Section 91 - Amendment of section 18 - Taxation Laws (Amendment) Act, 1975

91. Amendment of section 18. In section 18 of the Wealth-tax Act, (i) in sub-section (1), for clauses (i), (ii), (iii) and the Explanations, the following clauses and Explanations shall be substituted, namely: (i) in the cases referred to in clause (a), in addition to the amount of wealth-tax, if any, payable by him, a sum equal to two per cent, of the assessed tax for every month during which the default continued. Explanation. In this clause, assessed tax means the wealth-tax chargeable under the provisions of this Act; (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 ten per cent., but which shall not exceed fifty per cent. of the amount of the wealth-tax, if any, which would have been avoided if the net wealth returned by such person had been accepted as the correct net wealth; (iii) an 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. Explanation 1 For the purposes of clause (iii) of this subsection, 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 in accurate 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 Wealth-tax Officer or the Appellate Assistant Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate, then, the amount added or disallowed in computing the net wealth of such person as a result thereof shall, for the purposes of clause (e) of this sub-section, be deemed to represent the value of the assets in respect of which particulars have been concealed: Provided that nothing contained in this Explanation shall apply to a case referred to in clause (B) in respect of any amount added or disallowed as a result of the rejection of any explanation offered by such person, if such explanation is bona fide and all the facts relating to the same and material to the computation of his net wealth have been disclosed by him. 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 clause (a) or, as the case may be, clause (b) of 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 and, until the expiry of either of the periods applicable to him, no notice had been issued to him under sub-section (2) of section 14-of sub-section (1) of section 17 and the Wealth tax Officer or the Appellate Assistant Commissioner 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 subjection; unless he proves that the value of the asset as returned by him is the correct value. ; (ii) sub-section (1A) shall be omitted; (iii) sub-sections (2A) and (2B) shall be omitted; (iv) for sub-section (3), the following sub-sections shall be substituted, namely: (3) Notwithstanding anything contained in clause, (iii) of sub-section (1), if, in a case falling under clause (c).of that sub section, the amount (as determined by the Wealth-taxi Officer on assessment) in respect of which penalty is imposable under clause (c) aforesaid exceeds a sum of twenty-five thousand rupees, the Wealth-tax Officer shall not issue any direction under sub-section (1) for payment by way of penalty without the previous approval of the Inspecting Assistant Commissioner. (3A) Notwithstanding anything contained in this section, the penalty imposed under clause (iii)of sub-section (1)read with Explanation 3 to that sub-section and the penalty imposed under clause (i) of that sub-section shall not exceed, in the aggregate, five times the amount of the tax sought to be evaded. ; (v) for the Explanation below sub-section (5), the following Explanation shall be substituted, namely: 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 assesses to be re-heard 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. .