9911796707
TMI Blog1979 (10) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner filed the returns on February 22, 1973, and the assessment was completed by the WTO virtually accepting the wealth that had been disclosed, by his order dated March 15, 1973. As the return had been filed beyond the time prescribed, the WTO issued notice under s, 18(1)(a) of the W.T. Act to show cause why penalty for late submission of wealth-tax returns should not be imposed. The petitioner filed a petition before the Commissioner seeking waiver of penalty on the ground that he had disclosed the wealth voluntarily and fully and had co-operated in finalisation of the assessment and had also paid up the taxes. It would appear that the petitioner appraised the WTO of having filed before the Commissioner a petition for waiver of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, penalty should have been waived and the order made by the Commissioner without giving an opportunity to the petitioner to be heard is untenable. About 4 odd acres of agricultural land inherited had been retained by the petitioner and his brothers in common as association of persons and after litigating with the trust board, a layout was formed under its supervision for disposal of sites. As the association of persons was not liable for wealth-tax no return had been filed. Only in 1972-73 when accounts were made up with the help of chartered accountants they were advised that the petitioner should include for wealth-tax, the value of the share pertaining to his branch and in these circumstances the returns came to be filed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter. It purports to have been made on the perusal of the record only and does not refer to the representative of the assessee or the assessee being heard in the matter. The material portion is as follows : " On perusal of the records, I find that the assessee filed the returns late even though he was conscious of the fact that he possessed valuable properties which he was trying to exploit by planning a layout and secured Government permission to do so. He was thus conscious of the values of the properties and got the orders of the Trust Board acquiring these properties cancelled. Since the returns were filed before the issue of notices and taxes have been paid, I reduce the penalties as under. " The fact that the returns were filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voluntarily and in good faith made full disclosure of his net wealth ' the condition mentioned in clause (a) stands satisfied. The expression 'voluntarily' means 'without compulsion' and ' good faith' means 'with due care and caution'. Hence, if the return filed by the assessee does not show that he has deliberately furnished wrong particulars about his wealth or deliberately omitted to include all the items of taxable wealth then he should be considered as having satisfied the above conditions. " Further on, it was observed : " It is needless to mention that the Commissioner while exercising his discretion under section 18(2A) has to bear in mind several factors such as the gravity of the default, the loss occasioned to the revenue by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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