18. [ Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc
.-(1) If the ] [Inserted by Act 4 of 1988, Section 141 (w.e.f. 1.4.1989). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer" (w.e.f. 1.4.1988).][, Joint Commissioner (Appeals)] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Commissioner" (w.e.f. 1.10.1998).][Commissioner (Appeals),] [ Inserted by Act 29 of 1977, Section 39 and ScheduleV (w.e.f. 10.7.1978).] [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner" (.e.f. 1.4.1988).] or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person¬-[* * *] [ Clause (a) omitted by Act 3 of 1989, Section 68 (w.e.f. 1.4.1989).](b)has [* * *] [ Certain words omitted by Act 46 of 1986, Section 33 (w.e.f. 10.9.1986).] failed to comply with a notice under sub-section (2) or sub¬-section (4) of section 16; or(c)has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts; he or it may, by order in writing, direct that such person shall pay by way of penalty¬-[[* * *] [Substituted by Act 41 of 1975, Section 91, for Clauses (i), (ii) and (iii) and Explanations 1 and 2 (w.e.f. 1.4.1976). ](ii)[ in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees for each such failure;] [ Substituted by Act 3 of 1989, Section 68, for Clause (ii)(w.e.f. 1.4.1989).](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 particulars of any assets or the furnishing of inaccurate particulars in respect of any assets or debts:[Provided that in the cases referred to in clause (b), no penalty shall be impossible if the person proves that there was a reasonable cause for the failure referred to in that clause.] [ Substituted by Act 3 of 1989, Section 68, for the proviso (w.e.f. 1.4.1989).]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 furnished and of any debts in respect of which inaccurate particulars have been furnished.Explanation 2.-Where in respect of any facts material to the computation of the net wealth of any person under this Act,¬-(A)such person fails to offer an explanation or offers an explanation which is found by the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer" (w.e.f. 1.4.1988).] or the [Deputy ] [Substituted by Act 4 of 1988, Section 127f, for " Appellate Assistant Commissioner" (w.e.f. 1.4.1988). ][Joint Commissioner] [ Substituted by Act, 21 of 1998, Section 66 (w.e.f. 1.10.1998).][(Appeals)] [Substituted by Act 4 of 1988, Section 127f, for " Appellate Assistant Commissioner" (w.e.f. 1.4.1988). ] [or the Commissioner (Appeals)] [ Inserted by Act 29 of 1977, Section 39 and ScheduleV (w.e.f. 10.7.1978).] [or the Commissioner] [ Inserted by Act 20 of 2002, Section 110 (w.e.f. 1.6.2002).] to be false, or(B)such person offers an explanation which he is [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,] [ Substituted by Act 46 of 1986, Section 33, for " not able to substantiate" (w.e.f. 10.9.1986).]then, the amount added or disallowed in computing the net wealth of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the value of the assets in respect of which particulars have been concealed:[* * *] [ Proviso omitted by Act 46 of 1986, Section 33 (w.e.f. 10.9.1986).][ Explanation 3.-Where any person ] [Substituted by Act 3 of 1989, Section 68, for Explanation 3 (w.e.f. 1.4.1989). ][* * *] [ Certain words omitted by Act 20 of 2002, Section 110 (w.e.f. 1.4.2003).][fails, without reasonable cause, to furnish within the period specified in sub-section (1) of section 17-A, a return of his net wealth which he is required to furnish under section 14 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of sub-section (4) of section 16 or sub-section (1) of section 17 and the Assessing Officer or the ] [Substituted by Act 3 of 1989, Section 68, for Explanation 3 (w.e.f. 1.4.1989). ][Joint Commissioner] [ Substituted by Act, 21 of 1998, Section 66 (w.e.f. 1.10.1998).] [(Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has assessable net wealth, the 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, notwithstanding that such person furnishes a return of his net wealth at any time after the expiry of either of the periods aforesaid applicable to him in pursuance of a notice under section 17.] [Substituted by Act 3 of 1989, Section 68, for Explanation 3 (w.e.f. 1.4.1989). ]Explanation 4.-Where the value of any asset returned by any person is less than seventy per cent. of the value of such asset as determined in an assessment under section 16 or section 17, such person shall be deemed to have furnished inaccurate particulars 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.[ Explanation 5.-Where in the course of a search under section 37-A, 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 particulars of such assets or furnished inaccurate particulars of such assets, ] [Inserted by Act 67 of 1984, Section 57 (w.e.f. 1.10.1984). ][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 ] [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1988).][before the said date; or [ Substituted by Act 46 of 1986, Section 33, for certain words (w.e.f. 10.9.1986).](2)he, in the course of the search, makes a statement under sub-section (4) of section 37-A 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 on 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.][ Explanation 6.-Where any adjustment is made in the wealth declared in the return under the proviso to clause (a) of sub-section (1) of section 16 and additional wealth-tax charged under that section, the provisions of this sub¬section shall not apply in relation to the adjustments so made.] [ Inserted by Act 3 of 1989, Section 68 (w.e.f. 1.4.1989).][(1-A) Where any amount is added or disallowed in computing the net wealth of an assessee in any order of assessment or re-assessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or re-assessment shall be deemed to constitutes satisfaction of the Assessing Officer for initiation of the penalty proceedings under the said clause (c).] [ Inserted by Act 18 of 2008, Section 62 (w.r.e.f. 1.4.1989).](2)No order shall be made under sub-section (1) unless the person concerned has been given a reasonable opportunity of being heard.[* * *] [ Sub-Sections (2-A) and (2-B) omitted by Act 41 of 1975, Section 91 (w.e.f. 1.4.1976).](3)[ No order imposing a penalty under sub-section (1) shall be made,¬-(i)by the Income-tax Officer, where the penalty exceeds ten thousand rupees;(ii)by the [Assistant Commissioner or Deputy Commissioner][, where the penalty exceeds twenty thousand rupees. [ Substituted by Act 3 of 1989, Section 68, for sub-Section (3)(w.e.f. 1.4.1989).]except with the prior approval of the ] [ Substituted by Act 3 of 1989, Section 68, for sub-Section (3)(w.e.f. 1.4.1989).][Joint Commissioner.] [ Substituted by Act 21 of 1998, Section 66 (w.e.f. 1.10.1998).][ Substituted by Act 46 of 1986, Section 33, for certain words (w.e.f. 10.9.1986).][* * *] [ Sub-Section (3-A) omitted by Act 3 of 1989, Section 68 (w.e.f. 1.4.1989).](4)A [[Joint Commissioner] [Substituted by Act 4 of 1988, Section 127, for " Appellate Assistant Commissioner" (w.e.f. 1.4.1988).][(Appeals)] [Substituted by Act 4 of 1988, Section 127, for " Appellate Assistant Commissioner" (w.e.f. 1.4.1988).], [a Commissioner (Appeals),] [ Inserted by Act 29 of 1977, Section 39 and Schedule V (w.e.f. 10.7.1978).][a Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1988).] or the Appellate Tribunal on making an order under this section imposing a penalty, shall forthwith send a copy of the same to the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer" (w.e.f. 1.4.1988).].(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 Joint 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 Joint 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 the subject-matter of revision under sub-section (2) of section 25, after the expiry of six months from the end of the month in which such order or revision is passed;(iii)in any other case, 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 action for imposition of penalty is initiated, whichever period expires later.Explanation.-In computing the period of limitation for the purpose of this section,¬-(i)any period during which the immunity granted under section 22-H remained in force;(ii)the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39; and(iii)any period during which a proceeding under this section for the levy of penalty is stayed by an order or injunction of any Court, shall be excluded.(6)The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989, shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] [ Substituted by Act 3 of 1989, Section 68, for sub-Section (5)(w.e.f. 1.4.1989).][18-A. Penalty for failure to answer questions, sign statements, furnish information, allow inspections, etc.-(1) If any person,¬-(a)being legally bound to state the truth of any matter touching the subject of his assessment, refuses to answer any question put to him by a wealth-tax authority in the exercise of his powers under this Act; or(b)refuses to sign any statement made by him in the course of any proceedings under this Act, which a wealth-tax authority may legally require him to sign; or(c)to whom a summons is issued under sub-section (1) of section 37 either to attend to give evidence or produce books of account or other documents at a certain place and time, omits to attend or produce the books of account or documents at the place and time, he shall pay, by way of penalty, a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees for each such default or failure:Provided that no penalty shall be imposable under clause (c) if the person proves that there was reasonable cause for the said failure.(2)If a person fails to furnish in due time any statement of information which such person is bound to furnish to the Assessing Officer under section 38, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which the failure continues:Provided that no penalty shall be imposable under this sub-section if the person proves that there was reasonable cause for the said failure.(3)Any penalty imposable under sub-section (1) or sub-section (2) shall be imposed¬-(a)in a case where the contravention, failure or default in respect of which such penalty is imposable occurs in the course of any proceeding before a wealth-tax authority not lower in rank than a ] [Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director" and " Deputy Commissioner" (w.e.f. 1.10.1998).][or a ] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ][Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director" and " Deputy Commissioner" (w.e.f. 1.10.1998).][, by such wealth-tax authority;] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ](b)[ in any other case, by the ] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ][Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director" and " Deputy Commissioner" (w.e.f. 1.10.1998).][or the ] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ][Joint Commissioner] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director" and " Deputy Commissioner" (w.e.f. 1.10.1998).].(4)[ No order under this section shall be passed by any wealth-tax authority referred to in sub-section (3) unless the person on whom the penalty is proposed to be imposed has been heard, or has been given a reasonable opportunity of being heard in the matter, by such authority.Explanation.-In this section, "wealth-tax authority" includes a Director General, Director, ] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ] [Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director" and " Deputy Commissioner" (w.e.f. 1.10.1998).], [Assistant Director or Deputy Director] [ Substituted by Act 21 of 1998, Section 66, for " Assistant Director" (w.e.f. 1.10.1998).][and a Valuation Officer while exercising the powers vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the matters specified in sub-section (1) of section 37.] [Substituted by Act 3 of 1989, Section 69, for Section 18-A (w.e.f. 1.4.1989). ][18-B. Power to reduce or waive penalty in certain cases.-(1) Notwithstanding anything contained in this Act, the][* * *] [Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1988). ][Commissioner] [Substituted by Act 4 of 1988, Section 127, for " Commissioner" (w.e.f. 1.4.1988). ][may, in his discretion, whether on his own motion or otherwise,-] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][* * *] [ Clause (i) omitted by Act 3 of 1989, Section 70 (w.e.f. 1.4.1989).](ii)[ reduce or waive the amount of penalty imposed or imposable on a person under clause (iii) of sub-section (1) of section 18, it he is satisfied that such person,-] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][* * *] [ Clause (a) omitted by Act 3 of 1989, Section 70 (w.e.f. 1.4.1989).](b)[ in the case referred to in clause (ii), has, prior to the detection by the ] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer" (w.e.f. 1.4.1988).][, of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of any asset or debt in respect of which the penalty is imposable, voluntarily and in good faith made full and true disclosure of such particulars, and also has co-operated in any inquiry relating to the assessment of his net wealth and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year.] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][ Explanation 1] [ Explanation renumbered as Explanation 1 by Act 67 of 1984, Section 58(a)(w.e.f. 1.10,1984).][.-For the purposes of this sub-section, a person shall be deemed to have made full and true disclosure of the particulars of his assets or debts in any case where the excess of net wealth assessed over the net wealth returned is of such a nature as not to attract the provisions of clause (c) of sub¬-section (1) of section 18.] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][* * *] [ Explanation 2 omitted by Act 32 of 1985, Section 38 (w.e.f. 24.5.1985).](2)[ Notwithstanding anything contained in sub-section (1), if in a case falling under clause (c) of sub-section (1) of section 18, the net wealth in respect of which the penalty is imposed or imposable for the relevant assessment year, or, where such disclosure relates to more than one assessment year, the net wealth for any one of the relevant assessment years, exceeds five hundred thousand rupees, no order reducing or waiving the penalty under sub-section (1) shall be made by ] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][the Commissioner except with the previous approval of the Chief Commissioner, or Director-General, as the case may be.] [ Substituted by Act 38 of 1993, Section 40, for " the Chief Commissioner or Commissioner, except with the previous approval of the Board" (w.e.f. 1.6.1993).](3)[ Where an order has been made under sub-section (1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the making of such order:] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][Provided that where an order has been made in favour of any person under sub-section (1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years if he makes an application to the wealth-tax authority referred to in sub-section (4) at any time before the 1st day of April, 1992.] [ Inserted by Act 49 of 1991, Section 76 (w.e.f. 27.9.1991).](4)[ Without prejudice to the powers conferred on him by any other provision of this Act, the ] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ][* * *] [Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1,.4.1988). ][Commissioner] [Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1,.4.1988). ] [may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount, if he is satisfied that-(i)to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case, and(ii)the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.(5)Every order made under this section shall be final and shall not be called into question by any Court or any other authority.] [Inserted by Act 41 of 1975, Section 92 (w.e.f. 1.10.1975). ](6)[ The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989, shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] [ Inserted by Act 3 of 1989, Section 70 (w.e.f. 1.4.1989).][18-BA. Power of Commissioner to grant immunity from penalty.-(1) A person may make an application to the Commissioner for granting immunity from penalty, if-(a)he has made an application for settlement under section 22-C and the proceedings for settlement have abated under section 22-C and the proceedings for settlement have abated under section 22-HA; and(b)the penalty proceedings have been initiated under this Act.(2)The application to the Commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement.(3)The Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this Act, if he is satisfied that the person has, after the abatement, co-operated with the wealth-tax authority in the proceedings before him and has made a full and true disclosure of his net wealth and the manner in which such net wealth has been derived.(4)The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.(5)The immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars, material to the assessment, from the wealth-tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.][CHAPTER IV-A] [ Inserted by Act 67 of 1984, Section 59 (w.e.f. 1.10.1987).] Special Provision For Avoiding Repetitive Appeals
