TaxTMI 
TaxTMI 
2021 (2) TMI 2
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....rs 2010-11, 2011-12 & 2012-13. Since, the facts are identical and issues are common, for the sake of convenience, these appeals were heard together and are being disposed off, by this consolidated order. 2. The assessee's have more or less filed common grounds of appeal in their respective memorandum of appeal for the relevant assessment years, therefore, for the sake of brevity, grounds of appeal filed in WTA No.13/Chny/2019 for assessment year 2010-11 are reproduced as under:- "1. The order of the Commissioner of Wealth Tax ((Appeals)-3, Coimbatore dated 27.11.2018 in l.T.A.No 105/17-18 for the above assessment year is contrary to law facts and in the circumstances of the case. 2. The Commissioner of Wealth Tax (Appeals)-3, Coimbator....
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....oncealed particulars of assets and hence levied 100% penalty of the tax sought to be evaded. 4. Being aggrieved by the penalty order, the assessee preferred an appeal before the learned CWT(A). Before the learned CWT(A), the assessee submitted that the Assessing Officer has failed to appreciate the fact that there was no concealment of wealth on the part of the assesse, because even though the assessee has not filed wealth tax return u/s.14 in respect of any assessment year, but when notice was issued u/s.17(1) of the Act, return of wealth declaring taxable wealth has been filed along with payment of consequent taxes and hence, mere non-filing of return under regular provisions of the Act cannot be construed as deliberate attempt made to e....
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....ggrieved by the learned CWT(A) order, the assessee is in appeal before us. 6. The learned AR for the assessee submitted that the learned CWT(A) has erred in not appreciating the fact that assessee has not consciously and deliberately concealed the particulars of wealth which warrants levy of penalty under deeming provisions of section 18(1)(c) of the Act, more particularly, when the assessee has explained the reasons for not filing the wealth tax return within the prescribed time limit under the Act and such reasons are bonafide. The learned AR further submitted that levy of penalty after completion of reassessment and accepting returned wealth would deserve the exercise of discretion vested with the original authority for not levying the....
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....impugned assessment years under consideration in consequent to completion of reassessment order in accepting return of wealth filed by the assesse. It is an admitted fact that assessee has not filed return of wealth under the provisions of section 14 of the Act. However, when the assessment was reopened u/s.17 of the Act, the assessee has filed wealth tax returns admitting taxable wealth and paid taxes thereon. The Assessing Officer had invoked the provisions of Explanation 3 to section 18(1)(c) of the Act, to levy penalty for concealment of particulars of wealth. The provisions of Explanation 3 to section 18(1)(c) of the Act, shall have deeming fiction, as per which, if an assessee fails to furnish return of wealth within the period specif....
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....1)( c) to levy of penalty when the assessment has been completed u/s.17 of the Wealth Tax Act. But, fact remains that presumption of automatic levy of penalty is completely unsustainable in law, while such presumption of the department negated the discretion vested with the original authority for levying or not levying of such penalty depending upon the facts and circumstances of the case. Further, the deemed concealment of wealth or furnishing of inaccurate particulars of wealth as per Explanation 3 should be subject to the discretion vested with the authority in the matter of levying or not levying of penalty. Therefore, in our considered opinion, levy of penalty u/s.18(1)(c) of the Act, after completion of reassessment in accepting retu....
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....iled in response to notice u/s.17(1) of the Act and paid taxes thereon, the authority would have accepted the explanation furnished by the assessee that he has not filed return of wealth for concerned assessment year within the time limit specified u/s.14 of the Act, on the bonafide presumption that there is no taxable wealth for the relevant assessment years on the disputed land, jewellery and cash on hand. We, further, are of the opinion that Assessing Officer would also have considered the fact that surrender of taxable wealth in the reassessment proceedings would not automatically lead to levy of penalty under consideration and the bonafide understanding of the assessee on the non-taxability cannot be ruled out or negated mechanically b....