Section 143 - Insertion of new Chapter IVB - Direct Tax Laws (Amendment) Act, 1987

143. Insertion of new Chapter IVB. In the Wealth tax Act, after section 18C, the following Chapter shall be inserted, namely :- CHAPTER IVB CHARGE OF ADDITIONAL WEALTH-TAX IN CERTAIN CASES 18D. Additional wealth-tax. (1) Where, in the case of any person, the net wealth determined in the regular assessment for any assessment year (hereafter in this section referred to as assessed net wealth) exceeds the net wealth declared in the return of net wealth furnished by such person for that assessment year (hereafter in this section referred to as returned net wealth) by any amount, the Assessing Officer shall make an order in writing that such person shall, apart from the sum determined as payable by him on the basis of the assessment under section 16, be liable to pay, by way of additional wealth-tax, in respect of the said assessment year, as sum calculated on such excess amount at the rate of three per cent. (2) For the purposes of sub-section (1),- (a) where such person has furnished two or more returns of net wealth for the same assessment year, the net wealth declared in the return furnished last before the service of a notice under sub-section (2) of section 16 on such person shall be treated as the returned net wealth; (b) where such person fails to furnish the return of net wealth in respect of any assessment year and the assessment for that year is made under sub-section (5) of section 16, the returned net wealth shall be taken to be nil; (c) where such person fails to furnish a return of net wealth for any assessment year under section 14 or section 15, but furnishes such return after he is served with a notice under section 17, the returned net wealth shall be taken to be nil. (3) Where, as a result of an order under section 17 or section 23 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 the additional wealth-tax is payable under sub-section (1) has been increased or reduced, as the case may be, the additional wealth-tax shall be increased or reduced accordingly, and,- (i) in a case where the additional wealth-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 30 and the provisions of this Act shall apply accordingly; (ii) in a case where the additional wealth tax is reduced, the excess amount paid, if any, shall be refunded. (4) The Chief Commissioner or Commissioner may, in his discretion, whether on his own motion or otherwise, waive or reduce the amount of additional wealth-tax payable under sub-section (1) by any person, if he is satisfied that the whole or, as the case may be, any part of the excess amount referred to in that sub-section is attributable to any amount added or disallowed in computing the assessed net wealth, as a result of the rejection of any explanation (by way of interpretation of any provision of this Act or otherwise) offered by such person, if such explanation is bona fide and all the facts relating to the same and material to the computation of the assessed net wealth have been disclosed by him: Provided that - (i) where an appeal before the Deputy Commissioner (Appeals) or Commissioner (Appeals) or the Appellate Tribunal has also been filed by the assessee against the order of assessment, the petition for waiver or reduction of the amount of additional wealth-tax can be filed by the assessee only after the decision on such appeal; (ii) the petition for waiver or reduction of the amount of additional wealth-tax shall be accompanied by a fee of one hundred rupees. (5) Where in the course of a search under section 37A, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing (hereinafter referred to as assets). and the assessee claims that such assets represent or form part of his net wealth- (a) on any valuation date falling before the date of the search, but the return in respect of the net wealth on such date has not been furnished before the date of the search or where such return has been furnished before the said date, such assets have not been declared in such return; or (b) on any valuation date falling on or after the date of the search, then, notwithstanding that such assets are declared by him in any return of net wealth furnished on or after the date of the search, the value of such assets shall not, for the purposes of liability to the additional, wealth-tax under sub-section (1), be treated as forming part of the returned net wealth, unless - (i) such assets are recorded- (A) in a case falling under clause (a), before the date of the search; and (B) in a case falling under clause (b), on or before the date of the search, in the books of account, if any, maintained by him or such assets are otherwise disclosed to the Chief Commissioner or Commissioner before the said date; or (ii) the assessee, in the course of the search, makes a statement under sub-section (4) of section 37A that any money, bullion, jewellery or other valuable article or thing found in his possession or under his control forms part of his net wealth which has not been disclosed so far in his return of net wealth to be furnished before the expiry of the time specified in sub-section (1) of section 14, and also specifies in the statement the manner in which such net wealth has been acquired and pays the tax together with interest, if any, in respect of such net wealth. (6) The additional wealth-tax payable under this section shall not be included in the amount of tax payable on the net wealth as determined on regular assessment, for the purposes of section 17B. .