(i) Where the voluntarily disclosed income is represented by cash (including bank deposits), bullion, investment in shares, debts due from other persons, commodities or any other assets specified in the declaration made under sub-section (1) of section 3— Exemption from wealthtax In respect of assets specified in declaration.
(a) in respect of which the declarant has failed to furnish a return under section 14 of the Wealth-tax Act for the assessment year commencing on the 1st day of April, 1975 or any earlier assessment year or years, or
(b) which have not been shown in the return of net wealth furnished by him for the said assessment year or years, or
(c) which have been understated in value in the return of net wealth furnished by him for the said assessment year or years, then, notwithstanding anything contained in the Wealth-tax Act,—
(i) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such assets shall not be included in his net wealth for the said assessment year or years;
(n) the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken into account in computing the net wealth of the declarant for the said assessment year or years.
(2) The provisions of sub-section (2) shall not apply unless the condl- »ns specified in sub-section (1) of section 8 are fulfilled by thle declatit.
(3) All words and expressions used in this section and in section 15 but not defined and denned in the Wealth-tax Act shall have the meanings respectively assigned to them in that Act.
Sue. 1] THE GAZETTE OF INDIA E XTRAORDINABY 671
14. (I) Subject to the provisions of this section, where any books of account, other documents, money, bullion, jewellery or other valuable articles or things belonging to a person have been seized as a result of a search under section 132 of the Income-tax Act or section 37A of the Wealth-tax Act and such person, (hereafter in this section referred to as the declarant) makes, on or after the date of commencement of this Ordinance but before the 1st day of January, 1976, a declaration in accordance with sub-section (2) in respect of any income relating to the previous year in which such search was made or any earlier previous year— Disclosure of income in cases of search and seizure.
(a) for which he has failed to furnish a return under section 139 of the Income-tax Act, or
(b) which he has failed to disclose In a return of> income furnished by him under; the Income-tax Act before the commencement of this Ordinance, or
(c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Indian Income-tax Act, 1922, or the Income-tax Act or to disclose fully and truly all material facts necessary for his assessment or otherwise, 11 of 1922.
then, notwithstanding anything contained in any of the Acts mentioned in sub-section (1) of section 8 or the Wealth-tax Act, the amount of Income so declared or, as the case may be, the value of the assets representing tfuch income, shall not be taken Into account for the purposes of—
(1) payment of interest by the declarant under sub-section (8) of section 139 of the Income-tax Act;
(fi) payment of interest by the declarant under section 215 or section; 217 of the Income-tax Act or the corresponding provisions of the Indian Income-tax Act, 1922;11M1B22.
(ill) imposition of penalty on the declarant under the provisions of any of the said Acts, except under section 221 of the Income-tax Act or the corresponding provisions of any of the other said Acts;
and
(iv) prosecution of the declarant under the provisions of any of the said Acts.
(2) The declaration under sub-section (1) shall be made to the Commissioner and shall be in such form and shall be verified in such manner as may be prescribed by rules made by the Board.
(3) A declaration under this section shall be signed by the person specified in sub-section (2) of section 4 as if the declaration had been made under that section.
(4) A copy of the declaration made by the declarant under subfiection(l) shall be forwarded by the Commissioner to the Income-tax Officer and the information contained therein may be taken into account for the purposes of the proceeding^ relating to assessment or reassessment of the income of the declarant under the provisions of any of the Acts mentioned in sub-section (1) of section 8 or the Wealth-tax Ac^ 672 THE GAZETTE OF INDIA EXTRAORDINARY [PART II —
(5) The immunity provided under sub-section (1) shall not be available to the declarant unless the tax chargeable in respect of the income of the previous year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of section 5.
Explanation.—For the purposes of this subjection, tax chargeable in respect of the income of any previous year for which the declaration is made shall be,—
(a) where the declarant has not furnished a return in respect of the total income of that year and no assessment has been made in respect of the total income of* that year, the tax payable on the income declared under sub-section (1) for that year as if such income were the total income;
(b) where the declarant has furnished a return in respect of the total income of that year and no assessment has been made in pursuance of such return, the tax payable on the aggregate of the total income returned and the income declared under sub-section (I) for that year as if such aggregate were the total income, as reduced by the tax payable on the basis of the total income returned; and
(c) where an assessment in respect of the total income of that year has been made, the tax payable on the aggregate of the total income as assessed and the income declared under sub-section u ) for that year as if such aggregate were the total income, as reduced by the tax: payable on the basis of the total income as assessed.
(6) Where any tax is paid by the declarant in accordance with the provisions of section 5, read with sub-section (5) of this section, credit therefor shall b« rgiven to the declarant in the assessment made under the Indian Income-tax Act, 1922, or, as the case may be, the Income-tax Act, in respect of his total income of the previous year or years.
11 o*JM2.
(7) Nothing in sub-section (1) shall apply in relation to any income which has been included in the total income of the declarant in any assessment made by the Income-tax Officer before the date on which the declaration under that sub-section is made.