9911796707
TMI Blog1982 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... t. yr. 1974-75 and on 21st Sept., 1976 for asst. yr. 1975-76. The assessee's wealth the for both the years comprised of agricultural land and non-agricultural assets in the first year were below Rs. 2 lakhs and in the second year though as per statement filed by the assessee the same were in excess of Rs. 2 lakhs by Rs. 3,500 only. The WT returns for the two years under consideration were due to be filed by the assessee on 31st July, 1974 and 31st July, 1976 respectively. It is an uncontroverted fact that both these returns were filed late, as indicated above. 3. When the WTO initiated proceedings under s. 18(1)(a), the assessee came forward with an explanation having two limbs. First being that he was ignorant about the liability and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first year were much below taxable limit whereas for the second year the same were just in the vicinity of Rs. 2 lakhs. He submitted that it was on the advise of the counsel later on voluntarily for the two years under consideration and for the third subsequent year also for which as well a penalty of Rs. 38 was levied but the same being an insignificant amount it was not disputed by the assessee. He submitted that about the wealth-tax liability of agricultural land as such even authorities have been ignorant, what to mention of poor subject. He submitted that he well knows that ignorance of law is no excuse but even then the bona fide belief, if results out of ignorance, should not be ignorant for the purpose of levy of penalty. He also s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 where their Lordships made certain observations about the defects of valuation of agricultural lands. Regarding this, the ld. Deptl. Rep. said that the same is of no avail and could not come to the assessee's rescue. 8. After taking into consideration the rival submissions and on perusal of facts, which are detailed above in uncontroverted form, we are unable to sustain the levy of penalties for the two years under consideration. Both the lower authorities have considered the two limbs of the explanation of the assessee as contradictory about the wealth-tax liability and that return is to be filed only after notice is received from the WTO. There is no contradiction same, according to us. One can be ignorant about ones wealth-tax liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by the petitioner and imposed penalties on him under s. 18(1)(a). The CWT in the application under s. 18B waived the penalties for the asst. yrs. 1970-71 and 1971-72 but refused to do so for the subsequent assessment years. It is not disputed that the petitioner had correctly disclosed the particulars of the land in the returns and that the returns were filed before the issuance of the notice under ss 14(2)/17. The value of the land has always posed difficulties. The wealth-tax on agricultural land has now been abolished. The budget speech of the Minister of Finance made on 18th June, 1980 in the Parliament in this regard is as follows: 'At present, agricultural property is included in the taxable wealth-tax. At the time when agri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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