Section 1. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988)

1. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988). 2. Ins. by Act 45 of 1972, s. 15 (w.e.f. 1-1-1973). 3. Subs. by Act 67 of 1984, s. 69, for "from the date of the order passed in the first appeal or revision" (w.e.f. 1-10-1984). 4. Subs. by s. 69, ibid ., for "from the date of the order sought to be amended" (w.e.f. 1-10-1984). 1. Subs. by Act 3 of 1989, s. 73, for "total income" (w.e.f. 1-4-1989). 2. Subs. by Act 36 of 1989, s. 29, for sub-section (2) (w.r.e.f. 1-4-1989). 3. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988). 4. Subs. by Act 54 of 2003, s. 21, for "eight per cent." (w.e.f. 8-9-2003). 5. Ins. by Act 41 of 1975, s. 97 (w.e.f. 1-10-1975). 6. Ins. by Act 4 of 1988, s. 150 (w.e.f. 1-4-1989). (4B) (a)[1] [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 of[2] [one-half[3] * 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. 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Substituted by Act 3 of 1989, s. 69, for section 18A (w.e.f. 1-4-1989). Earlier section 18A was amended by 46 of 1986, s. 34 (w.e.f. 10-9-1986) and Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978) which was inserted by Act 41 of 1975, s. 92 (w.e.f. 1-4-1976). (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 a[1] [Joint Director] or a[2] [Joint Commissioner], by such wealth-tax authority; (b) in any other case, by the[1] [Joint Director] or the[2] [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,[1] [Joint Director],[3] [Assistant Director 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.] 1. The Explanation omitted by Act 18 of 1992, s. 96 (w.e.f. 1-4-1993). 2. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988). 3. The proviso omitted by Act 46 of 1964, s. 21 (w.e.f. 1-4-1965). 4. Ins. by s. 21, ibid . (w.e.f. 1-4-1965). 5. Ins. by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976). 6. Subs. by Act 11 of 1987, s. 77, for section 22A (w.e.f. 1-6-1987). 7. Subs. by Act 22 of 2007, s. 84, for clause (b) (w.e.f. 1-6-2007). 1* * * * * Explanation. —For the purposes of this clause— (i) a proceeding for assessment or reassessment referred to in[2] [section 17 shall, in case where a notice under the said section] is issued but not on the basis of search under section 37A or requisition under section 37B, be deemed to have commenced from the date on which a notice under section 17 is issued; 3[(ii) a proceeding for making fresh assessment in pursuance of an order under section 23A or section 24 or section 25, setting aside or cancelling an assessment shall be deemed to have been commenced from the date on which such order, setting aside or cancelling an assessment was passed.] (b) If the proceedings resulting in the refund are delayed 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 under[4] [sub-section (3) or sub-section (5) of section 16 or] section 17 or section 23[5] [or section 23A] or section 24 or section 25 or section 27 or section 29 or section 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.] 1. The Explanation renumbered as Explanation 1 thereof by Act 23 of 1986, s. 40 (w.r.e.f. 1-4-1977). 2. Ins. by s. 40, ibid . (w.r.e.f. 1-4-1977). 3. Subs. by Act 21 of 1998, s. 68, for clause (vi) (w.e.f.. 1-4-1998). 4. Clauses (xxxiv) omitted by Act 18 of 1992, s. 92 (w.e.f. 1-4-1993). Earlier it was inserted by Act 66 of 1976, s. 27 (w.e.f. 1-4-1976). 5. Sub-sections (1A) to (4) omitted by s. 92, ibid. (w.e.f. 1-4-1993). 6. Subs. by Act 11 of 1958, s. 14, for "In computing the net wealth of an individual" (w.r.e.f. 1-4-1957). 7. Subs. by Act 46 of 1964, s. 6, for "sub-section (3) of section 4" (w.e.f.1-4-1965). 4 [ 18B. Power to reduce or waive penalty in certain cases.— (1) Notwithstanding anything contained in this Act, the[5] [[6] * Commissioner] may, in his discretion, whether on his own motion or otherwise,— 7* * * * * (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,— 8* * * * * (b) in the case referred to in clause (ii), has, prior to the detection by the[9] [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. Explanation[10] *.—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. 11* * * * * 4 [(iii) a proceeding for assessment or reassessment for any of the assessment years, in consequence of a search initiated under section 37A or requisition made under section 37B, shall be deemed to have commenced on the date of issue of notice initiating such proceedings and concluded on the date on which the assessment is made;] (iv) a proceeding for assessment for an assessment year, other than the proceeding of assessment or reassessment referred to in[5] [clause (i) or clause (ii) clause (iii)], shall be deemed to have commenced from the 1st day of the assessment year and concluded on the date on which the assessment is made;] (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[6] [and includes a Member who is senior amongst the Members of a Bench]; (g) "wealth-tax authority" means an income-tax authority specified in section 116 of the Incometax Act who is treated as a wealth-tax authority under section 8.] (5) Where under any of the provisions of this Act, a refund is found to be due to any person, the 6 [Assessing Officer], 7 [Deputy Commissioner (Appeals)] 8 [, Commissioner (Appeals)] or 9 [Chief Commissioner or Commissioner], as the case may be, may, in lieu of 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. ] 10 [ CHAPTER VIIB REGISTERED VALUERS 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier the words "any interested person," was substituted by Act 4 of 1988, s. 144, for the given expression (w.e.f. 1-4-1989). 1. Subs. by Act 21 of 1998, s. 66, for "Deputy Director" (w.e.f. 1-10-1998). 2. Subs. by s. 66, ibid . for "Deputy Commissioner" (w.e.f. 1-10-1998). 3. Subs. by s. 66, ibid . for "Assistant Director" (w.e.f. 1-10-1998). 4. Ins. by Act 41 of 1975, s. 92 (w.e.f. 1-10-1975). 5. Subs. by Act 4 of 1988, s. 127, for "Commissioner" (w.e.f. 1-4-1988). 6. The words "Chief Commissioner or" omitted by Act 38 of 1993, s. 40 (w.e.f. 1-6-1993). 7. Clause (i) omitted by Act 3 of 1989, s. 70 (w.e.f. 1-4-1989). 8. Clause (a) omitted by s. 70, ibid . (w.e.f. 1-4-1989). 9. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988). the date of the search, he shall, for the purposes of imposition of a penalty under clause (c) of (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 the[6] [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].] 1. The proviso omitted by Act 46 of 1986, s. 33 (w.e.f. 10-9-1986). 2. Subs. by Act 3 of 1989, s. 68, for Explanation 3 (w.e.f. 1-4-1989). 3. The words "who has not previously been assessed under this Act" omitted by Act 20 of 2002, s. 110 (w.e.f. 1-4-2003). 4. Ins. by Act 67 of 1984, s. 57 (w.e.f. 1-10-1984). 5. Subs. by Act 46 of 1986, s. 33, for certain words (w.e.f. 10-9-1986). 1. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier clause (a) and (ab) was substituted by Act 4 of 1988, s. 144, for clause (a) and (aa) (w.e.f. 1-4-1989). 2. Clause (aa) omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993). Earlier it was inserted by Act 21 of 1984, s. 34 (w.e.f. 1-4-1985). 3. Ins. by Act 16 of 1981, s. 27 (w.e.f. 1-4-1981). 4. Ins. by Act 13 of 1989, s. 29 (w.e.f. 1-4-1989). 5. Subs. by Act 4 of 1988, s. 145, for certain words (w.e.f. 1-4-1989). 6. The words ", and at the maximum marginal rate" omitted by Act 18 of 1992, s. 96 (w.e.f. 1-4-1993). 7. Subs. by Act 4 of 1988, s. 127, for "Wealth-tax Officer" (w.e.f. 1-4-1988). 8. Subs. by s. 127, ibid., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1988). * ] 1 * * * * 6. Subs. by Act 4 of 1988, s. 127, for "Commissioner" (w.e.f. 1-4-1988). 1[ Explanation 6. —Where any adjustment is made in the wealth declared in the return under the proviso to clause (a) of sub-section (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.] 2[(1A) Where any amount is added or disallowed in computing the net wealth of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under the said clause (c).] (2) No order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of being heard. 3* * * * * 4[(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[5] [Assistant Commissioner or Deputy Commissioner], where the penalty exceeds twenty thousand rupees, except with the prior approval of the[6] [Joint Commissioner].] 7* * * * * 1. The Schedule numbered as Schedule I thereof by Act 66 of 1976, s. 27 (b) (w.e.f. 1-4-1977). 2. Subs. by Act 18 of 1992, s. 100, for "(See section 3)" (w.e.f. 1-4-1993). 3. Subs. by Act 32 of 1985, s. 40, for Part I (w.e.f. 1-4-1986). 4. Added by Act 26 of 1988, s. 66 (w.e.f. 1-4-1988). 5. Part II omitted by Act 18 of 1992, s. 100 (w.e.f. 1-4-1993). 6. Rule 1 omitted by Act 18 of 1992, s. 100 (w.e.f. 1-4-1993). 7. Rule 2 omitted by Act 19 of 1970, s. 26 (w.r.e.f. 1-4-1969). 8. Rules 3, 4, 5 omitted by Act 18 of 1992, s. 100 (w.e.f. 1-4-1993). 1. Value of assets how to be determined. —The value of any asset, other than cash, for the purposes of this Act, shall be determined in the manner laid down in these rules. 1. Part C omitted by Act 18 of 1992, s. 100 (w.e.f. 1-4-1993). (v) any debt owed by the assessee to the extent to which it has been specifically utilised for acquiring an asset in respect of which wealth-tax is not payable under this Act: Provided that where it is not possible to calculate the amount of debt so utilised, it shall be taken as the amount which bears the same proportion to the total of the debts owed by the assessee as the value of that asset bears to the total value of the assets of the business. Explanation. —Provision for any purpose other than taxation shall be treated as a reserve. PART E INTEREST IN FIRM OR ASSOCIATION OF PERSONS