TaxTMI 
TaxTMI 
Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc.
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....sp; ^9[***] ^ ^10[(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 ;] ^ ^11[(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 : ^ ^12[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"- &....
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....rson 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.] ^ ^21[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 asse....
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....sp; 25[(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. ^ (2A) and (2B) ^26[***] ^ ^27[(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 Commissioner ^28[or Deputy Commissioner], where the penalty ex­ceeds twenty thousand rupees, except with the prior approval of the ^29[Joint] Commissioner.] ^ &nb....
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....) 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.] ----------------------- Notes: 1. Substituted by the Wealth-tax (Amendment) Act, 1964, w.e.f. 1-4-1965. Restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 2. See also Circular No. 8-WT, dated 15-11-1965. For details see Referencer. 3. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, before it was ....
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....s (i), (ii) and (iii) and Explanations 1 and 2, by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1975. 12. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Prior to its substitution, proviso, as inserted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986, stood as under : "Provided that in the cases referred to in clause (a) or clause (b), no penalty shall be imposable if the person proves that there was reasonable cause for the failure referred to in those clauses." 13. Substituted for "Wealth-tax Officer" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 14. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988., before it was read as;- "Appellate Assistant Commissioner" 15. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978. 16. Inserted by the Finance Act, 2002, w.e.f. 1-6-2002. 17. Inserted vide the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. 18. Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986. Prior to its omission, proviso stood as under: "Provided that....
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....aid date." 23. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Before it was read as:- "Commissioner" 24. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 25. Inserted by the Finance Act, 2008, w.r.e.f. 1-4-1989. Earlier sub-section (1A) was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972 and omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 26. Omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. Provisions of sub-sections (2A) and (2B) have been incorporated in section 18B. These sub-sections were inserted by the Finance (No. 2) Act, 1965, w.e.f. 11-9-1965. Sub-section (2A) was later on amended by inserting proviso thereto by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. 27. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Before substitution, sub-section (3), as amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971 and substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, stood as under: "(3) Notwithstanding anything contained in clause (iii) of sub-section (1), if, in a case falling under claus....