THE WEALTH-TAX ACT, 1957-7

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

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Year : 1957

CHAPTER VII

Payment and recovery of wealth-tax

3 [30. Notice of demand.—When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the 4[Assessing Officer] shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable.

31. When tax, etc., payable and when assessee deemed in default.— (1) Any amount specified as payable in a notice of demand under section 30 shall be paid within 5[thirty days] of the service of the notice at the place and to the person mentioned in the notice:

Provided that, where the 4[Assessing Officer] has any reason to believe that it will be detrimental to revenue if the full period of 5[thirty days] aforesaid is allowed, he may, with the previous approval of the 6[Joint Commissioner], direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of 5[thirty days] aforesaid, as may be specified by him in the notice of demand.

(2) If the amount specified in any notice of demand under section 30 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at 7[ 8[one per cent.] for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid]:

Provided that, where as a result of an order under section 23, 9[or section 23A,] or section 24, or section 25, or section 26, or section 27, or section 29, or section 35 10[or any order of the Wealth-tax Settlement Commission under sub-section ( 4) of section 22D], the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded:

1. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, for “the Laccadive, Minicoy and Amindivi Islands” (w.e.f. 1-11-1973).

2. Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968 (w.e.f. 1-11-1966).

3. Subs. by Act 46 of 1964, s. 28, for sections 30, 31 and 32 (w.e.f. 1-4-1965).

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

5. Subs. by s. 148, ibid., for “thirty-five days” (w.e.f. 1-4-1989).

6. Subs. by Act 21 of 1998, s. 66, for “Deputy Commissioner” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988).

7. Subs. by Act 4 of 1988, s. 148, for “fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub-section (1)” (w.e.f. 1-4-1989). Earlier “fifteen per cent.” was substituted by Act 67 of 1984, s. 66, for “twelve per cent.” (w.e.f. 1-10-1984).

8. Subs. by Act 54 of 2003, s. 20, for “one and one-fourth per cent.” (w.e.f. 8-9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 99, for “one and one-half per cent.” (w.e.f. 1-6-2001).

9. Ins. by Act 10 of 2000, s. 74 (w.e.f. 1-6-2000).

10. Ins. by Act 4 of 1988, s. 148 (w.e.f. 1-4-1989).

1 [Provided further that in respect of any period commencing on or before the 31st day of March, 1989, and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of 2[one per cent.] for every month or part of a month.]

3 [(2A) Notwithstanding anything contained in sub-section ( 2), the 4 [ 5 [Chief Commissioner or Commissioner] may] reduce or waive the amount of 6[interest paid or payable by an assessee] under the said sub-section if 7[he is satisfied that]—

8 [(i) payment of such amount has caused or would cause genuine hardship to the assessee;

(ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to circumstances beyond the control of the assessee; and]

(iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.]

(3) Without prejudice to the provisions contained in sub-section ( 2), on an application made by the assessee before the expiry of the due date under sub-section (1), the 9 [Assessing Officer] may extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case.

(4) If the amount is not paid within the time limited under sub-section (1) or extended under sub­section (3), as the case may be, at the place and to the person mentioned in the said notice, the assessee shall be deemed to be in default.

(5) If in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalments within the time fixed under that sub-section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default.

(6) Where an assessee has presented an appeal under section 23 10[or section 23A], the 9[Assessing Officer] may, in his discretion, and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of.

(7) Where an assessee has been assessed in respect of assets located in a country outside India, the laws of which prohibit or restrict the remittance of money to India, the 9[Assessing Officer] shall not treat the assessee as in default in respect of that part of the tax which is attributable to those assets, and shall continue to treat the assessee as not in default in respect of that part of the tax until the prohibition or restriction of remittance is removed.

1. Ins. by Act 4 of 1988, s. 148 (w.e.f. 1-4-1989).

2. Subs. by Act 54 of 2003, s. 20, for “one and one-fourth per cent.” (w.e.f. 8-9-2003). Earlier the quoted words were substituted by Act 14 of 2001, s. 99, for “one and one-half per cent.” (w.e.f. 1-6-2001).

3. Ins. by Act 67 of 1984, s. 66 (w.e.f. 1-10-1984).

4. Subs. by Act 11 of 1987, s. 88, for “the Board may” (w.e.f. 1-4-1987).

5. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988).

6. Subs. by Act 11 of 1987, s. 88, for “interest payable by an assessee” (w.r.e.f. 1-10-1984).

7. Subs. by s. 88, ibid., for “, on the recommendation made by the Commissioner in this behalf, it is satisfied that” (w.e.f. 1-4-1987).

8. Subs. by s. 88, ibid., for clauses (i) and ( ii) (w.r.e.f. 1-10-1984).

9. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 10. Ins. by Act 10 of 2000, s. 74 (w.e.f. 1-6-2000).

32. Mode of recovery.— The provisions contained in 1[sections 221 to 227, 228A], 229, 231 and 232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to wealth-tax and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums imposed by way of penalty, fine and interest under that Act 2 [and to the corresponding wealth-tax authorities instead of to the income-tax authorities specified therein].

Explanation I.— Any reference to section 173 and sub-section (2) or sub-section (6) or sub-section (7) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made thereunder shall be construed as references to sub-section (7) of section 22 and sub-section (2) or sub-section (6) or sub-section (7) of section 31 of this Act, respectively.

3 [Explanation II.—The Chief Commissioner or Commissioner and the Tax Recovery Officer referred to in the Income-tax Act shall be deemed to be the corresponding wealth-tax authorities for the purpose of recovery of wealth-tax and sums imposed by way of penalty, fine and interest under this Act.]]

33. Liability of transferees of properties in certain cases.— (1) Where by reason of the provisions contained in section 4, the value of any assets transferred to any of the persons mentioned in that section have to be included in the net wealth of an individual, the person in whose name such assets stand shall, notwithstanding anything contained in any law to the contrary, be liable, on the service of a notice of demand by the 4[Assessing Officer] in this behalf, to pay that portion of the tax assessed on the assessee as is attributable to the value of the asset standing in his name as aforesaid:

Provided that where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax as is attributable to the value of the asset so jointly held.

(2) Where any such person as is referred to in sub-section (1) defaults in making payment of any tax demanded from him, he shall be deemed to be an assessee in default in respect of such sum, and all the provisions of this Act relating to recovery shall apply accordingly.

34. [ Restrictions on registration of transfers of immovable property in certain cases .]—Omitted by the Wealth-tax (Amendment) Act, 1964, s. 29 (w.e.f. 1-4-1965).

 

5 [CHAPTER VIIA REFUNDS

34A. Refunds.— (1) Where, as a result of any order passed in appeal or other proceeding (including a rectification proceeding) under this Act, refund of any amount becomes due to the assessee, the 4 [Assessing Officer] shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make any claim in that behalf:

6 [Provided that where, by the order aforesaid,—

(a) an assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;

1. Subs. by Act 16 of 1972, s. 48, for “sections 221 to 227” (w.e.f. 1-4-1972).

2. Subs. by Act 4 of 1988, s. 149, for “and to Wealth-tax Officer and Commissioner of Wealth-tax instead of to Income-tax Officer and Commissioner of Income-tax” (w.e.f. 1-4-1988).

3. Subs. by s. 149, ibid., for Explanation II (w.e.f. 1-4-1989).

4. Subs. by s. 127, ibid., for “Wealth-tax Officer” (w.e.f. 1-4-1988). 5. Ins. by Act 46 of 1964, s. 30 (w.e.f. 1-4-1965).

6. The proviso added by Act 4 of 1988, s. 150 (w.e.f. 1-4-1989).

(b) the assessment is annulled, the refund shall become due only of the amount, if any, of the tax paid in excess of the tax chargeable on the 1[net wealth] returned by the assessee.]

2 [(2) Where refund of any amount becomes due to the assessee as a result of an order under this Act or under the provisions of sub-section (1) of section 16 after a return has been made under section 14 or section 15 or in response to a notice under clause (i) of sub-section (4) of section 16 and the Assessing Officer is of the opinion, having regard to the fact that—

(i) a notice has been issued, or is likely to be issued, under sub-section (2) of section 16 in respect of the said return; or

(ii) the order is the subject-matter of an appeal or further proceeding; or

(iii) any other proceeding under this Act is pending,

that the grant of the refund is likely to adversely affect the revenue, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief Commissioner or Commissioner may determine.]

(3) Where a refund is due to the assessee in pursuance of an order referred to in sub-section (1) and the 3[Assessing Officer] does not grant the refund within a period of six months from the date of such order, the Central Government shall pay to the assessee simple interest at 4[six per cent.] per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted.

5 [(3A) Where the whole or any part of the refund referred to in sub-section (3) is due to the assessee as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (3) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted:

Provided that, where the amount so found to be in excess was paid in instalments, such interest shall be payable on the amount of each such instalment or any part of such instalment, which was in excess, from the date on which such instalment was paid to the date on which the refund is granted:

Provided further that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding:

Provided also that, where any interest is payable to an assessee under this sub-section, no interest under sub-section (3) shall be payable to him in respect of the amount so found to be in excess.]

(4) Where a refund is withheld under the provisions of sub-section ( 2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for the period commencing after the expiry of six months from the date of the order referred to in that sub-section to the date the refund is granted.

6 [(4A) The provisions of sub-sections (3), ( 3A) and (4) shall not apply in respect of any assessment for the assessment year commencing on the 1st day of April, 1989, or any subsequent assessment year.

1. Subs. by Act 3 of 1989, s. 73, for “total income” (w.e.f. 1-4-1989).

2. Subs. by Act 36 of 1989, s. 29, for sub-section (2) (w.r.e.f. 1-4-1989).

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

4. Subs. by Act 54 of 2003, s. 21, for “eight per cent.” (w.e.f. 8-9-2003). 5. Ins. by Act 41 of 1975, s. 97 (w.e.f. 1-10-1975).

6. Ins. by Act 4 of 1988, s. 150 (w.e.f. 1-4-1989).

(4B) (a) 1[Where refund of any amount becomes due to the assessee under this Act,] he shall, subject to the provisions of this sub-section, be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of 2[one-half 3*** per cent.] for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

Explanation .—For the purposes of this clause, “date of payment of the tax or penalty” means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 30 is paid in excess of such demand.

(b) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, period of the delay so attributable to him shall be excluded from the period for which interest is payable and where any question arises as to the period to be excluded, it shall be decided by the Chief Commissioner or Commissioner whose decision thereon shall be final.

(c) Where as a result of an order under 4[sub-section ( 3) or sub-section (5) of section 16 or] section 17 or section 23 5[or section 23A] or section 24 or section 25 or section 27 or section 29 or section 35 or any order of the Wealth-tax Settlement Commission under sub-section (4) of section 22D, the amount on which interest was payable under clause (a) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly and, in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 30 and the provisions of this Act shall apply accordingly.

(d) The provisions of this sub-section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years.]

(5) Where under any of the provisions of this Act, a refund is found to be due to any person, the 6 [Assessing Officer], 7 [Deputy Commissioner (Appeals)] 8 [, Commissioner (Appeals)] or 9 [Chief Commissioner or Commissioner], as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section. ]

 

10 [ CHAPTER VIIB Registered valuers

34AA. Appearance by registered valuers.— Notwithstanding anything contained in this Act, any assessee who is entitled to or required to attend before any wealth-tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, except where he is required under this Act to attend in person, may attend by a registered valuer.

1. Subs. by Act 3 of 1989, s. 73, for “Where, in pursuance of any order passed under this Act, the refund of any amount becomes due to the assessee” (w.e.f. 1-4-1989).

2. Subs. by Act 54 of 2003, s. 21, for “two-third per cent.” (w.e.f. 8-9-2003). Earlier the quoted words were substituted by Act 20 of 2002, s. 114, for “three fourth per cent.” (w.e.f. 1-6-2002) which were earlier substituted by Act 14 of 2001, s. 100, for “one per cent.” (w.e.f. 1-6-2001).

3. The words “and a half per cent.” omitted by Act 49 of 1991, s. 80 (w.e.f. 1-10-1991). 4. Ins. by Act 3 of 1989, s. 73 (w.e.f. 1-4-1989).

5. Ins. by Act 10 of 2000, s. 75 (w.e.f. 1-6-2000).

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

7. Subs. by s. 127, ibid., for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988).

8. Ins. by Act 29 of 1977, s. 39 and the Schedule (w.e.f. 10-7-1978).

9. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 10. Ins. by Act 45 of 1972, s. 14 (w.e.f. 15-11-1972).

34AB. Registration of valuers.— (1) The 1[Chief Commissioner or Director General] shall maintain a register to be called the Register of Valuers in which shall be entered the names and addresses of persons registered under sub-section (2) as valuers.

(2) Any person who possesses the qualifications prescribed in this behalf may apply to the 1[Chief Commissioner or Director General] in the prescribed form for being registered as a valuer under this section:

Provided that different qualifications may be prescribed for valuers of different classes of assets.

(3) Every application under sub-section (2) shall be verified in the prescribed manner, shall be accompanied by such fees as may be prescribed and shall contain a declaration to the effect that the applicant will—

(i) make an impartial and true valuation of any asset which he may be required to value;

(ii) furnish a report of such valuation in the prescribed form;

(iii) charge fees at a rate not exceeding the rate or rates prescribed in this behalf;

(iv) not undertake valuation of any asset in which he has a direct or indirect interest.

(4) The report of valuation of any asset by a registered valuer shall be in the prescribed form and be verified in the prescribed manner.

34AC. Restrictions on practice as registered valuer.— (1) No person, either alone, or in partnership with any other person, shall practise, describe himself or hold himself out as a registered valuer for the purposes of this Act or permit himself to be so described or held out unless he is registered as a valuer or, as the case may be, unless he and all his partners are so registered under this Chapter.

(2) No company or other body corporate shall practise, describe itself or hold itself out as registered valuers for the purposes of this Act or permit itself to be so described or held out.

2 [34ACC. Furnishing of particulars in certain cases.— Where any person who is registered as a valuer under section 34AB or who has made an application for registration as a valuer under that section is, at any time thereafter,—

(a) convicted of any offence and sentenced to a term of imprisonment; or

(b) in a case where he is a member of any association or institution established in India having as its object the control, supervision, regulation or encouragement of the profession of architecture, accountancy, or company secretaries or such other profession as the Board may specify in this behalf by notification in the Official Gazette, found guilty of misconduct in his professional capacity, by such association or institution,

he shall immediately after such conviction or, as the case may be, finding, intimate the particulars thereof

3 [to the Chief Commissioner or Director General].]

1. Subs. by Act 26 of 1988, s. 58, for “Board” (w.e.f. 1-6-1988).

2. Ins. by Act 67 of 1984, s. 68 (w.e.f. 1-10-1984).

3. Subs. by Act 26 of 1988, s. 59, for “to the Board” (w.e.f. 1-6-1988).

34AD. Removal from register of names of valuers and restoration.— (1) The 1 [Chief Commissioner or Director General] may remove the name of any person from the register of valuers where 2[he is satisfied], after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as 3[he thinks fit] to make,—

(i) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact;

(ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of misconduct in his professional capacity which, in the opinion of the 1[Chief Commissioner or Director General], renders him unfit to be kept in the register.

(2) The 1[Chief Commissioner or Director General] may, on application and on sufficient cause being shown, restore to the register the name of any person removed therefrom.

4 [(3) Without prejudice to the provisions of sub-sections ( 1) and (2), the Chief Commissioner or Director General shall, once in three years review the performance of all the registered valuers and may remove the name of any person from the Register of Valuers where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his name should not remain on the Register of Valuers.

(4) The Chief Commissioner or Director General may himself conduct the inquiry referred to in sub­section (1) or sub-section (3) or appoint an Inquiry Officer not below the rank of a Commissioner to conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director General and the Inquiry Officer so appointed shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908 ), when trying a suit in respect of the following matters, namely:—

(a) discovery and inspection;

(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath;

(c) compelling the production of books of account and other documents;

(d) issuing commission.]]

5 [34AE. Existing registered valuers to apply afresh.—( 1) Notwithstanding anything contained in this Chapter, every person whose name is included in the Register of Valuers immediately before the 1st day of June, 1988, shall, if he intends to continue to be registered under this Act, make an application under sub-section ( 2) of section 34AB within a period of three months from that date, for being registered afresh as a valuer under this Chapter and the provisions of sub-section (3) of that section and the rules made thereunder shall be applicable in respect of the verification of the application, the fees that shall accompany such application and the declaration to be made by the applicant.

(2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub-section (1).

(3) Every application pending before the Board immediately before the 1st day of June,1988, shall be deemed to be an application received by the Chief Commissioner or Director General under sub-section (1).]

1. Subs. by Act 26 of 1988, s. 60, for “Board” (w.e.f. 1-6-1988).

2. Subs. by s. 60, ibid., for “it is satisfied” (w.e.f. 1-6-1988).

3. Subs. by s. 60, ibid., for “it thinks fit” (w.e.f. 1-6-1988). 4. Ins. by s. 60, ibid. (w.e.f. 1-6-1988).

5. Ins. by s. 61, ibid. (w.e.f. 1-6-1988).

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