Wealth-tax Act,1957
Act No : 27
Section :
Penalty for failure to furnish returns, to comply with notices andconcealment of assets, etc.
3*[18. Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc. (1) If the Wealth-tax Officer, Appellate Assistant Commissioner, Commissioner or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person-- (a) has without reasonable cause failed to furnish the return 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 section 17, or has without reasonable cause failed to furnish it within the time allowed and in the manner required by sub-section (1) of section 14 or by such notice, as the case may be; or (b) has without reasonable cause 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; --------------------------------------------------------------------- 1 Subs. by Act 46 of 1964, s. 17, for "serve on the assessee" (w.e.f. 1-4-1965). 2 Ins. by s. 17, ibid. (w.e.f. 1-4-1965). 3 Subs. by s. 18, ibid., for s. 18 (w.e.f. 1-4-1965). 799 he or it may, by order in writing, direct that such person shall pay by way of penalty-- 1*[(i) in the cases referred to in clause (a), in addition to the amount of wealth-tax, if any, payable by him, a sum, for every month during which the default continued, equal to one-half per cent. of-- 2*[(A) the net wealth assessed under section 16 as reduced by the amount specified in sub-section (1A), or (B) the net wealth assessed under section 17, where assessment has been made under that section, as reduced by-- (1) the net wealth, if any, assessed previously under section 16 or section 17, or (2) the amount specified in sub-section (1A), whichever is greater,] but not exceeding, in the aggregate, an amount equal to the net wealth assessed under section 16, or, as the case may be, the net wealth assessed under section 17, as reduced in either case in the manner aforesaid; (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 per cent. of the assessed net wealth but which shall not exceed the amount of the assessed net wealth. Explanation.--For the purposes of clause (ii), "assessed net wealth" shall be taken to be the net wealth assessed under section 16 as reduced by the net wealth declared in the return, if any, furnished by such person, or, as the case may be, the net wealth assessed under section 17 as reduced by-- (i) the net wealth, if any, assessed previously under section 16 or section 17, or (ii) the net wealth declared in the return, if any, furnished by such person under section 17, whichever is greater;] --------------------------------------------------------------------- 1 Subs. by Act 14 of 1969, s. 24, for sub-clause (i) and (ii) (w.e.f. 1-4-1969). 2 Subs. by Act 32 of 1971, s. 33, for item (A) (w.e.f. 1-4-1972). 800 1*[(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 twice, the amount representing the value of any assets in respect of which the particulars have been concealed or any assets or debts in respect of which inaccurate particulars have been furnished.] 2*[Explanation 1.--Where,-- (i) the value of any asset returned by any person is less than seventy-five per cent. of the value of such asset as determined in an assessment under section 16 or section 17 (the value so assessed being referred to hereafter in this Explanation as the correct value of the asset), or (ii) the value of any debt returned by any person exceeds the value of such debt as determined in an assessment under section 16 or section 17 by more than twenty-five per cent. of the value so assessed (the value so assessed being referred to hereafter in this Explanation as the correct value of the debt), or (iii) the net wealth returned by any person is less than seventy-five per cent. of the net wealth as assessed under section 16 or section 17 (the net wealth so assessed being referred to hereafter in this Explanation as the correct net wealth), then, such person shall, unless he proves that the failure to return the correct value of the asset or, as the case may be, the correct value of the debt or the correct net wealth did not arise from any fraud or any gross or wilful neglect on his part, be deemed to have concealed the particulars of assets or furnished inaccurate particulars of assets or debts for the purposes of clause (c) of this sub-section. Explanation 2.--For the purposes of clause (iii),-- (a) the amount representing the value of any assets in respect of which the particulars have been concealed or any assets in respect of which inaccurate particulars have been furnished, shall be the value of such assets determined for the purposes of this Act as reduced by the value thereof, if any, declared in the return made under section 14 or section 15; --------------------------------------------------------------------- 1 Subs. by Act 19 of 1968, s. 32, for clause (iii) (w.e.f. 1-4- 1968). 2 Subs. by s. 32, ibid., for Explanation (w.e.f. 1-4-1968). 800A (b) the amount representing the value of any debts in respect of which inaccurate particulars have been furnished, shall be the amount by which the value of such debts declared in the return made under section 14 or section 15 exceeds the value thereof determined for the purposes of this Act.] 1*[(1A) The amount referred to in sub-clause (A) and sub-clause (B) (2) of clause (i) of sub-section (1) shall be,-- (a) in the cause of an individual, Rs. 1,00,000; (b) in the case of a Hindu undivided family, Rs. 2,00,000; and (c) in the case of a company, Rs. 5,00,000.] (2) No order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of being heard. 2*[(2A) Notwithstanding anything contained in clause (i) or clause (iii) of sub-section (1), the Commissioner may, in his discretion,-- (i) reduce or waive the amount of minimum penalty imposable on a person under clause (i) of sub-section (1) for failure, without reasonable cause, to furnish the return of net wealth which such person was required to furnish under sub-section (1) of section 14, or (ii) reduce or waive the amount of minimum penalty imposable on a person under clause (iii) of sub-section (1), if he is satisfied that such person-- (a) in the case referred to in clause (i) of this sub- section has, prior to the issue of notice to him under sub-section (2) of section 14, voluntarily and in good faith, made full disclosure of his net wealth; and in the case referred to in clause (ii) of this sub-section has, prior to the detection by the Wealth-tax Officer of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of the assets or debts in respect of which the penalty is imposable, voluntarily and in good faith, made full and true disclosure of such particulars; --------------------------------------------------------------------- 1 Ins. by Act 32 of 1971, s. 33 (w.e.f. 1-4-1972). 2 Ins. by Act 15 of 1965, s. 20 (w.e.f. 11-9-1965). 800B (b) has co-operated in any enquiry relating to the assessment of the wealth represented by such assets; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year: 1*[Provided that if in a case falling under clause (c) of sub- section (1) the amount in respect of which penalty is imposable for the relevant assessment year, or where such disclosure relates to more than one assessment year, such amount for any one of the relevant assessment years, exceeds five hundred thousand rupees, no order reducing or waiving the penalty shall be made by the Commissioner unless the previous approval of the Board has been obtained.] (2B) An order under sub-section (2A) shall be final and shall not be called in question before any court of law or any other authority.] (3) Notwithstanding anything contained in clause (iii) of sub- section (1), if in a case falling under clause (c) of that sub- section, 2*[the amount (as determined by the Wealth-tax Officer on assessment) in respect of which penalty is imposable under clause (c) of sub-section (1) exceeds a sum of twenty-five thousand rupees], the Wealth-tax Officer shall refer the case to the Inspecting Assistant Commissioner who shall, for the purpose, have all the powers conferred under this section for the imposition of penalty. (4) An Appellate Assistant Commissioner, a Commissioner or the Appellate Tribunal on making an order under this section imposing a penalty, shall forthwith send a copy of the same to the Wealth-tax Officer. 3*[(5) No order imposing a penalty under this section shall be passed-- (a) in a case where the assessment to which the proceedings for imposition of penalty relate is the subject-matter of an appeal to the Appellate Assistant Commissioner under section 23 or an appeal to the Appellate Tribunal --------------------------------------------------------------------- 1 Ins. by Act 42 of 1970, s. 61 (w.e.f. 1-4-1971). 2 Subs. by s. 61, ibid., for certain words (w.e.f. 1-4-1971). 3 Subs. by s. 61, ibid., for sub-section (5) (w.e.f. 1-4-1971). 800C under sub-section (2) of section 24, after the expiration of a period of-- (i) two years from the end of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or (ii) six months from the end of the month in which the order of the Appellate Assistant Commissioner or, as the case may be, the Appellate Tribunal is received by the Commissioner, whichever period expires later; (b) in any other case, after the expiration of two years from the end of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed. Explanation.--In computing the period of limitation for the purposes of this section, the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 and 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.] 801
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