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Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2010 Chapters List Statements - Notes - Memorandum This

Notes - Notes on clauses - Wealth-tax - FINANCE BILL, 2010

FINANCE BILL, 2010
Statements - Notes - Memorandum
  • Contents

Wealth-tax

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. Clause 54 of the Bill seeks to amend section 22D of the Wealth tax Act relating to procedure on receipt of an application under section 22C.

Under the existing provisions of sub-section (4A) of the aforesaid section, Settlement Commission shall pass an order within twelve months from the end of the month in which the application was made.

It is proposed to amend the said sub-section so as to provide that the Settlement Commission shall pass an order in respect of an application made on or after 1st June, 2007 but before 1st June, 2010, within twelve months and in respect of application made on or after 1st June, 2010 within eighteen months from the end of the month in which the application was made.

This amendment will take effect from 1st June, 2010.

Clause 55 of the Bill seeks to amend section 27 of the Wealth tax Act relating to reference to High Court.

The existing provision contained in sub-section (3) of the aforesaid section provides for a period of ninety days, from the date of receipt of the order of Tribunal refusing to state the case on the ground that no question of law arises. The assessee or the Commissioner may within the said period apply to the High Court to require the Tribunal to state the case and to refer it.

It is proposed to insert a new sub-section (3B) so as to empower the High Court to admit an application after the expiry of said period of ninety days if it is satisfied that there was sufficient cause for not filing the appeal within the said period.

This amendment will take effect retrospectively from 1st June, 1981.

Clause 56 of the Bill seeks to amend section 27A of the Wealth tax Act relating to appeal to High Court.

The existing provision contained in sub-section (1) of the said section provides one hundred and twenty days, from the date of receipt of the order appealed against, as the period of limitation for filing an appeal to the High Court.

It is proposed to insert a new sub-section (1A) so as to empower the High Court to admit an appeal after the expiry of said period of one hundred and twenty days if it is satisfied that there was sufficient cause for not filing the same within that period.

This amendment will take effect retrospectively from 1st October, 1998.

 
 
 
 

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