In force · As amended up to 2026-08
9. Ins. by Act 49 of 2005, s. 30 and the Schedule. This Act has been struck down by the Supreme Court's Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India.
9. Clause (a) omitted by Act 3 of 1989, s. 68 (w.e.f. 1-4-1989). Earlier it was amended by Act 46 of 1986, s. 33
(w.e.f. 10-9-1986).
10. The words "without reasonable cause" omitted by Act 46 of 1986, s. 33 (w.e.f. 10-9-1986).
(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—
1* * * * *
2[(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;]
3[(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:
4[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 the[5] [Assessing Officer] or the[6] [Deputy Commissioner (Appeals)][7] [or the Commissioner (Appeals)][8] [or the Commissioner] to be false, or
(B) such person offers an explanation which he is[9] [not able to substantiate 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.
9A. [ Commissioners of Wealth-tax (Appeals).] — Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988) , s. 132 ( w.e.f. 1-4-1988) .
Source: India Code