9911796707
TMI Blog1973 (9) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ny notice under section 14(2) of the Act could be issued to him. In those returns the petitioner stated the estimated value of his immovable properties and computed his net wealth accordingly. However, at the time of assessment, in respect of each year, the Wealth-tax Officer determined the total value of the petitioner's immovable property at a higher amount, and, consequently, his net wealth in each year also was computed and taxed at a higher figure. While completing these assessments, the Wealth-tax Officer further directed that notices under section 18(1)(a) of the Act be issued to the petitioner to show cause why penalty as required by the Act be not imposed upon him. The petitioner then moved the Commissioner under section 18(2A), an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faith, made full disclosure of his net wealth... " It is the case of both the parties that the penalty in this case is being sought to be imposed merely for late filing of wealth-tax return and for no other reason and that the petitioner's claim for waiver of penalty was to be considered under clause (i) of section 18(2A). Under this clause, the Commissioner has been empowered to reduce or waive the amount of minimum penalty imposable for late filing of return only when he is satisfied that the assessee had, prior to the issue of notice to him under sub-section (2) of section 14, voluntarily and in good faith made full disclosure of his net wealth and had complied with certain other conditions as well. There is no dispute that, in this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the request made by the assessee. The expression "net wealth" has been defined in clause(m) to section 2 of the Wealth-tax Act, which reads as follows: "(m) 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than..." Keeping this definition in mind, it becomes obvious that in this case the assessee did not disclose the entire amount which went to constitute his net wealth, i.e., he did not make a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... full disclosure of his net wealth, 99 acted honestly. This necessarily implies that in some cases the assessee might be negligent in making a disclosure about his net wealth, and that is why the net wealth disclosed by him may not be found to be correct, but if he honestly thought that he had fully disclosed his net wealth he would not be lacking in good faith. In such a case although the disclosure made by him is ultimately found to be inaccurate it would not be possible to say that while making a full disclosure of his net wealth the assessee did not act in good faith. In our opinion, in the context, the question whether the assessee made full disclosure of his net wealth or not, has not to be looked into with reference to the net wealth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation in relation to his net wealth as required by the Wealth-tax Officer, it would not be possible to say that he did not make full disclosure of his net wealth. If those particulars have been given by the assessee honestly then, irrespective of the fact whether the estimated value given by the assessee was ultimately accepted by the assessing authority or not, it would not be possible to accuse the assessee of bad faith. The expression "in good faith made full disclosure of his net wealth" merely means that the assessee should have honestly described all his assets and liabilities which go to constitute his net wealth, along with their estimated value. If this has been done, it would become possible for the Commissioner to consider th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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