TMI BlogPenalty for failure to furnish returns, to comply with notices and concealment of assets, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... rupees for each such failure ;] 11 [(iii) in the cases referred to in clause (c), in addition to any wealth-tax payable by him, a sum which shall not be less than, but which shall not exceed five times, the amount of tax sought to be evaded by reason of the concealment of particu lars of any assets or the furnishing of inaccurate particulars in respect of any assets or debts : 12 [ Provided that in the cases referred to in clause (b), no penalty shall be imposable if the person proves that there was a reasonable cause for the failure referred to in that clause.] Explanation 1. For the purposes of clause (iii) of this sub-section, the expression "the amount of tax sought to be evaded" (a) in a case to which Explanation 3 applies, means the tax on the net wealth assessed ; (b) in any other case, means the difference between the tax on the net wealth assessed and the tax that would have been chargeable had the net wealth assessed been reduced by the amount which represents the value of any assets in respect of which particulars have been concealed or inaccurate particulars have been f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished inaccurate particu lars of such asset within the meaning of clause (c) of this sub-section, unless he proves that the value of the asset as returned by him is the correct value.] 21 [ Explanation 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 (hereafter in this Explanation 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, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r.] (3A) 30 [***] (4) A 31 [Deputy Commissioner (Appeals)], 32 [a Commissioner (Ap peals),] a 33 [Chief Commissioner or Commissioner] or the Appellate Tribunal on making an order under this section imposing a penalty, shall forthwith send a copy of the same to the 34 [Assessing Officer.] 35 [(5) No order imposing a penalty under this section shall be passed (i) in a case where the assessment to which the proceedings for imposition of penalty relate is the subject-matter of an appeal to the Deputy Commissioner (Appeals) or the Commissioner (Appeals) under section 23 or an appeal to the Appellate Tribunal under sub-section (2) of section 24, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which the order of the Deputy Commissioner (Appeals) or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal is received by the Chief Commissioner or Commissioner, whichever is later ; (ii) in a case where the relevant assessment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Before omission, clause (a), as amended by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986, stood as under: "(a) has failed to furnish the return which he is required to furnish under sub-section (1) of section 14 or by notice given under sub-section (2) of section 14 or section 17, or has failed to furnish within the time allowed and in the manner required by sub-section (1) of section 14 or by such notice, as the case may be; or" 8. Omitted vide the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986., "without reasonable cause" 9. Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Before omission, clause (i), as amended by the Finance Act, 1969, w.e.f. 1-4-1969, Finance (No. 2) Act, 1971, w.e.f. 1-4-1972 and Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, stood as under : '(i) in the cases referred to in clause (a), in addition to the amount of wealth-tax, if any, payable by him, a sum equal to two per cent of the assessed tax for every month during which the default continued. Explanation . In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Before substitution, Explanation 3, as amended by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978 and Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 10-9-1986, stood as under : " Explanation 3. Where any person who has not previously been assessed under this Act fails to furnish within the period specified in clause (a) or, as the case may be, clause (b) of sub-section (1) of section 17A, a return of his net wealth which he is required to furnish under section 14 in respect of any assessment year and, until the expiry of either of the periods applicable to him, no notice had been issued to him under sub-section (2) of section 14 or sub-section (1) of section 17 and the Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has assessable net wealth, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his assets or furnished inaccurate particulars of any assets or debts in respect of such assessment year, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Commissioner." 28. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. 29. Substituted vide the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Before it was read as:- "Deputy" 30. Omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Before omission, sub-section (3A) stood as under: "(3A) Notwithstanding anything contained in this section, the penalty imposed under clause (iii) of sub-section (1) read with Explanation 3 to that sub-section and the penalty imposed under clause (i) of that sub-section shall not exceed, in the aggregate, five times the amount of the tax sought to be evaded." 31. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Before it was read as:- "Appellate Assistant Commissioner" 32. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978. 33. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Before it was read as:- "Commissioner" 34. Substituted vide the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. Before it was read as:- "Wealth-tax Officer" 35. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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