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Levy of penalty under section 18(1)(c) of the Wealth Tax Act for concealment of wealth. Analysis: The judgment pertains to four appeals by the assessee concerning the imposition of penalties by the Income-tax Appellate Tribunal (ITAT) under section 18(1)(c) of the Wealth Tax Act. The appeals cover assessment years 1964-65 to 1967-68. The key issues revolve around the inclusion of undisclosed assets, specifically an immovable property, a fixed deposit, and an under-statement of cash in the returns filed by the assessee. The Wealth Tax Officer (WTO) initiated penalty proceedings due to these discrepancies, leading to penalties imposed by the Income-tax Appellate Commissioner (IAC) of Wealth Tax. The IAC imposed penalties for the fixed deposit and under-statement of cash, while excluding the immovable property from penalty consideration. The assessee argued that the omissions were due to oversight, without any intention to defraud the revenue. The legal representative contended that penalties were not warranted, citing the advanced age and health issues of the assessee as mitigating factors. The legal grounds of the appeal included challenges to the jurisdiction of the IAC to levy penalties and the timing of applicable penalty provisions. The ITAT, after considering the facts and arguments presented, ruled in favor of the assessee. The tribunal found that the penalties were not justified as the omissions were inadvertent and not indicative of an intent to conceal wealth. The judgment highlighted the advanced age and health condition of the assessee as factors contributing to the oversight in disclosing assets. The tribunal emphasized that the negligible tax implications of the omitted amounts further supported the lack of fraudulent intent. Additionally, the ITAT rejected the legal objections raised by the assessee regarding the timing of penalty provisions and the jurisdiction of the IAC. The tribunal clarified that penalty proceedings are governed by the law in force at the initiation of proceedings and upheld the jurisdiction of the IAC based on the amounts determined by the WTO. However, for the three assessment years where penalties were below Rs. 25,000, the ITAT ruled that the penalties imposed were not in accordance with the law and therefore invalid. In conclusion, the ITAT allowed all the appeals, overturning the penalties imposed by the IAC of Wealth Tax. The judgment underscores the importance of intent, circumstances, and legal provisions in determining the imposition of penalties for concealment of wealth under the Wealth Tax Act.
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