Section 34CProvisional attachment to protect revenue in certain cases

Where, during the pendency of any proceeding for the assessment of net wealth or for the assessment or reassessment of net wealth which has escaped assessment, the [Assessing Officer] is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the [Chief Commissioner or Commissioner], by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by section 32. [Explanation.—For the purposes of this sub-section, the proceedings under sub-section (5) of section 37A shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment.]

Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): 1. Subs. by Act 41 of 1975, s. 98, for section 34B (w.e.f. 1-10-1975). Earlier section 34B was inserted by Act 46 of 1964, s. 31 (w.e.f. 1-4-1965). 2. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 3. Subs. by s. 127, ibid., for “Commissioner” (w.e.f. 1-4-1988). 4. Ins. by Act 26 of 1988, s. 62 (w.e.f. 1-4-1988). [35. Rectification of mistakes.—(1) With a view to rectifying any mistake apparent from the record—

of section 16;] [ [(aaa)] the Valuation Officer may amend any order passed by him under section 16A;] [(b) the [Joint Director] or [Joint Commissioner] or Director or Commissioner or Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 18A;] [(c) the Deputy Commissioner (Appeals) or Commissioner (Appeals) may amend any order passed by him under section 23 [or section 23A];

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 [, as it existed immediately before its amendment by the Finance Act, 1992,] is paid within six months of the date of the order passed in such appeal or revision, the [Assessing Officer] may, notwithstanding anything to the contrary in this Act, rectify the assessment by allowing a deduction to the extent the tax, penalty or interest so paid stood disallowed therein as if such rectification were a rectification of a mistake apparent from the record.

Subject to the other provisions of this section, the authority concerned—

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 of its intention so to do and has allowed the assessee a reasonable opportunity of being heard. 1. Subs. by Act 46 of 1964, s. 32, for section 35 (w.e.f. 1-4-1965). 2. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 3. Subs. by Act 27 of 1999, s. 97, for clause (aa) (w.e.f. 1-6-1999). Earlier clause (aa) was inserted by Act 4 of 1988, s. 151 (w.e.f. 1-4-1989). 4. Ins. by Act 45 of 1972, s. 15 (w.e.f. 1-1-1973). 5. Clause (aa) renumbered as clause (aaa) therof by Act 4 of 1988, s. 151 (w.e.f. 1-4-1989). 6. Subs. by Act 4 of 1988, s. 160, for clause (b) (w.e.f. 1-4-1989). 7. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). 8. Subs. by s. 66, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998). 9. Subs. by Act 4 of 1988, s. 160, for clauses (d) and (e) (w.e.f. 1-4-1989). Earlier clause (c) was omitted by Act 41 of 1975, s. 99 (w.e.f. 1-4-1976). 10. Ins. by Act 10 of 2000, s. 76 (w.e.f. 1-6-2000). Earlier it was omitted by Act 3 of 1989, s. 74 (w.e.f. 1-4-1989). 11. Ins. by Act 18 of 1992, s. 97 (w.e.f. 1-4-1993). 12. Subs. by Act 45 of 1972, s. 15, for “Appellate Assistant Commissioner” (w.e.f. 1-1-1973). 13. Subs. by Act 4 of 1988, s. 127, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988). 14. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978).

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.

Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the [Assessing Officer] shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of demand shall be deemed to be issued under section 30 and the provisions of this Act shall apply accordingly. [(6A) Where any amendment made by the Valuation Officer under clause (aa) of sub-section (1) has the effect of enhancing the valuation of any asset, he shall send a copy of his order to the [Assessing Officer] who shall thereafter proceed to amend the order of assessment in conformity with the order of the Valuation Officer and the provisions of sub-section (6) shall apply accordingly.]

No amendment under this section shall be made after the expiry of four years—

Where any matter has been considered and decided in a proceeding by way of an appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any other law for the time being in force, amend the order under this section in relation to any matter other than the matter which has been so considered and decided.] [35A. Wilful attempt to evade tax, etc.—(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable,—

If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provisions of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. 1. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 2. Ins. by Act 45 of 1972, s. 15 (w.e.f. 1-1-1973). 3. Subs. by Act 67 of 1984, s. 69, for “from the date of the order passed in the first appeal or revision” (w.e.f. 1-10-1984). 4. Subs. by s. 69, ibid., for “from the date of the order sought to be amended” (w.e.f. 1-10-1984). 5. Ins. by Act 41 of 1975, s. 100 (w.e.f. 1-10-1975).