TaxTMI 
TaxTMI 
2006 (7) TMI 117
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....ation cannot attract the penalty under section 18(1)(c) in the case, even though penalty is imposable in view of Explanation 4 to section 18(1) of the Wealth-tax Act ?" 2. The respondent/assessee is a limited company which filed a return showing its net wealth as on March 31, 1988. According to the return of wealth, the showroom at Bombay was valued at Rs.32,67,881, the value of car and jeeps was shown to be Rs. 5,54,903, while value of the plot was shown to be Rs. 1,108. In assessing the said value, the assessee had adopted the method of rent capitalization, while the value of automobile was arrived at on the basis of the written down value. The Department did not accept the valuation of the assessee and appointed its valuer for the pur....
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....penalty under section 18(1) (c) is not called for. We, therefore, find ourselves in agreement with the order of the Commissioner of Wealth-tax (Appeals) and subscribe to the same." 4. It is against this order that the Revenue has filed the present appeal. Learned counsel for the Revenue has invited our attention to the provi sions of section 18 of the Wealth-tax Act and pointed out that where concealment was referable to section 18(1) (c) and it was evident that value of the assets returned by any person was less than 70 per cent. of the value of such asset as determined in the assessment, it would be deemed that such person has furnished inaccurate particulars of such assets within the meaning of clause (c), unless he proves that the va....
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....ny assets or debts; he or it may, by order in writing, direct that such person shall pay by way of penalty—………….. (ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees for each such failure; (iii) in the cases referred to in clause (c), in addition to any wealth-tax payable by him, a sum which shall not be less than, but which shall not exceed five times, the amount of tax sought to be evaded by reason of the concealment of particulars of any assets or the furnishing of inaccurate particulars in respect of any assets or debts: Provided that in the cases referred to in....
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....alued on the basis of the rent capitalization method. The scope of the rule was discussed in the judgment as under (page 895): "We may now turn to the scope and content of rule 1BB. The said rule merely provides a choice amongst well-known and well-settled modes of valuation. Even in the absence of rule 1BB it would not have been objectionable, nor would there be any legal impediment, to adopt the mode of valuation embodied in rule 1BB, namely, the method of capitalization of income on a number of years' purchase value. The rule was intended to impart uniformity in valuations and to avoid vagaries and disparities resulting from application of different modes of valuation in different cases where the nature of the property is similar." ....