Wealth
escaping assessment.
17. 86[(1) If the
Assessing Officer 87[has reason to believe] that the net
wealth chargeable to tax in respect of which any person is assessable under
this Act has escaped assessment for any assessment year (whether by reason of
under- assessment or assessment at too low a rate or otherwise), he may,
subject to the other provisions of this section and section 17A, serve on such
person a notice requiring him to furnish within such period, 88[***] as may be specified in the
notice, a return in the prescribed form and verified in the prescribed manner
setting forth the net wealth in respect of which such person is assessable as
on the valuation date mentioned in the notice, along with such other
particulars as may be required by the notice, and may proceed to assess or
reassess such net wealth and also any other net wealth chargeable to tax in
respect of which such person is assessable, which has escaped assessment and
which comes to his notice subsequently in the course of the proceedings under
this section for the assessment year concerned (hereafter in this section
referred to as the relevant assessment year), and the provisions of this Act
shall, so far as may be, apply as if the return were a return required to be
furnished under section 14 :
Provided
that where an assessment under sub-section (3) of section 16 or this section
has been made for the relevant assessment year, no action shall be taken under
this section after the expiry of four years from the end of the relevant
assessment year, unless any net wealth chargeable to tax has escaped assessment
for such assessment year by reason of the failure on the part of the assessee
to make a return under section 14 or section 15 or in response to a notice
issued under sub-section (4) of section 16 or this section or to disclose fully
and truly all material facts necessary for his assessment for that assessment
year :
89[Provided further that the
Assessing Officer shall, before issuing any notice under this sub-section,
record his reasons for doing so:]
89a[Provided also that
the Assessing Officer may assess or reassess such net wealth, other than the
net wealth which is the subject matter of any appeal, reference or revision,
which is chargeable to tax and has escaped assessment.]
Explanation.—Production
before the Assessing Officer of account books or other evidence from which
material evidence could with due diligence have been discovered by the
Assessing Officer will not necessarily amount to disclosure within the meaning
of the foregoing proviso.
(1A)
No notice under sub-section (1) shall be issued for the relevant assessment
year,—
90[(a) if four
years have elapsed from the end of the relevant assessment year, unless the
case falls under clause (b);
(b) if four years, but not more than six years, have elapsed from the
end of the relevant assessment year unless the net wealth chargeable to tax
which has escaped assessment amounts to or is likely to amount to rupees ten
lakhs or more for that year.]
Explanation.—For the purposes of sub-section (1) and sub-section (1A), the following
shall also be deemed to be cases where net wealth chargeable to tax has escaped
assessment, namely :—
(a) where no return of net wealth has been furnished by the assessee
although his net wealth or the net wealth of any other person in respect of
which he is assessable under this Act on the valuation date exceeded the
maximum amount which is not chargeable to wealth-tax ;
(b) where a return of net wealth has been furnished by the assessee but
no assessment has been made and it is noticed by the Assessing Officer that the
assessee has understated the net wealth or has claimed excessive exemption or
deduction in the return.
(1B) (a) In a case where an assessment under sub-section (3) of section 16
or sub-section (1) of this section has been made for the relevant assessment
year, no notice shall be issued under sub-section (1) 91[by
an Assessing Officer, who is below the rank of Assistant Commissioner 92[or
Deputy Commissioner], unless the 93[Joint] Commissioner is satisfied, on the
reasons recorded by such Assessing Officer, that it is a fit case for the issue
of such notice] :
Provided that, after the expiry of four years from the end of the relevant
assessment year, no such notice shall be issued unless the Chief Commissioner
or Commissioner is satisfied, on the reasons recorded by the Assessing Officer
aforesaid, that it is a fit case for the issue of such notice.
(b)
In a case other than a case falling under clause (a), no notice shall be
issued under sub-section (1) by an Assessing Officer, who is below the rank of 94-95[Joint] Commissioner, after the expiry of four years from the end of the
relevant assessment year, unless the 94-95[Joint] Commissioner is satisfied, on the
reasons recorded by such Assessing Officer, that it is a fit case for the issue
of such notice.]
96[Explanation.—For
the removal of doubts, it is hereby declared that the Joint Commissioner, the
Commissioner or the Chief Commissioner, as the case may be, being satisfied on
the reasons recorded by the Assessing Officer about fitness of a case for the
issue of notice, need not issue such notice himself.]
97[(2)
Nothing contained in this section limiting the time within which any proceeding
for assessment or reassessment may be commenced, shall apply to an assessment
or reassessment to be made on such person in consequence of or to give effect
to any finding or direction contained in an order under section 23, 24, 25, 27
or 29 98[or
by a Court in any proceedings under any other law] :
Provided that the provisions of this sub-section shall not apply in any case
where any such assessment or reassessment relates to an assessment year in
respect of which an assessment or reassessment could not have been made at the
time the order which was the subject-matter of the appeal, reference or
revision, as the case may be, was made by reason of any provision limiting the
time within which any action for assessment or reassessment may be taken.]