18[Assessment when assets are held by certain associations of persons.
21AA. (1) Where assets chargeable to tax under
this Act are held by an association of persons, other than a company or
co-operative society 19[or
society registered under the Societies Registration Act, 1860 (21 of 1860) or
under any law corresponding to that Act in force in any part of India], and the
individual shares of the members of the said association in the income or
assets or both of the said association on the
date of its formation or at any time thereafter are indeterminate or
unknown, the wealth-tax shall be levied upon and recovered from such
association in the like manner and to the same extent as it would be leviable
upon and recoverable from an individual who is a citizen of India and resident
in India for the 20[purposes
of this Act 21[***]].
(2) Where any business or profession carried on by an association of
persons referred to in sub-section (1) has been discontinued or where such
association of persons is dissolved, the 22[Assessing Officer] shall make an assessment of the net wealth of the association
of persons as if no such discontinuance or dissolution had taken place and all
the provisions of this Act, including the provisions relating to the levy of
penalty or any other sum chargeable under any provisions of this Act, so far as
may be, shall apply to such assessment.
(3) Without prejudice to the generality of the provisions of sub-section
(2), if the 22[Assessing
Officer] or the 23[Deputy
Commissioner (Appeals)] or the Commissioner (Appeals) in the course of any
proceedings under this Act in respect of any such association of persons as is
referred to in sub-section (1) is satisfied that the association of persons was
guilty of any of the acts specified in section 18 or section 18A, he may impose
or direct the imposition of a penalty in accordance with the provisions of the
said sections.
(4) Every person who was at the time of such discontinuance or
dissolution a member of the association of persons, and the legal representative
of any such person who is deceased, shall be jointly and severally liable for
the amount of tax, penalty or other sum payable, and all the provisions of this
Act, so far as may be, shall apply to any such assessment or imposition of
penalty or other sum.
(5) Where such discontinuance or dissolution takes place after any
proceedings in respect of an assessment year have commenced, the proceedings
may be continued against the persons referred to in sub-section (4) from the
stage at which the proceedings stood at the time of such discontinuance or
dissolution, and all the provisions of this Act shall, so far as may be, apply
accordingly.
24Explanation.—[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]