17. Wealth escaping assessment .- [(1) If the Assessing Officer ][has reason to believe] [ Substituted by Act 3 of 1989, Section 66, for " for reasons to be recorded by him in writing, is of the opinion" (w.e.f. 1.4.1989).][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 17-A, serve on such person a notice requiring him to furnish within such period, ] [Substituted by Act 4 of 1988, Section 139, for sub-Section (1)(w.e.f. 1.4.1989). ] [* * *] [ Certain words omitted by Act 32 of 2003, Section 100 (w.r.e.f. 1.4.1989).][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:] [Substituted by Act 4 of 1988, Section 139, for sub-Section (1)(w.e.f. 1.4.1989). ][Provided further that the Assessing Officer shall, before issuing any notice under this sub-section, record his reasons for doing so:] [ Inserted by Act 3 of 1989, Section 66 (w.e.f. 1.4.1989).][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.] [ Inserted by Act 18 of 2008, Section 60 (w.e.f. 1.4.2008).][ 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.] [Substituted by Act 4 of 1988, Section 139, for sub-Section (1)(w.e.f. 1.4.1989). ](1-A) No notice under sub-section (1) shall be issued for the relevant assessment year,¬-(a)[ if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); [ Substituted by Act 14 of 2001, Section 96, for Clauses (a) and (b)(.e.f. 1.6.2001).](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 lakh or more for that year.]Explanation.-For the purposes of sub-section (1) and sub-section (1-A), 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.(1-B)(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) [by an Assessing Officer, who is below the rank of ] [Substituted by Act 12 of 1990, Section 55, for certain words (w.e.f. 1.4.1990). ][Assistant Commissioner or Deputy Commissioner] [ Substituted by Act 21 of 1998, Section 66, for " Assistant Commissioner" (w.e.f. 1.10.1998).][, unless the ] [Substituted by Act 12 of 1990, Section 55, for certain words (w.e.f. 1.4.1990). ][Joint Commissioner] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Commissioner" (w.e.f. 1.10.1998).][is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice:] [Substituted by Act 12 of 1990, Section 55, for certain words (w.e.f. 1.4.1990). ]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 [Joint Commissioner] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Commissioner" (w.e.f. 1.10.1998).], after the expiry of four years from the end of the relevant assessment year, unless the [Joint Commissioner] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Commissioner" (w.e.f. 1.10.1998).] is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.[ 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.] [ Inserted by Act 18 of 2008, Section 60 (w.r.e.f. 1.10.1998).](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 ] [ Inserted by Act 46 of 1964, Section 17 (w.e.f. 1.4.1965).][or by a Court in any proceedings under any other law] [ Inserted by Act 4 of 1988, Section 139 (w.e.f. 1.4.1989).]:[Provided that the provisions of this sub-section shall not apply in any case where any such assessment or re-assessment relates to an assessment year in respect of which an assessment or re-assessment 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 of re-assessment may be taken.] [ Inserted by Act 46 of 1964, Section 17 (w.e.f. 1.4.1965).][17-A. Time-limit for completion of assessment and reassessment.- ][(1) No order of assessment shall be made under section 16 at any time after the expiry of two years from the end of the assessment year in which the net wealth was first assessable:] [Substituted by Act 4 of 1988, Section 104, for sub-Sections (1) and (2)(w.e.f. 1.4.1989). ][Provided that,-(a)where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or before the 31st day of March, 1991;(b)where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992:] [ Substituted by Act 13 of 1989, Section 28, for the proviso (w.e.f. 1.4.1989).][Provided further that in case the assessment year in which the net wealth was first assessable is the assessment year commencing on the 1st day of April, 2004 or any subsequent year, the provisions of this sub-section shall have effect as if for the words "two years", the words "twenty-one months" had been substituted.] [ Inserted by Act 21 of 2006, Section 57 (w.e.f. 1.6.2006).](2)[ No order of assessment or re-assessment shall be made under section 17 after the expiry of ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][one year] [ Substituted by Act 14 of 2001, Section 97, for " two years" (w.e.f. 1.6.2001).][from the end of the financial year in which the notice under sub-section (1) of that section was served:] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][Provided that where the notice under sub-section (1) of section 17 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment or re-assessment may be made at any time up to the 31st day of March, 2002:] [ Substituted by Act 14 of 2001, Section 97, for the proviso (w.e.f. 1.6.2001).][Provided further that where the notice under sub-section (1) of section 17 was served on or after the 1st day of April, 2005, the provisions of this sub¬-section shall have effect as if for the words "one year", the words "nine months" had been substituted.] [ Inserted by Act 21 of 2006, Section 57 (w.e.f. 1.6.2001).][* * *] [ Explanation omitted by Act 14 of 2001 (w.e.f. 1.6.2001).](3)[ Notwithstanding anything contained in sub-sections (1) and (2), an order of fresh assessment in pursuance of an order passed on or after the 1st day of April, 1975, under section ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][23-A] [ Substituted by Act 14 of 2001, Section 97, for " 23" (w.e.f. 1.6.2001).][, section 24 or section 25, setting aside or cancelling an assessmet, may be made at any time before the expiry of ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][one year] [ Substituted by Act 14 of 2001, Section 97, for " two years" (w.e.f. 1.6.2001).][from the end of the financial year in which the order under section ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ] [23-A] [ Substituted by Act 14 of 2001, Section 97, for " 23" (w.e.f. 1.6.2001).][or section 24 is received by the ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ] [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1989).][or, as the case may be, the order under section 25 is passed by the Commissioner:] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][Provided that where the order under section 23-A or section 24 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 25 is passed by the Commissioner, on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such an order of fresh assessment may be made at any time up to the 31st day of March, 2002:] [ Substituted by Act 14 of 2001. Section 97, for the proviso (w.e.f. 1.6.2001).][Provided further that where the order under section 23-A or section 24 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 25 is passed by the Commissioner, on or after the 1st day of April, 2005, the provisions of this sub-section shall have effect as if for the words "one year", the words "nine months" had been substituted.] [ Inserted by Act 21 of 2006, Section 57 (w.e.f. 1.6.2006).](4)[ The provisions of sub-sections (1) and (2) shall not apply to the assessment or reassessment made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under section 23, section 24, section 25, section 27 or section 29 or in an order of any Court in a proceeding otherwise than by way of appeal or reference under this Act, and such assessment or reassessment may, subject to the provisions of sub-section (3), be completed at any time.Explanation 1.-In computing the period of limitation for the purposes of this section¬-(i)the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be reheard under the proviso to section 39, or(ii)the period during which the assessment proceeding is stayed by an order or injunction of any Court, or](iia)[ the period (not exceeding sixty days) commencing from the date on which the ] [Inserted by Act 67 of 1984, Section 56 (w.e.f. 1.10.1984). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer" (w.e.f. 1.4.1988).][received the declaration under sub¬-section (1) of section 18-C and ending with the date on which the order under sub-section (3) of that section is made by him, or] [Inserted by Act 67 of 1984, Section 56 (w.e.f. 1.10.1984). ](iii)[ in a case where an application made before the Wealth-tax Settlement Commissioner under section 22-C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such application is made and ending with the date on which the order under sub-section (1) of section 22-D is received by the ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1989).][under sub-section (2) of that section, shall be excluded:] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer, for making an order of assessment or re-assessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly:] [ Inserted by Act 49 of 1991, Section 75 (w.e.f. 27.9.1991).][Provided further that where a proceeding before the Settlement Commission abates under section 22-HA, the period of limitation referred to in this section available to the Assessing Officer for making an order of assessment or re-assessment, as the case may be, shall, after the exclusion of the period under sub-section (4) of section 22-HA, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year.] [ Inserted by Act 18 of 2008, Section 61 (w.r.e.f. 1.6.2007).][ Explanation 2.-Where, by an order referred to in sub-section (4), any asset is exclued from the net wealth of one person and held to be the asset of another person, then, an assessment in respect of such asset on such other person shall, for the purposes of sub-section (2) of section 17 and this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order, provided such other person was given an opportunity of being heard before the said order was passed.] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][17-B. Interest for defaults in furnishing return of net wealth.-(1) Where the return of net wealth for any assessment year under sub-section (1) of section 14 or section 15, or in response to a notice under clause (i) of sub-section (4) of section 16, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of ] [Inserted by Act 41 of 1975, Section 90 (w.e.f. 1.1.1989). ][one per cent.] [ Substituted by Act 54 of 2003, Section 19, for " one and one-fourth per cent." (w.r.e.f. 8.9.2003).][for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,¬-(a)where the return is furnished after the due date, ending on the date of furnishing of the return, or(b)where no return has been furnished, ending on the date of completion of the assessment under sub-section (5) of section 16, on the amount of tax payable on the net wealth as determined ] [under sub-¬section (1) of section 16 or] [ Inserted by Act 3 of 1989, Section 67 (w.e.f. 1.4.1989).][on regular assessment. [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ]Explanation 1.-In this section, "due date" means the date specified in sub-section (1) of section 14 as applicable in the case of the assessee.] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ][ Explanation 2.-ln this sub-section, "tax payable on the net wealth as determined under sub-section (1) of section 16" shall not include the additional wealth-tax, if any, payable under section 16.] [ Substituted by Act 3 of 1989, Section 67, for Explanation 2 (w.e.f. 1.4.1989).][ Explanation 3.-Where, in relation to an assessment year, an assessment is made for the first time under section 17, the assessment so made shall be regarded as a regular assessment for the purposes of this section.] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ][ Explanation 4.-In this sub-section, "tax payable on the net wealth as determined under sub-section (1) of section 16 or on regular assessment" shall, for the purposes of computing the interest payable under section 15-B, be deemed to be tax payable on the net wealth as declared in the return.] [ Inserted by Act 3 of 1989, Section 67 (w.e.f. 1.4.1989).](2)[ The interest payable under sub-section (1) shall be reduced by the interest, if any, paid under section 15-B towards the interest chargeable under this section.(3)Where the return of net wealth for any assessment year, required by a notice under sub-section (1) of section 17 issued ] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ] [after the determination of net wealth under sub-section (1) of section 16 or] [ Inserted by Act 3 of 1989, Section 67 (w.e.f. 1.4.1989).][after the completion of an assessment under sub-section (3) or sub-section (5) of section 16 or section 17, is furnished after the expiry of the time allowed under such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of ] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ] [one per cent.] [ Substituted by Act 54 of 2003, Section 19, for " one and one-fourth per cent." (w.r.e.f. 8.9.2003).][for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time allowed as aforesaid, and,-(a)where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or(b)where no return has been furnished, ending on the date of completion of the reassessment under section 17, on the amount by which the tax on the net wealth determined on the basis of such re-assessment exceeds the tax on the net wealth as determined ] [under sub¬-section (1) of section 16 or] [ Inserted by Act 3 of 1989, Section 67 (w.e.f. 1.4.1989).][on the basis of the earlier assessment aforesaid.] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ][* * *] [ Explanation omitted by Act 3 of 1989, Section 67 (w.e.f. 1.4.1989).](4)[ Where, as a result of an order under 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 Commissioner under sub-section (4) of section 22-D, the amount of tax on which interest was payable under this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and,-(i)in a case where the interest 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, and(ii)in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.(5)The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ]
