9911796707
TMI Blog2004 (7) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... case of an old assessee Explanation 3 to section 18(1)(c) can be invoked when the assessee has defaulted in filing the Wealth-tax return more particularly when the wealth was assessed as per the wealth declared in the return filed in compliance of a notice. 3. Facts of the case leading to these appeals briefly were that no returns were filed as prescribed under section 14 of Wealth-tax Act. There upon notice under section 17 was issued calling upon the appellant to furnished Wealth-tax return. In compliance Wealth-tax returns were furnished. Wealth declared was assessed as such without any enhancement by the orders passed under section 16(3)/17 all dated 28-3-2002. An admitted fact is that the appellant is a Wealth-tax assessee and asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for a notice under section 17 without any fear of penalty being levied. In the opinion of Ld. CWT(A) this would never have been the intention of the legislature by insertion of Explanation 3 of section 18(1). In his opinion this explanation has an inclusive provision specifying certain circumstances under which a defaulter assessee would be penalized. With this observation these penalties were affirmed. Now the appellant is further in appeal. 5. With this brief background we have heard the submissions of both the sides at length and also carefully examined the orders of the authorities below in the light of the relevant provisions of Wealth-tax Act. Certain basic facts have not been disputed such as that the appellant had been a regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) of section 16 or sub-section (1) of section 17 and the Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has assessable net wealth then such person all, for the purposes of clause (c) of this subsection, be deemed to have concealed the particulars of his assets or furnished in accurate particulars of any assets or debts in respect of such assessment year, notwithstanding that such person furnishes a return of his net wealth at any time after the expiry of either of the periods aforesaid applicable to him in pursuance of a notice under section 17.]" The above referred explanation was substituted by the Direct Tax Laws (Amendment) Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessed. So the scope of this explanation was clarified inter alia limited to new assessee only. Probably the committee has recommended this explanation keeping this in view in mind that a person who is already in the records of the Income-tax Department cannot avoid filing return sooner or later. While a new assessee can avoid filing return and take the advantage of getting the assessment time barred if unable to be located by the revenue authorities. So the new assessees who have not filed any return should not be placed in a better position than those who have filed a return regularly. Otherwise also this explanation appears to have been introduced to nullify the earlier view that non-filing of return do not tantamount to concealment. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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