9911796707
TMI Blog1977 (10) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... 9-70 and 16,012 for 19709-71 which have been cancelled by the learned AAC. The common ground of the Department. is that the learned AAC had erred in cancelling the penalties. The assessee s common grounds in the cross objection are, firstly, the Departmental appeals having not been filed on proper from as prescribed by the Rules are liable to be rejected and secondly, the penalties orders were rightly quashed by the AAC. 3. The facts briefly are as follows : The assessee, Lt. Col. Dalel Singh was Private Secretary to the former Ruler of Kota. He retired in 1967. For asst. yrs. 1967-68 to 1970-71, the wealth tax returns were due on or before 30th June of each assessment year. The assessee, however, did not file these returns within the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AAC had confirmed the net wealth of the assessee at figures much above the minimum taxable under the WT Act. He also felt that the valuation certificates relied upon by the assessee had been procured from one Shri M. Abdullah who was an old associate of the assessee. The WTO also considered the fact that the assessee s immovable property styled Krishna Niwas was a big building situated in the best locality of Kota. He came to the conclusion on these considerations that it could not be said that the assessee was under bona fide impression that his net wealth was below the taxable limit and on that view he levied the impugned penalties. The assessee appealed to the AAC. Before the AAC it was submitted that the penalty proceedings being qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1,70,000 or so. It was further pointed out that in the concerned assessment years, wealth tax was not payable on net wealth upto 2 lakhs and even on the basis of value fixed by the valuer, Shri Abdullah, which had varied from Rs. 1,23,000 to Rs. 1,74,000 the net wealth of the assessee was for below the taxable limit. The learned AAC considered these submissions. He felt that the valuation by the recognised valuer, Shri Abdullah could not be called in question merely because he was known to the assessee. He also found that no comparable sale had been mentioned by the WTO as a support for the estimate made by him for the various years. He further found that the penalty proceedings under s. 18(1)(a) for these years were eventually dropped b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under a legal obligation to file the wealth-tax returns in terms of s. 14(1) of the WT Act. Referring to lack of bona fides on the part of the assessee, he said that the assessee had valued the residential property at 70,000 to 76,000 in the wealth-tax returns for these years filed on 1st Oct., 1971 while he had with him the valuer s certificate which is dt. 12th Aug., 1971 determining the value of the same property at figures varying from 1,23,000 to 1,76,000. He said further that the assessee being private secretary to the former rule of Kota, must have been concerned with transactions of the former ruler in immovable property and with this back ground it can not be said that he was not aware of the prevailing market price of the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selves dropped the proceedings under s. 18(1)(a) for these assessment years which showed clearly that there was no mens rea on the part of the assessee. The learned counsel concluded by saying that the non filing of the wealth tax returns was solely due to the genuine belief on the part of the assessee that he did not have taxable wealth and, therefore, the AAC had rightly quashed the penalties. 5. We have carefully considered the rival submissions. It does appear, as the learned AAC has said, that the main item of wealth of the assessee is the house property known as Krishna Niwas situated in Civil lines, Kota. The assessee s liability to wealth tax would depend entirely on the value of this property. We also find that in all these asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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