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TMI Blog2015 (12) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to the assessment years 1987-88 and 1988-89, it was recorded that since the assessee had incurred losses in the assessment year 1987-88, its case fell within the purview of reasonable cause as it was under bonafide belief that no wealth tax was payable under the said years when it had incurred losses. Thus, the penalty in respect of these assessment years was also deleted. - no substantial question of law arises - Decided against Revenue. - WTA No.2 of 2014 - - - Dated:- 2-11-2015 - MR. AJAY KUMAR MITTAL AND MR. RAMENDRA JAIN, JJ. For The Appellant : Mr. Jora Singh Klar, Advocate For The Respondent : None Ajay Kumar Mittal,J. 1. This order shall dispose of WTA Nos. 2 to 6 of 2014 as according to the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, the ITAT was right in law in deleting penalty under section 18(1)(c) of the Wealth Tax Act, 1957 by holding that the valuation of assets by a District Valuation Officer is only an estimate without appreciating that the assessee has itself not disputed the valuation of assets? iv) Whether in the facts and circumstances of the case, the ITAT was right in law in deleting penalty under section 18(1)(c) of the Wealth Tax Act, 1957 whereas in view of section 40 of the Finance Act, 1983, the assessee was not entitled to any benefit under Part II of Schedule I of the Wealth Tax Act? v) Whether in the facts and circumstances of the case, the ITAT was right in law in deleting penalty under section 18(1)(c) of the Wealth Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee did not include the value of the asset in its wealth tax return as the assessee was running into losses and claimed that it was covered under Schedule I Part II of the Wealth Tax rules that in cases where there was loss assessed under the Act, no wealth tax was chargeable. As the value of the assets was included in the hands of the assessee in these assessment years, the Assessing Officer levied penalties for these years also. Aggrieved by the order, the assessee filed appeal before the CWT(A). Vide consolidated order dated 6.11.2007, the CWT(A) upheld the penalty in view of huge difference between the returned wealth and assessed wealth. On further appeal by the assessee, the Tribunal vide order dated 22.11.2013, Annexure A.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was under bonafide belief that no wealth tax was payable under the said years when it had incurred losses. Thus, the penalty in respect of these assessment years was also deleted. The relevant findings recorded by the Tribunal read thus:- 15. Penalty under section 18(1)(c) of the Act is leviable where the assessee has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts. In the facts of the present case, the assessee, for assessment years 1984- 85 to 1986-87 had furnished the particulars of the asset in the return of wealth filed by it. However, there was difference in the value of the said asset as returned by the assessee and as assessed by the authorities below. The basis for declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 1992 w.e.f 1.4.1993, it was provided that in a case of a company which had incurred net loss in any year and had not declared any dividend on its equity capital in respect of that year, the rate of tax for the relevant year shall be nil. In view of the aforesaid provisions of the Act and also because of the fact that the assessee had incurred losses in assessment year 1987-88, the case of the assessee fell within the purview of reasonable cause as the assessee was under the bonafide belief that no wealth tax was payable during the said years when it had incurred losses. In the totality of the aforesaid facts and circumstances, we find no merit in levy of penalty under section 18(1)(c) of the Act and accordingly we direct the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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