CHANDRA KIRAN Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) On 16th January, 1974, the petitioner filed his returns under the Wealth Tax Act for the assessment years 1969-70 to 1973-74. It is not disputed that these returns were filed prior to the issuance of any notice under S. 14(2) of the Wealth Tax Act. In the usual course, the Wealth Tax Officer passed the assessment order dated 30-12-1974 for these years. In the operative portion of his order, he stated, "Issue notice of demand and challan. Proceedings u/s. 18(1)(a) have already been started for late filing of return".

(2.) Thereupon the petitioner applied to the Commissioner, Wealth Tax under S. 18(2-A) of the Wealth Tax Act, for waiver of the proposed penalty leviable under S. 18(1)(a) for the late filing of the return.

(3.) The Commissioner held that in respect of the first three years though the petitioner had disclosed the value of the house-property at Sadwara, Farrukhabad but he claimed exemption in respect of it under S. 5(1)(iv), which was rejected. The petitioner did not make a full and complete disclosure in good faith of her wealth. Similarly, for the fourth year, viz. 1973-74, the assessee claimed some deductions under S. 5(1)(xxxii) which was not accepted by the Wealth Tax Officer. In this respect also the Commissioner observed that the assessee made a wrong claim of exemption and hence the disclosure was not full (and) complete and in good faith. On these findings he dismissed the application for waiver of penalty.