DY. CWT Vs. I.C. KHURANA

JUDGEMENT

(1.) In this appeal the revenue has contested the deletion by the learned Commissioner of Wealth Tax (Appeals) of the penalty imposed by the assessing officer under Sec. 18(1)(c) of the Wealth Tax Act, 1957, for the assessment year 1988 -89.

(2.) In the relevant assessment, the assessing officer made addition of Rs. 26,09,086 for the value of farm house which was claimed by the assessed as exempt under Sec. 2(e)(iii) of the Wealth Tax Act. Penalty proceeding under Sec. 18(1)(c) of the Act was initiated on the basis of this addition. No appeal was filed against the said addition of Rs. 26,09,086. However, the assessed intended to file revision petition before the learned Commissioner of Wealth Tax (Appeals) seeking deletion of the said addition.

(3.) In response to the show cause under Sec. 18(1)(c), the assessing officer (sic -assessed) submitted that penalty under Sec. 18(1)(c) was not exigible in the case on the following grounds :