2015 (10) TMI 26 - AT - Wealth-tax

Levy of penalty u/s 18(1)(c) of the Wealth Tax Act 1957 - assessee had shown motor car in the depreciation schedule but did not file the wealth tax - Held that - Assessee has filed returns prior to notices issued u/s. 17 of the Act. We noted that the return in each of the A.Ys has been filed by the assessee subsequent to due date and return filed by the assessee cannot even regarded to be belated return as per the provision of Wealth Tax Act. In view of these facts, we do not find any infirmity or illegal in the order of CIT(A) who confirmed the penalty in each of the case. It is not the case of the assessee that the assessee was not aware of about this provision of Wealth Tax Act as the assessee was not earlier been assessed to Wealth Tax Act and it was merely a technical venial. - Decided against assessee.

Summary

Issues:
Levy of penalty under section 18(1)(c) of the Wealth Tax Act 1957 for assessment years 2006-07 to 2009-10.

Analysis:
The Appellate Tribunal ITAT Kolkata addressed the common issue of penalty imposition under section 18(1)(c) of the Wealth Tax Act 1957 in four appeals for the assessment years 2006-07 to 2009-10. The assessee had shown a motor car in the depreciation schedule but failed to file wealth tax returns, leading to notices issued by the Assessing Officer under section 17 of the Act. The returns were subsequently filed by the assessee after the due date in each assessment year. The Assessing Officer imposed penalties under section 18(1)(c) of the Act, which were upheld by the Commissioner of Income Tax (Appeals) Central-I, Kolkata.

Upon reviewing the submissions and orders of the tax authorities, the Tribunal noted that the returns were filed after the due date and could not be considered belated returns under the Wealth Tax Act provisions. The Tribunal found no fault in the Commissioner's decision to confirm the penalties, emphasizing that the assessee's awareness of the Act's provisions was crucial, despite being a first-time assesses. Consequently, the Tribunal upheld the Commissioner's order, dismissing all appeals filed by the assessee.

In conclusion, the Appellate Tribunal affirmed the penalties imposed under section 18(1)(c) of the Wealth Tax Act 1957 for the assessment years in question, based on the assessee's delayed filing of returns despite being aware of the Act's requirements. The appeals were dismissed, and the Tribunal's decision was pronounced in an open court on 15.6.2015.