TaxTMI 
TaxTMI 
2019 (8) TMI 312
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....Tax Appellate Tribunal, Chennai 'B' Bench for the assessment years 1997-98 and 1998-99. 3. The Revenue has filed these appeals by raising the following substantial questions of law : "i. Whether, in the facts and circumstances of the case, the Tribunal was right and correct in deleting the penalty under Section 18(1)(c) of the Wealth Tax Act by overlooking Explanation 3 to Section 18 of the Wealth Tax Act, 1957, which deems non filing of return within the stipulated time to be a concealment of income? ii. Whether, in the facts and circumstances of the case, the Tribunal was right in deleting the penalty levied under Section 18(1)(c) of the Wealth Tax Act on the ground that the CIT(A) had not given any finding with regard to con....
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....of the Act as Explanation 3 to Section 18 of the Act would stand attracted in the assessee's case. In support of her contention, the learned Senior Standing Counsel relies upon the decision of a Division Bench of the Bombay High Court in the case of Shanti Ramanand Sagar Vs. CIT [reported in (2017) 88 Taxmann.com 72]. 6. We have carefully considered the submissions of the learned Senior Standing Counsel for the Revenue and perused the materials on record and the reasons assigned by the Tribunal for allowing the assessee's appeal. 7. The Tribunal, on going through the income tax assessment orders, the wealth tax assessment orders and the details and statements filed by the assessee, pointed out that it was not the case of the Depar....
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....uation in the said case was almost similar to that of the case on hand and the Court pointed out that even if the assessee included the property in his return, that would not preclude the assessee from claiming the benefit of law and that there cannot be any estoppel against the Statute. It was further pointed out that the property, which was not otherwise taxable, cannot become taxable because of misunderstanding or wrong understanding of law by the assessee or because of his admission or on his misapprehension. With these reasonings, the penalty was vacated. 9. We also find that though the CIT(A) referred to the said decision relied upon by the assessee, he did not deal with the effect of the said decision, which, in our mind, would ass....
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.... a return of his net wealth at any time after the expiry of either of the periods aforesaid applicable to him in pursuance of a notice under Section 17 of the Act. 11. It is not in dispute that in the case on hand, the assessee did not file the return. In the first instance, notice was issued under Section 17(1) of the Act and only thereafter, the return was filed. This, according to the assessee, was because of their bona fide belief that the property would not fall within the definition of the term 'asset' as defined under Section 2(ea)(1) of the Act. If at all the Assessing Officer imposes penalty under Section 18(1)(c) of the Act, by referring to Explanation 3, the Assessing Officer should have rendered a finding that there was....