9911796707
TMI Blog2004 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ly stated, the facts giving rise to the present reference are as follows: The reference relates to the assessment years 1967-68 to 1975-76. The respondent-assessee had made a disclosure of net wealth in terms of section 15(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975, subsequently replaced by the Voluntary Disclosure of Income and Wealth Act, 1976 (hereinafter referred to as "the Disclosure Act"). As required under rule 5 of the Voluntary Disclosure of Income and Wealth Rules, 1975, the respondent-assessee had made the declaration in duplicate in Form C and accompanied by a return of net wealth in the form prescribed under section 14 of the Act. She made a declaration for the assessment years 1967-68 to 1975-76 befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty proceedings be dropped. The Wealth-tax Officer was not satisfied with the explanation submitted by the respondent-assessee and imposed various amounts of penalty under section 18(1)(a) of the Act. Feeling aggrieved, the assessee preferred separate appeals before the Appellate Assistant Commissioner who, however, confirmed the order imposing the penalty. Still feeling aggrieved, the assessee preferred separate appeals before the Tribunal. The Tribunal while allowing the appeal has held that the action of the Wealth-tax Officer in taking recourse to section 18(1)(a) of the Act for imposing the penalties because of the alleged failure on the part of the assessee to pay the tax found payable in consequence of her having voluntarily discl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities as provided in subsection (3) of section 3 of the Disclosure Act. Section 15 of the Disclosure Act reads as follows: "15. Voluntary disclosure of wealth.- (1) Subject to the provisions of this section, where any person makes, on or after the date of commencement of this Act but before the 1st day of January, 1976, a declaration in respect of- (a) the net wealth chargeable to wealth-tax for any assessment year for which he has failed to furnish a return under section 14 of the Wealth-tax Act; or (b) the value of the assets which has not been disclosed, or the value of the assets which has been understated, in any return of net wealth for any assessment year, then, notwithstanding anything contained in the Act, the net wealth or, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment of the net wealth of the declarant under the provisions of the Wealth-tax Act. (5) The immunity provided under sub-section (1) shall not be available to the declarant unless the wealth-tax chargeable in respect of the net wealth for the assessment year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of section 5 and the declarant invests in the securities referred to in sub-section (3) of section 3 within the time specified in sub-section (4) of section 5 the sum specified in sub-section (6) of this section. Explanation.- For the purposes of this sub-section, wealth-tax chargeable in respect of the net wealth for any assessment year for which the declaration is made sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section, in respect of the last of such assessment year. (7) Where any wealth-tax is paid by the declarant for any assessment year in accordance with the provisions of section 5, read with sub-section (5) of this section, credit therefor shall be given to the declarant in the assessment made under the Wealth-tax Act for that year." From a perusal of the aforesaid section it will be seen that the immunity provided under sub-section (1) is not available to the declarant where the wealth-tax chargeable has not been paid and the investment in the securities referred to in section 3(3) of the Disclosure Act has not been made. Under the Rules framed under the Disclosure Act, the declaration has to be made in duplicate in the prescribed Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net wealth had been filed beyond time. In this view of the matter, we are of the opinion that the Tribunal was not justified in holding that the penalty for late filing of the return under section 18(1)(a) of the Act was not attracted. In the case of Banaras Chemical Factory [1977] 108 ITR 96, this court has held that the law does not provide that if the assessee made a voluntary disclosure of its concealed income, it has to be absolved from penalty. A similar view has been taken by the Delhi High Court in the case of Jaswant Rai [1982] 133 ITR 19. In view of the foregoing discussion, we answer the question of law referred to us in the negative, i.e., in favour of the Revenue and against the assessee. However, there shall be no order as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
