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of <h1>Wealth-tax Act Section 18(1)(c): No Penalties for Non-Fraudulent Errors in Declaring Net Wealth Exceeding 25% Margin.</h1> The circular addresses the issue of penalties under section 18(1)(c) of the Wealth-tax Act when the tolerance margin of 25% is exceeded due to disallowance of disputed tax liabilities. It acknowledges that some Wealth-tax Officers have been imposing penalties in such cases, despite the fact that disputed tax demands are not considered deductible debts. The Board clarifies that if disputed tax is paid within six months of an appellate decision, assessments should be rectified to allow deductions. It concludes that assessees should not face penalties if they fail to declare correct net wealth due to non-fraudulent or non-negligent reasons.
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