THE WEALTH-TAX ACT, 1957-5

Thu Sep 12 1957 | Tax Laws | Comments (0)

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Year : 1957

CHAPTER V

Liability to assessment in special cases

19. Tax of deceased person payable by legal representative. (1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth-tax assessed as payable by such person, or any sum, which would have been payable by him under this Act if he had not died.

(2) Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the 2[Assessing Officer] has reason to believe to be incorrect or incomplete, the 2[Assessing Officer] may make an assessment of the net wealth of such person and determine the wealth-tax payable by the person on the basis of such assessment, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might under the provisions of section 16 have been required from the deceased person.

(3) The provisions of sections 14, 15 and 17 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in those sections.

4 [19A. Assessment in the case of executors. (1) Subject as hereinafter provided, the net wealth of the estate of a deceased person shall be chargeable to tax in the hands of the executor or executors.

(2) The executor or executors shall for the purposes of this Act be treated as an individual.

1. Subs. by Act 20 of 2002, s. 111, for “for a reference before the High Court or the Supreme Court under section 27 or in appeal before the Supreme Court under section 29” (w.e.f.1-6-2002).

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

3. Subs. by s. 127, ibid. for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988). 4. Ins. by Act 46 of 1964, s. 19 (w.e.f. 1-4-1965).

(3) The status of the executor or executors shall for the purposes of this Act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death.

(4) The assessment of an executor under this section shall be made separately from any assessment that may be made on him in respect of his own net wealth or on the net wealth of the deceased under section 19.

(5) Separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests.

(6) In computing the net wealth on any valuation date under this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that valuation date shall be excluded, but the assets so excluded shall, to the extent such assets are held by the legatee on any valuation date, be included in the net wealth of such specific legatee on that valuation date.

Explanation. —In this section, “executor” includes an administrator or other person administering the estate of a deceased person.]

20. Assessment after partition of a Hindu undivided family. (1) Where, at the time of making an assessment, it is brought to the notice of the 1[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the 1[Assessing Officer], after inquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or group of members in definite portions, he shall record an order to that effect and shall make assessment on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of members shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such.

(2) Where the 1[Assessing Officer] is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes of this Act to continue to be a Hindu undivided family liable to be assessed as such.

2 [ 20A. Assessment after partial partition of a Hindu undivided family.— Where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided,—

(a) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place;

(b) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition;

(c) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition,

and the provisions of this Act shall apply accordingly.

Explanation. —For the purposes of this section, “partial partition” shall have the meaning assigned to it in clause (b) of the Explanation to section 171 of the Income-tax Act.]

1. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 2. Ins. by Act 44 of 1980, s. 39 (w.e.f. 1-4-1980).

21. Assessment when assets are held by courts of wards, administrators-general, etc.— (1) 1[Subject to the provisions of sub-section ( 1A), in the case of assets chargeable to tax under this Act], which are held by a court of wards or an administrator-general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trustee appointed under a trust declared by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth-tax shall be levied upon and recoverable from the court of wards, administrator-general, official trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person 2[on whose behalf or for whose benefit] the assets are held, and the provisions of this Act shall apply accordingly.

3 [Explanation.—A trust which is not declared by a duly executed instrument in writing (including a valid deed of wakf) shall be deemed, for the purposes of this sub-section, to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee or trustees, setting out the purpose or purposes of the trust, particulars as to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is forwarded to the 4 [Assessing Officer],—

(i) where the trust has been declared before the 1st day of June, 1981, within a period of three months from that day; and

(ii) in any other case, within three months from the date of declaration of the trust.]

5 [(1A) Where the value or aggregate value of the interest or interests of the person or persons on whose behalf or for whose benefit such assets are held falls short of the value of any such assets, then, in addition to the wealth-tax leviable and recoverable under sub-section (1), the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager or other person or trustee aforesaid in respect of the value of such assets, to the extent it exceeds the value or aggregate value of such interest or interests, as if such excess value were the net wealth of an individual who is a citizen of India and resident in India for the purposes of this Act, and—

(i) at the rates specified in Part I of Schedule I; or

(ii) at the rate of three per cent.,

whichever course would be more beneficial to the revenue.]

(2) Nothing contained in sub-section (1) shall prevent either the direct assessment of the person 2[on whose behalf or for whose benefit] the assets above referred to are held, or the recovery from such person of the tax payable in respect of such assets.

(3) Where the guardian or trustee of any person being a minor, lunatic or idiot 6*** holds any assets 7[on behalf or for the benefit of such beneficiary], the tax under this Act shall be levied upon and recoverable from such guardian or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from any such beneficiary if of full age, of sound mind and in direct ownership of such assets.

1. Subs. by Act 44 of 1980, s. 40, for “In the case of assets chargeable to tax under this Act” (w.e.f. 1-4-1980).

2. Subs. by Act 46 of 1964, s. 20, for “on whose behalf” (w.e.f. 1-4-1965). 3. Ins. by Act 16 of 1981, s. 26 (w.e.f. 1-4-1981).

4. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 5. Ins. by Act 44 of 1980, s. 40 (w.e.f. 1-4-1980).

6. The brackets and words “(all of which persons are hereinafter in this sub-section included in the term “beneficiary”) omitted by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965).

7. Subs. by s. 20, ibid., for “on behalf of such beneficiary” (w.e.f. 1-4-1965).

1 [(4) 2[Notwithstanding anything contained in the foregoing provisions of this section], where the shares of the persons on whose behalf or for whose benefit any such assets are held are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, manager, or other person aforesaid 3[, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India] for the purposes of this Act, and—

(a) at the rates specified in Part I of 4[Schedule I] 5***; or

(b) at the rate of 6[three per cent.],

whichever course would be more beneficial to the revenue: Provided that in a case where—

(i) such assets are held 7[under a trust declared by any person by will and such trust is the only trust so declared by him]; or

8 [(ia) none of the beneficiaries has net wealth exceeding the amount not chargeable to wealth-tax in the case of an individual who is a citizen of India and resident in India for the purposes of this Act or is a beneficiary under any other trust; or]

(ii) such assets are held under a trust created before the 1st day of March, 1970, by a non-testamentary instrument and the 9 [Assessing Officer] is satisfied, having regard to all the circumstances existing at the relevant time, that the trust was created bona fide exclusively for the benefit of the relatives of the settlor or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance; or

(iii) such assets are held by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession,

wealth-tax shall be charged at the rates specified in Part I of 4[Schedule I] 5***.]

8 [Explanation 1.—For the purposes of this sub-section, the shares of the persons on whose behalf or for whose benefit any such assets are held shall be deemed to be indeterminate or unknown unless the shares of the persons on whose behalf or for whose benefit such assets are held on the relevant valuation date are expressly stated in the order of the court or instrument of trust or deed of wakf, as the case may be, and are ascertainable as such on the date of such order, instrument or deed.]

1. Subs. by Act 19 of 1970, s. 26, for sub-section (4) (w.e.f. 1-4-1971). Earlier it was amended by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965).

2. Subs. by Act 16 of 1981, s. 26, for “Notwithstanding anything contained in this section” (w.e.f. 1-4-1981).

3. Subs. by Act 44 of 1980, s. 40, for “as if the persons on whose behalf or for whose benefit assets are held were an individual who is a citizen of India and resident in India” (w.e.f. 1-4-1980).

4. Subs. by Act 66 of 1976, s. 27, for “the Schedule” (w.e.f. 1-4-1977).

5. The words “in the case of an individual” omitted by Act 32 of 1971, s. 34 (w.e.f. 1-4-1972).

6. Subs. by Act 44 of 1980, s. 40, for “one and one-half per cent.” (w.e.f. 1-4-1980).

7. Subs. by s. 40, ibid., for “under a trust declared by him” (w.e.f. 1-4-1980). 8. Ins. by Act s. 40, ibid. (w.e.f. 1-4-1980).

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

1 [ 2 [Explanation 2].—Notwithstanding anything contained in section 5, in computing the net wealth 3[for the purposes of this sub-section or sub-section (4A) in any case, not being a case referred to in the proviso to this sub-section], any assets referred to in clauses (xv), (xvi ), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) and ( xxix) of sub-section (1) of that section shall not be excluded.]

4 [(4A) Notwithstanding anything contained in this section, where the assets chargeable to tax under this Act are held by a trustee under an oral trust, the wealth-tax shall be levied upon and recovered from such trustee in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the purposes of this Act, and—

(a) at the rates specified in Part I of Schedule I; or

(b) at the rate of three per cent.,

whichever course would be more beneficial to the revenue.

Explanation. —For the purposes of this sub-section, “oral trust” means a trust which is not declared by a duly executed instrument in writing (including a valid deed of wakf) and which is not deemed under the Explanation to sub-section (1) to be a trust declared by a duly executed instrument in writing.]

5 [(5) Any person who pays any sum by virtue of the provisions of this section in respect of the net wealth of any beneficiary, shall be entitled to recover the sum so paid from such beneficiary, and may retain out of any assets that he may hold on behalf or for the benefit of such beneficiary, an amount equal to the sum so paid.

Explanation .—In this section, the term “beneficiary” means any person including a minor, lunatic or idiot on whose behalf or for whose benefit assets are held by any other person.]

6 [(6) Nothing contained in this section shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1993 or any subsequent assessment year.]

7 [ 21A. Assessment in cases of diversion of property, or of income from property, held under trust for public charitable or religious purposes.— 8 [Notwithstanding anything contained in clause (i) of section 5, where any property is held] under trust for any public purpose of a charitable or religious nature in India and—

9 [(i) any part of such property or any income of such trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act] is used or applied, directly or indirectly, for the benefit of 10[any person referred to in sub-section (3) of section 13 of the Income-tax Act], or

1. Ins. by Act 32 of 1971, s. 34 (w.e.f. 1-4-1972).

2. Explanation renumbered as Explanation 2 thereof by Act 44 of 1980, s. 40 (w.e.f. 1-4-1980).

3. Subs. by Act 16 of 1981, s. 26, for “for the purposes of this sub-section in any case, not being a case referred to in the proviso” (w.e.f. 1-4-1981).

4. Ins. by s. 26, ibid. (w.e.f. 1-4-1981).

5. Ins. by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965).

6. Ins. by Act 18 of 1992, s. 94 (w.e.f. 1-4-1993).

7. Ins. by Act 16 of 1972, s. 46 (w.e.f. 1-4-1973).

8. Subs. by Act 33 of 1996, s. 58, for “Where any property is held” (w.r.e.f. 1-4-1993). Earlier the quoted words were substituted by Act 18 of 1992, s. 95, for “Notwithstanding anything contained in clause ( i) of sub-section (1) of section 5, where any property is held” (w.e.f. 1-4-1993).

9. Subs. by Act 21 of 1984, s. 34, for certain words (w.e.f. 1-4-1985).

10. 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).

(ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962, enures, directly or indirectly, for the benefit of 1[any person referred to in sub-section (3) of section 13 of the said Act, or]

2 [(iii) any funds of the trust are invested or deposited, or any shares in a company are held by the trust, in contravention of the provision of clause (d) of sub-section (1) of section 13 of the Income-tax Act,]

wealth-tax shall be leviable upon, and recoverable from, the trustee or manager (by whatever name called) in the like manner and to the same extent as if the property were held by an individual who is a citizen of India and resident in India for the purposes of this Act 3***:]

Provided that in the case of a trust created before the 1st day of April, 1962, the provisions of clause

(i) shall not apply to any use or application, whether directly or indirectly, of any part of such property or any income of such trust for the benefit of 4[any person referred to in sub-section ( 3) of section 13 of the Income-tax Act], if such use or application is by way of compliance with a mandatory term of the trust:

5 * * * * *

6 [7[Provided further that],—

8 [(a) in the case of any association referred to in clause ( 21) of section 10 of the Income-tax Act,—

(i) the provisions of clause (i) and clause (ii) shall not apply; and

(ii) the other provisions of this section shall apply with the modifications that,—

(1) for the words, brackets, letter and figures “in contravention of the provisions of clause (d) of sub-section (1) of section 13 of the Income-tax Act”, the words, brackets and figures “in contravention of the provisions contained in the proviso to clause ( 21) of section 10 of the Income-tax Act” had been substituted; and

(2) for the words “at the maximum marginal rate”, the words and figures “at the rates specified in 9[sub-section (2) of section 3]” had been substituted;]

(b) in the case of any institution, fund or trust referred to in clause (22) or clause (22A) or clause ( 23B) or clause (23C) of section 10 of the Income-tax Act, the provisions of 10[clauses (i) to ( iii)] shall not apply.]

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).

2. Restored by s. 95, ibid. (w.e.f. 1-4-1989). Earlier clause (iii) was omitted by Act 4 of 1988, s. 144 (w.e.f. 1-4-1989).

3. The words “but without excluding the value of any asset under sub-section (1) of section 5, and at the maximum marginal rate” omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993).

4. 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).

5. The second proviso omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993). Earlier the second proviso was amended by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989) and Act 4 of 1988, s. 144 (w.e.f. 1-4-1989).

6. Ins. by Act 21 of 1984, s. 34 (w.e.f. 1-4-1985).

7. Subs. by Act 18 of 1992, s. 95, for “Provided also that” (w.e.f. 1-4-1993).

8. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier clause ( a) was substituted by Act 4 of 1988, s. 144 (w.e.f. 1-4-1989).

9. Subs. by Act 18 of 1992, s. 95, for “Part I of Schedule I in the case of an individual” (w.e.f. 1-4-1993).

10. Restored by Act 3 of 1989, s. 95 (w.e.f. 1-4-1989). Earlier “clauses (i) and (ii)” was substituted by Act 4 of 1988, s. 144, for the given expression (w.e.f. 1-4-1989).

Explanation.— For the purposes of this section,—

1 [(a) any part of the property or income of a trust shall be deemed to have been used or applied for the benefit of any person referred to in sub-section (3) of section 13 of the Income-tax Act in every case in which it can be so deemed to have been used or applied within the meaning of clause (c) of sub-section ( 1) of that section at any time during the period of twelve months ending with the relevant valuation date;

2 * * * * *]

(b) “trust” includes any other legal obligation.]

3 [ 21AA. Assessment when assets are held by certain associations of persons. (1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or co­operative society 4[or society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India], and the individual shares of the members of the said association in the income or assets or both of the said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the 5 [purposes of this Act 6***].

(2) Where any business or profession carried on by an association of persons referred to in sub­section (1) has been discontinued or where such association of persons is dissolved, the 7 [Assessing Officer] shall make an assessment of the net wealth of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of penalty or any other sum chargeable under any provisions of this Act, so far as may be, shall apply to such assessment.

(3) Without prejudice to the generality of the provisions of sub-section (2), if the 7[Assessing Officer] or the 8 [Deputy Commissioner (Appeals)] or the Commissioner (Appeals) in the course of any proceedings under this Act in respect of any such association of persons as is referred to in sub-section ( 1) is satisfied that the association of persons was guilty of any of the acts specified in section 18 or section 18A, he may impose or direct the imposition of a penalty in accordance with the provisions of the said sections.

(4) Every person who was at the time of such discontinuance or dissolution a member of the association of persons, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act, so far as may be, shall apply to any such assessment or imposition of penalty or other sum.

(5) Where such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.

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 * * * * * ]

22. Assessment of persons residing outside India. (1) Where the person liable to tax under this Act resides outside India, the tax may be levied upon and recovered from his agent, and the agent shall be deemed to be, for all the purposes of this Act, the assessee in respect of such tax.

(2) Any person employed by or on behalf of a person referred to in sub-section (1) or through whom such person is in the receipt of any income, profits or gains, or who is in possession or has custody of any asset of such person and upon whom the 2 [Assessing Officer] has caused a notice to be served of his intention of treating him as the agent of such person shall, for the purposes of sub-section (1), be deemed to be the agent of such person.

3 * * * * *

4 [(3) No person shall be deemed to be the agent of any person residing outside India unless he has had an opportunity of being heard by the 2[Assessing Officer] as to his being treated as such.

(4) Any agent, who, as such, pays any sum under this Act, shall be entitled to recover the sum so paid from the person on whose behalf it is paid or to retain out of any moneys that may be in his possession or may come to him in his capacity as such agent, an amount equal to the sum so paid.

(5) Any agent, or any person who apprehends that he may be assessed as an agent, may retain out of any money payable by him to the person residing outside India on whose behalf he is liable to pay tax (hereinafter in this section referred to as the principal), a sum equal to his estimated liability under this section, and in the event of any disagreement between the principal and such agent or person, as to the amount to be so retained, such agent or person may secure from the 2[Assessing Officer] a certificate stating the amount to be so retained pending final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that amount.

(6) The amount recoverable from such agent or person at the time of final settlement shall not exceed the amount specified in such certificate, except to the extent to which such agent or person may at such time have in his hands additional assets of the principal.

(7) Notwithstanding anything contained in this section, any arrears of tax due from a person residing outside India may be recovered also in accordance with the provisions of this Act from any assets of such person which are or may at any time come within India.]


5 [CHAPTER VA Settlement of cases

6 [22A. Definitions.—In this Chapter, unless the context otherwise requires,—

(a) “Bench” means a Bench of the Settlement Commission;

7 [(b) “case” means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 22C is made:

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.]

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 in5[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 Income-tax Act who is treated as a wealth-tax authority under section 8.]

22B. Wealth-tax Settlement Commission. (1) The Central Government shall constitute a Commission to be called the Wealth-tax Settlement Commission 7*** for the settlement of cases under this Chapter.

(2) The Settlement Commission shall consist of a Chairman 8 [and as many Vice-Chairmen and other members as the Central Government thinks fit] and shall function within the Department of the Central Government dealing with direct taxes.

1. The proviso omitted by Act 25 of 2014, s. 77 (w.e.f. 1-10-2014). Earlier it was amended by Act 14 of 2010, s. 53 (w.e.f. 1-6-2010).

2. Subs. by s. 77, ibid., for “clause (i) of the proviso shall, in case where a notice under section 17” (w.e.f. 1-10-2014).

3. Subs. by s. 77, ibid., for clause (ii) (w.e.f. 1-10-2014).

4. Subs. by Act 14 of 2010, s. 53, for clasue (iii) (w.e.f. 1-6-2010).

5. Subs. by Act 25 of 2014, s. 77, for “clause (i) or clause (ii) of the proviso or clause (iii) of the Explanation” (w.e.f. 1-10-2014). Ealier it was amended by Act 14 of 2010, s. 53 (w.e.f. 1-6-2010).

6. Ins. by Act 22 of 2007, s. 84 (w.e.f. 1-6-2007).

7. The brackets and words “(hereafter in this Chapter referred to as “the Settlement Commission”)” omitted by Act 11 of 1987, s. 78 (w.e.f. 1-6-1987).

8. Subs. by Act 46 of 1986, s. 35, for “and two other members” (w.e.f. 10-9-1986).

1 * * * * *

(3) The Chairman 2[, Vice-Chairman] and other members of the Settlement Commission shall be appointed by the Central Government from amongst persons of integrity and outstanding ability, having special knowledge of, and experience in, problems relating to direct taxes and business accounts:

Provided that, where a member of the Board is appointed as the Chairman 2[, Vice-Chairman] or as a member of the Settlement Commission, he shall cease to be a member of the Board.

3 * * * * *

4 [ 22BA. Jurisdiction and powers of Settlement Commission.— (1) Subject to the other provisions of this Chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof.

(2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members.

(3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches.

(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-Chairman or, as the case may be, other Member of another Bench.

(5) Notwithstanding anything contained in the foregoing provisions of this section, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the Presiding Officer or other Member of the Bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons shall act as the Presiding Officer of the Bench:

Provided that if at any stage of the hearing of any case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard by a Bench consisting of three Members, the case or matter may be referred by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit.

5 [(5A) Notwithstanding anything contained in the foregoing provisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members.]

(6) Subject to the other provisions of this Chapter, the places at which the principal Bench and the additional Benches shall ordinarily sit, shall be such as the Central Government may, by notification in the Official Gazette, specify 5[and the Special Bench shall sit at a place to be fixed by the Chairman].

1. Sub-section (2A) omitted by Act 46 of 1986, s. 35 (w.e.f. 10-9-1986). Earlier sub-section (2A) was inserted by Act 14 of 1982, s. 36 (w.e.f. 1-4-1982).

2. Ins. by s. 35, ibid. (w.e.f. 10-9-1986).

3. The second proviso omitted by s. 35, ibid. (w.e.f. 10-9-1986). 4. Ins. by Act 11 of 1987, s. 79 (w.e.f. 1-6-1987).

5. Ins. by Act 49 of 1991, s. 77 (w.e.f. 1-10-1991).

22BB. Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances.— (1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the Vice- Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon his office.

(2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice-Chairman or, as the case may be, such one of the Vice-Chairmen as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties.

22BC. Power of Chairman to transfer cases from one Bench to another. On the application of the assessee or the 1[Chief Commissioner or Commissioner] and after notice to them, and after hearing such of them as may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one Bench, for disposal, to another Bench.

22BD. Decision to be by majority. If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference to the Chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Settlement Commission and such point or points shall be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it.]

22C. Application for settlement of cases.— 2 [(1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his wealth which has not been disclosed before the 3[Assessing Officer], the manner in which such wealth has been derived, the additional amount of wealth-tax payable on such wealth and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided :

4 [Provided that no such application shall be made unless such wealth-tax and the interest thereon, which would have been paid under the provisions of this Act had the wealth declared in the application been declared in the return of wealth before the Assessing Officer on the date of application, has been paid on or before the date of making the application and the proof of such payment is attached with the application.]

(1A) For the purposes of sub-section (1) of this section 5*** the additional amount of wealth-tax payable in respect of the wealth disclosed in an application made under sub-section (1) of this section shall be the amount calculated in accordance with the provisions of sub-sections (1B) to ( 1D).

6 [7[(1B) Where the wealth disclosed in the application relates to only one previous year,—

(i) if the applicant has not furnished a return in respect of the net wealth of that year, then, wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth;

1. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 2. Subs. by Act 67 of 1984, s. 60, for sub-section ( 1) (w.e.f. 1-10-1984).

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

4. Subs. by Act 22 of 2007, s. 85, for the proviso (w.e.f. 1-6-2007). Earlier it was inserted by Act 11 of 1987, s. 80 (w.e.f. 1-6-1987).

5. The words, brackets, figures and letters “and sub-sections ( 2A) to (2D) of section 22D” omitted by s. 85, ibid. (w.e.f. 1-6-2007).

6. Subs. by Act 11 of 1987, s. 80, for sub-sections (1B) and ( 1C) (w.e.f. 1-6-1987). 7. Subs. by Act 22 of 2007, s. 85, for sub-section (1B) (w.e.f. 1-6-2007).

(ii) if the applicant has furnished a return in respect of the net wealth of that year, wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth.]

(1C) The additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub-section (1B) shall be,—

(a) in a case referred to in clause (i) of that sub-section, the amount of wealth-tax calculated under that clause;

(b) in a case referred to in clause (ii) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for that year;

1 * * * * *]

(1D) Where the wealth disclosed in the application relates to more than one assessment year, the additional amount of wealth-tax payable in respect of the wealth disclosed for each of the years shall first be calculated in accordance with the provisions of sub-sections ( 1B) and (1C) and the aggregate of the amount so arrived at in respect of each of the years for which the application has been made under sub-section (1) shall be the additional amount of wealth-tax payable in respect of the wealth disclosed in the application.

(1E) Where any books of account or other documents belonging to an assessee are seized under section 37A, the assessee shall not be entitled to make an application under sub-section (1) before the expiry of one hundred and twenty days from the date of the seizure.]

(2) Every application made under sub-section (1) shall be accompanied by such fees as may be prescribed.

(3) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant.

2 [(4) An assessee shall, on the date on which he makes an application under sub-section (1) to the Settlement Commission, also intimate the Assessing Officer in the prescribed manner of having made such application to the said Commission.]

22D. Procedure on receipt of an application under section 22C.— 3 [(1) On receipt of an application under section 22C, the Settlement Commission shall, within seven days from the date of receipt of the application, issue a notice to the applicant requiring him to explain as to why the application made by him be allowed to be proceeded with, and on hearing the applicant, the Settlement Commission shall, within a period of fourteen days from the date of the application, by an order in writing, reject the application or allow the application to be proceeded with:

Provided that where no order has been passed within the aforesaid period by the Settlement Commission, the application shall be deemed to have been allowed to be proceeded with.]

4 * * * * *

1. Clause (c) omitted by Act 22 of 2007, s. 85 (w.e.f. 1-6-2007). 2. Ins. by s. 85, ibid. (w.e.f.1-6-2007).

3. Subs. by s. 86, ibid., for sub-section (1) (w.e.f. 1-6-2007). Earlier it was amended by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991) and Act 20 of 2002, s. 112 (w.e.f. 1-6-2002).

4. Sub-section (1A) omitted by Act 49 of 1991, s. 78 (w.e.f. 27-9-1991). Earlier it was inserted by Act 21 of 1979, s. 24 (w.e.f. 1-4-1979).

(2) A copy of every order under sub-section (1) shall be sent to the applicant and to the Commissioner.

1 [(2A) Where an application was made under section 22C before the 1st day of June, 2007 but an order under the provisions of sub-section (1) of this section, as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007), has not been made before the 1st day of June, 2007, such application shall be deemed to have been allowed to be proceeded with if the additional wealth-tax on the wealth disclosed in such application and the interest thereon is paid on or before the 31st day of July, 2007.

Explanation. —In respect of the applications referred to in this sub-section, the 31st day of July, 2007 shall be deemed to be the date of the order of rejection or allowing the application to be proceeded with under sub-section (1).

(2B) The Settlement Commission shall,—

(i) in respect of an application which is allowed to be proceeded with under sub-section (1), within thirty days from the date on which the application was made; or

(ii) in respect of an application referred to in sub-section ( 2A) which is deemed to have been allowed to be proceeded with under that sub-section, on or before the 7th day of August, 2007,

call for a report from the Commissioner, and the Commissioner shall furnish the report within a period of thirty days of the receipt of communication from the Settlement Commission.

(2C) Where a report of the Commissioner called for under sub-section (2B) has been furnished within the period specified therein, the Settlement Commission may, on the basis of the material contained in such report and within a period of fifteen days of the receipt of the report, by an order in writing, declare the application in question as invalid, and shall send the copy of such order to the applicant and the Commissioner:

Provided that an application shall not be declared invalid unless an opportunity has been given to the applicant of being heard:

Provided further that where the Commissioner has not furnished the report within the aforesaid period, the Settlement Commission shall proceed further in the matter without the report of the Commissioner.

(2D) Where an application was made under sub-section ( 1) of section 22C before the 1st day of June, 2007 and an order under the provisions of sub-section (1) of this section, as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007), allowing the application to have been proceeded with, has been passed before the 1st day of June, 2007, but an order under the provisions of sub-section (4), as they stood immediately before their amendment by the Finance Act, 2007, was not passed before the 1st day of June, 2007, such application shall not be allowed to be further proceeded with unless the additional wealth-tax on the wealth disclosed in such application and the interest thereon, is, notwithstanding any extension of time already granted by the Settlement Commission, paid on or before the 31st day of July, 2007.]

2 [(3) The Settlement Commission, in respect of—

(i) an application which has not been declared invalid under sub-section (2C); or

1. Subs. by Act 22 of 2007, s. 86, for sub-sections (2A), ( 2B), (2C) and (2D) (w.e.f. 1-6-2007).

2. Subs. by s. 86, ibid., for sub-sections (3) (4) and (4A) (w.e.f. 1-6-2007). Earlier sub-section ( 4A) was inserted by Act 20 of 2002, s. 112 (w.e.f. 1-6-2002).

(ii) an application referred to in sub-section (2D) which has been allowed to be further proceeded with under that sub-section,

may call for the records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Commissioner to make or cause to be made such further enquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case, and the Commissioner shall furnish the report within a period of ninety days of the receipt of communication from the Settlement Commission:

Provided that where the Commissioner does not furnish his report within the aforesaid period, the Settlement Commission may proceed to pass an order under sub-section (4) without such report.

(4) After examination of the records and the report of the Commissioner, if any, received under—

(i) sub-section (2B) or sub-section (3), or

(ii) the provisions of sub-section (1), as they stood immediately before their amendment by the Finance Act, 2007 (22 of 2007),

and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, pass such order, as it thinks fit, on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner.

(4A) The Settlement Commission shall pass an order under sub-section (4),—

(i) in respect of an application referred to in sub-section ( 2A) or sub-section (2D), on or before the 31st day of March, 2008;

(ii) in respect of an application made on or after the 1st day of June, 2007 1[but before the 1st day of June, 2010], within twelve months from the end of the month in which the application was made;

2 [(iii) in respect of an application made on or after the 1st day of June, 2010, within eighteen months from the end of the month in which the application was made.]]

3 [(5) Subject to the provisions of section 22BA, the materials brought on record before the Settlement Commission shall be considered by the Members of the concerned Bench before passing any order under sub-section (4) and, in relation to the passing of such order, the provisions of section 22BD shall apply.]

(6) Every order passed under sub-section (4) shall provide for the terms of settlement including any demand by way of 4 [tax, penalty or interest], the manner in which any sum due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or misrepresentation of facts.

1. Ins. by Act 14 of 2010, s. 54 (w.e.f. 1-4-2010).

2. Ins. by s. 54, ibid. (w.e.f. 1-6-2010).

3. Ins. by Act 11 of 1987, s. 81 (w.e.f. 1-6-1987). Earlier it was amended by Act 14 of 1982, s. 37 (w.e.f. 1-4-1982) which was later omitted by Act 46 of 1986, s. 36 (w.e.f. 10-9-1986).

4. Subs. by s. 81, ibid., for “tax or penalty” (w.e.f. 1-6-1987). Earlier the quoted words were substituted for “tax, penalty or interest” by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).

1 [(6A) Where any tax payable in pursuance of an order under sub-section (4) is not paid by the assessee within thirty-five days of the receipt of a copy of the order by him, then, whether or not the Settlement Commission has extended the time for payment of such tax or has allowed payment thereof by instalments, the assessee shall be liable to pay simple interest at 2[one and one-fourth per cent. for every month or part of a month] on the amount remaining unpaid from the date of expiry of the period of thirty-five days aforesaid.]

3 [(6B) The Settlement Commission may, at any time within a period of six months from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (4):

Provided that an amendment which has the effect of modifying the liability of the applicant shall not be made under this sub-section unless the Settlement Commission has given notice to the applicant and the Commissioner of its intention to do so and has allowed the applicant and the Commissioner an opportunity of being heard.]

(7) Where a settlement becomes void as provided in sub-section ( 6), the proceedings with respect to the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the wealth-tax authority concerned may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at any time before the expiry of two years from the end of the financial year in which the settlement became void.

1 [(8) For the removal of doubts, it is hereby declared that nothing contained in section 17A shall apply to any order passed under sub-section (4) or to any order of assessment or reassessment required to be made by the 4[Assessing Officer] in pursuance of any directions contained in such order passed by the Settlement Commission.]

5 [ 22DD. Power of Settlement Commission to order provisional attachment to protect revenue.— (1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32:

Provided that where a provisional attachment made under section 34C is pending immediately before an application is made under section 22C, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under section 34C would have continued if such application had not been made:

Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.

(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub­section (1):

Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit 6***.]

1. Ins. by Act 67 of 1984, s. 62 (w.e.f. 1-10-1984).

2. Subs. by Act 22 of 2007, s. 86, for “fifteen per cent. per annum” (w.e.f. 1-4-2008). 3. Ins. by Act 8 of 2011, s. 35 (w.e.f. 1-6-2011).

4. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 5. Ins. by Act 26 of 1988, s. 56 (w.e.f. 1-4-1988).

6. The words “, so, however, that the total period of extension shall not in any case exceed two years” omitted by Act 22 of 2007, s. 87 (w.e.f. 1-6-2007).

22E. Power of Settlement Commission to reopen completed proceedings.— If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding connected with the case, but which has been completed under this Act by any wealth-tax authority before the application under section 22C was made, it may, with the concurrence of the applicant, reopen such proceeding and pass such order thereon as it thinks fit as if the case in relation to which the application for settlement had been made by the applicant under that section covered such proceeding also:

1 [Provided that no proceeding shall be reopened by the Settlement Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 22C exceeds nine years:]

2 [Provided further that no proceeding shall be reopened by the Settlement Commission under this section in a case where an application under section 22C is made on or after the 1st day of June, 2007.]

22F. Powers and procedure of Settlement Commission.— (1) In addition to the powers conferred on the Settlement Commission under this Chapter, it shall have all the powers which are vested in a wealth-tax authority under this Act.

(2) Where an application made under section 22C has been allowed to be proceeded with under section 22D, the Settlement Commission shall, until an order is passed under sub-section (4) of section 22D, have, subject to the provisions of sub-section (3) of that section, exclusive jurisdiction to exercise the powers and perform the functions of a wealth-tax authority under this Act in relation to the case:

3 [Provided that where an application has been made under section 22C on or after the 1st day of June, 2007, the Settlement Commission shall have such exclusive jurisdiction from the date on which the application was made:

Provided further that where—

(i) an application made on or after the 1st day of June, 2007, is rejected under sub-section (1) of section 22D; or

(ii) an application is not allowed to be proceeded with under sub-section (2A) of section 22D, or, as the case may be, is declared invalid under sub-section (2C) of that section; or

(iii) an application is not allowed to be further proceeded with under sub-section (2D) of section 22D,

the Settlement Commission, in respect of such application shall have such exclusive jurisdiction up to the date on which the application is rejected, or, not allowed to be proceeded with, or, declared invalid, or, not allowed to be further proceeded with, as the case may be.]

(3) Notwithstanding anything contained in sub-section (2) and in the absence of any express direction to the contrary by the Settlement Commission, nothing contained in this section shall affect the operation of any other provisions of this Act requiring the applicant to pay tax on the basis of self-assessment in relation to the matters before the Settlement Commission.

(4) For the removal of doubt, it is hereby declared that, in the absence of any express direction by the Settlement Commission to the contrary, nothing in this Chapter shall affect the operation of the provisions of this Act in so far as they relate to any matters other than those before the Settlement Commission.

4 [5* * * * *

1. Subs. by Act 11 of 1987, s. 82, for the proviso (w.e.f. 1-6-1987). 2. Ins. by Act 22 of 2007, s. 88 (w.e.f. 1-6-2007).

3. Ins. by s. 89, ibid. (w.e.f. 1-6-2007).

4. Subs. by Act 46 of 1986, s. 37, for sub-section (5) (w.e.f. 10-9-1986).

5. Sub-sections (5) and (6) omitted by Act 11 of 1987, s. 83 (w.e.f. 1-6-1987).

(7) The Settlement Commission shall, subject to the provisions of this Chapter, have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings.]

22G. Inspection, etc., of reports.— No person shall be entitled to inspect, or obtain copies of, any reports made by any wealth-tax authority to the Settlement Commission; but the Settlement Commission may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf and on payment of the prescribed fee:

Provided that, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on the record against him in any such report, the Settlement Commission shall, on an application made in this behalf and on payment of the prescribed fee by such person, furnish him with a certified copy of any such report or part thereof relevant for the purpose.

22H. Powers of Settlement Commission to grant immunity from prosecution.— (1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 22C has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his net wealth and the manner in which such wealth has been acquired, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force 1[and also (either wholly or in part) from the imposition of any penalty] under this Act, with respect to the case covered by the settlement:

2 [Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 22C:]

3 [Provided further that the Settlement Commission shall not grant immunity from prosecution for any offence under the Indian Penal Code (45 of 1860) or under any Central Act other than this Act and Income-tax Act, 1961 (43 of 1961) to a person who makes an application under section 22C on or after the 1st day of June, 2007.]

2 [(1A) An immunity granted to a person under sub-section ( 1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub-section ( 4) of section 22D within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.]

(2) An immunity granted to a person under sub-section ( 1) may, at any time, be withdrawn by the Settlement Commission, if it is satisfied that such person 4*** had, in the course of the settlement proceedings, concealed any particular material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had no such immunity been granted.

1. Subs. by Act 67 of 1984, s. 63, for “and also from the imposition of any penalty” (w.e.f. 1-10-1984). 2. Ins. by Act 11 of 1987, s. 84 (w.e.f. 1-6-1987).

3. Ins. by Act 22 of 2007, s. 90 (w.e.f. 1-6-2007).

4. The words “has not complied with the conditions subject to which the immunity was granted or that such person” omitted by Act 11 of 1987, s. 84 (w.e.f. 1-6-1987).

 

1 [22HA. Abatement of proceedings before Settlement Commission.—( 1) Where,—

(i) an application made under section 22C on or after the 1st day of June, 2007 has been rejected under sub-section (1) of section 22D; or

(ii) an application made under section 22C has not been allowed to be proceeded with under sub­section (2A) or further proceeded with under sub-section (2D) of section 22D; or

(iii) an application made under section 22C has been declared as invalid under sub-section (2C) of section 22D; or

(iv) in respect of any other application made under section 22C, an order under sub-section (4) of section 22D has not been passed within the time or period specified under sub-section (4A) of section 22D,

the proceedings before the Settlement Commission shall abate on the specified date.

Explanation. —For the purposes of this sub-section, “specified date” means—

(a) in respect of an application referred to in clause (i), the date on which the application was rejected;

(b) in respect of an application referred to in clause (ii), the 31st day of July, 2007;

(c) in respect of an application referred to in clause (iii), the last day of the month in which the application was declared invalid;

(d) in respect of an application referred to in clause (iv), the date on which the time or period specified in sub-section ( 4A) of section 22D expires.

(2) Where a proceeding before the Settlement Commission abates, the Assessing Officer, or, as the case may be, any other wealth-tax authority before whom the proceeding at the time of making the application was pending, shall dispose of the case in accordance with the provisions of this Act as if no application under section 22C had been made.

(3) For the purposes of sub-section (2), the Assessing Officer, or, as the case may be, other wealth-tax authority, shall be entitled to use all the material and other information produced by the assessee before the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement Commission in the course of the proceedings before it, as if such material, information, inquiry and evidence had been produced before the Assessing Officer or other wealth-tax authority or held or recorded by him in the course of the proceedings before him.

(4) For the purposes of the time-limit under sections 17A, 32 and 35 and for the purposes of payment of interest under section 34A, in case referred to in sub-section (2), the period commencing on and from the date of an application to the Settlement Commission under section 22C and ending with “specified date” referred to in sub-section (1) shall be excluded.

22HAA. Credit for tax paid in case of abatement of proceedings.— Where an application made under section 22C on or after the 1st day of June, 2007, is rejected under sub-section (1) of section 22D, or any other application made under section 22C is not allowed to be proceeded with under sub-section (2A) of section 22D or is declared invalid under sub-section (2C) of section 22D or has not been allowed to be further proceeded with under sub-section ( 2D) of section 22D or an order under sub-section (4) of section 22D has not been passed within the time or period specified under sub-section (4A) of section 22D, the Assessing Officer shall allow the credit for the tax and interest paid on or before the date of making the application or during the pendency of the case before the Settlement Commission.]

1. Ins. by Act 22 of 2007, s. 91 (w.e.f. 1-6-2007). Earlier section 22HA was inserted by Act 11 of 1987, s. 85 (w.e.f. 1-6-1987) and amended by Act 4 of 1988, s. 127 (w.e.f. 1-4-1988) which was later omitted by Act 20 of 2002, s. 113 (w.e.f. 1-6-2002).

22-I. Order of settlement to be conclusive.— Every order of settlement passed under sub-section (4) of section 22D shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force.

22J. Recovery of sums due under order of settlement.— Any sum specified in an order of settlement passed under sub-section (4) of section 22D may, subject to such conditions, if any, as may be specified therein, be recovered, and any penalty for default in making payment of such sum may be imposed and recovered in accordance with the provisions of section 32 by the 1[Assessing Officer] having jurisdiction over the person who made the application for settlement under section 22C.

2 [22K. Bar on subsequent application for settlement.—( 1) Where,—

(i) an order of settlement passed under sub-section (4) of section 22D provides for the imposition of a penalty on the person who made the application under section 22C for settlement, on the ground of concealment of particulars of his net wealth; or

(ii) after the passing of an order of settlement under the said sub-section (4) in relation to a case, such person is convicted of any offence under Chapter VIII in relation to that case; or

(iii) the case of any such person was sent back to the Assessing Officer by the Settlement Commission on or before the 1st day of June, 2002,

then, he shall not be entitled to apply for settlement under section 22C in relation to any other matter.

(2) Where a person has made an application under section 22C on or after the 1st day of June, 2007 and if such application has been allowed to be proceeded with under sub-section (1) of section 22D, such person shall not be subsequently entitled to make an application under section 22C.]

22L. Proceedings before the Settlement Commission to be judicial proceedings.— Any proceeding under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860).

22M. [ Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission .]Omitted by the Finance Act, 1987, s. 87 (w.e.f. 1-6-1987) . Earlier it was inserted by Act 41 of 1975, s. 93 (w.e.f. 1-4-1976) which was later amended by Act 67 of 1984, s. 64

(w.e.f. 1-10-1984).

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