Wealth-tax
Amendment of section 22A.
53. In section 22A of the Wealth-tax Act, 1957 [27 of 1957.] (hereinafter referred to as the Wealth-tax Act), in clause (b), with effect from the 1st day of June, 2010,—
(i) in the proviso, clause (iii) shall be omitted;
(ii) in the Explanation,—
(a) for clause (iii), the following clause shall be substituted, namely:—
"(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;".
(b) in clause (iv), for the words, brackets and figures "or clause (iii) of the proviso", the words, brackets and figures "of the proviso or clause (iii) of the Explanation" shall be substituted.
Notes on Clauses:
Clause 53 of the Bill seeks to amend section 22A of the Wealth tax Act relating to definitions.
Under the existing provisions contained in clause (b) of the aforesaid section, the word "case" means any proceeding for assessment 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. It, inter alia, provides that a proceeding of assessment or reassessment for any of the assessment years which may be initiated on the basis of a search under section 37A or requisition under section 37B shall not be a proceeding for assessment for the purpose of this clause.
It is proposed to omit clause (iii) of the proviso to clause (b) of the aforesaid section so as to include within the definition of "case", the proceedings of assessment or reassessment which may be initiated on the basis of a search under section 37A or requisition under section 37B.
The existing provisions of the Explanation to clause (b) of the aforesaid section provide for the date on which proceedings for assessment or reassessment shall be deemed to have commenced.
It is further proposed to amend the Explanation to specify the date on which the proceedings for assessment or reassessment shall be deemed to have been initiated and concluded pursuant to a search under section 37A or requisition made under section 37B.
These amendments will take effect from 1st June, 2010.
