1987 (1) TMI 127 - AT - Wealth-tax

Summary

Issues: Penalty under section 18(1)(c) for non-disclosure of jewellery in wealth tax assessment.

Analysis:
1. The case involves an appeal by the assessee against a penalty imposed under section 18(1)(c) for non-disclosure of jewellery in the wealth tax assessment for the year 1973-74.
2. The original return filed in 1975 did not include the value of jewellery, which was later added by the WTO based on earlier records from assessments in Raichur.
3. The assessee contended that the jewellery belonged to female family members and was not required to be declared. However, the explanation was rejected, leading to the imposition of a penalty.
4. The AAC referenced a search in 1974 where jewellery was seized, and subsequent income tax proceedings where explanations were provided for the possession of jewellery.
5. The Tribunal's orders in income tax assessments for 1975-76 indicated discrepancies in the valuation of jewellery and accepted explanations for a portion of the seized jewellery.
6. The Tribunal found that only jewellery worth Rs. 9,000 remained unexplained, contrary to the penalty amount imposed.
7. The Tribunal concluded that the penalty was not justified as there was no deliberate concealment by the assessee, and the penalty was cancelled.
8. The orders of the lower authorities were set aside, and the appeal by the assessee was allowed.