Section 140 - Amendment of section 17A - Direct Tax Laws (Amendment) Act, 1987

140. Amendment of section 17A. In section 17A of the Wealth-tax Act, - (a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely :- (1) No order of assessment shall be made under section 16 at any time after the expiry of two years from the end of the assessment year in which the net wealth was first assessable: Provided that where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, such assessment may be made on or before the 31st day of March, 1990. (2) No order of assessment or reassessment shall be made under section 17 after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of that section was served: Provided that,- (i) where the notice under clause (a) of sub-section (1) of section 17 was served during the financial year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, such assessment or reassessment may be completed on or before the 31st day of March, 1990; (ii) where the notice under clause (b) of sub-section (1) of section 17 relates to the assessment for the assessment year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, such assessment or reassessment may be completed on or before the 31st day of March, 1990, or the expiry of two years from the end of the financial year in which such notice was served, whichever is later. Explanation .- References to section 17 in the proviso shall be construed as references to that section as it stood before amendment by the Direct Tax Laws (Amendment) Act, 1987. ; (b) in sub-section (3),- (i) for the words four years , the words two years shall be substituted; (ii) the following proviso shall be inserted at the end, namely :- Provided that where the order setting aside or cancel- ling an assessment was passed during the financial year commencing on the 1st day of April, 1985, or the 1st day of April, 1986, the order of fresh assessment may be made on or before the 31st day of March, 1990.