1982 (9) TMI 130 - AT - Wealth-tax

Summary

Issues:
- Assessment of net wealth for three different assessment years
- Discrepancy in declared value of immovable property and estimated value by WTO
- Penalty for concealment of particulars of assets
- Rebuttal of statutory presumption of concealment
- Similarity in facts for assessment years 1965-66, 1966-67, and 1967-68

Analysis:
The judgment by the Appellate Tribunal ITAT Jabalpur pertains to three appeals concerning different assessment years, consolidated against a common order by the AAC of Wealth-tax. In the assessment year 1965-66, the WTO determined the net wealth of the assessee at Rs. 5,28,600, which included an immovable property named Gorakhpur property situated at Jabalpur valued at Rs. 4,20,000 by the WTO, whereas the assessee declared its value at Rs. 80,000. Subsequently, a penalty of Rs. 2,49,900 was levied for alleged concealment of assets, which was confirmed by the Appellate Commissioner. The assessee contended that the valuation was a matter of opinion and no concealment had taken place, as the declared value was Rs. 80,000, while the Tribunal estimated it at Rs. 94,588, leading to the conclusion that no concealment occurred.

Regarding the rebuttal of the statutory presumption of concealment under the Explanation below s. 18 (1) (c) of the Wealth-tax Act, the revenue argued that the presumption arises when the returned net wealth is below 80% of the finally assessed net wealth. However, the Tribunal found that the assessee had not shown gross negligence while filing the return, as the valuation was a subjective matter. The Tribunal also highlighted that the penalty was not justified, considering the minor difference between the declared and estimated values. Consequently, the penalty was deleted for the assessment year 1965-66.

For the assessment years 1966-67 and 1967-68, where similar discrepancies in declared and estimated values existed, the Tribunal followed the same reasoning and deleted the penalties. The representatives confirmed the similarity in facts for these years, leading to the conclusion that penalties for these years were also unjustified. Therefore, the appeals were allowed, and the penalties were deleted for all three assessment years.