 the wealth-tax (amendment) bill 1964' a billfurther to amend the wealth-tax act, 1957 be it enacted by parliament in the fifteenth year of the repuh'lic of india as follows:-1 (1) this act may be called the wealth-tax (amendment) act, short title 1964 and com  menee-s (2) it shall come into force on such date as the central govem- ment ment may, by notification in the offi':!ial gazette, appoint z in section 2 of the wealth-tax act, 1957 (hereinafter referred amendto as the principal act) ,-meut of leetion 2-(a) for clauses (b), (e) and (d), the following clauses shall 10 be substituted, namely:-- (b) "appellate tribunal" mesjl,s the appellate tribunal constituted under section 252 of the income-tax act; (c) "assessee" means a person by whom wealth-tax or any other sum of money is payable under this act, and in-is eludes-(i) every person in respect of whom any proceeding under this act has been taken for the determination of wealth-tax payable by him or by any other person ar the amount of refund due to him or such other person; ~o (it) ·every person who is deemed to be an assessee under this act; 928 (8) ls-l (iii) every person who is deemed to be an -ee in default unde:r this act: (ca) "assessment" includes re-assessment; (d) "assessment year" means the period of twelve months commencing on the 1st day of april every year;"; s (b) in clause (e) ,-(i) in sub-clause (ii) for the words "or occupied", the words "and occupied" shall be substituted: (ti) in sub-clause (v), the worda "from the date the interest vests in the assessee" shall be inaerted at the end; 10 (c) after clause (h) the followinj¥ clauae shall b idnrted, namety:-- (ha) "director of inspection" includes an additlonal director of inspection a deputy director of inspection and an assistant director of inspection;'; is (d) for clause (j), the following clause shall be substituted, namely:-- (j) "income-tax act" means the income-tax act, 1961 ;'; 41 of 1961 (e) after dause (l), the following clauses shall be inserted, ~ely:--ao '(14) "inspector of wealth-tax" means an inspector of income-tax empowered to work as an inspector of wealthtax under section lla;'; , (lb) "legal representative" has the meaning assigned to  it in clause (11) of section 2 of the code of civil proeedure, 25 ~ of 1908 1908;'; (f) id' c1aue (m), in sub-clause (u) folf the warda "any uset in respect of which wealth-tax is not payable", the words "ady property m retpeet of whieh wealth-tbis aot chargeable" shall be substituted; 30 (g) after clause (0), the following clauses shall be inierted namer,:-- (~) "public servam" haa the i8id8 iii ••• , a in sec-40 of 1860 tioa 21 of the indian pe:aal code;  cob) "regular 1888881ledt" m  the aueament made 35 under section 16;'; (h) idclause (q),-(i) for the words, brackets and figures uclause (11) of aec:tion2", the word and ftpre "section s" shall be subsu-·tutecl; (ii) for the proviso, the following proviso shall be iubstituted, namely:-"provided that-to (i) where in the case of an assessee there are cw!erent previous yeara under the income-tax act for difterent sources of income, the valuation date for the purposes of this act shall be the last day of the last of the previous years aforesafd; r5 (ii) in the case of a person who is not an asses- see within the meaning of the income-tax act, the valuation date far the purposes of this act shall be the 31st 'day of march immediately preceding the aii8iidlei1t year; (iii) where an assessment is made in pursuance of section 19a, the valuation date shall be the same valuation date as would have beea aciqpted in respect of the net wealth of the deceased if he were alive"; ti) in clause (a) for the  word and tilw'e uiec:tion 8", the words·· "thia mt" aball be substituted 3in section 3 of the principal act, for the worda ufidancialyear", amend-2s the words "assessment year" shan be substituted mentcii sections t in section 4 of the principal act,-amend-(0) in sub-8ection (1), for the words beginning with "in me:: ~ computing the net wealth of an iddividual" add ending with "for sec the benefit of the individual, or his wife or midor child, or", the following shall be substituted, namely:-"in computing the net wealth of an individual, there shall be included as belonging to that individuei-(a) the value of assets which on the valuation date are held-(i) by the spouse of such individual to whom such assets have been transferred by the individual, directly or 1ndtreetly, otherwise than for adequate conaideration or in connection with an agreement to live apart, 01' (ii) by a minor child, not being a married daughter, of such individual, to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration, or (iii) by a person or association of persons to whom such assets have been transferred by the individual otherwise than for adequate consideration for the immediate or deferred benefit of the individual, his or her spouse ar minor child (not being a 10 married daughter) or both, or"; (b) for the explanation, the following sub-section and ez planation shall be substituted, namely:-- (6) for the purposes of this act, the holder of ad lmpartible estate shall be deemed to be the individual owder is of all the properties comprised in the estate  expzanation-for the purpoaes of this ection,-(a) the expression "transfer" includes any disposition, settlement, trust, covenant, agreement or arrangement, and ao (b) the expression "irrevocable transfer" includes a transfer of assets which, by the terms of the instrument effecting it, is not ll'evocab1e for a period exceeding six years or during the life-time of the transferee, and under which the transferor derives no direet 25 or indirect benefit, but does not include a transfer of assets if such instrument-(i) contains any provision for the re-transfer, directly or indirectly of the whole or any part of the assets or income therefrom to the transferor, or 30 (ii) in any way gives the transferor a right to re-assume power, directly or indirectly over the whole or any part of the assets or income therefrom' 5 in section 5 of the principal act,-3s~ j\medd mentof sectlodd (a) in sub-section (1), in clause (xvii) for the word, figures and letter "chapter lxa" the words, brackets and figures "clause (38) of section 2" shall be substitut~; (b) in sub-section (3),-(i) for the words, brackets and figures iiclauae (=) clause (xx) ", the words, brackets and figures liand clause (xix)" shah be substituted; (ii) in the proviso, for the words "financial yem", the _ words "assessment year" shall be substituted 6 in section 6 of the principal act, in clause (ii) , for the amendwords, brackets and figures "sub-section (3) of section 4", the word men:t of and figures "section 10" shall be substituted ' section 8, 7 in section 7 of the principal act,-amend-10 (a) in sub-section (1), for the words lithe value", the words ~ec~~~7 iisubject to any rules made in this behalf, the value" shall be substituted; is (b) in clause (a) of sub-section (2), for the words "the circumstances of the case may require;" the words "may be prescribed;" shall be substituted 20 8 in section 8 of the principal act, the following £:rplanation amendshall be inserted at the end namely:-ment of section "explanation-for the purposes of this section, the income- sa tax officer having jurisdiction in relation to a person who is not an assessee within the meaning of the income-tax act means the income-tax officer of the area in which that person resides" 2s 9 after section 8 of the principal act the following section shall insertion be inserted, namely: -of new section 8a '8a (1) notwithstanding anything contained in section 8, power to the commissioner may, after giving the assessee a reasonable transfer opportunity of being heard in the matter wherever it is possible cases to do so, and after recording his reasons for doing so, transfer any case from one wealth-tax officer subordinate to him to another also subordinate to him, and the board may similarly transfer any case from one wealth-tax oftlcer to another: provided that nothing in this sub-section shall be deemed to require any such opportunity to be given where the transfer is from one wealth-tax ofticer to another whose offtces are situated in the same city, locality or place (2) the transfer of a case under sub-section (1) may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the wealth-tax ofrcer from whom the case is transferred explanation-in this section, the word "case", in relation to 5 any person whose name is specified in any order issued thereunder, meana all proceeding,; under this act in respect of any year which may be pending on the date of such order, or which may have been completed on or before such date, and includes also all proceedings under this act which may be commenced 10 after the date of such order in respect of any year' 10 after section 10 of the principal act, the following shall be inserted, namely:-section insertion of new section loa directors of inspection "loa (1) th::: board may empower 8s many peraons as it thinks fit to exercise under this act the functions of a director 15 of inspection (2) a director of inspection bail perform such functions of any other wealth-tax authority as may be assigned to him by the board" 11 for section 12 of the principal act, 6hall be substituted, namely:-the forowing eections 20 substitution of new sectionsfor section 12 inspector of wealthtax "ua a commissioner of wealth-tax may empower any inspector of income-tax within the meaning of the income-tax act to work as an inspector of wealth-tax under any wealthtax authority, and when he is so empowered, he shall perform 25 such functions in the execution of this act as are assigned to him by the said wealth-tax authority" 12 (1) inspecting assistant comrnisaioners shall be subordinate to the commissioner within whose jurisdietion they perform their functions and also to the director of inapectioil 30 control of wealthtaxauthorities (2) wealth-tax officers shall be subordinate to the commissioner and the inspecting assistant colnlnillio1'ter within whose jurisdiction they perform their functions and al80 to the ,director of lnipectipn 10 (3) inspectore of wealth-tax shall be subordinate! to the wealth-tax oftlcer or other wealth-tax authority under whom they are empowered to work and to any other wealth-tax authority to whom the said offtcer or other authority is subordinate explaniaion-for the purposes of subsection (1) "director of inspection" does not include a deputy director of inspection or an assistant director of inspection; and for the purposes of sub-seclion (2) of this· section and sub-section (2) of section 13, "director of inspection" does not include an aatttant director of inspection' 12 section 13 of the principal act shall be re-numbered as sub- amendsection (1) therecf and after sub-section (1) as so re-numbered, the m~t of 8 f 11· b  h 11 b' rt d i seehoa 1  a owmg su -section s au e mse e , name y:-is "(2) every wealth-tax officer employed in the execution of thia act shall observe and follow such instructions as may be issued to him for his guidance by the director of inspection or by the commissioner or by the inspecting assistant commissioner within whose jurisdiction he perfonns his functions  30 13 after section 13 of the principal act, the following section insertion shall be inserted in chapter iii namely: -of new ~ection 13a, "13a the director of inspection, the commissioner of powers of wealth-tax and the inspecting assistant commissioner of director wealth-tax shall be competent to make any enquiry under this o~ lnspec-act, and for this purpose shail have all the powers that a t1~n, com- mlssloner wealth-tax officer has under this act in relation to the making and in&-of enquiries", pecting assistant commissioner to make enquiries  30 3s14 in section 14 of the principal act,-amendmental (a) for sub-6ection (1), the following sub-section shall be section 14 substituted, namely:-"(1) every person, jf 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 wmi of such an amount as to render him liable to wealth-tax under this act, shall, before the 80th day of june of the corresponding assessment rear, furnish to the wealth-tax offtcer a return in the prescribed form and verified in the prescribed manner setting forth the net wealth as on that valuation date"; (b) in sub-section (2), for the words "the net wealth of any person is of such an amount as to render him liable to wealthtax under this act," the following shall be substituted, name1y:- s "any person is assessable under this act, whether in respect of his net wealth or the net wealth of any other person," 15 after section 15 of the principal act, the following section~ shall be inserted, namely:-insertion of new sections 15a to 15c "15a the return made under section 14 or section 15 shall 10 be signed and verifted-return "-3' whom to be signed (n) in the case of an individual, by the individual himself; where the individual is absent from india, by the individual concerned or by $orne person duly authorised by him in this beh£llf; where the individual is mentally incapa- is citated from attending to his affairs, by his guardian or any other person competent to act on his behalf; and where for any other reason it is impossible for the individual to sign, the return, by any person competent to act on his behalf; (b) in the case of a hindu undivided family, by the ao kana and, where the karta is absent from india ox: is mentally incapacita: ed from attending to his affairs, by any other adult member of such family; and (c) in the case of a company, by the principal officer thereof self usesament 15b (i) where a return has been furnished under section 14 or section 15 and the tax payable on the basis of that return exceeds five hundred rupees, the assessee shall pay the tax ao payable within thirty days of furnishing the return (2) after a provisional assessment under section 15c or 8 ,0 regular assessment under section 16 has been made, any amount paid under sub-section (i) shall be deemed to have been paid towards the provisional assessment or regular assessment, as the case may be (3) if any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), he shall, un- 35 less 8 provisional assessment under section 15c or a regular assessment under section 16 has been made before the expiry of thirty days referred to in that sub-section; be  liable, by way of penalty, to pay such amount as the wealth-tax oftlcer may direct, so, however, that the amount of penalty does not exceed fifty per cent of the amount of such tax or part, as the case may be: s provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard 15c (1) the wealth-tax officer may, ateny time after the provision receipt of a return made under section 14 or section 15, proceed al assess· to make, in a summary manner, a provisional assessment of the ment 10 tax payable by the assessee, on the basis of his return and the accounts and documents, if any, accompanying it (2) after a regular assessment has been made, any amount paid towards the provisional assessment made under sub-section (1), shall be deemed to have been paid towards the regular is assessment; and where the amount paid towards the provisional assessment exceeds the amount payable under the regular assessment, the excess shall be refunded to the assessee ( 3) nothing done or suffered by reason or in consequence of any pl'ovisiona1 assessment made under this section shall 20 prejudice the determination, on the merits, of any issue which may arise in the course of the regular assessmellt  (4) there shall be no right of appeal against a provisional assessment made un!ier sub-section (1) (5) for the removal of doubts, it is hereby declared that the 25 provisions of section 31 excepting sub-section (6) thereof, and section 32 shall apply in relation to any tax payable in pursuance of a provisional assessment made under this section as if it were a regular assessment under section 16"   18; in section 16 of the principal act,-(a) in sub-section (1)-amend mental section 16 (i) for the words and figures "seetion 14 is complete", the words and figures ,ca:ectton 14 or section 15 is correct and complete" shall be substituted;  3s (ii) for the words "and determine" the amount payable by him as wealth-tax", the words "and determine the amount of wealth-tax payable by' him or'the' amount refundable to him on the "basis of such return·' shan" be irub'stituted: 9a6(b)ls-z  (b) insub-eection (3)-,(i) after the words "any apeclaed points", the words "and after taking into aecount all relevant material which the wealth-tax officer hae gathered" shall be inserted; (ii) for the words "and determine the amount payable 5 by him as wealth-tax", the words "and determine the amount of wealth-tax -payable by him or the amount refundable to ,him ,on the baa1s of such assessment" shall be substituted; (e) in lub-seeuon (4), after the words, brackets and figure "under su1raection (2) of that section", the words and fig\1res 10 "or who baa made a return under section is" shall be inserted; (d)m:'aub-tection (5), for the words "shall make the assessment to the beet of hi8 judgment and determine the amount payable ,by ute penon as wealth-tax on the basis of such assessment",thewolds "after taking into account all relevant material is wbiclt  he 'hal ,athered, shall estimate the net wealth to the best of his judgment and determine the amount of wealth-tax payable by the perlon or the amount refundable to him on the basts of such assessment" shall be substituted  amend-17 seetion 17 of the principal act shall be re-numbered as sub- 30 l'de'dtot,1edion (i) thereof, andeection 1'1 (4) in sub-section (1) as &0 re-numbered,-(i) for clause (4) the following clause shall be substituted, aamely:-ii (4) baa reason to believe that by reason of the a5 omluton or failure on the p~rt of any person to make a return under section 14 of his net wealth or the net wealth of any other person in respect of which he is useuable under this act for 8lly assessment year or to diaelose fully and truly all material facts necessary for 30  mentofhil·netwealth or the net wealth of such other penon fortftat year, the net wealth char~eable to tax has escaped uietiirlent· for that year, whether by reason of udder-aaseument or assessment at too low a rate· or otherwlm; or": 3s  cii) for' the word "serve on tlie usesaee" the word!'! 'f-ve(odlucbpenontt,ha11 be substttuted: (b) after sub-lection (1) as ~ j'e-nwllbered, the following iub-section ahall be inserted, namely:-"(2) nothing contained in thia section limiting the time within which any proceeding for useument or r~_' ment may be commenced, shall apply to an assessment or re-aueum~nt to be made on auch person in codnquence of or to give effect to any finding {)or direction contained in an order under section 23, 24, 25, 27 or 29: 10 provided that the provisions of this aub-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 asaessment or re-mleument may be tabd" 18 for section 18 of the principal act, thefollowin, secticm shall subsutube substituted, namely: _ tion of newaee· tiontor ectioft 18-"18 (1) if the wealth-tax ofticer, appellate assistant penalty commissioner, commissioner or appebate tribunal in the eourae torfail~ of any proceedings under this ~ is satiafted that any person-!:t= (4) has without reasonable cauae faued to furnish the :ly return which he is required to fumilb under- notice sub-section (1) of section 14 or by notice liv'en udder and consub-section (2) of section 14 or section 17, or has without cealjnent reasonable cause failed to furniab it witllin tba time of ideoim, allowed and in the manner required by ub-seellon (j) of etc: section 14 or by sueh notice, as the cue may: be; or (bt ~ without reasonable cause faded to comply with a notice under sub-section (2) or sub-seetion (4) of section 16; or (c) has concealed the particulars of any uaets or furnished inaccurate particular of any usn or debtl; he or it may, by order in writing direct that uch person shall pay by way of penalty-35 (i) in the cases referred to in clauae (4), in addition to the amount of weaith·tax, if any, payable, by him, a sum equal to two percent of the tax for every l1lolltb during which the default continued, but not exceeding in the aggregate fifty per cent of the tax; (ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a swn which shall not be less than ten per cent but which shall not exceed s fifty per cent of the amount of the tax, if any, which would have been avoided if the net wealth as returned by such person had been accepted as the correct net wealth; (ii'>' in the cases referred to in clause (c), in addition to any wealth-tax payable by him, a sum which shall not 10 ,be less than twenty per cent but which shall not exceed one and a ·half times the amount of the tax, if any, which would have been avoided if the net wealth as returned by such person had been accepted as the correct net wealth ezpla1l4tim-where the net wealth returned by any per- 15 son is less than eighty per cent of the net wealth (hereinafter in this explanation referred to as the correct wealth) as assessed under section 16 or section 17, such person shall, unless he proves that the failure to return the correct wealth did not arise from any fraud or any gross or wilful neglect on his part, be 20 deemed to have concealed the particulars of assets or furnished inaccurate particulars of assets or debts for the purposes of clause (c) of this sub-section (2) no order shall be made under sub-section (1) unless ·the person concerned has been given a reasonable opportunity 2s of being heard' (3) notwithstanding anything contained in clause (iii) of sub-section (1), if ina case falling under clause (c) of that sub-section, the minimum penalty imposable exceeds a sum of rupees one thousand, the wealth-tax officer shall re~r the 0 case to the inspecting assistant commissioner who shall, for 3 the purpose, have all the powers conferred under this section for the imposition of penalty ,  ' (4) an appellate assistant commilsioner, a commjssioner or the appellate tribunal on making an order under this section 35 impoeing a penalty, shall forthwith send a copy of the same to the wealth-tax officer, ~, (5) no order imposing a penalty under this section shall b(~,q9ged after the expiration of two years from the date of the 'l~ , - completion of the proceedings in the course of which the pro" ceedmgs for the imposition of penalty have been commenced expl4mticm-ln computing the period of limitation for the purposes of this section, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 39 and any period during which a proceeding under this section fol' the levy of penalty is stayed by an order or injunction of any court shall be excluded  19 after section 19 of the principal act, the following 10 spall be inserted, namely:-section insertion of new section lea '19a (1) subject as hereinafter provided, the net wealth of aaseuthe estate of a deceased person shall be chargeable to tax  in ment in the cue 01 the hands of the executor or executors executors (2) the executor or executors shall for the purposes of this is act be treated as an individual (3) the status of the executor or executors shall for the purposes of this act as regards residence and citizenship be the same as that of the deceased on the valuation date immediately preceding his death 20 (4) the assessment of an executor under this section shall be mac;le separately from any assessment that may be made on , him in reipect of his own net wealth or on the net wealth of the deceased under section 19 ,", (5) separate assessments shall be made under this section in respect of the net wealth as on each valuation date as is included in the period from the date of the death of the deceased to the date of complete distribution to the beneficiaries of the estate according to their several interests (6) in computing the net wealth on any valuation date undfar this section, any assets of the estate distributed to, or applied to the benefit of, any specific legatee of the estate prior to that· valuation dateahall be excluded, but the assets 80 excluded shall, to ihe extent such assets are held by the 1ela18e on any valuation date, be included in the net wealth of such speci1ic legatee on that valuation date: 3s explanatiott---in this section, "executor" includes an admimatrator or other person administering the estate of a deceased pe~":' ,"   "   te, in section 21 of the principal ac\-(4) in sub-sections (1), (2) and (4), for the w  ···od whose behalf", wherever they occul', theworda  od'  lbebalf or for whose benefit" shall be substitutedi (b) in sub-se~tion (3) ,-(i) the brackets and words - (all of which periods are hereinafter in this sub-section included in tlw 'erm "beneficiary") , shall be omitted; <ii> for the words "on behalf of such-bedeftdary:\ the· shall be substituted; 10 words "on behalf or for the benefit of such beneficiary ,ft (c) in sub-section (4), after the words "were an individual'i, the words "who is a citizea of india, and reaidebt in india" shan be inserted; i (d) after sub-section (4), the following sub-section and" £~r4tion shall be inserted, namely:-- (5) any person who pays any sum by virtue of the provisions of this section in respect of the net -wealth of any benefioiary, shall be entitled to recover theawn 10 paid from such beneficiary, and may retain out of ul¥ usets 20 that he may hold on behalf or for the beneat of iuch beneficiary, an amount equal to the sum 10 paid e%pla'n4w>n-in this section, the term "bene1lctary" means any person including a minor, lunatie or idiot on as whole behalf or for whose beneftt' aaetj are held by ally other person' zl in section 22 of the principle act,-(4) the proviso to sub-section (2) shall be omitted; (b) after sub-section (2), the fon&winrulhec:tiodi-1hti1l 30 be inaerted namely: 'i  (3) no person shall be deemed to ,be the agent of any person residing outside -india unle he w had __ an opportunity of being heard by the wealth-tax oftker u to ,-\ his being treated as such  (4) any agent, who, as such, paye any sum under- thti 3s ~t, shall be entitled to recover the awn 10 paid from the " • son on whose behalf it is paid or to retain out of adj -aeys that may be in hu poueuion or may coiu"to-jwa in'htl· capacity assuch al8ot, an amount equal to the iuid 10 ptfd i i , 10 (5) any agent, or any person who apprehends that he may be assessed as an agent, may retain out of any money ,payable by him to the person residing outside india on whose behalf he is liable to pay tax (hereinafter in tlrli section referred to as the principal), a sum equal to his  fttimated habwty under this section, and in the event of any disagreement between the principal and such agent or person, as to the amount to be so retrained, such agent or per-on may secure from the wealth-tax ofticer a certificate stating the amount to be so retained pending final settlement of the liability, and the certificate so obtained shan be his warrant for retaining that amount (6) the amount recoverable from such agent or per - on at the time of final settlement shall not exceed the amount specified in such certificate, except to the extent to which buch agent or person may at such time have in hta hands additional assets of the principal 20 (1) notwithstanding anything contained in this sectiod, any arrean' of tax due from a person reatdijq' outside lndia  may  be recovered also in accordance with the provisions of this act from any assets of such person which are or may at any time come within india"  ala seetton 23 of· the principal act,-(cz) in sub-beetion (1),-ameftd· mmtof section •  (i) in clause (a), for the words "his net wealth", the word iinet wealth" hall be substituted; 30 :(:u)'in elaue (d), after the word "under", the wordt, figures and letter "section 15b or"shall be lbserted; ~) 'in clawre (i), for the words, brackets and figurei ·~ton' (1) of-section46", the word-and agures "section mit man ·be  sublnituted, and the word "or" shall be tn sefted~at·;the -nd; " (iv) after clause <f>, the following clauses shall be inserted, nameiy:-j ~i(g) obejcting to any order made by the wealthtax' ofbeer under section 22 treating him as the afedt of a 'penon residing outside india; or (h) objecting to &oj order of the wealth-tax ofticer under section 35 having the eftect of enhancing the assessment or reducing a refund or refusing to allow the claim made by the assessee under the said section; olj 5 (i) objecting to an order of the wealth-tax ofticer imposing a fine under sub-section (2) of section 37;"; (b) efter sub-section (5), the following sub-seetions shall be inserted, namely: --l i "(sa) in disposing of an appeal, the appellate assis- 10 tant commissioner illqy consider and decide· any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the appellate assistant commissioner by the appellant f is (sb) the order of the appellate assistant commissioner disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision"   d in section 24 of the principal act,- 20ame~ mentof aection14" (a) for sub-section (1), the following sub-section shall be substituted, namely:-: "(1) an assessee objecting to an order passed by the appelltlte assistant commissioner under section 18 or section 23 or sub-section (2) of section 37 or to an order passed by 2s the inspecting assistant commissioner under sub-section (3) of "section 18, may appeal to the appellate tribunal within sixty days of the date on which the order is communicated to him"; (b) after sub-section (2), the following sub-section shall be 30 inierted, namely:-' "(2a) the wealth-tax offtqer or the assessee, as the ease may be, on receipt of nouce that an appeal aaainst the order of the appeulte assistant commissioner has been preferred under sub-section (1) or sub-section' (2) by the 3s other party, may, notwithstanding that he may not have appealed a~inst such order or any part  thereof, within thirty days of the receipt of the notice file a memorandum of cross objections, verified in the prescribed manner, against any· part of the order of the appellate assistant commis- 40 !iiioner and such memorandum shall be disposed of by the appellate tribunal as if it were an appeal presented within the time specified in sub-section (1) or sub-section (2) "; (c) for sub-section (3), the following sub-section shall be substituted, namely:-5 "(3) the appellate tribunal may admit an eppeal or permit the filing of a memorandum of cross objections after the expiry of the relevant period referred to in sub-section (1) or sub-section (2) or sub-section (2a), if it is satisfied that there was sufficient cause for not presenting it within that period"; 10 (d) for sub-sections (6), (7) and (8), the following sub-$ections shall be substituted namely:-20 "(6) (a) where the appellant objects to the valuation of any property, the appellate tribunel may, and if the appellant so requires, shall, refer the question of the dis· puted value to the arbitration of two valuers, one of whom shall be nominated by the appellant and the other by the reapondent, and the tribunal shall 10 far as that question is concerned, pass its orders under sub-section (5) conformably to the decision of the valuers:  provided that-i (i) where the appellant or the respondent does not nominate any valuer within the time specified by the appellate tdbunal or within such further time as the appellate tribunal may allow, the appellate tribunal may nominate a valuer on his behalf; (u) if there is a difference of opinion between the two valuers the matter shall be referred to '3 third valuer nominated by agreement or failing agreement, -30 by the appellate tribunal, and the decision of that valuer on the question of valuation shall be final; (iii) where any person has at any time expressed any opinion on the valuation of eny property to which the provisions of this clause apply, such person shall not 3s be nominated as a valuer in relation to that property (b) the valuers to whom a reference under clause (a) has been made by the appellate tribunal shall communi· rote their decision to the appellate tribunal within six 926 (b) ~ months of the date of such reference or within such further time as the tribunal may allow: provided that if the decision of the valuers is not communicated within the period aforesaid, the appellate tribunal may order that the reference made under thil:i s sub-section shall be deemed to be withdrown and proceed to dispose of the case on the evidence before it, including the report of either of the valuers if any such report has been submitted (7) the extent to which the costs of arbitration pro- 10 ceedings (including a case where a reference is deemed to be withdrawn) under sub-section (6) shall be borne by the appellant or the respondent shall be at the discretion of the appellate tribunal (8) the valuers may, in disposing of any matter re- is ferred to them for arbitration under this seetion, hold or cause to be held such enquiry as they think fit and after giving the appellant and the respondent an opportunity of being heard,make such decision as they think fit and shall communicate such decision in writing to the appellate 20 i'ribunal ! (8a) the valuers appointed under this section, while acting as such, shall have ell powers of a civil court while trying a suit uhder the code of civil procedure, 1908 in respect of the following matters, namely:-50f 1908 25 (i) summoning and enforcing the attendance of any person and examining him on oath; (ii) requiring the discovery and production of documents; (iii) receiving evidence on affidavit; and 30 (iv) issuing commission for examination of witnesses or documents (8b) nothing in the arbitration act 1940 shall apply 10 of 1940 to arbitrations under this section"; (e) in sub-section (11), for the words brackets, figures and 3s letter "sub-sections (5), (7) and (8) of section sa", the words, brackets and figures "sub-sections (1), (4) and (5) of section ~5" shall be substituted u in section 25 01 the principal act, after sub-section (2), the amendfollowing sub-sections and explanation shall be inserted, namely: _ mecte~t of  8 ion mi "(3) no order shall be made under sub-section (2) after the expiry of two years from the date of the order sought to be revised i 10 (4) notwithstanding anything contained in sub-section (3), an order in revision under sub-section (2) may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding oil' direction con· tained in an order of the appellate tribunal, the high court or the supreme court ! expzanation-in computing the period of limitation for the purposes of sub-section (3), the time taken in giving an opportunity to the assessee to be reheard under the prcwlso to section 39 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded" 25 in section 26 of the principal act, in sub-section (1), for the amendwords and figures "an order of enhancement made by the com- ment of 20 missioner under section 25", the words, figures and brackets "an section 26 order passed by the commissioner under section 18 or sub-section (2) of section 25" shall be substituted 26 in section 27 of the principal act,-!amend-(a) for sub-sections (1) and (2), the following sub-sections =~~~27 shall be substituted, namely:-30 35 "(1) the assessee or the commissioner may, within sixty days of the date upon which he is served with notice of an oil'der under section 24 or section 26, by application 1n the prescribed form, accompanied, where the application is made by the assessee, by a fee of rupees one hundred, require the appellate tribunal to refer to the high court any question of law arising out of such order and, subject to the other provisions contained in this section, the appellate tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the high court (2) the appellate tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the a'pplication within the period specifted in subsection (1), allow it to be presented within a further period not exceeding thirty days" ; (b) in sub-section (3), for the words "three months", the words "ninety days" shall be substituted; (c) after sub-section (3), the following sub-section shall be inserted, namely:--"(3a) if, on an application inade under this section the 5 appellate tribunal is of the opinion that, on account of a conflict in the decision (,r the high courts in respect of any particular· question of law, it is expedient that a reference should be made direct to the supreme court, the appellate tribunal may draw up a statement of the case and refer it 10 through its president direct to the supreme court"; (d) in sub-sections (4), (5) and (6), after the words "high court", the words "or the supreme court" shall be inserted; fee for of the (e) for sub-sections (7), (8) and (9) the following subsection shall be substituted, namely:-15 "(7) the costs of any reference to the high court or the supreme court which shall not include the making the reference, shall be in the discretion court" 27 after section 29 o~ the principal act, the following sections 20 shall be inserted in chapter vi, namely:--insertian of new sections 29aand 29b '29a notwithstanding that a reference has been made to the high court or the supreme court, or an appeal has been preferred to the supreme court, wealth-tax shall be 4)ayable in accordance with the assessment made in the case 2s  29b in this chapter, "high court" means-tax to be paid notwithstanding reference, etc definition of high court (i) in relation to any state, the high court of that state; (ii) in relation to the union territories of delhi himachal pradesh, the high court of punjab; and 30 (iii) in relation to the union territories of manipur and tripura, the high court of assam; (iv) in relation to the union territory of andaman and nicobar islands, the high cow't at calcutta; (v) in relation to the union territory of laccadive, 3s minicoy and amindivi islands, the high court of kerala; (vi) in relation to the union territories of dadra and nagar haveli and goa, daman and diu, the high court at bombay; (vii) in relation to the union territory of pondicherry, s the high co~rt at madras' 10 28 for sections 30, 31 and 32 of the principal act, the following substitusections shall be substituted, namely:-tion of new sections for sections 30,31 and 32 "30 when any tax, inter ~st, penalty, fine or any other sum notice of is payable in consequence of any order passed under this act, demand the wealth-tax officer shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable 15 20 31 (1) any amount specified as payable in a notice of when tax, demand under section 30 shall be paid within thirty-five days of etc paythe service of the notice at the place and to the person men- able and tioned in the notice:  when assessee provided that, where the wealth-tax officer has any reason deemed to believe that it will be detrimental to revenue if the full period ~n ~e­of thirty-five days aforesaid is allowed, -he may, with the pre- au t vious approval of the inspecting assistant commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirtyfive days aforesaid, as may be specified by him in the notice of demand (2) if the amount specified in any notice of demand under section 30 is not paid within the period limited under subsection (l), the assessee shall be liable to pay simple interest at four per cent per annum from the day commencing after the end of the period mentioned in sub-section (1): 30 provided that where as a result of an order under section 23, or section 24, or section 25, or section 26, or section 27, or section 29, or seotion 35, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded 3s (3) wttilout prejudice to the provisions contained in subsection (2), on an application made by the assessee before the expiry of the due date und~ sub-section (1) i the wealth-tax oftic:er may extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in the circwnstances of the case (4) if the amount is not paid within the time limited under sub-section (1) or extended under sub-section (3), as the case 5 may be, at the place and to the person mentioned in the said notice, the assessee shall be deemed to be in default (5) if in a case where payment by instalments is allowed under sub-section (3), the assessee commits default in paying any one of the instalments within the time fixed under that sub-10 section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment actually in default (6) where an assessee has presented an appeal under is section 23, the wealth-tax officer may, in his discretion, and subject to such conditions, as he may think fit to impose in the circumstances o~ the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal 20 remains undisposed of (7) where an assessee has been assessed in respect of assets located in a country outside india, the laws of which prohibit or restrict the remittance of money to india, the wealth-tax officer shall not treat the assessee as 2 s in default in respect of that part of the tax which is attributable to those assets, and shall continue to treat the assessee as not in default in respect of that part of the tax until the prohibition or restriction of remittance is removed mode of recovery 32 the provisions contained in sections 221 to 227, 229, 231 30 and 232 of the income-tax act and the second and third schedules to that act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this act and referred to wealth-tax and sums imposed by way of penalty, fine and interest under this act instead of to 3s income-tax and sums imposed by way of penalty, fine and interest under ~ act and to wealth-tax officer and commissioner oi;alth-tax instead of to income-tax officer and commissioner of income-tax explanation i-any reference to section 173 and sub-section 40 (2) or sub-section (6) or sub-section (7) of section 220 of the income-tax act in the said provisions of that act or the rules made thereunder shall be construed as references to sub-section (1) of section 22 and sub-section (2) or sub-section (6) or subsection (7) of section 31 of this act respectively explanation h-the tax recovery officer and the tax recovery commissioner referred to in the income-tax act or the s rules made thereunder shall be deemed to be the tax recovery officer and the tax recovery commissioner for the purposes of recovery of wealth-tax and sums imposed by way of penalty, fine and interes,t under this act" 29 section 34 shall be omitted omlsaion of sequo!) m, 10 36 after chapter vii of the principal act, the following chapter shall be inserted, namely:-fnllertiqtl of new cnapttf vila  "chapter vila refunds34a (1) where, as a result of any order passed in appeal or refunqi other proceeding (including a reetiftcation proeeedin«) under this act, refund of any amount becomes due to the uberee, the wealth-tax officer shall, except as otherwise provided in this act, refund the amount to the useasee without hi' hlvin, to make any claim in that behalf 20 2s (2) where an order giving rise to a l'efund is the subject matter of an appeai or further proceeding or where any other proceeding under this act is pending and the wealth-tax ofticer is of the opinion that the grant of the refund is likely to adversely affect the revenue, the wealth-tax officer may, with the previous approval of the commissioner, withhold the refund till such time as the commissioner may determine 30 (1) where a refund is due to the assessee in pursuance of an order referred to in sub-section (i) and the wealth-tax officer does not grant the refund within a period of six months from the date of such order, the central government shall pay to the assessee simple interest at four per cent per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted 35 (4) where a refund is withheld under the provisions of subsection (2), the central government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceeding for the  period commencing after the expiry of six months from the date of the order refered to in that sub-section to the date the refund is granted (5) where under any of the provisions of this act, a refund is found to be due to any person, the wealth-tax officer, appellate assistant commissioner or commissioner, as the case may 5 be, may, in lieu of payment of the refund, set oft the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section!' 10 31 in chapter viii of the principal act the following section shall be inserted before section 35, namely:-insertion of new section 34b transfers to defraud revenue voig "34b where, during the pendency of any proceeding under this act, any assessee creates a charge on or parts with the possession by way of sale, mortgage, exchange or any ather is mode of transfer whatsoever, of any of his assets in favour of any other person with the intention to defraud the revenue, such charge or transfer shall be void as against any c'laim in respect of any tax or any ather sum payable by the assessee as a result of the completion of the said proceeding: 20 provided that such charge or transfer shall not be void if made for valuab'le consideration and without notice of the pendency of the proceeding under this act" substitu-32 for section 35 of the principal act, the following section shall tiod of be substituted, namely: -25 new section for section 35 "35 (1) with a view to rectifying any mistake apparent from the cecord-rectification of mistakes (a) the wealth-tax officer may amend any order of assessment or of refund or any other order passed by him; (b) tlw appellate assistant commissioner may amend 30 any order passed by him under section 18 or under section 23; (c} the inspecting assistant commissioner may amend any order passed by him under section 18; (d) the commissioner may amend any order passed by 35 him under section 18 or under section 25; 5 10 (e) the appellate tribunal may amend any order palled by it under section 18 or under section 24 (2) where the amount of tax, penalty or interest determined as a result of the first appeal or revision against the order referred to in sub-clause (iii) of clause (m) of section 2 is paid within six months of the date of the order p888ed in such appeal or revision, the wealth-tax ofticer may, notwithstanding anything to the contrary in this act, rectify the assessment by allowing a deduction to the extent the tax, penalty or interest 80 paid stood disallowed therein as if such rectification were rectification of a mistake apparent from the record (3) subject to the other provisions of this section, the authority concemed-(a) may make an amendment under sub-section (1) or is sub-6ection (2) of its own motion; and (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the appellate assistant commissioner or the appellate tribunal, by the weaith-20 tax offtcer also (4) an amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee 25 of its intention so to do and has allowed the assessee a reasonable opportunity of being heard (5) where an amendment is made under this section, an order shall be passed in writing by the wealth-tax authority concerned or the tribunal, as the case may be 30 (6) where any such amendment has the effect of enhancing the as,sessment or reducing a refund already made, the wealthtax officer shan 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 issued under section 30 and the 3s provisions of this act shall apply accordingly (7) no amendment under this section shall be made after the expiry of four years-(a) in the case of an amendment under sub-section (2), from the date of the order passed in the first appeal or revi-40 sion as referred to in that sub-section; and (ib) in any other case, from the date of the order sought to be amended 926 (b) ls-4 , p' i~"''' 1 v ; (8) where any matter has been con~idered and decided in a pliooeedins by way of an appeal of revision li"elating to an order referred to in sub-section (1), the authority passing such order myi notwithstanding anything· clontflined in any other law for the time being in force, amend the order under this section in 5 rebltioll to any matter other than the matter which has been &0 cqnidereci and decided "  33 in section 36 of the principal act,-amendmentof ections6 (4) in su'b-section (1) the words "on conviction before a mal1strate," shan be omitted; 10 (b) in sup-lsection (2), for the worda "punishable with simple imprisonment which may extend to one year ~ with ftne which may extend to one thousand rupees or with both", the following words and proviso shall, be sllbstituted namely:-"punishable with rigorous imprisonment for a tenn which is may extend to two years: provided 'that in the absence of specij,1 and adequate reasons to the contrary to be recorded in the jw:\gment of the court, such imprisonment shall not be for less than six month • "; 20 (c) after sub-section (2), the following sub-section and proviso shall be inserted, nam~ly:-«(2a) if a person abets or induces in any manner another person to make and deliver an account, statement or decjaratton relating to the particulars of any rtet wealth 2s chargeable to tax which is false and which he either knows to be false or does not believe to be true, he shall be punishable with rigorous impril;onment for a term which may ex· tend to two years: provided that in the absebce of special and adequate 30 reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for lees than six months"; (d) for th~ explanation, the following sub-section shall be substituted, nam~ly:-3s "(5) no court inferior to that of a presidency magistrate or a magistrate of the first class shan try any offence under w act  • 5 45 of 1860, 10 34 after section 36 of the rincipal act, the foilowing section inseniod shall be inserted, nam~:-of new aectioil 3iia "36a (1) the central government may, if it is of opinion power to (the reasons for such opinion being recorded in w1i'tini) that tender with a view to obtaining the evidence of any penon appearida immunity to have been directly qr indirectly concerned in or privy to the ::::-concealment of particulars of net wealth or to the evuion o~ payment of tax on net wealth, it is neeeasary or expedieiit so to do, tender to such perloll immanity from proeeclltion for' any ofte'tiee under this act or under the 'indian penal ,code' 01' 'uticler any other central act for the time being in force and also ftoin the lfuposition of any penalty under this act' on condition of 'his making a full and true discloiiiure of the wholecittumstances relatttng to the concealment of particwiln of net wealth or '(!yaslan of payment of tax on net wealth is (2) a tender of immunity-made to, and accepted by, the person concerned, shall, to the extent to which the inwrmnity extends, render him immune from prosecution for any oftence in respect of which the tender was made or from the iriiposition of any penalty under this act (3) if it appears to the central govermnent that'any period to whom immunity has been tendered under this section has not complied with the codlciition on which the tender was made or it wilfully conceauna a~thillg 01' is giving false evidence, the 25 central government may record a finding to that ect, and 1herl!upon the ltnmunity shall be d~ to have been with· drawn, and any such person may be tried foi' the ,0«- in res-~ -of which th~ tender of immunity was made or for any,dther offence of which he appears to have been guilty in connection with thesame  ttier and -shan allio 'become 'liable to t'he imphiti0x:-lo{ any peaalty uncier ltiis act to whith he would otherwise have been liable!' 35 for section 37 of 'the principal act, the following section shall substltu· be substituted, namely:-'tion at nt!'w sec· tionfor sections'l of 1908 "37 (1) the wealth~tu: 0iicel", appellate atstant com- powerto missioner, commissioner add the appellate tribunal shall, for tdbke evience on the pvrp0ee8 of thisaet, ha'ft 'the satne powers as are vested in oath, etc a eourt iirder ihecode of civil procedure, 1908, when trying a suit in respect of the following matters, namely:-(a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and 5 other documents; and (d) issuing commissions (2) witho\lt prejudice to the provisions of any other law for the time being in force, where a person to whom a summons is issued either ~o attend to give evidence or produce books of ac- fo cou~t or other documents at a certain place and time, intentionally omits to attend or produce the books of account or documents at the place or time, the authority empowered to isiu such summons may impose upon him such fine not exceeding five hundred rupees, as it thinks fit,and the fine 80 levied may be is recovered in the manner provided in chapter vii of this act (3) subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this act: 20 provided that a wealth-tax officer shall not-(a) ~pound any books of account or other documents withou t recording his reasons for so doing, or (b) retain in his custody any such books or documt1jlts  for a period exceeding fifteen days (exclusive of holidays) 2s without obtaining the approval of the commissioner therefor (4) any proceeding under this act ,before a wealth-tax authority or the tribunal shall be deemed to be a judicial proceed!ngwithin the meaning of sections 193 and 228, and for the 30 purposes of section 196, of the indian penal code" 36 after section 37 of the principal act, the following section shall be inserted, n~mely:-"37a (1) where the commissioner, in consequence of information in his possession, has reason to believe that-3s insertion of new section 37a power 01 search and aeizure "\ (a) any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account oil' other documents, has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons, oil' s (b) any person to, whom a notice or summons as afore--said has been or might be issued will not, or would not, produce or cause to be produced any books of account or other documents wl;lich win be useful for, or relevant to, any proceeding under this act, or 10 (c) any person is in po~sionof any articles or things including money disproportionate to his known assets, particulars of which will be useful for, or relevant to, any proceeding under this act, 15 20 he may authorise any inspecting assistant commissioner or any wealth-tax officer to enter and search, with such assistance as he may deem necessary, any building or place where he has reason to suspect that such books of account, other documents, articles or things including money are kept and if as a result of the search such books of account, other documents articles or things including money are found, the inspecting assistant commissioner or the wealth-tax officer, as the case may be, may-(i) seize any such books of account or other documents; (ii) place marks of identification on any such books of account or other documents or make or cause to be made extracts or copies therefrom; (iii) make a note or an inventory of any articles or things including money found which, in his opinion, will be useful for, or relevant to, any proceeding under this act 30 (2) the books of account or other documents seized under sub-section (1) shall not be retained by the inspecting assistant commissioner or the wealth-tax officer for a,period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the commissioner for such retention is obtained: 35 provided that the commissioner shall not authorise the retention of the books of account and other documents for a period exceeding thirty days after all the proceedings under this act in respect of the years for which the books of account or other documents are relevant are completed (3) the:person from whoae eustody any books of aceount or other documents are seized under' sub-section (1) may make copies thereof, or tak-e extracts therefrom, in the p~ of the wealth-tax officer or any other person authorised by him, at such place and ti~ as the wea1tb-'ax~~r may appoint in this be-5 half (4) "if a person legally entitled to the books of account or other documents seized under sub-section (1) objects 'for any reason to the approval given by the commissioner under sub-ii!tftlon ('), 'u may make an applktatlod to the board stating 10 therein the retiiods for such objeetion and requestidg 'for the r«urn of the bood of a~'lmt or documents (5) on receipt of the application under sub-section (4), the board may, after gi\o'ibg the applk:ujt ail opportuntty of }jeibg reard, pus aueh orders ,as it thlna fit 15 (6) the provisioihi of the code of crimi&al procedure, 1898 relating to searchel shall apply, 80 far as may be, to seial'ches under sub-section (1) of this aection (1) the board may make rules'm reiltion to'syrcl!es under this section" 20 ~ to sectton 98 of the principal act, the fallowing ptoviso shall be added, namely: -amendment ot !f'ction 39 "provided that the assessee concerned may demand that before the proceeding is so continued the previous proceeding or uypal"t thenof be re-opened'or 'that befere afty or~ bi assess- 25 meat is pauedapinat him, he bel1!-heet'd" amend-38 in section 41 of the principal act, after sub-1lection (2), the ment of following sub--secuon _11 be inserted, namely:-section 41 co (3) after a finding of total partition has been recorded by the wealthtax officer under section 20 in respect of aay hindu 30 family, notices under this act in respect of the net wealthot the hindu family shall be served on the person who was tbe last manager of the hindu family, or, if such person is dead, then 00 all surviving adults who were members of the hindu family immediately befol'e tbepartition" substitu-39 'for section 44 of the principa'l act, the following section shau tion of be substituted, natnely:-new sections for section," 'm (1) any asse$see who is enti,tled to or required to attend appear before any wealth-iax authority or the appellate tribunal in anee conne<:tion with any proceeding upder this act, except where he before is req"ir~ ujlder this act to attend in ~non may attend by a =il'lth-s person who would be entitled to repre~nt him before any income· ritie~ub~o­tax authority or the appellate tribunal under section 288 of the authorised income-tax act representative   (2) notwithstanding anything in sub-section (1)-(0 no person who has been convicted of an ofhl'lce con-10 nected with any wealth-tax prooeeding or on whom a penalty has been imposed under this act other than a penalty imposed on him under clause (i) or clause (ii) of sub-section (1) of section 18 shall be qualified to represent an assellee under sub-section (1) for such time as the commissioner may 15 by order determine; (if) if any person who is not a legal practitiqller or a chartered accountant, is found guilty of misconduct in connection with any wealth-tilx pr-oceeding by the prescribed authority the prescribed, authority may direct that he shall 20 thenceforth be disqualified· to represent· an asaeu8e under sub-section (1); 11 of 1922 34 of 1953 28 of 1957 18 of 1958 2s (iii) ·no person not qualifted to represent an assessee under the indian inflornetax act, 1922 the estate duty act, 1953, the expenditure-tax ad, 1957, or the gift-we act, 1958, shall be entitled to appear on behalf of any assessee under this act: provided that any order or direction under sub-elause (i) or sub-clause (u) hall be subject to the following conditions:-30 (a) no such order or direction snail be made in respect of any person unleas he has been given a reasonab'le opportunity of being heard; (ob) anly' person against whom any such order or directiem is made may, within one month of the making of the order or direetion, 8ppe41 to the board to hav& the order or direction cancelled; and (c-) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal 44a the central government may enter into any agreement with the government of any reciprocating country for the avoidance or relief of double taxation with respect to wealth-tax payable under this act and under the corresponding law in, force in the reciprocating country and may, by notification in the official 5 gazette, make such provision as may be necessary for implementing the agreement agreementfor avoidance or relief of double taxation with respect to wealthtax explanation-the expression c4reciprocating country" for the purposes of this act means any country which the central government may, by notification in the offtcial gazette, declare to be 10 a reciprocating country countries with which no agreement f'xists 44b where the -net wealth of any assessee includes any foreign wealth and he proves that, in respect of such foreign wealth, he has paid in any country, with which there is no reciprocal arrangement under section 44a for the relief or avoid- 15 ance of double taxation, a tax in respect of wealth, under the law in force in that country, he shall be entitled to the deduction from the indian wealth-tax payable by him of a sum calculated on such doumy taxed foreign wealth at the indian rate of tax or the rate of tax of the said country, whichever is the lower, or at the 20 indian rate of tax if both the rates are equal e;rplanation-in this section-(1) the expression c4indian wealth-tax" means wealthtax charged in accordance with the provisions of this act; (2) the expression "indian rate of tax" means the rate 25 determined by dividing the amount of indian wealth-tax after deduction of any relief due under the provisions of this act but before the deduction of any relief due under this section by the net wealth; (3) the expression "rate of tax of the said country" 30 means any tax in respect of wealth, actually paid in the said country, in accordance with the corresponding laws in force in the said country after deduction of all relief due, but before deduction of any relief due in the said country in respect of double taxation, divided by the whdle amount of the 35 wealth assessed in the said country; (4) the expression "foreign wealth" in relation to any assessee means the value of all his assets located in any country outside india as reduced by the value of his debts in ~~~~~  ~ to in section 46 of the principal act, for sub-section (4), the amendfollowing sub-section shall be substituted, namely:-=~t48 " (4) the centtal government shall cause every ruie made under this act to be laid as soon as may be after it is made before 5 each house of parliament while it is in session for a total period of thirty days which may be comprised in one session oj' two successive sessions, and if before the expiry of the afoo in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both 10 houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, 80 however; that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule" i ~ 41 in part ii of the schedule to the principal act, for the words, amendfigures brackets and letters 4csections 8, 9, 10 and 12 of the income- ~en~ _ tax act but without deducting the allowances referred to in paragraph d~e e (b) of the proviso to clause (vi) of sub-section (2) of section 10, subclause (t1ia) and sub-clause (vib) of sub-section (2) of section 10", :ao the words, figures, letters and brackets "chapter iv of the incometax act other than the provisions under heads of income 'a-salaries and ce-capital gains' thereof, but without deducting the allowances referred to in sub-section (2) of section 32, section 33 and section 3'" shall be substituted statement of objects and reasons the income-tax law has been re-codifted in the income-tax act, 1981 as the basic pattern of the wealth-tax law is the same as that of the income-tax law, it has become necessary to bring the provisione of the we'alth':tax act, 1957 in line with the scheme of the lneome:taxact, 1961 opportunity has been taken to implement the recommendations of the direct taxes administration enquiry committee, relating to the wealth-tax law which have been accepted by government, and also to make amendments to the wealth-tax act which have been found necessary in the light of the experience gained in the operation of the act the notes on clauses explain the various provisions of the bill t t krishnamachari new dj:uu; the 3rd september~ 1964  president's recommendation under article 117 of the constitution of india[copy of letter no 1/27/64-wt, dated the 6th september, 19th from shri bali ram b1ujgat, mini8ter of planning to the secretary, lok sabha] the president heving been informed of the subject matter of the proposed bill to amend the wealth-tax act, 1957 has recommended under article 117 (1) of the constitution the introduction of the bill in lok sabha, and under article 117 (3) of the constitution its consideration by the lok sabha  clause 2(a) substitutes the existing clauses (b), (c) and (d) of section 2by new clauses:(i) new clause (b) brinis the deftnition of "appellate tdbunal" in line with the definition of the term in· section 2 (4) of the income-tax act, 1961 (ii) new clause (c) corresponds to section 2(c) of the existing act but the definition of "assessee" has been made more comprehensive on the lines of section 2 (7) of the income-tax act, -1961 so as to include all possible categories eg, persons who are liable to pay wealth-tax on their own net wealth, persons liable to pay wealth-tax on the net wealth of other persons, and persons deemed to be assessees or rssessees in d~fault· under certain sections of the act (iii) a deftnition of "assessment" bas been inserted by new clause (ca) on the lines of section 2 (8) of the income-tax act, 1961 (iv) new clause (d) brings the deftn1tion of "assessment year" in line with its deftnition in section 2 (9) of the incometax act, 1961 "' •  clause 2(b) -eftec;ts amendments-(1) in section 2 (e) (ii) to clarify that only a building owned and occupied by a cultivator would be excluded from the definition of the· term 'assets', and (ll) in section 2(e) (v) to clarify that the period of six ye~r' is to be computed from the date the interest vests in the assessee az ' clause 2 (c) -tile director of inspection is not one of the authorities under the existing act the amendment makes the director of inspection an authority under the act and clarifies that the term includes his deputies and assistants also this is in line with section 2 (21) of the income-tax act, 1961 clause 2 (d) substitutes in section 2 (j), the reference to the 'income-tax act, 1922' by reference to the 'income-tax act, 1961'  ~  35 clause 2 (e) effects two amendments-(i) under section 2 (la) a definition of "inspector of wealthtax" has been introduced, as he has been made one of th~ auth·;-dties under the wealth-tax act, (ii) the term 'legal representatives' has been defined on the lines of section 2 (29) of the income-tax act, 1861 as in the existing act there is no definition of the term although it is ujed in the act i elause 2 (i) seeks to clarify that under section 2 (m) (ii) debts, which are secured on or relate to any property which is exempt from wealth-tax are not to be deducted in computing the net wealth clause 2 (q) introduces-(i) a definition of 'public servant', as the term has to be defined for the purposes of the act; and (ii) a definition of "regular assessment", to distinguish such an assessment from a self-assessment and provisional asessment regarding which provisions are being introduced in the act these are in line with sub-sections (37) and (40) of section 2 of the income-tax act, 1961 clause 2(h)makes the following amendments in section 2(q):-(i) the reference to section 2 (11) of the income-tax act, 1922 has been substituted by the reference to section 3 of the income-tax act 1961, and (ii) the existing proviso has been replaced by a new proviso which expressly stipulates the valuation date to be adopted i't the case of a person who is not an assessee under the incometax act, 1961 as also the valuation date in a case where an assessment is to be made on an executor clause 2(i) introduces an amendment in section 2(s) which is consequential to the amendment proposed in clause 9 of the bill elame 3-since the term "assessment year" has been defifled !n the act the words "financial year" have been replaced by the wortls "assessment year" to clarify the intention this brings the provis' c: in line with section 4 ilf the income-tax act, 1961 clause 4(a) amends section 4(1) to make the provisions applicable to either spouse and also clarifies that section 4 (1) (a) (u) applies to indirect transfers, and that the provisions of section 4(1) (a) (iii) would apply to transfers for the deferred benefit of the individual or his or her spouse or minor child this brings the provisions in line with clauses (iii), (iv) and (v) of section 64 of the income-tax act, 1961 ctause 4 (b) effects the following two amendments: 0-(i) it introduces section 4 (6) which deems the noldet oi iir -  mpartible estate to be the owner of all the properties comprised in the estate this is in line with section 27 (ii) of the incometax act in 80 far as immovable properties are concerned (ii) it substitutes a new explanation for the existing e3:planation clarifying the types of transfers which would be deemed to be irrevocable clause 5 (a) substitutes the reference to "chapter ixn' of the income-tax act, 1922 by reference to section 2 (38) of the income-tax act, 1961 other amendments proposed in clause 5 (b) are of a consequential nature clause 6 substitutes the reference to lection 4 (3) of the incometax act, 1922 by reference to section 10 of the income-tax act, 1961 clause 7 (a) clarifies that the matket value of an asset for the purposes of section 7 (1) of the act has to be estimated by the wealthtax officer subject to any rules that may be framed claus8 7 (b) provides that the adjustments contemplated under section 7 (2) of the act would be prescribed under the rules clause 8 inserts an explanation to section 8 of the act which clarifles that the jurisdiction for wealth-tax purposes in respect of a person who is liable to wealth-tax but is not an assessee within the meaning of the income-tax act, will be determined with reference to the area in which that person resides clause 9 introduces new section sa conferring on the central board of direct taxes and the commiuioners the power to transfer cases from one wealth-tax officer to another this is in line with section 127 of the income-tax act, 1961 clause 10 introduces a new section which authorises the board to empower persons to exercise the functions of a director of inspection and defines those functions clause 11 makes the following changes:-(i) a new section has been inserted which makes an inspec tor of wealth-tax an authority under the act; and (ii) the existing provision in relation to the control of wealth-tax authorities has been recast on the lines ot'section 118 of the income-tax act, 1961 clause 12 introduces a new provision on the lines of section 119 (2) of the income-tax act, 1961 making it obligatory on the wealth-tax officer to follow the instructions issued by the director of inspection, commissioner and inspecting assistant commissioner within whose jurisdiction he performs his functions clause 13 introduces a new section 13a which specifies the powers of the director of inspection, the commissioner and the inspecting assistant commissioner in relation to the ,makulg of enquiries under the act this is in line with section 135 of the income-tax act, 1961 clause 14 substitutes a new sub-section for the existing section 14(1) to make it clear that a person who is liable to tax in respect of the net wealth of any other person has also to file a return of net wealth this is in line with section 139 (1) of the income-tax act, 1961 the amendment proposed in section 14(2) is consequential to the one proposed in section 14 (1)  clause 15 introduces--(i) a new section modelled on section 140 of the income-tax act, 1961 which states the position as regards the persons who should sign and verify the returns of net wealth in respect of different kinds of assessees; (ii) 8 new section in line with section 140a of the income-tax act, 1961, to provide for an assessee paying tax on the basis of a leif-assessment made by him where the tax payable 'on the basis of the return exceeds rs 500; and (iii) a new section 15c on the lines of section 141 of the income-tax act, 1961, to provide for the making of a pr~isional assessment of the tax payable by an assessee on the basis of the return filed by him and the accounts and documents, if any, accompanying the return clause l6-sub-clause (a) makes certain drafting changes in section 16 (1) of the act to emure that the amount of refund, if any, due to the assessee is specified in the assessment order passed' on the basis of a return found to be correct and complete sub-clauses (b) and (d) amend sub-sections (3) and (5) of section 16 to clarify that the wea'lth-tax officer shall in framing an a8bessmem consider any material which he might have gathered independently this is in line with ~ctiods 143 (3) and 144 of the income-tax act, 1961 subclause (c) makes good an omission by introducing a reference to returns flied under section 15 clause 17-subclause (a) the amendment proposed is consequential to the amendment proposed in section 14 swb-clause (b) introduces a new sub-section to clarify that the time limit for initiating proceedings for assessment or re-assessment would not apply to an assessment or re-assessment which is to be made in consequence of or to give effect to any finding or direction contained in an appellate order, or an order passed in reference or revision etc this provision is in line with section 150 of the ldeometax act, 1961 clause 18 replaces the existing section 18 by a new section to bring its provisions in line with the corresponding provisions in seetions 271, 274 and 275 of the income-tax act, 1961 the changes proposed are:""": (i) in the existing section 18 only a maximum penalty is specified the new section lays down both the minimum and maximum penalties for various offences (il) the existing section requires that the wealth-tax offieer should nave the previous approval of the inspecting assistant commissioner for all penalty orders passed by him under the new provisions the wealth-tax officer himself will pass orders in cases f8'lling under section, 18 (1) (c) (concealment of particulars of assets or furnishing inaccurate particulars of assets or debts) where the minimum penalty exceeds rs 1,000 the need for obtaining the previous approval of the inspecting assistant commissioner wllere a penalty order is to be passed by the wealthtax officer is dispensed with (i~i) a presumption is drawn as under the income-tax act of wilful concealment (which can be rebutted by the assessee) where the net wealth returned by a person is less than 80 per cent of the net wealth assessed -(iv) orders imposing a penalty normally will have to be passed before the expiration of two years ft:om the date of the completion of the proceedings in the course of which the proceedings for the imposition of the penalty have been commenced clause 19 introduces a new section providing for specific machinery for the assessment of executors in respect of the estate of a deceased person for a period from the date of the death of the dec~s­ed till -the completion of the administration of the estate the new section is on the lines of section 168 of the income-tax act, 1961 clause 20-sub-claust$ (a) and (b) make certain drafting changes to clarify that the provisions of section 21 apply where any assets are held either on behalf of the beneficiary or for the benefit of a beneficiary  sub-clause (e) clarifies that the individual referred to in section 21 (4) should be a citizen of india and resident in india sub-clause (d) adds a new sub-section which enables the person paying any amount under the provisions of section 21 in respect of the net wealth of any beneficiary to recover the sum so paid from such beneficiary this is on the lines of section 162 (1) of the income-tax act, 1961 c'zauae 21-the amendments effected by this clause bring the provisions for the :recovery of wealth-tax from a person residing out- ' side india on a line with those of sections 162 and 173 of the incometax act, 1961 clause 22-sub-clause (a) seeks to make the following amendments:-(i) the word uhis" has been omitted from section 23 (1) (a) to entitle a person who is assessable in respect of the net wealth of any other person also to file an appeal where an assessment is made on him (ii) a right of appeal has been provided against penalties imposed for non-payment of tax due in respect of a self-assessment which is required to be made under section 15b (iii) the reference to section 46(1) of the income-tax act, 1922, is substituted by reference to section 221 of the income-tax act, 1961 (iv) additional rights of appeal have been provided against an order of the wealth-tax officer treating a person as an agent ra a penon residing outside india, an order rectifying' a mistake under section 35 having the eftect of enhancing the tax or reducing a refund orrefusing to admit an assessee's claim under the said section and against an order of the wealth-tax oftlcer imposing a flne for non-com?liance of a summons issued under section 37 this provision is on the linea ,of section 246 of the income-tax act, 1961 sulbelaule (b) introduces two new sub-sections (5a) and (5b) in section 23 'rhe new sub-section (sa) is in line with the txplanation to section 251 and the new sub-section (5b) is in line with section 250(6) of the income-tax act, 1961 the latter sub-section makes an ex;isting practice a requirement under the law cla'ube23"-sub  clame (a) substitutes sub--section (1) of section 24 by a new sub-section which cohfen on the a-ssessee additional rights of app'&al against ~ order p~ by the appellate assistant commission,er imposj,ng a penalty -under section 18 or a fine under section 37, _ ~d· against an ofcwr p;ls>ed by the iilspecting assistant coillidissioner impo~ng a penalty under section 18 of the act sul>-olau8e (b) ,~troduces a new ~ovis~qil corresponding to section 253 (4) of the inco,me-tax act, 1961 enabling the assessee or tbe wealth-tax officer to file a me1n9l'a1l<ium of ~081 objections in' an appe~ filed before the tribunal by the other party sub-clattse (c) confer8 on the tribuna! powers to coftdone c!ela7 in the filing of a memorandum of cross objections this powr hi simi1u to the existing power of the tribunal to coqdone delay in filing of appeals ang is 'in line with section 253 (~) of the inoome;tax act, 1961  sub-clause (d) substitutes new sub-section (6) to (sb) for the existing bub4ections 6, t() 8 in order to bring the provisions relating to va1uers ih line with theeorresponding provision in section 253 (la) of the income-tax act, 1961 thus, for instance if the appellant or the j;espondent does not nominate any valuer as required by the act within the time allowed by the tribunal, the tribunal will be enlptynej'i!d to nominate a valuer on their behalf; and a person who, at 'any :ttme, has expressed an)" opinion on the valuation of any property would be debarred from bei~ nominated as a valuer 1n relation to that property by either of the parties as under the income-1iex act, valuation proceedings under the wealth-tax act will 'il»etaken out of the purview of the arbitration act, 1940 the valuers to whom a reference has been made will have to communicate their decision to the tribunal within 6 months of the date of refierence or within' the further periodot time, allowed by the tribunal; and where the valuers ciefawt in making the report, tlle tribunal can order that the reference made to them shall be <ieemed ,to be withdrawn and can proceed to dispose of the case on the evi-~ before them incl\ldingthe report of either, of the valuers if such a report h8s been su~iited· '   ' "  ' t i, , ; - '~ " "  : i , :' :   r ' ~ suo-cltwse {e}-ln aud-iiejction(u)  , the ' ·\t'efareme , : w i~ sections (5), (7) and (8) of section sa of the in~~:~c\rl}9~ 926(b) ls-8 haa been substituted by r~fer~ce to sub-section (1), (4) and (5) of section ,255 of the l;ncome-tax act, 1961 clause 24 introduces two new sub-eections in section 25 to provide that the commissioner cannot pass an order in revision prejudicial 10 the assessee - after the expiry of two years from the date of the onier sought to be revised except where such order is passed in consequence of or to give effect to any finding or direction contained iii an order of the appellate tribunal, the high court or the' supreme court this is in line with sub-section (2) and (3) of seetio) i 263 of the income-tax act, 1961 clause 25 seeks to amend section 26 whereby an order imposing a penalty passed by the commissioner under section 18 is made appealable to 'the ,tribunal clause 26-sub-clause (a) substitutes the existing sub-sections (1) and (2) of section 27 by new sub-sections the following changes have been made to bring the provisions in line with those of section 256 of the income-tax act, 1961:-(a) the time within which an application should be made to the tri,bunal to refer a question of law to the high court has been reduced from 90 days to 60 days; (b) the tribunal has been required to dispose of the applica~ion within 120 days; and (c) the tribunal's power to condone delay in entertaining a reference application has been restricted to 30 days sub-clause (b) makes a drafting change of a procedural nature substituting the words '90 days' for '3 months' in section 27 (3) sub-clause (c) introduces a new provision enabling the tribunal to refer a question of law direct to the supreme court if there is conflict in the decisions of high courts on that question this is in line with section 257 of the income-tax act, 1961 sub-clause (d) applies the procedural provisions of sub-sections (4), (5) and (6) of section 27 to direct reference to the supreme court also sub-clause (e) -sub-sections (7) and (8) of section 27 have been sub'stituted by a new sub-section, ~odened on section 260(2) of the income-tax act, 1961 to provide that the cost of a reference to the supreme court excluding the fee for making the reference shall be in the dijcretlon of that court as in the cue of a reference to the high court the existing sub-section (7) is deleted from seetion 2'1 as  separate provision is made for refunds in the new cbapter viia  su~ion (9) having become redundant has been deleted clause 27 introduces two new sections 29a and 29bthe new section 29a provides that tax will be payable according to the assessment made notwithstanding that a reference has been made to the high court or supreme court or an appeal preferred to the supreme court this is in line with section b of the income-tax act, 1961 the new section 29b specifies in jurisdiction of high courts in respect of the various states as well as union territories this provision is in line with section 289 of the income-tax act, 1961 clause 28-this clause substitutes the existing sections 30, 31 and 32 by new sections (i) in section 30, interest, fine or any other sum payable under the act has also been mentioned the reference to the time within which the amount due is to be paid has been omitted as the time for payment is prescribed under section 31 the new section is based on section 156 of the income-tax act, 1981 (ii) section 31 has been redrafted to bring its provisions in line with those of section 220 of the income-tax act, 1961 the changea made are:-(a) for the sake of uniformity the time limit for payment has been specified as 35 days in normal cues as a measure of safeguard it has been }mwided that this period may be reduced in cases where it will -be detrimental to revenue to allow'1o much time ('b) it has been provided that the ul!lsee abal1 be liable to pay simple interest at 4: per cent per annum from the date of expiry of the time speclfled in the notice of demand if the amount on which the interest is payable fa reducecl in appeal, etc, the amount of the interest would alao be proportiodately reduced (c) a speci& provision has been made authorising the wealth-tax oftlcer to extend the time for payment or allow payment by instalments subject to conditions which he may impose (iu) section n baa been redrafted to apply the provisions of hctlons 221 to 227, 229, 231 and 232 of the income-tax act and the second and third schedules to that act add the rules framed act ,tlnder the new sectiona uaifdrm 'pnx:edure for effecting, recovery wiu be followepin all the sta~es i - - ,-;-'   • , clause 29 omits section 34 as a comprehensive provision in this regard is being introduced in the inconie-tax aet: ' ' c14us~'i3if,-hit~~eei'-a' ri~w p%visfoil '00 the lines of chapter xix of the income-tax act, 1961 requiring that 'if a refund ,becciines 'diieto 'an a:sses$-ee 'in 3ppeal, etc;, 'the wealth-tax ~eerwinrefund 'the amount without ihe assessee having to make 'a' claim 'for it the wealth-tax officer has been empowered to withhold refunds 'or set 11 oft' -against any ludount due from the 8itis_ '4n qttl'tain ,circumstances p~iaioa,'hai, ,alao ~ made £or,jj~~t,qt·~terest st'the qt~of 4 per :ce-t per nlilum to the 8s~,if a relund ~s not granted within the prescribed period or wit~e~d in !!ertain circumstances ' , ' , ' cwwfe 31 introduces a new section whereby if any assessee " cr,at~~ a chafgeon or transfers any qf his ~s to any ~on with ,~be in~tipn t9, defraud the, feyenue, s1i~h, ~~e ~t tf~er, would '' be _yoid~ ~gainst thefevfm~~ ~c~pt, ~h~~~ the, ch~~e or ~r,ansfer has been made~ val}1able ~qdsid,ration aj)d withput notice of the pendency of the' wealth-tax proceeding the provlsionis "on the '1in~ of sec1:iol'l isl of the incometax' am, 1961 ' t"" ' ' " :;, "r if;; ~ ,_   -   clause 32 'substitutes a new section for' the existj!lf!~ ~ction 35 of the wealth-tax act and brings the provisions in line with the ' ~et)tt~rt4ihg ·provisions- of section 154 of the income-tax act, 1961 , ,a: 'fpeclfie "'provision is made; whereby the 8jn()unt bf, tax, ~nalty , r ot·idteteltdew1'inintd ag a result ·,ofthe first e~ or revision against' the omm' refmed to in section' 2 (in)(ill~ " ii- paid 'within six months of the date of the appeal orrevislcwl ordet '~d be illlovy~·ful·ji ,d~uctioq to the extent such tax, ~ty ,or interest ~' ~~w~in ~~ the  assessment by, ~tiprl of suc'h ~sld~!lt - ~, the rectification was recijtication of ;~ lpistake ap~r~t: ~ "the records  "  '" "(,  r~'ii  a;,l;'~z~· ",(a) 'omite ftmri 'seeti6ft' 18(1jthe words 'on conviction before a magistrate' this is in line with ~on 276 of the inoom-~tfx, act" 1961 sub'~tau~e(~j ~tibs~hutes'for the ~xist1ng ptrltialunenf ~p~vided in section '38(2) of'simple imprisonment up to one y_ ora fine of rs '1,000 or botp,a·~vjw~-r·r~tlllpj~tfor a'ftrlnimum ",term of,~ ~nt~ ,(\ii1leh ther~ate aciequate-'rl!qorur to'the ccm~rary ·t,!9,be recerde4!in  ~ j~cigm~t),· 8nda·mu~uurnn of fwo"ears '!'hi!; is in line with section 277 of the income-tax act, 1961 s1lb~laus~ (c) ii?-tr~duces a new provision making a,betmetlt of evasion of \ivealth-iax an ofteilce'" piuifshable 'with 'rigo~ imprison- ment fo; a mfriunuii periodof'six months (unless there are adequate reasons to the:cotitr~i-y recorded in the judgment) and a maximum  term of two years \ this provision is on the 1~ of seetion 2"18 of the income-tax act, 1961 '  sub-oaw,e (d) suhatitutesa new sumection (5) for the existing ~latiatioo    under the existing provisions, presidency magistrates, magistrates of the 1st class and magistrates of the second class specially e~po~~red ~iw ~ w~ce 9f offen~ unt;ie;r the act the amendm~t' ,propo~~,a  i~ ,tbi$  s\ib-,cl~u$e oiplts t:l~ial1y empowered ma~trat~ q~ t~ j:mconc;l cl~~ ,  " , ,- '  · the ' changes'proposed wili' b'img' th~ provisionsin line with sections 278 and 292 of the income-tax act; 1!h)1>-' ~"   , · czaus~ 34 hltj"oduces ~ newseetion36a empowering the central · gove'riuru,intwitha'view t6 obtaining 'evidence of any pers~n connectecl' with concealment of particulars of net wealth or evasion of payment of tax on the net wealth, to tender ~o such pepon ijnmunity from prosecution for 'any offence as also from the imposition of any · penalty under thiaaat 'bietldcler·of ijmluoity tl be withdrawn if it appears to th'e centitll'government th8t "the person to whom the 'btimtfrlty 'wutedlileld :t: dot oeinpued witll the conditions on  whicb<'iuch hrmuaity wal'cnnted 'gl' fa ,wutully ooneealidg· anything oil' giving tfalle evidence- ~s is in line with section 291 of the liacom&4ax,- act, 1181 ~ ",  - a i , ' !'; · ~ 95 substitute a new section for the existing section 37 and ~ ' vesta,'additional powers in the wltalth-tax ofticer, appellate assis- ·t8ll,t ~n",; commillioael' ancl:tbe appehate~ tribuiial to  ~ihepf¢~oj):of ~·of··atc01ldts-·tiklal;b ~to these a~~\i8e ijlq:pow~ toimpound and retain in tbcr1r'custody such · 'boog:-~ ~"' ~ ip~d~ewthe authmttu· 'liinpbwered < :to~~ ~tjifljave eleobeed qested withthe-pbwento impose upon persons who deliberately default from complying wl~ the same a flne not exceeding, rs~ ~t is also provided that any proceeding wadllrthe:aot wftlre a·'\ftiith-taxwthoritj· or'thetrihunalshall be 4eeuied to be fudfetal proeeet:urig'for the purpos~ of sectton 196 of tile liklta peti"j'coc:le" , , - "  -- : " : " ·  f''', ~;,"  "\ ~~,' ~ ~t ii , r: ( , 'rbai& provw~ !are- ia",&e«withllmtioni 1-'1 arid 1·36 of the  ,: ldc~tax ~act,r"  -  ' j' ' ;"  ' ;,   r,  ':' - -~ ,> - , clause 36 introduces a new section on the lines of section 132 of the income-tax act enabling the commissioner of wealthtax to authorise under certain circumstances the inspecting assistant commissioner or the wealth-tax ofticer to make a search for any such books of account or documents in any premises and seize them and also to make an inventory of the articles or things (including m')neys) so siezec:l provision is made for a person objecting to such seizure to make an application to the board it is also provided that the board may make rules relating to searches under - this section clause 37 inserts a new proviso to section 39 providing that in the event of one wealth-tax authority being succeeded by another, the assessee mey demand that before the proeeedidgb are continued he may be heard again the provision corresponds to section 129 of the income-tax act, 1961 claube 38 introduces a new provision on the lines of section 283 of the income-tax act 1961 describing the procedure to be adopted for service of notice where ii joint hindu family is disrupted cl4use 39 effects the following amendments:-(i) the propotednew section 44 providet that every penon who would be entitled to represent an 8i8e8iee before an income-tax authority or the tribuul-udder section 288 of the income-tax act ' would' ~" entitled to appear in wealth-tax cases also subject to certain exceptions those pel'iona who have been convicted of an offence connected with any wea1thtax proceeding or on whom a penalty under section 18(1) (c) has been imposed, and persons who are not qualifted to represent an i8ie1'bee under the indian income-tax ad, 1922, the eatate duty act, 1953, the expenditure-tu act, 1957 or the gifttax -act, 1958 would mo be dfaqua1jfled from appearing in wealth-tax cases it is also provided that iuch a perioil 11 not to· be dtlqualffted without being giveil a reumable opportunity of befllg heard, and that he wlll have a right of appeal to the bocri \, (11) a ~ 8ect1on 44a is introdueed whlch empowen the central ~mment to enter into an agreement with the ~ ernment of ·any recipliocattng country for the avoidance or reuef of double taxation with r8pect to the wealth-to: payable under this act andwlder the corre8pond:ing jaw in force 'in the reciprocating country th1l is in line with ~' 90 of 'the income-tax act, 1181 (in) a new section 44b is introduced to provide for unilateral relief being allowed in respect of assessments made under this act on the foreign wealth of an assessee which may have been doubly taxed ccmaequent to the levy of wealth-tax by a foreign country this is in line with section 91 of the incometax act, 1961 i clause 40 seeks to modify the provisiods of sub-section 4 of section 46 on the lines of section 296 ·of the income-tax act, 1961 clause 41 substitutes the references to sections 8, 9, 10, 12, paragraph (b) of the proviso to section 10 (2) (via) and 10 (2) (vib) to the corresponding provisions of the income-tax act, 1961 namely chapter iv other than the provisions under heads of income 'a-salaries and e-capital gains' and sub-section (2) of section 33 and section 34 respectively i i ~ -' the officers who administer the income-tax aet':itiminlster the wealth-tax act also this bill is, therefore, not likely to involve any add!tionnl expenditurefot:- the present clause 7 of the bill empowen the board by virtue of the existing powers under section 46 of the act to frame rules regarding the valuation of assets for purposes of section 7 (1) and·to prescribe the adjultments in the computation of net wealth made under the provisions of section 7 (2) <a> clause 36 seeks to introduce a new section 37a vesting in wealthtax authorities certain powers relating to search and seizure, and it is proposed to vest the board with the power to make rules in this regard clause 39 seeks to substitute inter alia a new section for section 44; the new section 44 enables the board to prescribe the authority for the purposes of clause (il) of sub-section (2) of that section the matters in respect of which rules will be made are matters of procedure, form or detail the delegation of legislative powers is, therefore, of a normal character 9z6(b) ls-7  annexure extracts from the wbalth-tax act, 1957(27 of 1957) - - - -  - dejlnitiona z in this act, unless the context otherwise requires,-- - - -  (b) "appellate tribunal" means the appellate tribunal appointed under section 5a of the income-tax act; (c) "assessee" means a person by whom wealth-tax or any other sum of money is payable under this act, and includes every person in respect of whom any proceedings under this act, has been taken for the assessment of the value of his asse'ts; (d) "assessment year" means the year for which tax is chargeable under section 3; (e) "assets" includes property of every description, movable or immovable, but does not include-- - - - - (ii) any building owned or occupied by a cultivator or receiver of rent or revenue out of agricultural land: - - - - - (v) any interest in property where the interest is available to an assessee for a period not exceeding six years; - - - - - (j) "income-tax act" means the indian income-tax act, 1922; 11 of 1922 - - - - - (m) "net wealth" means the amount by which the aggregate value computed in accordance with the provisions of this act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this act, is in excess of the aggregate ~lue of all the debts owed by the assessee on the valuation date other than,-(i) debts which under section 6 are not to be taken into account; (ii) debts which are secured on, or which have been incurred in relation to, any asset in respect of which wealthtax is not payable under this act; and - - - - (q) "valuation date", in relation to any year for which an assessment is to be made under this act, means the last clay of the previous year as defined in clause (11) of section 2 of the income-tax act if an assessment were to be made under that act for that year: provided that where in the case of an assessee there are di1ferent previous years under the income-tax act for different sources of income, the valuation date for the purposes of this act shall be the last day of the last of the previous years aforesaid; - - - - - - (8) "wealth-tax officer" means the income-tax officer authorised to perform the functions of a wea1thtax ojcer under section 8 3 subject to the other provisions contained in this act, there char1t'he of wea -shall be charged for every financial year commencing on and from t&x the first day of april, 1957 a tax (hereinafter referred to as wealthtax) in respect of the net wealth on the corresponding valuation date of every individual, hindu uadivided family ~nd company at the rate or rates ~pecifted in the schedule 4 (1) in computing the net wealth of an individual, there shall net -   w~fu~ be mcluded, as belongtng to himinclude (a) the value of assets which on the valuation date are certain held-- -~ uhti (i) by his wife to whom such assets have been trans-ferred by the individual, directly or iiidirectly, otherwise 'than for adequete consideration or in connection with an agreement to live separately, or (ii) by a minor chud not being a married daullhter to whom such assets have been transferred by the individual otherwise than for adequate consideration or (iii) by a person or association of persons to whom such assets have been transferred by the individual otherwise than for adequate consideration for the benefit of the fndividual or his wife or minor child, or' exp14nation-for the purposes of this section the expression "transfer" includes any disposition, trust, covenant, agreement or ariangement, and "an irrevocable transfer" includes a transfer of assets which, by the terms of the instrument effecting it, is not revocable for a period exceeding six years or during the lifetime of the transferee --bemptiona in l'mpectof c:ertaln assets 5 (1) wealth-tax shall riot be payable by an auele in respect of the following 8811ets, and such assets shall not be includecl in the net wealth of the  euee - - - - - - (~ii) the amount standillg to the credit ot en assessee, being a salaried employee, in any provident fund maidtained by his employer to which the provident funds act, 192:), appues 19 of uju or which ia a recognised provideot fwld within the meaning of chapter ixa of the incom~tax act; - - - - - (3) notwithstanding anything contained in sub-section (1), wealth-tax shall be pafab1e by an assessee in respect of the assets referred to in clause~;(xvi), clause (m), clause (xx) of sub-aection (1) or in sub-section (2) for any assessment year unless the assets are held by hlm-- - - - - provided that for the purpose of making any assessment for the financial year commencing on the 1st day of april, 1963, the provisions of clause (b) shall not apply to ten year defence deposit certificates and twelve year national defence certificates held by the assessee on the relevant valuation date  exelulion of  and  outside india6 in computing the net wealth of an individual who is not a citizen of india or of an individual or a hindu undivided family not resident in india or resident but not ordinarily resident in iddia, at· of a cf)mp8ny not resident in india during the year ending un the valuation dateand (i) the value of the assets and debts located outside india; '  '  , - , --~--~ (ti) the value ·of the asiets in india represented by any ' ' low 0'1 debts owing to the assessee in eny case where the interest, if any, payable on sueh·loans or debt1i is not to be included in the total income of the assessee under sub-section (3) of section 4 of the income-tax act; shall not be taken into account  - - - - - t (1) the value of any asset, other than cash, for the purpoi8i value of of this act, shall be estimated to be the price which in the opinion uleta of the wealth-tax officer it would fetch if sold in the open market how to on the valuation date be deter_  mined (2) notwithstanding anything contained in sub-section (1),-(4) where the assessee is carrying on a business for which accounts are maintained by him regularly, the wealth-tax: ofticer may, instead of determining separately the value of each asset held by the assessee in such business, determine the net value of the assets of the business as a whole having regard to the balance-sheet of such business ilti on the valuation date and making such adjustments therein as the circumstances of the case may require; - - - -  8 every income-tax officer having jurisdiclion or exercising wealthpowers as such under the income-tax act in respect of any indivi- tax dual, hindu undivided family or company shall perform the func otllcera tiona of a wealth-tax otbcer under this act in respect of such individual, hindu undivided family or company  - - - - - 12 the wealth-tax officers shall be subordinate to the commis- wealthsioner of wealth-ax and the inspecting assistant commissioner of tax ~be wealth-tax within whose jurisdiction they perform their functions :~~i­nate to tbe commissioner of wealth_ tax and the inspecting aulatant commissioner of wealth-- - •  tas 14 (1) every person whose net wealth on the valuation date was :returdvl  of such an amount as to render him liable to wealth-ax under this wealtb act ehali before the thirtieth day of june of the corresponding assessment year, furirlsh to the wealth-tax ofticer a return in the pi'eserfbed form end verifted in the prescribed manner setting forth his net wealth as on that valuation date: provided that for the assessment year commencing on the flrst day of april, 19~7, the return may be made at limy time ·before the thirty-first day of december, 1957 (2) if the wealth-tax offtcer is of the opinion that the net wealth of any person is of such an amount as to render him liable to wealth a5a~8-ment tax under ~ act, then, notwithstanding anything contained in subsection (1) he may serve a notice upon such person requiring him to furnish within such period, not being less than thirty days, as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner, setting forth (along with such other particulars as may be required by the notice) the net wealth of sueh person as on the valuation date mentioned in the notice  - - - - 18 (1) if the wealth-tax officer is satisfied without requiring the presence of the assessee or production by him of any evidence thet a return made under section 14 is complete, he shall assess the net wealth of the assessee and detennine the amount payable by him as weelth-tax - - - - - - (3) the wealth-tax officer, after hearing such evidence as the person may produce and such other evidence as he may require on any specified points, shau, by order in writing, assess the net wealth of the assessee and determine the amount payable by him as wealthtax (4) for the purpose of making an assessment under this act the wealth-tax officer may serve, on any person who has made a return under sub-section (1) of section 14 or upon whom a notice has been served under sub-section (2) of that section, a notice requiring him to produce or cause to be produced on a date specified in the notice such accounts, records or other documents as the wealth-tax officer may require (5) if any person fails to make a return in response to any notice under sub-section (2) of section 14, or fails to comply with the tenns of any notice issued under sub-section (2) or sub-section (4), the wealth-tax officer shall make the assessment to the best of his judgment and determine the amount payable by the person as wealth-tax on the basis of such assessment  17 if the wealth-tax officer-wealth escapm, assailment (a) has reason to believe that by reason of the omission or : failure on the part of the assessee to make a return of his net wealth under section 14 for any assessment year or to disclose fully and truly all material facts necessary for hi assessment for that year, the net wealth chargeable to tax has escaped assessment for that year, whether by reason of under-assessment _ or ~sses8ment at too iowa rate or otherwise; or (b) has, in consequence of any information in his possession,reason to, believe, notwithstanding that there has been no such omission or failure as is referred to in clause (a), that the net wealth chargeable to tax has escaped assessment for any year, whether by reason of under-assessment or assessment ~t too iowa rate or otherwise; he mey, in cases falling under clause (a) at any time within eight years and in cases falling under clause (b) at any time within four years of the end of that assessment year, serve on the assessee a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 14, and may proceed to essess or reassess such net wealth, and the provisions of this act shall, so far as may be, apply as if the notice had issued under that sub-section 18 (1) if the wealth-tax officer, appellate assistant commis- penalty sioner, commissioner or appellate tribunal in the course of any for con_ proceedings under this act is satisfied that any personcealment (a) has without reasonable cause failed to furnish the return of his net wealth which he is required to furnish under sub-section (1) or sub-section (2) of section 14 or section 17 or has without reasonable ceuse failed to furnish it within the time allowed and in the manner required; or (b) has without reasonable cause failed to comply with a notice under sub-section (2) or sub-section (4) of section 16; or (c) has concealed the particulars of his assets or deliberately furnished inaccurate particulars of his assets or debts; he or it may, by order in writing direct that such person shall pay by way of penalty-(i) in the case referred to in clause (a), in addition to the amount of wealth-tax payable by him, a sum not exceeding one-and-a-half times the amount of such tax, and (ii) in the case referred to in clause (b) or clause (c), in addition to the amount of wealth-tax payable by him, a sum not exceeding one-and-a-half times the amount of the tax, if any, which would have been avoided if the net wealth returned by such person had been accepted as correct (2) ,no order shall be made under sub-section (1) unless the person aoncerned has been given a reasonable opportunity of being heard (3) no prosecution for an offence under this act shall be instituted in respect of the same facts in relation to which a penalty has been imposed under this section (4) the wealth-tax oftlcer shan not impose arty penalty under this section without the previous approval of the inspecting assistant commiaianer of weatth-tax      ayessn (1) in the case of assets chargeable to tax under this act ment which are held by a court of wards or· an administrator-genera'! or when an ofrcial trustee or any receiver or manager or any other person, =~yare by whatever :aame called, appointed under any order of a court to courts of manage property on behalf of another, or any trustee appointed wards, ad- under a trust declared by a duly executed instrument in writing ministrawhether testamentary or otherwise (including a trustee under a torl-gene- valid deed of wakf), the wealth-tax shall be levied upon and rfal, etc recoverable from the court of wards, administrator-general, oftlcial trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it wo~d be leviable upon and recoverable from the person on whose behalf the assets are held, and the provisions of this act shan apply accordingly (2) nothing contaided in 6ub-section (1) shall prevent ·ither the direct as&eiisment at the penon on whose behalf the assets above referred to are held, or- t!ie'"2'8covery from such pel"son of the tax payable in respect of such  ts (3) where the guardian or trustee of any person being a minor, lunatic or idiot (all of which persons axe hereinafter in this sub-~ section included in the term "beneficiary") holds any assets on lj~half of such beneficiary, the tax under this act shail be levied n and recoverable from such guardian or trustee, as the case may be in the like manner and to the same extent as it would be leviable do and recoverable from any such beneficiary if of full age or ~loud mind ad in direct ownership of such assets (4)\ notwithstanding anything contained in this section, where the sh; ares of the persons on whose behalf any such assets are held are mct~etenntnate or unknown, the wealth-tax may be levied upon and rr-:covered from the court of wards, administrator-general, oftleijai trustee, receiver, manager or other person aforesaid as if the persons on whose behalf the assets are held were an individual for th~ purposes of thia act 22 (1)   -   - - (2) any person employed by or on behalf of a person referred to in sub-section (1) or through whom such person is in the receipt of any income, proflts or gains, or who is in poueuion or hal cuitodyof any- aqet of luch penon and upon whom the wealth·tax assess ' " mento'" persona' , reaiclin& outalde indio  officer has caused a notice to be served of his intention of treating him as the agent of such person shall for the purposes of sub-section (1), be deemed to be the agent of such person: provided that-(1) no person shall be deemed to be the agent of another under this section unless he has had an opportunity of being heard by the wealth-tax officer as to his being treated as such; and (2) no agent shall be liable to pay any amount by way of wealth-tax under sub-section (1) in excess of the amount belonging to the person residing outside india and in the hands of the agent at the time the notice of demand is served on him       - 23 (1) any person,-(4) objecting to the amount of his net wealth determined under this act; or     -  appeal to the appel  late asaistantcomtrissioner from (d) objecting to any penalty imposed  by the wealth-tax officer under section 18; or older~ of wealthtax officers        (f) objecting to apy penalty imposed by the wealth-tax officer under the provisions of sub-section (1) of section 46 of the income-tax act as applied under section 32 for the purposes of wealth-tax; may appeal to the appellate assistant commissioner against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed manner        24 (1) any assessee objecting to an order passed by an appel- appeal to late assistant commissioner under section 23 may appeal to the the ap-appellate tribunal within sixty days of the date on which he is fe!:al served with notice of such order rl from       orders  01 the (3) the tribunal may admit an appeal after the explry of the appellate sixty days referred to in sub-sections (1) and (2) if it is satisfied assistant that there was sufficient cause for not presenting it within that commis_ period sioners  -  - -   926 ls-8, (6) where the appellant objects to the valuation of any pr0-perty, the appellate tribunal may, and if the appellant so requires shall, refer the question of the disputed value to the arbitration of ~wo valuers, one of whom shall be nominated by the appellant and the other by the respondent, and the tribunal shall, so far as that question is concerned pass its orders under sub-section (5) conformably to the decision of the valuers: provided that if there is a difference of opinion between the two valuers, the matter shall be referred to a third valuer nominated by agreement, or failing agreement, by the appellate tribunal, and the decision of that valuer on the question of valuation shall be final (7) the costs of any arbitration proceeding under sub-section (6) shall be borne by the central government or the assessee as the case may be, at whose instance the question was referred to the valuers: pirovided that where the assessee has been wholly or pal'tially successful in any reference made at his instance, the extent to which the costs should be borne by the assessee shall be at the discretion of the appellate tribunal (8) the valuers may, in dis~sing of any matter referred to them for arbitration under sub-section (6), hold or cause to be held such inquiry as they think fit, and after giving the appellant and the respondent an opportunity of being heard, pass such orders thereon as they think fit and shall send it copy of nch order to the appellate tribunal - - - - - - (11) the provisions of sub-sections (5) (7) and (8) of section sa of the income-tax act shall apply to the appellate tribun8! in the discharge of its functions under this act as they apply to it in the discharge of its functions under the income-tax act - - - - 26 (1) any assessee objecting to an order of enhancement made by the commissioner under section 25 may appeal to the appellate tribunal within sixty days of the date on which the order is communicated to him appeal to the appellate 'rribunal from orderllof  nhllncemen~ by commis-~lon£r8 reference to high court - - - - - - 27 (1) within ninety days of the date upon which he is served with an order under section 24 or section 26, the assessee or the commissioner may present an application in the prescribed form and, where the application is by the assessee, accompanied by a fee of one hundred rupees to the appellate tribunal requiring the appellate tribunal to refer to the high court any question of law arising out of such order, and the appellate tribunal shall, if in its opinion a question of law arises out of such order, state the case for the opinion of the high court (2) an application under sub-section (1) may be admitted after the expiry of the period of ninety days aforesaid if the tribunal is satisfied that there was sufficient cause for not presenting it within the said period (3) if, on an application made under sub-section (1), the appellate tribunal,-(a) refuses to state a case on the ground that no question of law arises; or (b) rejects it on the ground that it is time barred; the applicant may, within these months from the date on which he is served with a notice of refusal or rejection, as the case may be, apply to the high court, and the high court may, if it is rwt satisfied with the correctness of the decision of the appellate tribunal, require the appellate tribunal to state the case to the high court, and on receipt of such requisition the appellate tribunal shall state the case: provided that, if in any case where the appellate tribunal has been required by an assessee to state a case the appellate tribunal refuses to do so on the ground that no question of law arises, the assessee may, within thirty days from the date on which he receives notice of refusal to state the case, withdraw his application, and if he does so, the fee paid by him under sub-section (1) shall be refunded to him (4) the statement to the high court shall set forth the facts, the determination of the appellate tribunal and the question of ~aw which arises out of the case (5) if the high court is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised, thereby, it may require the appellate tribunal to make such modifications therein as it may direct  (6) the high court, upon hearing any such case, shall decide the question of law raised therein, and in doing so, may, if it thinks fit, alter the form of the question of law and shall deliver judgment thereon containing the ground on which such decision is founded and shall send a copy of the judgment under the seal of the court and the signature of the registrar to the appellate tribunal and the appellate tribunal shall pass such orders as are necessary to dispose of the case conformably to such judgment (7) where the amount qf any assessment is reduced as a result of any reference to the high court, the amount, if any, overpaid as wealth-tax shall be refunded with such interest as the commissioner may allow, unless the high court, on intimaticm given by the commissioner within thirty days of the receipt of the result of such reference that he intends to ask for leave to appeal to the supreme court makes an order authorising the commissioner to postpone payment of such refund until the disposal of the appeal in the supreme court (8) the costs of any reference to the high court shall be in the discretion of the court (9) section 5 of the indian limitation act, 1908, shall apply to 9 of 1908   an application to the high court under this section  - - - - - - notice of derrand 30 when any tax or penalty is due in consequence of any order passed under this act, the wealth-tax officer shall serve upon the assessee or other person liable to pay such tax or penalty a notice of demand in the prescribed form specifying the sum so payable and the time within which it shall be payable recovery of tax and penalties 31 (1) any amount specified as payable in a notice of demand issued under section 30 shall be paid within the time, at the place, and to the person mentioned in the notice, or if no time is so mentioned, then on or before the first day of the second month following the date of service of the notice, and any assessee failing so to pay shall be deemed to be in default (2) where an assessee has been assessed in respect of assets located in a country outside india, the laws of which prohibit or restrict the remittance of money to india, the wealth-tax of'ficer shall not treat the assessee as in default in respect of that part of the tax which is attributable to the assets in that country, and shall continue to treat the assessee as not in default in respect of that part of the tax until the prohibition or restriction of remittance is removed (3) notwithstanding anything contained in this section, where an assessee has presented an appeal under section 23, the wealthtax oft\cer may in his discretion treat the assessee as not being in default as long as such appeal is undisposed of 32 the provisions of sub-sections (1), (1 a), (2), (3), (4), (5), mode ot (sa), (6) and (7) of section 46 and section 47 of the income-tax act recovery shall apply as if the said provisions were provisions of this act and referred to wealth-tax and sums imposed by way of penalty under this act instead of to income-tax and sums imposed by way of penalty under that act, and to wealth-tax oftlcer and commissioner of wealth-tax insteadof to income-tax officer and commissioner of income-tax - - - - - - 16 of 1908 m where any document required to be registered under the restrieprovisions of clause (a), clause (b), clause (c) or clause (e) of sub- tionson section (1) of section 17 of the indian registration act, 1908, t=lllt;apurports to transfer, assign, limit or extinguish the right, title or \lans~~rs interest of any person to or in any property other than agricultural (·t immov_ land valued at more than one lakh of rupees, no registering officer able proappointed under that act shall register any such document, unless jjer1yin the wealth-tax officer certifies that-('ertam cases (a) such person has either paid or made satisfactory provision for the payment of all existing liabilities under this act or (b) the registration of the document will not prejudicially affect the recovery of any existing liability under this act  chapter vui miscellaneous35 at any time within four years from the date of any order rtdlftea passed by him, or it, the commissioner, the wealth-tax officer, the ti\)n of appellate assistant commissioner and the appellate tribunal may, ~lllstak  on his, or its, own motion rectify any mistake apparent from the record and shall, within a like period, rectify any such mistake which has been brought to the notice of the commissioner, the wealth-tax officer, the appellate assistant conunissioner or the appellate tribunal, as the case may be, by an assessee: provided that no such rectification shall be made which has the effect of enhancing the assessment unless the assessee has been given a reasonable opportunity of being heard in the matter 36 (1) if a person fails without reasonable cause-prosecu-(a) to furnish in due time any return mentioned in section tic"" 14; (b) to produce, or cause to be produced on or before the date mentioned in any notice under sub-section (2) or subsection (4) of section 16 such accounts, records and - documents as are referred to in the notice; (c) to furnish within the time specified any statement or information which such person is bound to furnish to the wealthtax officer under section 38; he shall, on conviction before a magistrate, be punishable with fine which may extend to ten rupees for every day during which the default continues (2) if a person makes a statement in a verification mentioned in section 14 or section 23 or section 24 or section 26 which is false, and which he either knows or believes to be false, or does not believe to be true he shall be punishable with simple imprisonment which may extend to one year, or with fine which may extend to one thousand rupees, or with both  - - - - expzanation-for the purposes of this section, "maptrate" means a presidency magistrate, a magistrate of the first class or a magistrate of the second clallll specially empowered by the central government to try offences u1\der this act power to take evi_ dence on oath, etc 37 the commissioner, the wealth-tax ofticer, the appellate assistant commissioner and the appellate tribunal shall, for the purposes of this act, have the same powers as are vested in a court under the code of civil procedure, 1908, when trying a suit in res- 5 of 1908 peet of the following matters, namely:-(a) enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavit; (ci) issuing commissions for the examination of witllesaes; and any proceeding before the commissioner, the wealth-tax offlcer, the appellate assistant commissioner or the appellate tribunal shall be deemed to be a judicial proceeding within the meaning of sections la and 228 of the indian penal code 450i 1860  - - - - - - meet of 39 whenever in respect of any proceeding under this act any transfer of wealth-tax authority ceases to exercise jurisdiction and is succeeded authorities by another who has and exercises such jurisdiction, the authority so succeeding may continue the proceeding from the stage at which appendthe proceeding was left by his predecessor' ing proceedings  - - - - - - 44 any assessee who is entitled to or required to attend before appearany wealth-tax authority or the appellate tribunal in connection ance with any proceeding or inquiry l1 'lder this act, except where he is ~::~ required under this act to attend in person, may attend by a person tax nuthoauthorised by him in writing in this behalf, being a relative of, or a rities by person regularly employed by, the assessee or a legal practitioner authorised or a chartered accountant or any other person having such qualiftr~resent ' b 'bed tatlves ea ions as may e prescrl , explanation-for the purposes of this section,-(a) the expression, "a person regularly employed by the asse8$ee" includes any officer of a scheduled bank with which the assessee maintains il current account or has other regular dealings; la ':f 1941 power to make rules (b) "chartered accountant" means a chartered accountant as defined in the chartered accountants act, 1949  - 46 (1) - - • - - - - - • - • - • (4) all rules made under this act shall be laid before each house of parliament, as soon as may be, after they are made, and shall be subject to such modifications as parliament may make during the session in which they are so laid or the session immediately following ,; -', -! l'wp  the schedule (see section 3) - • - rates of wealth-tax - • - part iiin the case of every company:-(i) on the first rupees five lakhs of net wealth nil (ii) on the balance of net wealth  ~ %: provided that in the case of a company which has incurred a net joss in any year computed in the manner hereinafter provided and which has not declared any dividend on its equity capital in respect of that year the rate of tax for the relevant year shall be 'nil, the loss referred to in the above proviso shall be computed in accordance with the provisions of sections 8, 9, 10 and 12 -of the income-tax act but without deducting the allowances referred to in paragraph (b) of the proviso to clause (vi) of sub-section (2) of section 10, sub-clause (via) and sub-clause (mb) of sub-section (2) of section 10 of that act or the allowance in respect of any losses brought forward from earlier years - - - - - -  a billfurther to amend the wealth-tax act, 19s7 (shri t t k~, mutiit of ~) 