9911796707
TMI Blog1977 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. As the returns were not filed on due dates, penalty proceedings were initiated by the WTO against the assessee under. s 18(1)(a) of the WT Act,1957(for short, the Act,1957). Show cause notices were issued to the assessee. Reply was submitted by the assessee stating that he was under the Bonafide belief that his wealth is below taxable limit and, therefore, he was not required to file returns. The WTO did not accept the plea of the assessee and he rejected the same observing thus:- "Since the assessments have been framed on agreed basis, no reliance can be placed on the explanation afforded by the assessee in the matter." He therefore, imposed the penalties in the sum of Rs. 1,330,Rs. 1,092 and Rs. 523 for the asst. yrs.1971-72 to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f only agricultural land and there is no other taxable asset with him. Tax on agricultural land was levied for the first time for the asst. yr.1970-71 for which the return was filed by the assessee pursuant to the notice served by the Department on 26th July,1973. The AAC took the view that when the assessee had already filed wealth-tax return for the said assessment year on 26th July, 1973,his belief that his wealth was below the taxable limit, should have disappeared at least after 26th July, 1973. In our opinion, this observation does not appear to be correct. The representative for the assessee submitted before us that even for the asst. yr. 1970-71, the assessee returned the wealth in the sum of Rs. 1,44,000 and the assessment was made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment for the asst. yr. 1970-71. The assessee is, therefore, required to explain the delay after 21st Jan., 1974. No satisfactory explanation has been given by the assessee to explain the delay after 21st Jan., 1974 and, therefore, we hold that the default in the case of the assessee remains unexplained from 21st Jan., 1974. The onus is on the Revenue to prove that there was delay without reasonable cause on the part of the assessee right from 26th July, 1973. This onus has not been discharged by the Revenue. The assessee has rather explained the delay up to 21st Jan., 1974. 5. For the reasons, we hold that the penalty shall be recomputed for completed months of defaulting period commencing from 21st Jan., 1974 to 17th July, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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