1990 (2) TMI 94 - AT - Wealth-tax

Summary

Issues:
- Appeal against penalties levied by WTO under section 18(1)(c) of the Wealth Tax Act for the assessment years 1979-80 to 1981-82.

Detailed Analysis:

1. The consolidated appeals by the assessee were against the penalties confirmed by the AAC 'C' Range, Bombay, for the assessment years 1979-80 to 1981-82. The grievance was that the penalties were confirmed without considering that the difference in returned wealth and assessed wealth was due to valuation discrepancies of jewellery and property, not concealment.

2. The assessee declared net wealth for each year, including jewellery values, which were later assessed higher by the WTO. The penalties under section 18(1)(c) were imposed due to discrepancies in jewellery valuation. The assessee argued that there was no concealment, and the valuation was based on genuine belief, supported by a valuation report.

3. The assessee's counsel contended that full disclosure was made, and penalties were not warranted under section 18(1)(c) as there was no concealment or inaccurate particulars provided. The Departmental Representative argued that inaccurate jewellery estimates were provided despite available valuation reports.

4. The Tribunal analyzed section 18(1)(c) of the Wealth Tax Act, noting that the assessee disclosed all jewellery and silver details without any allegation of concealment. The valuation differences were attributed to the assessee's estimates, not inaccurate particulars. The Tribunal held that penalties were not justified as there was no concealment or submission of inaccurate particulars.

5. The decision emphasized that there was no concealment or submission of inaccurate particulars by the assessee, as all wealth details were disclosed. The Tribunal ruled in favor of the assessee, setting aside the penalties imposed by the WTO for the respective assessment years.

6. Consequently, the appeals of the assessee were allowed, and the penalties levied by the WTO under section 18(1)(c) for the assessment years 1979-80 to 1981-82 were deleted.