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TMI Blog1992 (1) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... y the WTO under section 16 of the W.T. Act. The WTO accordingly made ex parte assessments under section 16(5) of the W.T. Act. These assessments were set aside by CWT (Appeals) as per his order dated 23-6-1987. Meanwhile the assessee filed returns for all the assessment years under appeal on 31-3-1987. The assessee claimed that the aforesaid returns were filed by the assessee under the Amnesty Scheme as introduced by the C.B.D.T. as per its Circular No. 439, dated 15-11-1985. The assessee, therefore, claimed that no penalty was leviable in view of the above and other Circulars. This contention was rejected by the WTO. According to him, the assessee had failed to file return within the time allowed under section 14(1) of the W.T. Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) to the assessee but these were not complied with. The WTO accordingly made ex parte assessments. The Amnesty Scheme was applicable only to cases where returns were filed suo motu before detection by the department. In the present case, the WTO had already completed assessment and had detected the wealth of the assessee. Therefore, returns cannot be treated as having been filed suo motu under the Amnesty Scheme. Shri Choudhury accordingly justified levy of penalty and submitted that CWT (Appeals) was in error in misreading Circular of C.B.D.T. relating to Amnesty Scheme. Shri Singh, the ld. counsel for the assessee supported the impugned order. 5. We have carefully considered the rival submissions of the parties. We have examined the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rosecution, taxpayers would appreciate that this liberal attitude on the part of the Govt. should elicit response from the wealth-tax payers within a reasonable time and cannot be expected to continue for all time to come. Such immunity from penalty and prosecution will be available only to such persons whom come forward and show their true wealth and pay tax thereon by March 1986. (Sd.) M.S. Narayanan, Chairman, Central Board of Direct Taxes, F. No. 255/86/85-IT(A-II) " 7. Shri Choudhury, the Id. departmental representative as has already been noted, laid stress on words "come forward suo motu before detection by the department" in the Circular to contend that Amnesty Scheme was available only to cases not detected by the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the W.T. Act and on satisfaction of conditions specified therein. The clause (1) of the section (before its omission w.e.f. 1-4-1989) provided that a penalty under section 18(1)(a) could be waived if the assessee "has prior to the issue of a notice to him under sub-section (2) of section 14, voluntarily and in good faith made full and true disclosure of his net wealth". Likewise penalty imposed/imposable under section 18(1)(c) could be waived only if the disclosure of concealed wealth was made prior to detection of concealment by the concerned assessing officer. Thus waiver of penalty under the above provision is possible on satisfaction of certain conditions. But we see no reason to import all the conditions for waiver in the Amnesty Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e condition required was to disclose true wealth and pay taxes within the stipulated time. This is admittedly satisfied in these cases. The Circular is to be considered in a liberal manner and not as a technical person with expert knowledge would do. The Circular was meant for common tax payee and should be viewed from his angle. The Amnesty Scheme is not to be read as a statute, its object to encourage the defaulting assessees to come forward and disclose wealth is to be kept in mind. If in consideration of the concessions and in response to the assurance given, returns were filed, we see no reasons why penalty should be levied. 11. Our above view finds further support from the clarification given on 2-1-1985 relating to Circular of C.B. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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