Section 33 - Amendment of section 18 - Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986

CHAPTER III AMENDMENTS TO THE WEALTH-TAX ACT, 1957 33. Amendment of section 18. In section 18 of the Wealth-tax Act, 1957 (27 of 1957) (hereafter in this Chapter referred to as the Wealth-tax Act),- (a) the words without reasonable cause , wherever they occur, shall be omitted; (b) in sub-section (1),- (i) after clause (iii) and before Explanation 1, the following proviso shall be inserted, namely :- Provided that in the cases referred to in clause (a) or clause (b), no penalty shall be imposable if the person proves that there was reasonable cause for the failure referred to in those clauses. ; (ii) in Explanation 2,- (1) in clause (B), for the words not able to substantiate, , the words not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his net wealth have been disclosed by him, shall be substituted; (2) the proviso shall be omitted; (iii) in Explanation 5, for the portion beginning with the words unless such assets recorded and ending with the words before the said date , the following shall be substituted, namely :- unless- (1) such assets are recorded,- (i) in a case falling under clause (a), before the date of the search; and (ii) in a case falling under clause (b), on or before such date, in the books of account, if any, maintained by him or such assets are otherwise disclosed to the Commissioner before the said date; or (2) he, 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 .