TaxTMI 
TaxTMI 
2016 (6) TMI 448
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....ng the W.T return voluntarily, without considering the facts that all the assets ( which were declared in the W.T return filed u/s 17 and assessed by the A.O u/s 16(3)/17 at the same value as was declared in the said return) were already disclosed in the I.Tax return and Balance Sheet filed for A.Y 2006-07 on 30.10.2006 before the same A.O long before the issue of the impugned notice u/s 17 of the W.T Act dt. 15.01.2009 by him. 2. For that in view of the facts and circumstances of the case the Ld. CWT(A) was wholly wrong and unjustified in confirming the said penalty u/s 18(1)(c) wrongly holding that Explanation - 3 to section 18( 1)( c) is clearly attracted in the case and further wrongly relying on the decision in the case of K. P. Madhusudanan Vs. CIT [2001 ] 251 ITR 99 (S.C) which are not applicable in the case. 3. For that in view of the facts and circumstances of the case the Ld. CWT(A) was wholly wrong and unjustified in confirming the said penalty u/s 18(1 )( c) only for non-filing of the W.T return voluntarily despite the facts satisfactorily explained during the assessment as well as the appellate proceedings that there was neither any concealment of the....
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....and the return was filed in response to the notice u/s 17 of thwe W T Act. The case was finally fixed for hearing on 25.02.2009. In response, Mr. SC Tibrewal, A/R of the assessee, appeared with a written submission. He contended that no penalty should be imposed as the returned wealth was fully accepted by the A.O. On perusal of the assessment record it is seen that the assessee filed its W T return on 28.03.2009 in response to notice u/s 17 of the WT Act 1957 The assessee was liable to file the return of wealth voluntarily as the net wealth as per Balance Sheet as on 31.03.06 exceeds the limit for filing W T return but no such return was filed. Thus, the omission on the part of the assessee was detected by the Department and therefore the net wealth chargeable to tax was escaped assessment within the meaning of the W T Act 1957. The A/R of the assessee requested to drop the penalty proceeding furnishing submission based on some Judicial decisions. It was pointed out to him that the case referred by him was not identical to his case. In view of above, I am satisfied that it is a fit case for imposition of penalty u/s 18(1)(c) of the W T Act 1957 ....
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....d any return. The notice under section 17 was issued to him but no return was filed. Notices under section 16(4) were also issued fixing various dates but the assessee did not appear before the Assessing officer. The Assessing officer completed the assessment under section 16(5) for the assessment 1977-78 on the net wealth of the assessee and imposed penalty under section 18(1)( c). On appeal, the Commissioner (appeals) deleted the penalty, holding that no penalty could be levied as he had not filed the return for the relevant assessment year on revenue's appeal, the Tribunal upheld the order of the Commissioner (appeals). Applying the strict construction of penalty provisions, contained in clause(c) of sub-section (1) of section 18, it is clear that prior to the amendment in Explanation 3 by the direct Tax Laws(Amendment) Act, 1987, with effect from 1.4.1989, in a case where the person, who has previously been assessed under the Act, does not file any return in response to the notice or even where time for filing the return has expired, has not filed any return, there cannot be any concealment for which penalty provision can be imposed In view of the above, in the ins....
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....impugned penalty u/s. 18(1) ( c) of the W.T Act. In absence of which, initiation and imposition of penalty against the assessee u/s. 18(1) ( c) of the W.T Act is bad in law. 7. The Ld. Counsel for the assessee argued that in order to impose the impugned penalty the AO has to record satisfaction any of the conditions as contemplated in clause ( c) of sub section (1) of section 18 of the W.T Act 1957. The AO could not find anything adverse against the assessee that he concealed his particulars of any asset or furnished any inaccurate particulars of assets or debts. In support of his contention, he also referred to Explanation-3 attached to section 18 of the WT Act. Before us the Ld. Counsel for the assessee has also filed the following documents in support of his contention:- a. PAN of the assessee, Shri Bimal Kumar Nopany, the assessee herein showing the date of birth is 26-04-1943. b. Medical Certificate of the then AR, Mr. K.V.Singh c. Copy of Wealth Tax Return for A.Y 2005-06, to show that the assessee is a regular wealth tax assessee, and d. Explanation filed in response to penalty notice on 09-01-2010. 8. In support of its contention, h....
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....iods aforesaid applicable to him in pursuance of a notice under section 17.] 11. On plain reading of said explanation, it is clear that the AO has to record that the assessee has concealed any assets or furnished any inaccurate particulars of assets or debts without reasonable cause. In the present case during the proceedings u/s. 17 of the W.T Act, the AO has not found that the assessee has concealed any assets or furnished any inaccurate particulars of assets or debts. The AO has also accepted the return filed by the assessee without therebeing any cogent reason for initiation of proceedings u/s. 18(1) ( c) of the W.T Act. We find that the AO initiated penalty proceedings against the assessee only on the ground that the assessee has not filed the return for the assessment year under consideration in time voluntarily. On perusal of the documents available on record before us, shows that the assessee is a senior citizen. Medical Certificate/Discharge Certificate goes to shows that Mr. K.V.Singh, the then Ld. A/R of the assessee, who looks after the filing of W.T Return of the assessee, was hospitalized on 12-08-2006 for respiratory and suffocation. As per discharge certificate i....
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....furnish his return of income for the assessment year 1989-90 or any year subsequent thereto within two years from end of the assessment year concerned ; thirdly, that no notice should have been issued to him under section 142(1) or section 148 of the Act till the expiry of the two-year period; and, lastly, the concerned officer is satisfied that in respect of such assessment year, such person had taxable income. In such cases, Page No : 0357 Explanation 3 provides that such person shall be deemed to have concealed the particulars of his income within the meaning of clause (c) of section 271(1) of the Act for such assessment year. In such an eventuality, even if the person concerned files a return after the expiry of the said period of two years in pursuance of a notice under section 148 of the Act, the deeming provision of Explanation 3 shall still have application. 13. Though it has been contended on behalf of the respondents that in the present case Explanation 3 has not been applied, as noticed earlier mere non-furnishing of a return per se is not tantamount to concealment within the meaning of section 271(1)(c) of the Act. The only eventuality under w....