an assessment year, an assessment is made for the first time under section 17, the assessment so made shall be regarded as a regular assessment for the purposes of this section.
212[Explanation 4.-In this sub-section, "tax payable on the net wealth as determined under sub-section (1) of section 16 or on regular assessment" shall, for the purposes of computing the interest payable under section 15B, be deemed to be tax payable on the net wealth as declared in the return.]
(2) The interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 15B-towards the interest chargeable under this section.
(3) Where the return of net wealth for any assessment year, required by a notice under sub-section (1) of section 17-, issued213[after the determination of net wealth under sub-section (1) of section 16-or] after the completion of an assessment under sub-section (3) or sub-section (5) of section 16-orsection 17-, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of two per cent for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,-
(a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return ; or
(b) where no return has been furnished, ending on the date of completion of the reassessment under section 17-, on the amount by which the tax on the net wealth determined on the basis of such reassessment exceeds the tax on the net wealth as determined214[under sub- section (1) of section 16-or] on the basis of the earlier assessment aforesaid. Explanation-215[* * *]
(4) Where, as a result of an order under section 23-orsection 24-orsection 25-orsection 27-orsection 29-orsection 35-or any order of the Wealth-tax Settlement Commission under sub-section (4) of section 22D-, the amount of tax on which interest was payable under this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and,-
(i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 30-and the provisions of this Act shall apply accordingly, and
(ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.
(5) The provisions of this section shall apply in respect of assessments, for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.]
SECTION 18: PENALTY FOR FAILURE TO FURNISH RETURNS, TO COMPLY WITH NOTICES AND CONCEALMENT OF ASSETS, ETC
(1) If the218[Assessing Officer],219[Deputy Commissioner (Appeals)], 220[Commissioner (Appeals),]221[Chief Commissioner or Commissioner] or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person.
(a)222[* * *]
(b) has223[* * *] failed to comply with a notice under sub-section (2) or sub- section (4) of section 16-; or
(c) has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts, he or it may, by order in writing, direct that such person shall pay by way of penalty-
(i)224[* * *]
225[(ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees for each such failure ;]
226[(iii) in the cases referred to in clause (c), in addition to any wealth-tax. payable by him, a sum which shall not be less than, but which shall not exceed five times, the amount of tax sought to be evaded by reason of the concealment of particulars of any assets or the furnishing of inaccurate particulars in respect of any assets or debts :227[Provided that in the cases referred to in clause (b), no penalty shall be imposable if the person proves that there was a reasonable cause for the failure referred to in that clause.]

Explanation 1
.-For the purposes of clause (iii) of this sub-section, the expression "the amount of tax sought to be evaded"- (a) in a case to which Explanation 3 applies, means the tax on the net wealth assessed; (b) in any other case, means the difference between the tax on the net wealth assessed and the tax that would have been chargeable had the net wealth assessed been reduced by the amount which represents the value of any assets in respect of which particulars have been concealed or inaccurate particulars have been furnished and of any debts in respect of which inaccurate particulars have been furnished.
Explanation 2.-Where in respect of any facts material to the computation of the net wealth of any person under this Act,- (A) such person fails to offer an explanation or offers an explanation which is found by the228[Assessing Officer] or the229
[Deputy Commissioner (Appeals)]230[or the Commissioner (Appeals)]233["or the Commissioner"] to be false, or (B) such person offers an explanation which he is not able to substantiate231[and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his net wealth have been disclosed by him], then, the amount added or disallowed in computing the net wealth of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the value of the assets in respect of which particulars have been concealed.232
[* * *]]
234[Explanation 3.-Where any person who has not previously been assessed under this Act, fails, without reasonable cause, to furnish within the period specified in sub-section (1) of section 17A, a return of his net wealth which he is required to furnish under section 14 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of sub-section (4) of section 16 or subsection (1) of section 17 and the Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has assessable net wealth, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his assets or furnished inaccurate particulars of any assets or debts in respect of such assessment year, notwithstanding that such person furnishes a return of his net wealth at any time after the expiry of either of the periods aforesaid applicable to him in pursuance of a notice under section 17.]
Explanation 4.-Where the value of any asset returned by any person is less than seventy per cent of the value of such asset as determined in an assessment under section 16 or section 17, such person shall be deemed to have furnished inaccurate particulars of such asset within the meaning of clause (c) of this sub- section, unless he proves that the value of the asset as returned by him is the correct value.]
235[Explanation 5.-Where in the course of a search under section 37A, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets represent or form part of his net wealth,- (a) on any valuation date falling before the date of the search, but the return in respect of the net wealth on such date has not been furnished before the date of the search or, where such return has been furnished before the said date, such assets have not been declared in such return ; or (b) on any valuation date falling on or after the date of the search, then, notwithstanding that such assets are declared by him in any return of net wealth furnished on or after the date of the search, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the particulars of such assets or furnished inaccurate particulars of such assets,236[unless- (1) such assets are recorded,- (i) in a case falling under clause (a), before the date of the search and (ii) in a case falling under clause (b), on or before such date, in the books of account, if any, maintained by him or such assets are otherwise disclosed to the237[Chief Commissioner or Commissioner] before the said date ; or (2) he, in the course of the search, makes a statement under sub-section (4) of section 37A that any money, bullion, jewellery or other valuable article or thing found in his possession or under his control, forms part of his net wealth which has not been disclosed so far in his return of net wealth to be furnished before the expiry of the time specified in sub-section (1) of section 14, and also specifies in the statement the manner in which such net wealth has been acquired and pays the tax, together with interest, if any, in respect of such net wealth].]
238[Explanation 6.-Where any adjustment is made in the wealth declared in the return under the proviso to clause (a) of subsection (1) of section 16 and additional wealth-tax charged under that section, the provisions of this sub- section shall not apply in relation to the adjustments so made.]
(1A)239[* * *]
(2) No order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of being heard.
(2A) and (2B)240[* * *]
241[(3) No order imposing a penalty under sub-section (1) shall be made,-
(i) by the Income-tax Officer, where the penalty exceeds ten thousand rupees;
(ii) by the Assistant Commissioner242[or Deputy Commissioner], where the penalty exceeds twenty thousand rupees, except with the prior approval of the243[Joint] Commissioner.]
(3A)244[* * *]
(4) A245[Deputy Commissioner (Appeals)],246[a Commissioner (Appeals),]247[Chief Commissioner or Commissioner] or the Appellate Tribunal on making an order under this section imposing a penalty, shall forthwith send a copy of the same to the248[Assessing Officer.]
249[(5) No order imposing a penalty under this section shall be passed-
(i) in a case where the assessment to which the proceedings for imposition of penalty relate is the subject-matter of an appeal to the Deputy Commissioner (Appeals) or the Commissioner (Appeals) under section 23-or an appeal to the Appellate Tribunal
under sub-section (2) of section 24-, after the expire of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which the order of the Deputy Commissioner (Appeals) or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever is later;
(ii) in a case where the relevant assessment is the subject-matter of revision under sub-section (2) of section 25-, after the expiry of six months from the end of the month in which such order of revision is passed;
(iii) in any other case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later.
Explanation.-In computing the period of limitation for the purposes of this section,-
(i) any period during which the immunity granted under section 22H remained in force;
(ii) the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 ; and
(iii) any period during which a proceeding under this section for the levy of penalty is stayed by an order or injunction of any court, shall be excluded.
(6) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989 shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]
SECTION 18A: PENALTY FOR FAILURE TO ANSWER QUESTIONS, SIGN STATEMENTS, FURNISH INFORMATION, ALLOW INSPECTION, ETC
(1) If any person,- (a) being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by a wealth-tax authority in the exercise of his powers under this Act; or (b) refuses to sign any statement made by him in the course of any proceedings under this Act, which a wealth-tax authority may legally require him to sign ; or (c) to whom a summons is issued under sub-section (1) of section 37- either to attend to give evidence or produce books of account or other documents at a certain place and time, omits to attend or produce the books of account or documents at the place and time, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure: Provided that no penalty shall be imposable under clause (c) if the person proves that there was reasonable cause for the said failure.
(2) If a person fails to furnish in due time any statement or information which such person is bound to furnish to the Assessing Officer under section 38-, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues: Provided that no penalty shall be imposable under this sub-section if the person proves that there was reasonable cause for the said failure.
(3) Any penalty imposable under sub-section (1) or sub-section (2) shall be imposed-
(a) in a case where the contravention, failure or default in respect of which such penalty is imposable occurs in the course of any proceeding before a wealth-tax authority not lower in rank than a251[Joint] Director or a251[Joint] Commissioner, by such wealth-tax authority ;
(b) in any other case, by the251[Joint] Director or the251[Joint] Commissioner.
(4) No order under this section shall be passed by any wealth-tax authority referred to in sub-section (3) unless the person on whom the penalty is proposed to be imposed has been heard, or has been given a reasonable opportunity of being heard in the matter, by such authority.
Explanation.-In this section, ''wealth-tax authority" includes a Director General, Director,251[Joint] Director, Assistant Director252[or Deputy Director] and a Valuation Officer while exercising the powers vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the matters specified in sub-section (1) of section 37.]
SECTION 18B: POWER TO REDUCE OR WAIVE PENALTY IN CERTAIN CASES
(1) Notwithstanding anything contained in this Act, the254[255[* * *] Commissioner] may, in his discretion, whether on his own motion or otherwise,-
(i)256[* * *]
(ii) reduce or waive the amount of penalty imposed or imposable on a person under clause (iii) of sub-section (1) of section 18, if he is satisfied that such person,-
(a)257[* * *]
(b) in the case referred to in clause (ii), has, prior to the detection by the258[Assessing Officer], of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of any asset or debt in respect of which the penalty is imposable, voluntarily and in good faith made full and true disclosure of such particulars, and also has co-operated in any inquiry relating to the assessment of his net wealth and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year.
Explanation259[* * *].-For the purposes of this sub-section, a person shall be deemed to have made full and true disclosure of the particulars of his assets or- debts in any case where the excess of net wealth assessed over the net wealth returned is of such a nature as not to attract the provisions of clause (c) of sub- section (1) of section 18.260[* * *]
(2) Notwithstanding anything contained in sub-section (1), if in a case falling under clause (c) of sub-section (1) of section 18-, the net wealth in respect of which the penalty is imposed or imposable for the relevant assessment year, or, where such disclosure relates to more than one assessment year, the net wealth for any one of the relevant assessment years, exceeds five hundred thousand rupees, no order reducing or waiving the penalty under sub-section (1) shall be made by261[the Commissioner except with the previous approval of the Chief Commissioner or Director General, as the case may be].
(3) Where an order has been made under sub-section (1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the making of such order :262[Provided that where an order has been made in favour of any person under sub-section (1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years if he makes an application to the wealth-tax authority referred to in sub-section (4) at any time before the 1st day of April, 1992.]
(4) Without prejudice to the powers conferred on him by any other provision of this Act, the263[[* * *] Commissioner] may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount, if he is satisfied that-
(i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case, and
(ii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.
(5) Every order made under this section shall be final and shall not be called into question by any court or any other authority.]
264[(6) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989, shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.]
SECTION 18C: PROCEDURE WHEN ASSESSEE CLAIMS IDENTICAL QUESTION OF LAW IS PENDING BEFORE HIGH COURT OR SUPREME COURT
266(1) Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his case for an assessment year which is pending before the267[Assessing Officer] or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical with a question of law arising in his case for another assessment year which is pending before the High Court or the Supreme Court on a reference under section 27-270["or in appeal under Section 27A-before the High Court"] or in appeal before the Supreme Court under section 29-(such case being hereafter in this section referred to as the other case), he may furnish to the268[Assessing Officer] or the appellate authority, as the case may be, a declaration in the prescribed form and verified in the prescribed manner, that if the268[Assessing Officer] or the appellate authority, as the case may be, agrees to apply to the relevant case the final decision on the question of law in the other case, he shall not raise such question of law in the relevant case in appeal before any appellate authority or271["in appeal before the High Court under section 27A or Supreme Court under Section 29"]
(2) Where a declaration under sub-section (1) is furnished to any appellate authority, the appellate authority shall call for a report from the268[Assessing Officer] on the correctness of the claim made by the assessee and, where the268 [Assessing Officer] makes a request to the appellate authority to give him an opportunity of being heard in the matter, the appellate authority shall allow him such opportunity.
(3) The268[Assessing Officer] or the appellate authority, as the case may be, may, by order in writing,-
(i) admit the claim of the assessee if he or it is satisfied that the question of law arising in the relevant case is identical with the question of law in the other case ; or
(ii) reject the claim if he or it is not so satisfied.
(4) Where a claim is admitted under sub-section (3),-
(a) the268[Assessing Officer] or, as the case may be, the appellate authority may make an order disposing of the relevant case without awaiting the final decision on the question of law in the other case ; and
(b) the assessee shall not be entitled to raise, in relation to the relevant case, such question of law in appeal before any appellate authority or272["in appeal before the High Court under section 27A or Supreme Court under Section 29"]
(5) When the decision on the question of law in the other case becomes final, it shall be applied to the relevant case and the268[Assessing Officer] or the appellate authority, as the case may be, shall, if necessary, amend the order referred to in clause (a) of sub-section (4) conformably to such decision.
(6) An order under sub-section (3) shall be final and shall not be called in question in any proceeding by way of appeal, reference or revision under this Act.
Explanation.-In this section,-
(a) "appellate authority" means the269[Deputy Commissioner (Appeals)], or the Commissioner (Appeals) or the Appellate Tribunal ;
(b) "case'', in relation to an assessee, means any proceeding under this Act for the assessment of the net wealth of the assessee or for the imposition of any penalty on him.]
SECTION 18D: ADDITIONAL WEALTH--TAX
[Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1\4\1989. Chapter lVB, consisting of section 18D, was inserted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.]
SECTION 19: TAX OF DECEASED PERSON PAYABLE BY LEGAL REPRESENTATIVE
.
(1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth-tax assessed as payable by such person, or any sum, which would have been payable by him under this Act if he had not died.
(2) Where a person dies without having furnished a return under the provisions of section 14-or after having furnished a return which the273[Assessing Officer] has reason to believe to be incorrect or incomplete, the273[Assessing Officer] may make an assessment of the net wealth of such person and determine the wealth tax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of section 16-have been required from the deceased person. (3) The provisions of sections 14-,15-and17-shall apply to an executor, administrator or other legal representative as they apply to any person referred to in those sections.
SECTION 19A: ASSESSMENT IN THE CASE OF EXECUTORS
(1) Subject as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or executors.
(2) The executor or executors shall for the purposes of this Act be treated as an individual.
(3) The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death.
(4) The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19-.
(5) Separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests.
(6) In computing the net wealth on any valuation date under this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legatee on any valuation date, be included in the net wealth of such specific legatee on that valuation date.
Explanation.-In this section, "executor" includes an administrator or other person administering the estate of a deceased person.]
SECTION 20: ASSESSMENT AFTER PARTITION OF A HINDU UNDIVIDED FAMILY.
(1) Where, at the time of making an assessment, it is brought to the notice of the275[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the275[Assessing Officer], after inquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or group of members in definite portions, he shall record an order to that effect and shall make assessment on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of members shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such.
(2) Where the275[Assessing Officer] is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes of this Act to continue to be a Hindu undivided family liable to be assessed as such.
SECTION 20A: ASSESSMENT AFTER PARTIAL PARTITION OF A HINDU UNDIVIDED FAMILY
Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided,-
(a) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place ;
(b) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition ;
(c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition, and the provisions of this Act shall apply accordingly.
Explanation.-For the purposes of this section, "partial partition" shall have the meaning assigned to it in clause (b) of the Explanation to section 171 of the Income-tax Act.]
SECTION 21: ASSESSMENT WHEN ASSETS ARE HELD BY COURTS OF WARDS, ADMINISTRATORS--GENERAL, ETC
(1)277[Subject to the provisions of sub-section (1A), in the case of assets chargeable to tax under this Act], which are held by a court of wards or an administrator-general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trustee appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth-tax shall be levied upon and recoverable from the court of wards, administrator-general, official trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person on whose behalf278[or for whose benefit] the assets are held, and the provisions of this Act shall apply accordingly.279[Explanation.-A trust which is not declared by a duly executed instrument in writing (including a valid deed of wakf) shall be deemed, for the purposes of this sub-section, to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee or trustees, setting out the purpose or purposes of trust, particulars as to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is forwarded to the280[Assessing Officer],- (i) where the trust has been declared before the 1st day of June, 1981, within a period of three months from that day ; and (ii) in any other case, within three months from the date of declaration of the trust.]
281[(1A) Where the value or aggregate value of the interest or interests of the person or persons on whose behalf or for whose benefit such assets are held falls short of the value of any such assets, then, in addition to the wealth-tax leviable and recoverable under sub-section (1), the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager or other person or trustee aforesaid in respect of the value of such assets, to the extent it exceeds the value or aggregate value of such interest or interests, as if such excess value were the net wealth of an individual who is a citizen of India and resident in India for the purposes of this Act, and- (i) at the rates specified in Part I of Schedule I ; or (ii) at the rate of three per cent, whichever course would be more beneficial to the revenue.]
(2) Nothing contained in sub-section (1) shall prevent either the direct assessment of the person on whose behalf282 [ or for whose benefit] the assets above referred to are held, or the recovery from such person of the tax payable in respect of such assets.
(3) Where the guardian or trustee of any person being a minor, lunatic or idiot283[* * *] holds any assets on behalf284 [or for the benefit] of such beneficiary, the tax under this Act shall be levied upon and recoverable from such guardian or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from any such beneficiary if of full age, of sound mind and in direct ownership of such assets.
285[(4) Notwithstanding anything contained in286[the foregoing provisions of] this section, where the shares of the persons on whose behalf or for whose benefit any such assets are held are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager, or other person aforesaid287[, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India] for the purposes of this Act, and-
(a) at the rates specified in Part I of288[Schedule I]289[* * *] ; or
(b) at the rate of290[three per cent], whichever course would be more beneficial to the revenue : Provided that in a case where-
(i) such assets are held291[under a trust declared by any person by will and such trust is the only trust so declared by him] ; or
292[(ia) none of the beneficiaries has net wealth exceeding the amount not chargeable to wealth-tax in the case of an individual who is a citizen of India and resident in India for the purposes of this Act or is a beneficiary under any other trust ; or]
(ii) such assets are held under a trust created before the 1st day of March, 1970, by a non-testamentary instrument and the293[Assessing Officer] is satisfied, having regard to all the circumstances existing at the relevant time, that the trust was created bona fide exclusively for the benefit of the relatives of the settlor or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance ; or
(iii) such assets are held by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession, wealth-tax shall be charged at the rates specified in Part I of294[Schedule I]295[* * *].]
296[Explanation 1.-For the purposes of this sub-section, the shares of the persons on whose behalf or for whose benefit any such assets are held shall be deemed to be indeterminate or unknown unless the shares of the persons on whose behalf or for whose benefit such assets are held on the relevant valuation date are expressly stated in the order of the court or instrument of trust or deed of wakf, as the case may be, and are ascertainable as such on the date of such order, instrument or deed.]
297[Explanation298[2].- Notwithstanding anything contained in section 5, in computing the net wealth299[for the purposes of this sub-section or sub-section (4A) in any case, not being a case referred to in the proviso to this sub-section], any assets referred to in clauses (xv), (xvi), (xxa), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) and (xxix) of sub-section (1) of that section shall not be excluded.]
300[(4A) Notwithstanding anything contained in this section, where the assets chargeable to tax under this Act are held by a trustee under an oral trust, the wealth-tax shall be levied upon and recovered from such trustee in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the purposes of this Act, and-
(a) at the rates specified in Part I of Schedule I ; or
(b) at the rate of three per cent, whichever course would be more beneficial to the revenue. Explanation.-For the purposes of this sub-section, "oral trust'' means a trust which is not declared by a duly executed instrument in writing (including a valid deed of wakf) and which is not deemed under the Explanation to sub-section (1) to be a trust declared by a duly executed instrument in writing.]
301[(5) Any person who pays any sum by virtue of the provisions of this section in respect of the net wealth of any beneficiary, shall be entitled to recover the sum so paid from such beneficiary, and may retain out of any assets that he may hold on behalf or for the benefit of such beneficiary, an amount equal to the sum so paid. Explanation.-In this section, the term "beneficiary" means any person including a minor, lunatic or idiot on whose behalf or for whose benefit assets are held by any other person.]
302[(6) Nothing contained in this section shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1993 or any subsequent assessment year.]
SECTION 21A: ASSESSMENT IN CASES OF DIVERSION OF PROPERTY, OR OF INCOME FROM PROPERTY, HELD UNDER TRUST FOR PUBLIC CHARITABLE OR RELIGIOUS PURPOSES
304[Notwithstanding anything contained in clause (i) of section 5, where any property is held] under trust for any public purpose of a charitable or religious nature in India and- 305[(i) any part of such property or any income of such trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act] is used or applied, directly or indirectly, for the benefit of306[any person referred to in sub-section (3) of section 13 of the Income-tax Act], or (ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962, enures, directly or indirectly, for the benefit of306[any person referred to in sub-section (3)
of section 13-of the said Act, or] 307[(iii) any funds of the trust are invested or deposited, or any shares in a company are held by the trust, in contravention of the provision of clause (d) of sub-section (1) of section 13 of the Income-tax Act,] wealth-tax shall be leviable upon, and recoverable from, the trustee or manager (by whatever name called) in the like manner and to the same extent as if the property were held by an individual who is a citizen of India and resident in India for the purposes of this Act,308[* * *]: Provided that in the case of a trust created before the 1st day of April, 1962, the provisions of clause (i) shall not apply to any use or application, whether directly or indirectly, of any part of such property or any income of such trust for the benefit of309[any person referred to in sub-section (3) of section 13 of the Income- tax Act], if such use or application is by way of compliance with a mandatory term of the trust :310[Omitted by the Finance Act, 1992,w.e.f. 1-4-1993.] 311[Provided312[further] that-313[(a) in the case of any association referred to in clause (21) of section 10 of the Income-tax Act,-
(i) the provisions of clause (i) and clause (ii) shall not apply ; and
(ii) the other provisions of this section shall apply with the modifications that,-
(1) for the words, brackets, letter and figures "in contravention of the provisions of clause (d) of sub-section (1) of section 13 of the Income-tax Act", the words, brackets and figures "in contravention of the provisions contained in the proviso to clause (21) of section 10 of the Income-tax Act" had been substituted; and
(2) for the words "at the maximum marginal rate", the words and figures "at the rates specified in314[sub-section (2) of section 3-]" had been substituted ;]
(b) in the case of any institution, fund or trust referred to in clause (22) or clause (22A) or clause (23B) or clause (23C) 315 of section 10 of the Income-tax Act, the provisions of315[clauses (i) to (iii)] shall not apply.]

Explanation
.-For the purposes of this section,-315[(a) any part of the property or income of a trust shall be deemed to have been used or applied for the benefit of any person referred to in sub- section (3) of section 13 of the Income-tax Act in every case in which it can be so deemed to have been used or applied within the meaning of clause (c) of sub-section (1) of that section at any time during the period of twelve months ending with the relevant valuation date ;316(aa) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] (b) "trust" includes any other legal obligation.]
SECTION 21AA: ASSESSMENT WHEN ASSETS ARE HELD BY CERTAIN ASSOCIATIONS OF PERSONS
(1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or cooperative society318[ or society registered under the Societies Registration Act, 1860 (21 of 1860)or under any law corresponding to that Act in force in any part of India], and the individual shares of the members of the said association in the income or assets or both of the said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the319[purposes of this Act320[***]].
(2) Where any business or profession carried on by an association of persons referred to in sub-section (1) has been discontinued or where such association of persons is dissolved, the321[Assessing Officer] shall make an assessment of the net wealth of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of penalty or any other sum chargeable under any provisions of this Act, so far as may be, shall apply to such assessment.
(3) Without prejudice to the generality of the provisions of sub-section (2), if the321[Assessing Officer] or the322 [Deputy Commissioner (Appeals)] or the Commissioner (Appeals) in the course of any proceedings under this Act in respect of any such association of persons as is referred to in sub-section (1) is satisfied that the association of persons was guilty of any of the acts specified in section 18-orsection 18A-, he may impose or direct the imposition of a penalty in accordance with the provisions of the said sections.
(4) Every person who was at the time of such discontinuance or dissolution a member of the association of persons, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act, so far as may be, shall a apply to any such assessment or imposition of penalty or other sum.
(5) Where such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.323Explanation-[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
SECTION 22: ASSESSMENT OF PERSONS RESIDING OUTSIDE INDIA
(1) Where the person liable to tax under this Act resides outside India, the tax may be levied upon and recovered from his agent, and the agent shall be deemed to be, for all the purposes of this Act, the assessee in respect of such tax.
(2) Any person employed by or on behalf of a person referred to in sub-section (1) or through whom such person is in the receipt of any income, profits or gains, or who is in possession or has custody of any asset of such person and upon whom the324[Assessing Officer] has caused a notice to be served of his intention of treating him as the agent of such person shall, for the purposes of sub-section (1), be deemed to be the agent of such person.325[* * * ]
326[(3) No person shall be deemed to be the agent of any person residing outside India unless he has had an opportunity of being heard by the327[Assessing Officer] as to his being treated as such.
(4) Any agent, who, as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on whose behalf it is paid or to retain out of any moneys that may be in his possession or may come to him in his capacity as such agent, an amount equal to the sum so paid.
(5) Any agent, or any person who apprehends that he may be assessed as an agent, may retain out of any money payable by him to the person residing outside India on whose behalf he is liable to pay tax (hereinafter in this section referred to as the principal), a sum equal to his estimated liability under this section, and in the event of any disagreement between the principal and such agent or person, as to the amount to be so retained, such agent or person may secure from the327[Assessing Officer] a certificate stating the amount to be so retained pending final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that amount.
(6) The amount recoverable from such agent or person at the time of final settlement shall not exceed the amount specified in such certificate, except to the extent to which such agent or person may at such time have in his hands additional assets of the principal.
(7) Notwithstanding anything contained in this section, any arrears of tax due from a person residing outside India may be recovered also in accordance with the provisions of this Act from any assets of such person which are or may at any time come within India.
SECTION 22A: DEFINITIONS
In this Chapter, unless the context otherwise requires,-
(a) "Bench'' means a Bench of the Settlement Commission ;
(b) "case'' means any proceeding under this Act for the assessment or reassessment of any person in respect of any year or years, or by way of appeal or revision in connection with such assessment or reassessment, which may be pending before any wealth-tax authority on the date on which an application under sub-section (1) of section 22C-is made: Provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the filing of such appeal or application for revision under this Act and which has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause ;
(c) "Chairman'' means the Chairman of the Settlement Commission ;
(d) "Member" means a Member of the Settlement Commission, and includes the Chairman and a Vice-Chairman ;
(e) "Settlement Commission'' means the Income-tax Settlement Commission constituted under section 245B of the Income-tax Act;
(f) "Vice-Chairman'' means a Vice-Chairman of the Settlement Commission ;
(g) "wealth-tax authority'' means an income-tax authority specified in section 116 of the Income-tax Act who is treated as a wealth-tax authority under section 8-.]
SECTION 22B: WEALTH--TAX SETTLEMENT COMMISSION
(1) The Central Government shall constitute a Commission to be called the Wealth-tax Settlement Commission330[* * *] for the settlement of cases under this Chapter.
(2) The Settlement Commission shall consist of a Chairman331[and as many Vice- Chairmen and other members as the Central Government thinks fit] and shall function within the Department of the Central Government dealing with direct taxes.
(2A)332[* * *]
(3) The Chairman333[, Vice-Chairman] and other members of the Settlement Commission shall be appointed by the Central Government from amongst persons of integrity and outstanding ability, having special knowledge of, and experience in, problems relating to direct taxes and business accounts : Provided that, where a member of the Board is appointed as the Chairman334[, Vice-Chairman] or as a member of the Settlement Commission, he shall cease to be a member of the Board.335[* * *]
SECTION 22BA: JURISDICTION AND POWERS OF SETTLEMENT COMMISSION
(1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice- Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.
(5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness CM- any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench : Provided that if at any stage of the hearing of any case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard by a Bench consisting of three Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit.
337[(5A) Notwithstanding anything contained in the foregoing provisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members.]
(6) Subject to the other provisions of this Chapter, the places at which the principal bench and the additional Benches shall ordinarily sit, shall be such as the Central Government may, by notification in the Official Gazette, specify337[and the Special Bench shall sit at a place to be fixed by the Chairman.]
SECTION 22BB: VICE--CHAIRMAN TO ACT AS CHAIRMAN OR TO DISCHARGE HIS FUNCTIONS IN CERTAIN CIRCUMSTANCES
(1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the Vice- Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice- Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties.]
SECTION 22BC: POWER OF CHAIRMAN TO TRANSFER CASES FROM ONE BENCH TO ANOTHER
On the application of the assessee or the339[Chief Commissioner or Commissioner] and after notice to them, and after hearing such of them as may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one Bench, for disposal, to another Bench.]
SECTION 22BD: DECISION TO BE BY MAJORITY
If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Settlement Commission and such point or points shall be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it.]
SECTION 22C: APPLICATION FOR SETTLEMENT OF CASES
341
[(1)342An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his wealth which has not been disclosed before the343[Assessing Officer], the manner in which such wealth has been derived, the additional amount of wealth-tax payable on such wealth and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided:344[Provided that no such application shall be made unless the assessee has furnished the return of wealth which he is or was required to furnish under any of the provisions of this Act.]
(1A) For the purposes of sub-section (1) of this section and sub-sections (2A) to (2D) of section 22D-, the additional amount of wealth-tax payable in respect of the wealth disclosed in an application made under sub-section (1) of this section shall be the amount calculated in accordance with the provisions of sub-sections (1B) to (1D).
345[(1B) Where the wealth disclosed in the application relates to only one previous year,-
(i) if the applicant has not furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in respect of the net wealth of that year), then, except in a case covered by clause (iii), wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth ;
(ii) if the applicant has furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in pursuance of such return), wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth ;
(iii) if the proceeding pending before the wealth-tax authority is in the nature of a proceeding for reassessment of the applicant under section 17-or by way of appeal or revision in connection with such reassessment, and the applicant has not furnished a return in respect of the net wealth of that year in the course of such proceeding for reassessment, wealth-tax shall be calculated on the aggregate of the net wealth as assessed in the earlier proceeding for assessment under section 16- or section 17-and the wealth disclosed in the application as if such aggregate were the net wealth.]
346[(1C) The additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub- section (1B) shall be,-
(a) in a case referred to in clause (i) of that sub-section, the amount of wealth-tax calculated under that clause :
(b) in a case referred to in clause (ii) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for that year ;
(c) in a case referred to in clause (iii) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth assessed in the earlier proceeding for assessment under section 16- or section 17-.]
(1D) Where the wealth disclosed in the application relates to more than one assessment year, the additional amount of wealth-tax payable in respect of the wealth disclosed for each of the years shall first be calculated in accordance with the provisions of sub-sections (1B) and (1C) and the aggregate of the amount so arrived at in respect of each of the years for which the application has been made under sub-section (1) shall be the additional amount of wealth-tax payable in respect of the wealth disclosed in the application.
(1E) Where any books of account or other documents belonging to an assessee are seized under section 37A-, the assessee shall not be entitled to make an application under sub-section (1) before the expiry of one hundred and twenty days from the date of the seizure.
(2) Every application made under sub-section (1) shall be accompanied by such fees as may be prescribed. (3) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant.
SECTION 22D: PROCEDURE ON RECEIPT OF AN APPLICATION UNDER SECTION 22C
(1)347On receipt of an application under section 22C-, the Settlement Commission shall call for a report from the Commissioner and on the basis of the materials contained in such report and having regard to the nature and circumstances of the case or the complexity of the investigation involved therein,350["the Settlement Commission shall, where it is possible, by order, reject the application or allow the application to be proceeded with within a period of one year from the end of the month in which such application was made under Section 22-C"]: Provided that an application shall not be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:348[Provided further that the Commissioner shall furnish the report within a period of one hundred and twenty days of the receipt of communication from the Settlement Commission in case of all applications made under section 22C-on or after the date on which the Finance (No. 2) Act, 1991 receives the assent of the President and if the Commissioner fails to furnish the report within the said period, the Settlement Commission may make the order without such report.] 349(1A) [Omitted by the Finance (No.2)Act, 1991, w.e.f. 27-9-1991.]
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner.
351[(2A) Subject to the provisions of sub-section (2B), the assessee shall, within thirty-five days of the receipt of a copy of the order under sub-section (1)352[allowing the application to be proceeded with], pay the additional amount of wealth-tax payable on the wealth disclosed in the application and shall furnish proof of such payment to the Settlement Commission.
(2B) If the Settlement Commission is satisfied, on an application made in this behalf by the assessee, that he is unable for good and sufficient reasons to pay the additional amount of wealth-tax referred to in sub-section (2A) within the time specified in that sub-section, it may extend the time for payment of the amount which remains unpaid or allow payment thereof by instalments if the assessee furnishes adequate security for the payment thereof.
(2C) Where the additional amount of wealth-tax is not paid within the time specified under sub-section (2A), then, whether or not the Settlement Commission has extended the time for payment of the amount which remains unpaid or has allowed payment thereof by instalments under sub-section (2B), the assessee shall be liable to pay simple interest at fifteen per cent per annum on the amount remaining unpaid from the date of expiry of the period of thirty-five days referred to in sub-section (2A).
(2D) Where the additional amount of wealth-tax referred to in sub-section (2A) is not paid by the assessee within the time specified under that sub-section or extended under sub-section (2B), as the case may be, the Settlement Commission may direct that the amount of wealth-tax remaining unpaid, together with any interest payable thereon under sub-section (2C), be recovered and any penalty for default in making payment of such additional amount of wealth-tax may be imposed and recovered, in accordance with the provisions of Chapter VII, by the353[Assessing Officer] having jurisdiction over the assessee.]
(3) Where an application is allowed to be proceeded with under sub-section (1), the Settlement Commission may call for the relevant records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Commissioner to make or cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case.
(4) After examination of the records and the report of the Commissioner received under sub-section (1) and the report, if any, of the Commissioner received under sub-section (3), and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application but referred to in the report of the Commissioner under sub- section (1) or sub-section (3). 357
"(4A) In every application, allowed to be proceeded with under subsection (1), the Settlement Commission shall, where it is possible, pass an order under sub-section (4) within a period of four years from the end of the financial year in which such application was allowed to be proceeded with."
354[(5) Subject to the provisions of section 22BA-, the materials brought on record before the Settlement Commission shall be considered by the Members of the concerned Bench before passing any order under sub-section (4) and, in relation to the passing of such order, the provisions of section 22BD-shall apply.]
(6) Every order passed under sub-section (4) shall provide for the terms of settlement including any demand by way of355[tax, penalty or interest], the manner in which any sum due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or misrepresentation of facts. 356[(6A) Where any tax payable in pursuance of an order under sub-section (4) is not paid by the assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalments, the assessee shall be liable to pay simple interest at fifteen per cent per annum on the amount remaining unpaid from the date of expiry of the period of thirty-five days aforesaid.]
(7) Where a settlement becomes void as provided in sub-section (6), the proceedings with respect of the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the wealth-tax authority concerned may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at any time before the expiry of two years from the end of the financial year in which the settlement became void.
358[(8) For the removal of doubts, it is hereby declared that nothing contained in section 17A-shall apply to any order passed under sub-section (4) or to any order of assessment or reassessment required to be made by the359[Assessing Officer] in pursuance of any directions contained in such order passed by the Settlement Commission.]
SECTION 22DD: POWER OF SETTLEMENT COMMISSION TO ORDER PROVISIONAL ATTACHMENT TO PROTECT REVENUE
(1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32-: Provided that where a provisional attachment made under section 34C-is pending immediately before an application is made under section 22C-, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under section 34C-would have continued if such application had not been made: Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.
(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1) : Provided that the Settlement Commission may, for reason to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years.]
SECTION 22E: POWER OF SETTLEMENT COMMISSION TO REOPEN COMPLETED PROCEEDINGS
If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding connected with the case, but which has been completed under this Act by any wealth-tax authority before the application under section 22C-was made, it may, with the concurrence of the applicant, reopen such proceeding and pass such order thereon as it thinks fit as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceeding also:361[Provided that no proceeding shall be reopened by the Settlement Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 22C-exceeds nine years.]
SECTION 22F: POWERS AND PROCEDURE OF SETTLEMENT COMMISSION
(1) In addition to the powers conferred on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a wealth-tax authority under this Act.
(2) Where an application made under section 22C-has been allowed to be proceeded with under section 22D-, the Settlement Commission shall, until an order is passed under sub-section (4) of section 22D-, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of a wealth-tax authority under this Act in relation to the case.
(3) Notwithstanding anything contained in sub-section (2) and in the absence of any express direction to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation of any other provisions of this Act requiring the applicant to pay tax on the basis of self-assessment in relation to the matters before the Settlement Commission.
(4) For the removal of doubt, it is hereby declared that, in the absence of any express direction by the Settlement Commission to the contrary, nothing in this Chapter shall affect the operation of the provisions of this Act insofar as they relate to any matters other than those before the Settlement Commission.
(5)362[* * *]
(6)362[* * *]
363[(7) The Settlement Commission shall, subject to the provisions of this Chapter, have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of its exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings.]
SECTION 22G: INSPECTION, ETC., OF REPORTS
No person shall be entitled to inspect, or obtain copies of, any reports made by any wealth-tax authority to the Settlement Commission; but the Settlement Commission may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf and on payment of the prescribed fee: Provided that, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on the record against him in any such report, the Settlement Commission shall, on an application made in this behalf and on payment of the prescribed fee by such person, furnish him with a certified copy of any such report or part thereof relevant for the purpose.
SECTION 22H: POWERS OF SETTLEMENT COMMISSION TO GRANT IMMUNITY FROM PROSECUTION
(1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 22C-has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his net wealth and the manner in which such wealth has been acquired, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860)or under any other Central Act for the time being in force365[and also (either wholly or in part) from the imposition of any penalty] under this Act, with respect to the case covered by the settlement:366[
Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 22C-.]
367[(1A) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub-section (4) of section 22D-within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.]
(2) An immunity granted to a person under sub-section (1) may, at any time, me, be withdrawn by the Settlement Commission, if it is satisfied that such person368[* * *] had, in the course of the settlement proceedings, concealed any particular material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had no such immunity been granted.
SECTION 22HA: POWER OF SETTLEMENT COMMISSION TO SEND A CASE BACK TO THE 370[ASSESSING OFFICER] IF THE ASSESSEE DOES NOT CO-OPERATE371[* * * * * * ]
SECTION 22I: ORDER OF SETTLEMENT TO BE CONCLUSIVE
Every order of settlement passed under sub-section (4) of section 22D-shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force.
SECTION 22J: RECOVERY OF SUMS DUE UNDER ORDER OF SETTLEMENT
Any sum specified in an order of settlement passed under sub-section (4) of section 22D-may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of section 32-by the370[Assessing Officer] having jurisdiction over the person who made the application for settlement under section 22C-
SECTION 22K: BAR ON SUBSEQUENT APPLICATION FOR SETTLEMENT IN CERTAIN CASES
Where-
(i) an order of settlement passed under sub-section (4) of section 22D-provides for the imposition of a penalty on the person who made the application under section 22C-for settlement, on the ground of concealment of particulars of his net wealth ; or
(ii) after the passing of an order of settlement under the said sub-section (4) in relation to a case, such person is convicted of any offence under Chapter VIII in relation to that case ;372[or]
372[(iii) the case of any such person is sent back to the373[Assessing Officer] by the Settlement Commission under section 22HA-,] then, he shall not be entitled to apply for settlement under section 22C-in relation to any other matter.
SECTION 22L: PROCEEDINGS BEFORE THE SETTLEMENT COMMISSION TO BE JUDICIAL PROCEEDINGS
Any proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193and228, and for the purposes of374section 196 , of the Indian Penal Code (45 of 1860)
SECTION 22M: CERTAIN PERSONS WHO HAVE FILED APPEALS TO THE APPELLATE TRIBUNAL ENTITLED TO MAKE APPLICATIONS TO THE SETTLEMENT COMMISSION
[Omitted by the Finance Act, 1987, w.e.f. 1-6-1987.]
SECTION 23: APPEAL TO THE 377[DEPUTY COMMISSIONER (APPEALS)]387BEFORE THE 1ST DAY OF JUNE, 2000 FROM ORDERS OF378[ASSESSING OFFICER
].
(1)380[Subject to the provisions of sub-section (1A), any person,-]
(a) objecting to the amount of381[* * *] net wealth determined under this Act; or
(b) objecting to the amount of wealth-tax determined as payable by him under this Act ; or
(c) denying his liability to be assessed under this Act ; or
382[(d) objecting to any penalty imposed by the Assessing Officer under section 18-383[* * *] ; or]
(e) objecting to any order of the384[Assessing Officer] under sub-section (2) of section 20-; or
(f) objecting to any penalty imposed by the384[Assessing Officer] under the provisions of385[section 221] of the Income-tax Act as applied under section 32-for the purposes of wealth-tax ;386[or]
390[(g) Objecting to any order made by the391[Assessing Officer] under section 22-treating him as the agent of a person residing outside India; or
(h) objecting to any order of the391[Assessing Officer] under section 35-having the effect of enhancing the assessment or reducing a refund or refusing to allow the claim made by the assessee under the said section; or]
392[(ha) objecting to any order of the Valuation Officer under section 35-having the effect of enhancing the valuation of any asset or refusing to allow the claim made by the assessee under the said section ;393[* * *]
(i)394[* * *]] may appeal to the395[Deputy Commissioner (Appeals)] against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner.
397[(1A) Notwithstanding anything contained in sub-section (1), any person,-
(a) objecting to the amount of net wealth determined under this Act or objecting to the amount of wealth-tax determined as payable by him under this Act or denying his liability to be assessed under this Act, where the net wealth determined on assessment made under section 16-exceeds fifteen lakh rupees ; or
397[(b) objecting to any penalty imposed under sub-section (1) of section 18-with the previous approval of the398[Joint] Commissioner as specified in sub-section (3) of that section ;]
399[(c) objecting to any assessment or order referred to in clauses (a) to (h) (both inclusive) of sub-section (1), where such assessment or order has been made by the70a[Joint] Commissioner in exercise of the powers or functions conferred on or assigned to him under section 8-orsection 11-; or
(d) objecting to any penalty imposed by the70a[Joint] Director or the70a[Joint] Commissioner under section 18A-; or]
(e) objecting to an order made by an400[Assessing Officer] in the case of such persons or classes of persons as the Board may, having regard to the nature of the cases, the complexities involved and other relevant considerations, direct, may appeal to theR2before the 1st day of June, 2000 against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner.] R3
"(1-AA) Notwithstanding anything contained in sub-section (1), every appeal filed, on or after the 1st day of October, 1998, but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day.".
401[(1B) Notwithstanding anything contained in sub-section (1), the Board or the Director General or Chief Commissioner or Commissioner, if so authorised by the Board, may, by order in writing, transfer any appeal which is pending before a Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board or, as the case may be, the Director General, Chief Commissioner or Commissioner (at the request of the appellant or otherwise) is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred : Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be reheard.]
(2) An appeal shall be presented within thirty days of the receipt of the notice of. demand relating to the assessment or penalty objected to, or the date on which any order objected to, is communicated to him, but the402[Deputy Commissioner (Appeals)]403[or, as the case may be, the Commissioner (Appeals)] may admit an appeal after the expiration of the period aforesaid if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period.
404[(2A) Where a return has been filed by an assessee, no appeal under this section shall be admitted unless at the time of filing of the appeal he has paid the tax due on the net wealth returned by him.405[* * *]
(3) The406[Deputy Commissioner (Appeals)]407[or, as the case may be, the Commissioner (Appeals)] shall fix a day and place for the hearing of the appeal and may, from time to time, adjourn the hearing.
408[(3A) If the valuation of any asset is objected to in an appeal under clause (a) of sub-section (1)407[or of sub-section (1A)], the406 [Deputy Commissioner (Appeals)]407[or, as the case may be, the Commissioner (Appeals)] shall,-
(a) in a case where such valuation has been made by a Valuation Officer under section 16A-, give such Valuation Officer an opportunity of being heard;
(b) in any other case, on a request being made in this behalf by the409[Assessing Officer], give an opportunity of being heard to any Valuation Officer nominated for the purpose by the409[Assessing Officer].]
(4) The410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] may-
(a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal;
(b) before disposing of an appeal, make such further inquiry as he thinks fit or cause further inquiry to be made by the412 [Assessing Officer]413[or, as the case may be, the Valuation Officer].
(5) In disposing of an appeal, the410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] may pass such order as he thinks fit which may include an order enhancing the assessment or penalty: Provided that no order enhancing the assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.
414[(5A) In disposing of an appeal, the410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] by the appellant.
(5B) The order of the410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.]
(6) A copy of every order passed by the410[Deputy Commissioner (Appeals)]411[or, as the case may be, the Commissioner (Appeals)] under this section shall be forwarded to the appellant and the415[Chief Commissioner or Commissioner].
SECTION 23A: APPEALABLE ORDERS BEFORE COMMISSIONER (APPEALS)
(1) Any person- (a) objecting to the amount of net wealth determined under this Act; or
(b) objecting to the amount of wealth-tax determined as payable by him under this Act; or
(c) denying his liability to be assessed under this Act; or
(d) objecting to any penalty imposed by the Assessing Office under section 18-orsection 18A-; or
(e) objecting to any order of the Assessing Officer under sub-section (2) of section 20-; or
(f) objecting to any penalty imposed by the Assessing Officer under the provisions of section 221 of the Income-tax Act as applied under section 32-for the purposes of wealth-tax; or
(g) objecting to any order made by the Assessing Officer under section 22-treating him as the agent of a person residing outside India; or
(h) objecting to any order of the Assessing Officer under section 35-having the effect of enhancing the assessment or
reducing a refund or refusing to allow the claim made by the assessee under the said section; or
(i) objecting to any order of the Valuation Officer under section 35-having the effect of enhancing the valuation of any asset or refusing to allow the claim made by the assessee under the said section; or
(j) objecting to any penalty imposed by the Deputy Director or Deputy Commissioner under section 18A-, may appeal to the Commissioner (Appeals) against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner and on payment of a fee of two hundred and fifty rupees. Explanation.-For the purposes of this subsection, where on or be fore the 1st day of October, 1998, the post of Deputy Commissioner has been redesignated as Joint Commissioner and the post of Deputy Director has been redesignated as Joint Director the references in this sub-section for "Deputy Commissioner" and "Deputy Director" shall be substituted by "Joint Commissioner" and "Joint Director" respectively.
(2) Notwithstanding anything contained in sub-section (1) of section 23-, every appeal under this Act which is pending immediately before the appointed day, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeals or matter from the stage on which it was on that day: Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceedings or any part thereof be re-opened or that he be re-heard,

Explanation.
-For the purposes of this sub-section, "appointed day" means the day appointed under section 246A of the Income-tax Act.
(3) An appeal shall be presented within thirty days of the receipt of the notice of demand relating to the assessment or penalty objected to or the day on which any order objected to is communicated to him, but the Commissioner (Appeals) may admit an appeal after the expiration of the period aforesaid, if he is satisfied that the appellant had sufficient cause for not presenting the appeal within that period.
(4) Where a return has been filed by an assessee, no appeal under this section shall be admitted unless at the time of filing of the appeal, he has paid the tax due on the net wealth returned by him.
(5) The Commissioner (Appeals) shall fix a day and place for the hearing of the appeal and may, from time to time, adjourn the hearing.
(6) If the valuation of any asset is objected to in an appeal underclause (a) or clause (i) of sub-section (1) the Commissioner (Appeals) shall,-
(a) in case where such valuation has been made by a Valuation Officer- under section 16A-, give such Valuation Officer an opportunity of being heard;
(b) in any other case on request being made in this behalf by the Assessing Officer, give an opportunity of being heard to any Valuation Officer nominated for the purpose by the Assessing Officer.
(7) The Commissioner (Appeal) may,-
(a) at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal;
(b) before disposing of any appeal, make such further enquiry as he thinks fit or cause further enquiry to be made by the Assessing Officer or, as the case may be, by the Valuation Officer.
(8) In disposing of an appeal, the Commissioner (Appeals) may pass such order as he thinks fit which may include an order enhancing the assessment or penalty: Provided that no order enhancing the assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.
104(8-A) In every appeal, the Commissioner (Appeals), where it is possible, may hear and decide such appeal within a period of one year from the end of the financial year in which such appeal is filed under sub-section (1).
(9) In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not placed before the Commissioner (Appeals) by the appellant.
(10) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determining the decision thereon and reasons for the decision.
(11) A copy of every order passed by the Commissioner (Appeals) under this section shall be forwarded to the appellant and the Chief Commissioner or Commissioner.]
SECTION 24: APPEAL TO THE APPELLATE TRIBUNAL FROM ORDERS OF THE 430[DEPUTY COMMISSIONER (APPEALS)]
431[(1) An assessee objecting to an order passed by the430[Deputy Commissioner (Appeals)],432[or the Commissioner (Appeals)] under section 18-orsection 18A-orsection 23-417[or section 23A-] or sub-section (2) of section 37-418[* * *] may appeal to the Appellate Tribunal within sixty days of the date on which the order is
communicated to him.]
(2) The Commissioner may, if he is not satisfied as to the correctness of any order passed by419[a Commissioner (Appeals) under sub-section (10) of section 23A-], direct the420[Assessing Officer] to appeal to the Appellate Tribunal against such order, and such appeal may be made at any time before the expiry of sixty days of the date on which the order is communicated to the Commissioner.
421[(2A)422The423[Assessing Officer] or the assessee, as the case may be, on receipt of notice that an appeal against the order of424[* * *]425[426[* * *] the Commissioner (Appeals)] has been preferred hereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections verified in the prescribed manner, against any part of the order of424[* * *]425[426[* * *] the Commissioner (Appeals)] and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (1) or sub-section (2).]
427[(3) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (1) or sub-section (2) or sub-section (2A), if it is satisfied that there was sufficient cause for not presenting it within that period.]
428(4) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred it in sub-section (2), be accompanied by a fee of429[one. thousand] rupees.105["Provided that in the case of an appeal not relatable to net wealth as computed by the Assessing Officer, the appeal shall be accompanied by a fee of five hundred rupees.";]
(5) The Appellate Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enhancing the assessment or penalty :3
[
Provided that if the valuation of any asset is objected to, the Appellate Tribunal shall,-
(a) in a case where such valuation has been made by a Valuation Officer under section 16A-, also give such Valuation Officer an opportunity of being heard;
(b) in any other case, on a request being made in this behalf by the4[Assessing Officer], give an opportunity of being heard also to any Valuation Officer nominated for the purpose by the4[Assessing Officer]:

Provided further that
] no order enhancing an assessment or penalty shall be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.
106(5-A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of four years from the end of the financial year in which such appeal is filed under sub-section (1) or433Subsection(2)
(5-B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal. (6), (7), (8), (8A), and (8B)5[* * *]
(9) A copy of every order passed by the Appellate Tribunal under this section shall be forwarded to the assessee and the Commissioner.
(10) Save as provided in section 27-,107["or Section 27-A"] any order passed by the Appellate Tribunal on appeal shall be final.
(11) The provisions of6[sub-sections (1), (4) and (5) of section 255] of the Income- tax Act shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Income-tax Act.
SECTION 25: POWERS OF COMMISSIONER TO REVISE ORDERS OF SUBORDINATE AUTHORITIES
(1) The Commissioner may, either of his own motion or on application made by an assessee in this behalf, call for the record of any proceeding under this Act in which an order has been passed by any authority subordinate to him, and may make such inquiry, or cause such enquiry to be made, and, subject to the provisions of this Act, pass such order thereon, not being an order prejudicial to the assessee, as the Commissioner thinks fit: Provided that the Commissioner shall not revise any order under this sub-section in any case-
(a) where an appeal against the order lies to the438[Deputy Commissioner (Appeals)]439[or to the Commissioner (Appeals)] or to the Appellate Tribunal, the time within which such appeal can be made has not expired or in the case of an appeal441[to the Commissioner (Appeals)] or to the Appellate Tribunal the assessee has not waived his right of appeal;
(b) where the order is the subject of an appeal before the442[Deputy Commissioner (Appeals)]441[or the Commissioner (Appeals)] or the Appellate Tribunal;
(c) where the application is made by the assessee for such revision, unless-
(i) the application is accompanied by a fee of twenty-five rupees; and
(ii) the application is made within one year from the date of the order sought to be revised or within such further period as the Commissioner may think fit to allow on being satisfied that the assessee was prevented by sufficient cause from making the application within that period; and
(d) where the order is sought to be revised by the Commissioner of his own motion, if such order is made more than one year previously.

Explanation
.-For the purposes of this sub-section,- (a) the 442[Deputy Commissioner (Appeals)] shall be deemed to be an authority subordinate to the Commissioner; and (b) an order by the Commissioner declining to interfere shall be deemed not to be an order prejudicial to the assessee.
(2) Without prejudice to the provisions contained in sub-section (1), the Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by an443[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of revenue, he may, after giving the assessee an opportunity of being heard, and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling it and directing a fresh assessment.
444[
Explanation.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,- (a) an order passed445[on or before or after the 1st day of June, 1988] by the Assessing Officer shall include an order made by
the 446[Joint] Commissioner in
exercise of the powers or in the performance of the functions of an Assessing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120 of the Income-tax Act read with section 8-of this Act ; (b) "record",448[shall include and shall be deemed always to have included] all records relating to any proceeding under this Act available at the time of examination by the Commissioner; (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal449[filed on or before or after the first day of June, 1988], the power of the Commissioner under this sub-section shall extend449[and shall be deemed always to have extended] to such matters as had not been considered and decided in such appeal.]
450[(3) No order shall be made under sub-section (2) after the expiry of two years451[from the end of the financial year in which the order sought to be revised was passed.]
452[(3A) On every application made by an assessee for revision under sub-section (1), an order shall be passed by the Commissioner within one year from the end of financial year in which such application is made by the assessee for revision.

Explanation
.-In computing the period of limitation for the purposes of this sub- section, the time taken in giving an opportunity to the assessee to be re -heard under the proviso to section 39 and any period during winch any proceeding under this section is stayed by an order or injunction of any court shall be excluded.]
453[(4) Notwithstanding any thing contained in sub-section (3) orsub-section (3A), an order in revision under sub-section (1) or subsection
(2) may be passed at any time in consequence of, or to give effect to, any finding or direction contained in an order of Appellate Tribunal, the High Court or the Supreme Court.]

Explanation.
-In computing the period of limitation for the purposes of sub- section (3), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.]
SECTION 26: APPEAL TO THE APPELLATE TRIBUNAL FROM ORDERS OF ENHANCEMENT BY 459[CHIEF COMMISSIONERS OR COMMISSIONERS].
(1) Any assessee objecting to460[an order passed by the 461[Chief Commissioner or Commissioner] under section 18- 462[or section 18A-] or sub-section (2) of section 25-]463[or an order passed by the Director General or Director under section 18A-] may appeal to the Appellate Tribunal within sixty days of the date on which the order is
communicated to him. 464
(2) An Appeal to the Appellate Tribunal under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of465[two hundred] rupees.
(3) The provisions of466[sub-sections (3), (5), (9) and (10)] of section 24-shall apply in relation to any appeal under this section as they apply in relation to any appeal under that section.
SECTION 27: REFERENCE TO HIGH COURT
467[(1)468The assessee or the469[Chief Commissioner or Commissioner] may, within sixty days of the date upon which he is served with notice of an order108["passed before the 1st day of June, 1999"] under section 24-orsection 26-470[or clause (e) of sub-section (1) of section 35-], by application in the prescribed form, accompanied, where the
application is made by the assessee, by a fee of471[two hundred] rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a
statement of the case and refer it to the High Court.
(2) The Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period specified in sub-section (1), allow it to be presented within a further period not exceeding thirty days.]
(3) If, on an application made under sub-section (1), the Appellate Tribunal- (a) refuses to state a case on the ground that no question of law arises, or (b) rejects it on the ground that it is time barred; the applicant may, within456[ninety days] from the date on which he is served with a notice of refusal or rejection, as the case may be, apply to the High
Court, and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case to the High Court, and on receipt of such requisition, the Appellate Tribunal shall state the case: Provided that, if in any case where the Appellate Tribunal has been required by an assessee to state a case, the Appellate Tribunal refuses to do so on the ground that no question of law arises, the assessee may, within thirty days from the date on which he receives notice of refusal to state the case, withdraw his application, and if he does so, the fee paid by him under sub-section (1) shall be refunded to him. 457[(3A) If, on an application made under this section, the Appellate Tribunal is of the opinion that, on account of a
conflict in the decisions of the High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court.]
(4) The statement to the High Court458[or the Supreme Court] shall set forth the facts, the determination of the Appellate Tribunal and the question of law which arises out of the case.
(5) If the High Court458[or the Supreme Court], is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised thereby, it may require the Appellate Tribunal to make such modifications therein as it may direct.
(6) The High Court458[or the Supreme Court], upon hearing any such case, shall decide the question of law raised therein, and in doing so, may, if it thinks fit, alter the form of the question of law and shall deliver judgment thereon containing the ground on which such decision is founded and shall send a copy of the judgment under the seal of the
Court and the signature of the Registrar to the Appellate Tribunal and the Appellate Tribunal shall pass such orders as are necessary to dispose of the case conformably to such judgment.
34[(7) The cost of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference, shall be in the discretion of the Court.]
SECTION 27A: APPEAL TO HIGH COURT
(1) The assessee or the Chief Commissioner or Commissioner may, within one hundred and twenty days of the day
upon which he is served with notice of an order under section 24-orsection 26-or clause (e) of sub-section (1)of section 35-, file on or after the 1st day of October, 1998, an appeal to the High Court.
(2) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, under subsection
(1) of section 24-only if the High Court is satisfied that the case involves a substantial question of law.
(3) In an appeal under this section, the Memorandum of Appeal shall precisely state the substantial question of law involved in the appeal,109[***]
(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
(5) The appeal shall be heard only on the question so formulated and the respondent shall, at the time of hearing of the
appeal, be allowed to argue that the case does not involve such question : Provided that nothing in this sub-section
shall be deemed to lake away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on
any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(6) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the
grounds on which such decision is founded and may award such cost as it deems fit.
(7) The Assessing Officer shall give effect to the order of the High Court on the basis of a certified copy of judgment
delivered under sub-section (6).]
110(8) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to High Court shall, so
far as may be, apply in the case of appeals under this section.
SECTION 28: HEARING BY HIGH COURT
When a case has been stated to the High Court under section 27-474[or an appeal filed before the High Court under section
27A-], it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with
the opinion of such Judges or of the majority of such Judges, if any: Provided that where there is no such majority, the Judges
shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the
Judges of the High Court, and such point shall be decided according to the opinion of the majority of the Judges who have
heard the case, including those who first heard it.
SECTION 29: APPEAL TO SUPREME COURT
(1) An appeal shall lie to the Supreme Court from any judgment of the High Court delivered on a case stated under section 27-474[or an appeal filed under section 27A-] in any case which the High Court certifies as a fit case for appeal to the Supreme Court.
(2) Where the judgment of the High Court is varied or reversed on appeal under this section, effect shall be given to the order of the Supreme Court in the manner provided in sub-section (6) of section 27-476[or in sub-section (7) of section 27A-].
(3) The High Court may, on application made to it for the execution of any order of the Supreme Court in respect of any costs awarded by it, transmit the order for execution to any court subordinate to the High Court.
SECTION 29B: DEFINITION OF HIGH COURT
In this Chapter, "High Court" means-
(i) in relation to any State, the High Court of that State;
478[(ii) in relation to the Union territory of Delhi, the High Court of Delhi;]
(iia)479[* * *] 480[(iii) in relation to the Union territories of Arunachal Pradesh and Mizoram, the Gauhati High Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura);]
(iv) in relation to the Union territory of Andaman and Nicobar Islands, the High Court at Calcutta;
(v) in relation to the Union territory of481[Lakshadweep], the High Court of Kerala:
(vi) in relation to the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, the High Court at Bombay;
(vii) in relation to the Union territory of Pondicherry, the High Court at Madras;]
482[(viii) in relation to the Union territory of Chandigarh, the High Court of Punjab and Haryana.]
SECTION 29A: TAX TO BE PAID NOTWITHSTANDING REFERENCE, ETC
Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to
the Supreme Court, wealth-tax shall be payable in accordance with the assessment made in the case.]
SECTION 30: NOTICE OF DEMAND
484When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act,
the485[Assessing Officer] shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so
payable.]
SECTION 32: MODE OF RECOVERY
The provisions contained in sections 221to227,505[228A,]229,231and232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made there under shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to wealth-tax and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums imposed by way of penalty, fine and interest under that Act506[and to the corresponding wealth-tax authorities instead of to the income-tax authorities specified therein.]

Explanation
I.-Any reference to section 173 and sub-section (2) or sub-section (6) or sub-section (7) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made there under shall be construed as references to sub- section (7) of section 22 and sub-section (2) or sub-section (6) or sub-section (7) of section 31 of this Act,
respectively.
507[
Explanation II.-The Chief Commissioner or Commissioner and the Tax Recovery Officer referred to in the Income-tax Act shall be deemed to be the corresponding wealth-tax authorities for the purpose of recovery of wealth-tax and sums imposed by way of penalty, fine and interest under this Act.]
SECTION 33: LIABILITY OF TRANSFEREES OF PROPERTIES IN CERTAIN CASES
(1) Where by reason of the provisions contained in section 4-, the value of any assets transferred to any of the persons
mentioned in that section have to be included in the net wealth of an individual, the person in whose name such assets
stand shall, notwithstanding anything contained in any law to the contrary, be liable, on the service of a notice of
demand by the508[Assessing Officer] in this behalf, to pay that portion of the tax assessed on the assessee as is
attributable to the value of the asset standing in his name as aforesaid: Provided that where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax as is attributable to the value of the asset so jointly held.
(2)Where any such person as is referred to in sub-section (1) defaults in making payment of any tax demanded from him, he shall be deemed to be an assessee in default in respect of such sum, and all the provisions of this Act relating to recovery shall apply accordingly.
SECTION 34: RESTRICTIONS ON REGISTRATION OF TRANSFERS OF IMMOVABLE PROPERTY IN CERTAIN CASES
[Omitted by the Wealth-tax (Amendment) Act, 1964, w.e.f. 1-4-1965. See section 230 of the Income-tax Act, 1961]
SECTION 34A: REFUNDS
(1) Where, as a result of any order passed in appeal or other proceeding (including a rectification proceeding) under this Act, refund of any amount becomes due to the assessee, the510[Assessing Officer] shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf:511
[
Provided that where, by the order aforesaid,- (a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;
(b) the assessment is annulled, the refund shall become due only of the amount, if any, of the tax paid in excess of the tax chargeable on the512[net wealth] returned by the assessee.]
513[(2) Where refund of any amount becomes due to the assessee as a result of an order under this Act or under the provisions of sub-section (1) of section 16-after a return has been made under section 14-orsection 15-or in response to a notice under clause (i) of sub-section (4) of section 16-and the Assessing Officer is of the opinion, having regard
to the fact that-
(i) a notice has been issued, or is likely to be issued, under sub-section (2) of section 16-in respect of the said return; or
(ii) the order is the subject-matter of an appeal or further proceeding: or
(iii) any other proceeding under this Act is pending, that the grant of the refund is likely to adversely affect the revenue, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief Commissioner or Commissioner may determine.]
(3)Where a refund is due to the assessee in pursuance of an order referred to in sub-section (1) and the514[Assessing Officer] does not grant the refund within a period of six months from the date of such order, the Central Government shall pay to the assessee simple interest at517["eight per cent"] per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted. 516[(3A) Where the whole or any part of the refund referred to in sub-section (3) is due to the assessee as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or
penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub- section (3) on the amount
so found to be in excess from the date on which such amount was paid to the date on which the refund is granted:
Provided that, where the amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date on
which such instalment was paid to the date on which the refund is granted: Provided further that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding: Provided also that, where any interest is payable to an assessee under this sub- section, no interest under
sub-section (3) shall be payable to him in respect of the amount so found to be in excess.]
(4) Where a refund is withheld under the provisions of sub-section (2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for the period commencing after the expiry of six months from the date of the order referred to in that subsection to the date the refund is granted.
518[(4A) The provisions of sub-sections (3), (3A) and (4) shall not apply in respect of any assessment for the assessment year commencing on the 1st day of April, 1989, or any subsequent assessment year.
(4B)
(a)519[Where refund of any amount becomes due to the assessee under this Act], he shall, subject to the provisions of this sub-section, be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of522["two third per cent"] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

Explanation
.-For the purposes of this clause, "date of payment of the tax or penalty" means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 30 is paid in excess of such demand.
(b) If the proceedings resulting in the refund are delaved for reasons attributable to the assessee, whether wholly or in part, period of the delay so attributable to him shall be excluded from the period for which interest is payable and where any question arises as to the period to be excluded, it shall be decided by the Chief Commissioner or
Commissioner whose decision thereon shall be final.
(c) Where as a result of an order under521[sub-section (3) or sub-section (5) of section 16-or]section 17-orsection 23- or 15Section 23A-section 24-orsection 25-orsection 27-orsection 29-orsection 35-or any order of the Wealth-tax Settlement Commission under sub-section (4) of section 22D-, the amount on which interest was payable under clause (a) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly and, in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the
amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 30-and the provisions of this Act shall apply accordingly.
(d) The provisions of this sub-section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years.]
(5) Where under any of the provisions of this Act, a refund is found to be due to any person, the523[Assessing Officer],524[Deputy Commissioner Appeals)], 525[Commissioner (Appeals)] or526[Chief Commissioner or Commissioner], as the case may be, may, in lieu off payment of the refund, set off the amount to be refunded or any
part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.]
SECTION 34AA: APPEARANCE BY REGISTERED VALUERS
Notwithstanding anything contained in this Act, any assessee who is entitled to or required to attend before any wealth-tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, except where he is required under this Act to attend in person, may attend by a registered valuer.
SECTION 34AB: REGISTRATION OF VALUERS
(1) The529[Chief Commissioner or Director General] shall maintain a register to be called the Register of Valuers in which shall be entered the names and addresses of persons registered under sub-section (2) as valuers.
(2) Any person who possesses the qualifications prescribed" in this behalf may apply to the530[Chief Commissioner or Director General] in the prescribed form531for being registered as a valuer under this section:
Provided that different qualifications may be prescribed for valuers of different classes of assets.
532(3) Every application under sub-section (2) shall be verified in the prescribed manner, shall be accompanied by such fees as may be prescribed and shall contain a declaration to the effect that the applicant will-
(i) make an impartial and true valuation of any asset which he may be required to value;
(ii) furnish a report of such valuation in the prescribed form;
(iii) charge fees at a rate not exceeding the rate or rates prescribed in this behalf;
(iv) not undertake valuation of any asset in which he has a direct or indirect interest.
533(4) The report of valuation of any asset by a registered valuer shall be in the prescribed form and be verified in the prescribed manner.
SECTION 34AC: RESTRICTIONS ON PRACTICE AS REGISTERED VALUER
(1) No person, either alone, or in partnership with any other person, shall practise, describe himself or hold himself out as a registered valuer for the purposes of this Act or permit himself to be so described or held out unless he is registered as a valuer or, as the case may be, unless he and all his partners are so registered under this Chapter.
(2) No company or other body corporate shall practise, describe itself or hold itself out as registered valuers for the purposes of this Act or permit itself to be so described or held out.
SECTION 34ACC: FURNISHING OF PARTICULARS IN CERTAIN CASES
Where any person who is registered as a valuer under section 34AB-or who has made an application for registration as a valuer under that section is, at any time thereafter,-
(a) convicted of any offence and sentenced to a term of imprisonment; or
(b) in a case where he is a member of any association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of architecture, accountancy, or company secretaries or such other profession as the Board may specify in this behalf by notification in the Official Gazette, found guilty of misconduct in his professional capacity, by such association or institution, he shall immediately after such conviction or, as the case may be, finding, intimate the particulars thereof to the535[Chief Commissioner or Director General].]
SECTION 34AD: REMOVAL FROM REGISTER OF NAMES OF VALUERS AND RESTORATION
(1) The537[Chief Commissioner or Director General] may remove the name of any person from the register of valuers where538[he] is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as538[he] thinks fit to make,-
(i) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact: (ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of misconduct in
his professional capacity which, in the opinion of the537[Chief Commissioner or Director General], renders him unfit to be kept in the register.
(2) The537[Chief Commissioner or Director General] may, on application and on sufficient cause being shown, restore to the register the name of any person removed there from.]
539[(3) Without prejudice to the provisions of sub-sections (1) and (2), the Chief Commissioner or Director General shall, once in three years review the performance of all the registered valuers and may remove the name of any person from the Register of Valuers where he is satisfied, after giving that person a reasonable opportunity of being
heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his name should not remain on the Register of Valuers.
(4) The Chief Commissioner or Director General may himself conduct the inquiry referred to in sub-section (1) or sub-section (3) or appoint an Inquiry Officer not below the rank of a Commissioner to conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director General and the Inquiry Officer so appointed shall
have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely:-
(a) discovery and inspection;
(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath;
(c) compelling the production of books of account and other documents;
(d) issuing commission.]
SECTION 34AE: EXISTING REGISTERED VALUERS TO APPLY AFRESH
(1) Notwithstanding anything contained in this Chapter, every person whose name is included in the Register of Valuers immediately before the 1st day of June, 1988, shall, if he intends to continue to be registered under this Act, make an application under sub-section (2) of section 34AB-within a period of three months from that date, for being
registered afresh as a value under this Chapter and the provisions of sub-section (3) of that section and the rules made there under shall be applicable in respect of the verification of the application, the fees that shall accompany such application and the declaration to be made by the applicant.
(2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub-section (1).(3) Every application pending before the Board immediately before the 1st day of June, 1988, shall be deemed to be an application received by the Chief Commissioner or Director General under sub-section (1).]
SECTION 34B: TRANSFERS TO DEFRAUD REVENUE TO BE VOID
(1) Where, during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under rule 2 of the Second Schedule to the Income-tax Act as made applicable to this Act by section 32-, any assessee creates a charge on, or parts with (by way of sale, mortgage, gift, exchange or any other mode of
transfer whatsoever) the possession of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the said proceeding or otherwise: Provided that such charge or transfer shall not be void, if it is made-
(i) for adequate consideration and without notice of the pendency of such proceeding or, as the case may be, without notice of such tax or other sum payable by the assessee; or
(ii) with the previous permission of the542[Assessing Officer].
(2) This section applies to cases where the amount of tax or other sum payable or likely to be payable exceeds five thousand rupees and the assets charged or transferred exceed ten thousand rupees in value.

Explanation
.-In this section, "assets" means land, building, machinery, plant, shares, securities and fixed deposits in banks to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the assessee.]
SECTION 34C: PROVISIONAL ATTACHMENT TO PROTECT REVENUE IN CERTAIN CASES
(1) Where, during the pendency of any proceeding for the assessment of net wealth or for the assessment or reassessment of net wealth which has escaped assessment,
the544[Assessing Officer] is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the545
[Chief Commissioner or Commissioner], by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32-.
546[
Explanation.-For the purposes of this sub-section, the proceedings under sub- section (5) of section 37A shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment.]
(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the545[Chief Commissioner or Commissioner] may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so however, that the total period of extension shall not in any case exceed two years]:547[
Provided further that where an application for settlement under section 22C-is made, the period commencing from the date on which such application
is made and ending with the date on which an order under sub-section (1) of section 22D-is made shall be excluded from the period specified in the preceding proviso.]
SECTION 35:548[RECTIFICATION OF MISTAKES.
(1) With a view to rectifying any mistake apparent from the record-
(a) the549[Assessing Officer] may amend any order of assessment or of refund or any other order passed by him; 111(aa) a wealth tax authority may amend any intimation or deemed intimation under sub-section (1) of Section 16;
551[552[(aaa)] the Valuation Officer may amend any order passed by him under section 16A-;]
553[(b) the554[Joint] Director or554[Joint] Commissioner or Director or Commissioner or Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 18A-;] 555[(c) the Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 23-
R5S.23A-556[* * *];
(d) the Commissioner may amend any order passed by him under section 25-;
(e) the Appellate Tribunal may amend any order passed by it under section 24-.]
(2) Where the amount of tax, penalty or interest determined as a result of the first appeal or revision against the order referred to in sub-clause (iii) of clause (m) of section 2-557[, as it existed immediately before its amendment by the Finance Act, 1992,] is paid within
six months of the date of the order passed in such appeal or revision, the558[Assessing Officer] may, notwithstanding anything to the contrary in this Act, rectify the assessment by allowing a deduction to the extent the tax, penalty or interest so paid stood
disallowed therein as if such rectification were a rectification of a mistake apparent from the record.
(3) Subject to the other provisions of this section, the authority concerned-
(a) may make an amendment under sub-section (1) or sub-section (2) of its own motion;
(b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the559[Valuation Officer or the ]560[Deputy Commissioner (Appeals)]561[or the
Commissioner (Appeals)] or the Appellate Tribunal, by the562[Assessing Officer] also.
(4) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to
do and has allowed the assessee a reasonable opportunity of being heard.
(5) Where an amendment is made under this section, an order shall be passed in writing by the wealth-tax authority concerned or the Tribunal, as the case may be.
(6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the563[Assessing Officer] shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand
shall be deemed to be issued under section 30-and the provisions of this Act shall apply accordingly.
564[(6A) Where any amendment made by the Valuation Officer under clause (aa) of sub-section (1) has the effect of enhancing the
valuation of any asset, he shall send a copy of his order to the563[Assessing Officer] who shall thereafter proceed to amend the order
of assessment in conformity with the order of the Valuation Officer and the provisions of sub-section (6) shall apply accordingly.]
(7) No amendment under this section shall be made after the expiry of four years-
(a) in the case of an amendment under sub-section (2),565[from the end of the financial year in which the order was passed in the first appeal or revision] referred to in that sub-section; and
(b) in any other case,566[from the end of the financial year in which the order sought to be amended was passed]. 567[(7A) Notwithstanding anything contained in sub-section (7), where the valuation of any asset has been enhanced by the
Valuation Officer under this section, the consequential amendment to the order of assessment may be made by the568[Assessing Officer] at any time before the expiry of one year from the date of the order of the Valuation Officer under this section.]
(8) Where any matter has been considered and decided in a proceeding by way of an appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any other law for the time being
in force, amend the order under this section in relation to any matter other than the matter which has been so considered and decided.]
SECTION 35A: WILFUL ATTEMPT TO EVADE TAX, ETC
(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable,-
(i) in a case where the amount sought to be evaded exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend
to three years and with fine.
(2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provisions of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may
extend to three years and shall, in the discretion of the court, also be liable to fine.

Explanation
.-For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person- (a) has in his possession or control any books of account or other documents (being) books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement, or (b) makes, or causes to be made, any false entry or statement in such books of account or other documents, or (c) wilfully omits, or causes to be omitted, any relevant entry or statement in such books of account or other documents, or (d) causes any other circumstances to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof.
SECTION 35B: FAILURE TO FURNISH RETURNS OF NET WEALTH
If a person wilfully fails to furnish in due time the return of his net wealth which he is required to furnish under sub-section (1) of section 14-or by notice given under sub-section (2) of section 14-or under sub-section (1) of section 17-, he shall be
punishable,-
(i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine:
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of net wealth under sub-section (1) of section 14--
(i) for any assessment year commencing prior to the 1st day of April, 1975; or
(ii) for any assessment year commencing on or after the 1st day of April, 1975,if-
(a) the return is furnished by him before the expiry of the assessment year; or
(b) the tax payable by him on his net wealth determined on regular assessment does not exceed three thousand rupees.
SECTION 35C: FAILURE TO PRODUCE ACCOUNTS, RECORDS, ETC
If a person wilfully fails to produce, or cause to be produced, on or before the date specified in any notice under sub-section
(4) of section 16-, such accounts, records and documents as are referred to in the notice, he shall be punishable with rigorous imprisonment for a term which may extend to one year or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both.
SECTION 35D: FALSE STATEMENT IN VERIFICATION, ETC., MADE UNDER CERTAIN PROVISIONS OF THE ACT
If a person makes a statement in any verification under this Act (other than under section 34AB-) or under any rule made there under, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable,-
(i) in a case where the amount of tax which would have been evaded if the statement or account had been accepted as true, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.
SECTION 35E: FALSE STATEMENT IN VERIFICATION MENTIONED IN SECTION 34AB
If a person makes a statement in a verification mentioned in section 34AB-which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.
SECTION 35EE: FAILURE TO FURNISH PARTICULARS UNDER SECTION 34ACC
If a person referred to in section 34ACC-fails571[* * *] to intimate to the Board the particulars of conviction or finding referred to in the said section, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine]:572[Provided that no person shall be punishable under this section if he proves that there was reasonable cause or excuse for the said failure.]
SECTION 35EEE: CONTRAVENTION OF ORDER MADE UNDER SECOND PROVISO TO SUB--SECTION (1) OR SUB-- SECTION (3A) OF SECTION 37A
If a person contravenes any order referred to in the second proviso to sub-section (1) or sub-section (3A) of section 37A-,
he shall be punishable with rigorous imprisonment for a term which may extend to two years and with fine.]
SECTION 35F: ABETMENT OF FALSE RETURN, ETC
If a person abets or induces in any manner another person to make and deliver an account, statement or declaration relating to any net wealth chargeable to tax which is false and which he either knows to be false or does not believe to be true or to
commit an offence under sub-section (1) of section 35A-, he shall be punishable,-
(i) in a case where the amount of tax, penalty or interest, which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.
SECTION 35G: PUNISHMENT FOR SECOND AND SUBSEQUENT OFFENCES
If any person convicted of an offence under sub-section (1) of section 35A-orsection 35B-orsection 35D-orsection 35F-is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine.
SECTION 35H: OFFENCES BY HINDU UNDIVIDED FAMILIES
(1) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any member thereof, such member shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
SECTION 35HA: OFFENCES BY COMPANIES
575[
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purposes of this section,- (a) "company" means a body corporate, and includes- (i) a firm; and
(ii) an association of persons or a body of individuals whether incorporated or not; and (b) "director'', in relation to,-
(i) a firm, means a partner in a firm; (ii) any association of persons or a body of individuals, means any member controlling the affairs thereof.]
SECTION 35I: PROSECUTIONS TO BE WITH THE PREVIOUS SANCTION OF CERTAIN WEALTH--TAX AUTHORITIES AND THEIR POWER TO COMPOUND OFFENCES
577[(1)A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Commissioner or Commissioner (Appeals):Provided that the Chief Commissioner or, as the case may be. Director General may issue such instructions or directions to the aforesaid wealth-tax authorities as he may deem fit for institution of proceedings under this sub-section.]
(2) Any such offence may, either before or after the institution of proceedings, be compounded by the Chief Commissioner or a Director General.]]
578[
Explanation.-For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other
wealth-tax authorities for the proper composition of offences under this section.]
SECTION 35J: CERTAIN OFFENCES TO BE NON--COGNIZABLE
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under section 35Aorsection 35Borsection 35Dorsection 35Fshall be deemed to be non-cognizable within the meaning of that Code.
SECTION 35K: BAR ON PROSECUTION AND ON INADMISSIBILITY OF EVIDENCE IN CERTAIN CIRCUMSTANCES
.
(1) A person shall not be proceeded against for an offence under section 35A-orsection 35D-in relation to the assessment for 579[an assessment year] in respect of which the penalty imposed or imposable on him under clause (iii) of sub-section (1) of section 18-has been reduced or waived by an order under section 18B-.
(2) Where any proceeding for prosecution has been taken against any person under this Act, any statement made or account or other document produced by such person before580[any wealth-tax authority (not being an Inspector of Income-tax)] shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that
such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived under section 18B-or that the offence in respect of which such proceeding was taken would be compounded.
SECTION 35L: JURISDICTION OF COURTS
No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence under this Act.
SECTION 35M:
Section 360 of the Code of Criminal Procedure, 1973, and the
Probation of Offenders Act, 1958, not to apply Nothing contained in section 360 of the Code of Criminal Procedure, 1973 (2 of 1974), or in the Probation of Offenders
Act,1958 (20 of 1958), shall apply to a person convicted of an offence under this Act unless that person is under eighteen years of age.
SECTION 35N: PRESUMPTION AS TO BOOKS OF ACCOUNT, ETC., IN CERTAIN CASES
(1) Where during the course of any search made under section 37A-, any books of account or other documents, articles or things including money have been found in the possession or control of any person and such books of account or other documents are tendered, or such articles or things including money are relied upon, by the prosecution in evidence against such person or against such person and the person referred to in section 35F-for an offence under this Act, the provisions of sub-section (5) of section 37A-shall, so far as may be, apply in relation to such books of account or other documents, articles or things including money.
(2) Where-
(i) any books of account or other documents, taken into custody, from the possession or control of any person by any officer or authority under clause (a) or clause (b) of sub-section (1) of section 37B-, are delivered to the requisitioning officer under
sub-section (2) of that section; or
(ii) any note or inventory of any articles or things including money taken into custody, from the possession of any person, by any officer or authority under clause (c) of sub-section (1) of section 37B-, is furnished to the requisitioning officer under
sub-section (2) of that section, and such books of account or other documents are tendered, or such note or inventory is relied upon, by the prosecution in evidence against such person or against such person and the person referred to in section 35F-for an offence under this Act, the provisions of sub- section (5) of section 37A-shall, so far as may be, apply in relation to such books of account to other documents or, as the case may be, the articles or things including money, covered by such note or inventory.
SECTION 35O:582[PRESUMPTION AS TO CULPABLE MENTAL STATE
.
(1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation.-In this sub-section, "culpable mental state'' includes intention, motive or knowledge of a fact, or belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.]
SECTION 36: PROOF OF ENTRIES IN RECORDS OR DOCUMENTS
Entries in the records or other documents in the custody of a wealth-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Act, and all such entries may be proved either by the production of the records or other documents in the custody of the wealth-tax authority containing such entries or by the production of a copy of the entries certified by the wealth-tax authority having custody of the records or other documents under its signature and staling that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.]
SECTION 36A: POWER TO TENDER IMMUNITY FROM PROSECUTION
(1) The Central Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of particulars of net wealth or to the evasion of payment of tax on net wealth, it is necessary or expedient
so to do, tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860)or under any other Central Act for the time being in force and also from the imposition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the
concealment of particulars of net wealth or evasion of payment of tax on net wealth.
(2) A tender of immunity made to, and accepted by, the person concerned shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made or from the imposition of any penalty under this Act.
(3) If it appears to the Central Government that any person to whom immunity has been tendered under this section has not complied with the condition on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government may record a finding to that effect, and thereupon the immunity shall be deemed to have been withdrawn, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter and shall also become liable to the imposition of any penalty under this Act to which he would otherwise have been liable.]
SECTION 37: POWER TO TAKE EVIDENCE ON OATH, ETC
(1) The586[Assessing Officer],587[Valuation Officer,]588[Deputy Commissioner (Appeals)],589[Commissioner (Appeals),]590[Chief Commissioner or Commissioner] and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely:-
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath;
(c) compelling the production of books of account and other documents; and
(d) issuing commissions.
591[(1A) If the Director General or Director or592[Joint] Director or Assistant Director593[or Deputy Director], or the authorised officer referred to in sub- section (1) of section 37A-before he takes action under clauses (i) to (vi) of that
sub-section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the wealth-tax authorities
referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth-tax authority.]
594(2) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1\4\1989.]
(3) Subject to any rules made in this behalf, any authority referred to in sub- section (1)595[or sub-section (1A)] may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced
before it in any proceeding under this Act: Provided that596[an Assessing Officer]597[or a Valuation Officer]598[or an Assistant Director599[or a Deputy Director]] shall not-
(a) impound any books of account or other documents without recording his reasons for so doing, or
(b) retain in his custody any such books or documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of the600[601[Chief Commissioner or Director General or Commissioner or Director therefor, as the case
may be]].
(4) Any proceeding under this Act before a wealth-tax authority or the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193and228, and for the purposes of602section 196 of the Indian Penal Code (45 of 1860).]
SECTION 37A: POWER OF SEARCH AND SEIZURE
605(1) Where the606[Director General or Director] or the607[Chief Commissioner or Commissioner] or any such608 [Joint Director] or609[Joint Commissioner] as may be empowered in this behalf by the Board, in consequence of information in his possession, has reason to believe that-
(a) any person to whom a notice under sub-section (4) of section 16-or a summons under section 37-was issued to produce, or cause to be produced, any books of account or other documents, has omitted or failed to produce, or cause to be produced,
such books of account or other documents as required by such notice or summons, or
(b) any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce, or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding
under this Act, or
(c) any person is in possession of610[any money, bullion, jewellery or other valuable article or thing] disproportionate to his known assets, particulars of which will be useful for, or relevant to, any proceeding under this Act, then, -
(A) the611[Director-General or Director] or the612[Chief Commissioner or Commissioner], as the case may be, may authorise any613[Joint Director],614[Joint
Commissioner],615[Assistant Director616[or Deputy Director]],617[Assistant Commissioner616[or Deputy Commissioner] or Income-tax Officer], or
(B) such613[Joint Director] or614[Joint Commissioner] may authorise any615[Assistant Director]616[or Deputy Director] or617[Assistant Commissioner616[or
Deputy Commissioner] or Income-tax Officer], (the officer so authorised in all cases being hereafter in this section referred to as the authorised officer) to-
(i) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account or other documents,618
[money, bullion, jewellery or other valuable article or thing] are kept;
(ii) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account or other
documents, 618[money, bullion jewellery or other valuable article or thing];
(iii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;
619[(iv) seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such
search;]
(v) place marks of identification on any such books of account or other documents or make, or cause to be made, extracts or copies there- from;
(vi) make a note or an inventory of620[any money, bullion, jewellery or other valuable article or thing] found which, in his opinion, will be useful for, or relevant to, any proceeding under this Act:
621Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any622[Chief Commissioner or
Commissioner] but such622[Chief Commissioner or Commissioner] has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of this sub-
section, then, notwithstanding anything contained in623[section 8-], it shall be competent for him to exercise the powers under this sub-section in all cases where he
has reason to believe that any delay in getting the authorisation from the624[Chief Commissioner or Commissioner] having jurisdiction over such person may be
prejudicial to the interests of the revenue :625[Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing
and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an
order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the
previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iv)
of this sub-section.]
626(2) Where any624[Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to suspect that any books of account or other
documents,627[money, bullion, jewellery or other valuable article or thing] in respect of which an officer has been authorised by the628[Director General or Director] or any
other629[Chief Commissioner or Commissioner] or any such630[Joint Director] or631[Joint Commissioner] as may be empowered in this behalf by the Board to take action under clauses (i) to (vi) of sub-section (1) are kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under sub-section (1), such632[Chief Commissioner or Commissioner] may, notwithstanding anything contained in633[section 8-], authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.
(3) The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes
specified in sub-section (1) or sub-section (2) and it shall be the duty of every such officer to comply with such requisition.
634[(3A) The authorised officer may, where it is not practicable to seize any books of account, other documents, money, bullion, jewellery or other valuable article or thing, for
reasons other than those mentioned in the second proviso to sub- section (1), serve an order on the owner or the person who is in immediate possession or control thereof that
he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub- section.
Explanation.-For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed
to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iv) of sub-section (1).]
(4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account
or other documents, articles or things including money and any statement made by such person during such examination may thereafter be used in evidence in any proceeding
under this Act.634[Explanation.-For the removal of doubts, it is hereby declared that the examination of any person under this sub-section may be not merely in respect of any
books of account, other documents or assets found as a result of the search, but also in respect of matters relevant for the purposes of any investigation connected with any
proceedings under this Act.]
(5) Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a search, it may be
presumed that-
(i) such books of account or other documents, articles or things including money belong to such person;
(ii) the contents of such books of account or other documents are true; and
(iii) the signature and every other part of such books of account or other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.
635[(5A) Where any money, bullion, jewellery or other valuable article or thing (hereafter in this section and in sections 37Band37C-
referred to as the assets) is seized under sub-section (1) or sub-section (2), the Assessing Officer, after affording a reasonable opportunity to the person concerned of being heard and making such inquiry as may be prescribed, shall, within one hundred and twenty days of the seizure, make an order, with the previous approval of the636[Joint]
Commissioner,-
(i) estimating the undisclosed net wealth in a summary manner to the best of his judgment on the basis of such materials as are available with him;
(ii) calculating the amount of tax on the net wealth so estimated in accordance with the provisions of this Act;
(iii) determining the amount of interest payable and the amount of any penalty imposable in accordance with the provisions of this Act, as if the order had been the order of regular assessment;
(iv) specifying the amount that will be required to satisfy any existing liability under this Act in respect of which such person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred it in clauses
(ii), (iii) and (iv) and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized:

Provided that
where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses (ii), (iii) and (iv) or any part thereof, the Assessing Officer, may with the previous approval of the Chief Commissioner or Commissioner release the assets or such part thereof as he may deem fit in the circumstances of the case.
(5B) The assets retained under sub-section (5A) may be dealt with in accordance with the provision of section 37C-.
(5C) If the Assessing Officer is satisfied that the seized assets or any part thereof were held by such person for or on behalf of any other person, the Assessing Officer may proceed under sub-section (5A) against such other person and all the provisions of this
section shall apply accordingly.]
(6) The books of account or other documents, seized under sub-section (1) or sub- section (2), shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are
recorded by him in writing and the approval of the637[Chief Commissioner or Commissioner] for such retention is obtained:
Provided that the637[Chief Commissioner or Commissioner] shall not authorise the retention of the books of account or other documents for a period exceeding thirty days after all the proceedings under this Act in respect of the years for which the books of account or other documents are relevant are completed.
638[(6A) An order under sub-section (3A) shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to be recorded in writing by him, extends the period of operation of the order beyond sixty
days, after obtaining the approval of the639[Director or, as the case may be. Commissioner] for such extension: Provided that the639 [Director or, as the case may be. Commissioner] shall not approve the extension of the period for any period beyond the expiry of thirty days after the completion of the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant.]
(7) The person from whose custody any books of account or other documents are seized under sub-section (1) or sub-section (2) may make copies thereof, or take extracts there from, in the presence of the authorised officer or any other person empowered by him
in this behalf at such place and time as the authorised officer may appoint in this behalf.
(8) Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents seized under that sub-section shall be handed over by the authorised officer to the640
[Assessing Officer] having jurisdiction over such person within a period of fifteen days of such seizure and thereupon the powers exercisable by the authorised officer under sub-section (6) or sub-section (7) shall be exercisable by such640[Assessing Officer].
(9) If a person legally entitled to the books of account or other documents seized under sub-section (1) or sub-section (2) objects for any reason to the approval given by the641[Chief Commissioner or Commissioner] under sub-section (6), he may make an application to the Board staling therein the reasons for such objection and requesting for the return of the books of account or other documents. 642[(9A) If any person objects for any reason to an order made under sub-section (5A), he may, within thirty days from the date of such order, make an application to the Chief Commissioner or Commissioner staling therein the reasons for such objection and requesting for appropriate relief in the matter.] 643[(10) On receipt of the application under sub-section (9), the Board, or on receipt of the application under sub-section (9A), the
Chief Commissioner or Commissioner, may, after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit.]
(11) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches shall apply, so far as may be, to searches under this section.
(12) The Board may make rules in relation to searches or seizure under this section; and in particular and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer-
(i) for obtaining ingress into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available;
(ii) for ensuring the safe custody of any books of account or other documents seized.644[
Explanation 1.-In computing the period referred to in sub-section (5A) for the purposes of that sub-section, any period during which any proceeding under
this section is stayed by an order or injunction of any court shall be excluded.
Explanation 2.-In this section, the word "proceeding" means any proceeding in respect of any year under this Act which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also proceedings under this Act which may be commenced after such date in respect of any year.]
SECTION 37B: POWER TO REQUISITION BOOKS OF ACCOUNT, ETC
645(1) Where the646[Director General or Director] or the647[Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to believe that-
(a) any person to whom a notice under sub-section (4) of section 16-or a summons under section 37-was issued to produce, or cause to be. produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons and the said books of account or other documents have been taken into custody by any officer or authority under any other law for the time being in force, or
(b) any books of account or other documents will be useful for, or relevant to, any proceeding under this Act and any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce or cause to be produced such books of account or other documents on the return of such books of account or other documents by any officer or authority b" whom or which such books of account or other documents have been taken into custody under any other law for the time being in force, or
(c)648[any assets] disproportionate to the known assets of any person, particulars of which will be useful for, or relevant to, any proceeding under this Act, have been taken into custody by any officer or authority under any other law for the time being in force, from the possession of such person, then, the649[Director-General or Director] or the650[Chief Commissioner or Commissioner] may authorise any651[Joint Director],652[Joint Commissioner],653[Assistant Director654[or Deputy Director]]
or655[Assistant Commissioner654[or Deputy Commissioner] or Income-tax Officer] (hereafter in this section referred to as the requisitioning officer) to require such officer or authority656[to deliver such books of account, other documents, or assets to
the requisitioning officer].
(2) On a requisition being made under sub-section (1),657[the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, of that sub- section shall deliver the books of account, other documents, or assets to the requisitioning officer either forthwith or when such officer or authority is of the opinion that it is no longer
necessary to retain the same in his or its custody.]
658[(3) Where any books of account, other documents, or assets have been delivered to the requisitioning officer, the provisions of sub-sections (5) to (12) (both inclusive) of section 37A-andsection 37C-shall, so far as may be, apply as if such books of account, other documents, or assets had been seized under sub- section (1) of section 37A-by the
requisitioning officer from the custody of the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1) of this section and as if for the words "the authorised officer" occurring in sub-sections (5) to (12) aforesaid, the words "the requisitioning officer'' were substituted.]
SECTION 37C: APPLICATION OF RETAINED ASSETS
(1) The assets retained under sub-section (5A) of section 37A-may be dealt with in the following manner, namely :-
(i) the amount of the existing liability referred to in clause (iv) of the said sub-section and the amount of the liability determined on completion of the regular assessment or reassessment for all the assessment years for which the net wealth
referred to in clause (i) of that sub- section is assessable to tax (including any penalty levied or interest payable, in connection with such assessment or reassessment) and in respect of which the assessee is in default or is deemed to be in default may be recovered out of such assets;
(ii) if the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liabilities to the extent of the money so applied;
(iii) the assets other than money may also be applied for the discharge of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer under authorisation from the Chief Commissioner or Commissioner under sub-section (5) of section 226 of the Income-tax Act as made applicable to this Act by section 32-, and the Assessing Officer may recover the amount of such
liabilities by the sale of such assets and such sale shall be effected in the manner laid down in the Third Schedule to the Income-tax Act as made applicable to this Act by section 32-.
(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of liabilities aforesaid by any other mode laid down in this Act.
(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from whose custody the assets were seized.
(4)
(a) The Central Government shall pay simple interest at the rate of fifteen per cent per annum on the amount by which the aggregate of the money retained under section 37A-and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (iv) of sub-section (5A) of that section exceeds the aggregate of the amount required
to meet the liabilities referred to in clause (i) of sub-section (1) of this section.
(b) Such interest shall run from the date immediately following the expiry of the period of six months from the date of the order under sub-section (5A) of section 37A-to the date of the regular assessment or reassessment referred to in clause (i) of sub-section (1) or, as the case may be, to the date of the last of such assessments or reassessments.]
SECTION 38: INFORMATION, RETURNS AND STATEMENTS
660[Where, for the purposes of this Act], it appears necessary for661[any wealth- tax authority] to obtain any statement or information from any individual, company662[(including a banking company)], firm, Hindu undivided family or other
person,663[such wealth-tax authority] may serve a notice requiring such individual, company, firm, Hindu undivided family or other person, on or before a date to be therein specified, to furnish such statement or information on the points specified in
the notice, and the individual or the principal officer concerned or the manager of the Hindu undivided family, as the case may be, shall, notwithstanding anything in any law to the contrary, be bound to furnish such statement or information to663
[such wealth-tax authority]:
Provided that no legal practitioner shall be bound to furnish any statement or information under this section based on any professional communications made to him otherwise than as permitted by664section 126 of the
Indian Evidence Act, 1872 (1 of 1872)
SECTION 38A: POWERS OF VALUATION OFFICER, ETC
666(1) For the purposes of this Act, a Valuation Officer or any overseer, surveyor or assessor authorised by him in this behalf may, subject to any rules made in this behalf and at such reasonable times as may be prescribed,-
(a) enter any land within the limits of the area assigned to the Valuation Officer, or
(b) enter any land, building or other place belonging to or occupied by any person in connection with whose assessment a reference has been made under section 16A-to the Valuation Officer, or
(c) inspect any asset in respect of which a reference under section 16A-has been made to the Valuation Officer, and require any person in charge of, or in occupation or possession of, such land, building or other place or asset to afford him the necessary facility to survey or inspect such land, building or other place or asset or estimate its value or inspect any books of account, document or record which may be relevant for the valuation of such land, building or other place or asset and gather other particulars relating to such land, building or other place or asset:
Provided that no Valuation Officer, overseer, surveyor or assessor shall enter any building or place referred to in clause (b), or inspect any asset referred to in clause (c) (unless with the consent of the person in charge of, or in occupation or possession of, such building, place or asset) without previously giving to such person at least two days' notice in writing of his intention to do so.
(2) If a person who, under sub-section (1), is required to afford any facility to the Valuation Officer or the overseer, surveyor or assessor, either refuses or evades to afford such facility, the Valuation Officer shall have all the powers under sub- sections (1) and (2) of section 37-for enforcing compliance of the requirements made.]
SECTION 39: EFFECT OF TRANSFER OF AUTHORITIES ON PENDING PROCEEDINGS
Whenever in respect of any proceeding under this Act any wealth-tax authority ceases to exercise jurisdiction and is succeeded by another who has and exercises such jurisdiction, the authority so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor:667[
Provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or any part thereof be reopened or that before any order of assessment is passed against him, he be reheard.]
SECTION 40: COMPUTATION OF PERIODS OF LIMITATION
In computing the period of limitation prescribed for an appeal under this Act or for an application under section 27-, the day on which the order complained of was made and the time requisite for obtaining a copy of such order shall be excluded.
SECTION 41: SERVICE OF NOTICE
(1)A notice or a requisition under this Act may be served on the person therein named either by post or as if it were a summons issued by a court under the Code of Civil Procedure, 1908 (5 of 1908).
(2) Any such notice or requisition may, in the case of a firm or a Hindu undivided family, be addressed to any member of the firm or to the manager or any adult male member of the family, and in the case of668[a company, or] any other association of persons be addressed to the principal officer thereof.
669[(3) After a finding of total partition has been recorded by the670[Assessing Officer] under section 20-in respect of any Hindu family, notices under this Act in respect of the net wealth of the Hindu family shall be served on the person who was the last manager of the Hindu family, or, if such person is dead, then on all surviving adults who were members of the Hindu family immediately before the partition.]
671[(4) Where an association of persons referred to in section 21AA-is dissolved, notices under this Act in respect of any matter relating to the association may be served on any person who was a member of the association immediately before its dissolution.]
SECTION 42: PROHIBITION OF DISCLOSURE OF INFORMATION
[Omitted by the Finance Act, 1964, w.e.f. 1-4-1964.]
SECTION 42A: PUBLICATION OF INFORMATION RESPECTING ASSESSEES
(1) If the Central Government is of opinion that it is necessary or expedient in the public interest to publish the names of any assessees and any other particulars relating to any proceedings673[or prosecutions] under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit.]
674[(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the675[Deputy Commissioner (Appeals)]676[or, as the case may be, the Commissioner
(Appeals)] has expired without an appeal having been presented or the appeal, if presented, has been disposed of.] 677[
Explanation.-In the case of a company, the names of the directors, secretaries and treasurers, or managers of the company, may also be published if, in the opinion of the Central Government, the circumstances of the case justify it.]
SECTION 42B: DISCLOSURE OF INFORMATION RESPECTING ASSESSEES
679Where a person makes an application to the680[Chief Commissioner or Commissioner] in the prescribed form for any information relating to any assessee in respect of any assessment made under this Act, the681[Chief Commissioner or
Commissioner] may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any court of law.]
SECTION 43: BAR OF JURISDICTION
No suit shall lie in any civil court to set aside or modify any683[proceeding taken or]684[order] made under this Act, and no prosecution, suit or other legal proceeding shall lie against685[the Government or] any officer of the Government for anything
in good faith done or intended to be done under this Act.
SECTION 44: APPEARANCE BEFORE WEALTH--TAX AUTHORITIES BY AUTHORISED REPRESENTATIVES
(1) Any assessee who is entitled to or required to attend before any wealth- tax authority or the Appellate Tribunal in connection with any proceeding under this Act, except where he is required under this Act to attend in person, may attend by a person who would be entitled to represent him before any income-tax authority or the Appellate Tribunal
under section 288 of the Income- tax Act.
(2) Notwithstanding anything in sub-section (1)-
(i) no person who has been convicted of an offence connected with any wealth-tax proceeding or on whom a penalty has been imposed under this Act other than a penalty imposed on him under clause (i) or clause (ii) of sub-section (1) of section
(18)-shall be qualified to represent an assessee under sub-section (1) for such time as the688[Chief Commissioner or Commissioner] may by order determine;
689(ii) if any person who is not a legal practitioner or a chartered accountant, is found guilty of misconduct in connection with any wealth-tax proceeding by the prescribed authority, the prescribed authority may direct that he shall thenceforth be
disqualified to represent an assessee under sub-section (1);
(iii) no person not qualified to represent an assessee under the Indian Income-tax Act, 1922 (11 of 1922),the Estate Duty Act, 1953 (34 of 1953),the Expenditure-tax Act, 1957 (29 of 1957), or the Gift-tax Act, 1958 (18 of 1958), shall be entitled to appear on
behalf of any assessee under this Act: Provided that any order or direction under clause (i) or clause (ii) shall be subject to the following conditions, namely :-
(a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;
(b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and
(c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.]
SECTION 44A: AGREEMENT FOR AVOIDANCE OR RELIEF OF DOUBLE TAXATION WITH RESPECT TO WEALTH-- TAX
691[The Central Government may enter into an agreement with the Government of any reciprocating country-
(a) for the avoidance or relief of double taxation with respect to wealth- tax payable under this Act and under the corresponding law in force in the reciprocating country, or
(b) for exchange of information for the prevention of evasion or avoidance of wealth-tax chargeable under this Act or under the corresponding law in force in that country or investigation of cases of such evasion or avoidance, or
(c) for recovery of tax under this Act and under the corresponding law in force in that country, and may, by notification692in the Official Gazette, make such provision as may be necessary for implementing the agreement.]

Explanation
.-The expression "reciprocating country" for the purposes of this Act means any country which the Central Government may, by notification in the Official Gazette, declare to be a reciprocating country.]
SECTION 44B:COUNTRIES WITH WHICH NO AGREEMENT EXISTS
Where the net wealth of any assessee includes any foreign wealth and he proves that, in respect of such foreign wealth, he has paid in any country, with which there is no reciprocal arrangement under section 44A-for the relief or avoidance of
double taxation, a tax in respect of wealth, under the law in force in that country, he shall be entitled to the deduction from the Indian wealth-tax payable by him of a sum calculated on such doubly taxed foreign wealth at the Indian rate of tax or the
rate of tax of the said country, whichever is the lower, or at the Indian rate of tax if both the rates are equal.

Explanation
.-In this section- (1) the expression "Indian wealth-tax'' means wealth-tax charged in accordance with the provisions of this Act; (2) the expression Indian rate of tax'' means the rate determined by dividing the amount of Indian wealth-tax after deduction of any relief due under the provisions of this Act but before the deduction of any relief due under this section by the net wealth; (3) the expression "rate of tax of the said country" means any tax in respect of wealth, actually paid in the said country, in accordance with the corresponding laws in force in the said country after deduction of all relief due but before deduction of any relief due in the said country in respect of double
taxation, divided by the whole amount of the wealth assessed in the said country ; (4) the expression "foreign wealth", in relation to any assessee, means the value of all his assets located in any country outside India as reduced by the value of his debts in that country.]
SECTION 44C:ROUNDING OFF OF NET WEALTH
The amount of net wealth computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of one hundred rupees and, for this purpose, any part of a rupee consisting of paise shall be ignored and thereafter, if such amount contains a part of one hundred rupees, then, if such part is fifty rupees or more, the amount shall be increased to the next higher amount which is a multiple of one hundred and, if such part is less than fifty rupees, the amount shall be reduced to the next lower amount which is a multiple of one hundred; and the amount so rounded off shall be
deemed to be the net wealth of the assessee for the purposes of this Act.]
SECTION 44D:ROUNDING OFF OF TAX, ETC
The amount of wealth-tax, interest, penalty. Fine or any other sum payable, and the amount of refund due, under the provisions of this Act, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and if such part is less than fifty paise, it shall be ignored.]
SECTION 45:ACT NOT TO APPLY IN CERTAIN CASES
697[No tax shall be levied under this Act in respect of the net wealth of-]
(a) to (e)698[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(f) any company registered under699section 25 of the Companies Act, 1956 (1 of 1956);
700[(g) any co-operative society;]
701[(h) any social club;]
702[(i) any political party.

Explanation.
-For the purposes of clause (i), "political party" shall have the meaning assigned to it in the Explanation to section 13A of the Income-tax Act;]
703[(j) a Mutual Fund specified under clause (23D) of section 10 of the Income-tax Act.]
SECTION 46: POWER TO MAKE RULES
(1) The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, rules made under this section may provide for-
(a) the manner in which the market value of any asset may be deter- mined;
(b)704the form in which returns under this Act shall be made and the manner in which they shall be verified;
(c)705the form in which appeals and applications under this Act may be made, and the manner in which they shall be verified;706[(cc)707the circumstances in which, the conditions subject to which, and the manner in which, the708[Deputy
Commissioner (Appeals)]709[or the Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the710[Assessing Officer];]
(d)711the form of any notice of demand under this Act;712[(dd)713the procedure to be followed in calculating interest payable by assessees or interest payable by the Government to assessees under any provision of this Act, including the rounding off
of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be
ignored;]
714[(e) the areas715within which Valuation Officers may exercise
jurisdiction; (ee)716the manner in which and the conditions subject to which Valuation Officers, overseers, surveyors and assessors may exercise their powers under sub-section (1)
of section 38A-;]
(f) any other matter which has to be, or may be, prescribed for the purposes of this Act.
717[(3) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to
prejudicially affect the interests of assessees.]
718[(4) The Central Government shall cause every rule made under this Act719[and the rules of procedure framed by the Settlement Commission under sub-section (7) of section 22F-] to be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session
or in two720[or more] successive sessions, and if before the expiry of the session721[immediately following the session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or both Houses agree
that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]
SECTION 46A: POWER TO MAKE EXEMPTION, ETC., IN RELATION TO CERTAIN UNION TERRITORIES
If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of this Act to the Union territories of Dadra and Nagar Haveli, Goa,
Daman and Diu, and Pondicherry, or in the case of the Union territory of Pondicherry, for implementing any provision of the Treaty of Cession concluded between France and India on the 28th day of May, 1956, that Government may, by general or
special order, make an exemption, reduction in rate or other modification in respect of wealth-tax in favour of any class of assets or in regard to the whole or any part of the net wealth of any assessee or class of assessees: Provided that the power conferred by this section shall not be exercisable after the 31st day of March, 1967, except for (he purposes of rescinding an exemption, reduction or modification already made.]
SECTION 47: POWER TO REMOVE DIFFICULTIES
(1) If any difficulty arises in giving effect to the provisions of this Act as amended by the Direct Tax Laws (Amendment) Act, 1987, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of three years from the 1st day of April, 1988.
(2) Every order made under sub-section (1) shall be laid before each House of Parliament.]
Central Bare Acts


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