Liberal construction of amnesty relief under wealth tax law bars penalty for voluntary disclosure made within the scheme period.

An amnesty scheme granting relief from penalty under the Wealth-tax Act must be construed liberally to encourage voluntary disclosure within the stipulated period. The Tribunal held that the scheme was not confined to first-time or undiscovered defaults and could cover earlier defaults, pending matters, and completed assessments where the circular language indicated such coverage. Clarificatory references in the CBDT materials supported this broader reading, while the separate conditions for waiver under section 19B did not limit the scheme's wider relief. Penalty under section 18(1)(a) was therefore not exigible, and the assessee was entitled to the scheme's benefit.

---

---

Issues: Whether penalty under section 18(1)(a) of the Wealth-tax Act was leviable where the assessee filed wealth returns under the Amnesty Scheme after earlier default and after ex parte assessments had been made.

Analysis: The Tribunal held that the Amnesty Scheme was intended to encourage defaulting assessees to come forward within the stipulated period, disclose true wealth, and pay tax without fear of penalty. The scheme was not to be read narrowly as limited only to first-time or undiscovered cases. The language of the CBDT circulars, including the references to filing returns irrespective of what might have happened earlier and disclosures in respect of pending or completed assessments, showed that old cases were also intended to be covered. The Tribunal also relied on the clarificatory answers stating that even cases where assessments had been set aside on appeal or were pending reassessment could avail the benefit, while search and seizure cases alone were excluded from the expression "suo motu". The conditions for waiver under section 19B of the Wealth-tax Act were held not to control the broader relief given by the Amnesty Scheme.

Conclusion: Penalty under section 18(1)(a) of the Wealth-tax Act was not exigible, and the assessee was entitled to the benefit of the Amnesty Scheme.

Ratio Decidendi: An amnesty circular granting immunity from penalty must be construed liberally to cover eligible voluntary disclosures made within the stipulated period, including in respect of earlier or completed assessments, unless the scheme expressly excludes the case.

---