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Issues:
1. Penalties levied under section 18(1)(c) of the Wealth Tax Act, 1957 for assessment years 1964-65 to 1970-71. Detailed Analysis: The Appellate Tribunal ITAT MADRAS-B heard appeals against penalties imposed by the Income-tax Appellate Tribunal against the penalties levied by the Income-tax Appellate Tribunal under section 18(1)(c) of the Wealth Tax Act, 1957 for the assessment years 1964-65 to 1970-71. The matter involved penalties imposed based on specific items and assets not disclosed by the assessee in the wealth tax returns, including jewellery and shares in Star Paper Mills Ltd. The assessee had voluntarily disclosed the assets and filed the required returns, paying taxes on the disclosed amounts. The value of jewellery and shares omitted from the returns was detailed for each assessment year. The assessee claimed that the jewellery belonged to his wife as "Stridhana," believing it was not includible in his assessments. Regarding the shares, the assessee argued that their omission was due to inadvertence and that they were exempt from wealth tax. The Tribunal found merit in the assessee's submissions, noting that the disclosure was made, and the omission did not justify penalties. The Wealth-tax levied and penalties imposed for the relevant years were detailed in a table, showing the substantial difference between the wealth tax amounts and the penalties imposed. The Tribunal observed that the penalties were disproportionately high compared to the wealth tax amounts, indicating no mens rea on the part of the assessee to conceal the assets. After considering all facts and circumstances, the Tribunal concluded that the assessee could not be deemed guilty of wealth concealment justifying the penalties under section 18(1)(c) of the Wealth Tax Act. Consequently, the Tribunal canceled the penalties levied, allowing the appeals in favor of the assessee.
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