COMMISSIONER OF WEALTH-TAX Vs. SURAJ PARKASH MODI

JUDGEMENT

(1.) THE Wealth-tax Appellate Tribunal, Chandigarh Bench, has referred the following two questions for the opinion of this court:

(2.) BRIEFLY, the facts are that the respondent, an HUF, filed three returns in the case--one original and two revised. The original return was filed on 16th August, 1971, declaring a net wealth of Rs. 7,96,167, the first revised return on 6th September, 1971, declaring a net wealth of Rs. 5,82,625, and the second revised return on 18th May, 1972, declaring a net wealth of Rs. 6,87,726. The WTO completed the assessment on the net wealth of Rs. 6,87,726 as declared in the second revised return. There being a difference to the tune of Rs. 1,05,101 in the first revised return and the second revised return, the WTO initiated penalty proceedings under Section 18 (1) (c) of the W. T. Act. The difference of Rs. 2,13,542 between the wealth as declared in the original return and as declared in the first revised return was partly due to the assessee's claim for exemption of the value of its shares in different companies under Section 5 (1) (xxiii) (to the extent of Rs. 1,50,000) and partly due to the difference in value of its one-half share in the Modi Card Board Factory (shown at Rs. 1,16,035 in the original return and Rs. 52,493 in the first revised return ). The value of Rs. 1,16,035 was being shown by the assessee regularly from the assessment year 1968-69.

(3.) IN the second revised return, the assessee disclosed his wealth at Rs. 6,87,726. The difference of Rs. 1,05,100 between the wealth as declared in the first revised return and the second revised return was mainly due to the following reasons :