KRISHNA GUPTA Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) THE following question has been referred to this court by the Income-tax Appellate Tribunal under Section 27 of the Wealth-tax Act, 1957 :

(2.) THE aforesaid reference was made under orders of the Supreme Court. Earlier, the High Court had declined the prayer of the assessee for directing the Tribunal to refer the question.

(3.) THE facts of the case are not very much in dispute ; only a brief narration is considered necessary for deciding the reference. The assessee, Smt. Krishna Gupta, purchased a plot of land measuring 500 sq. yards situated at premises No. 80/block No. West Greater Kailash No. I, New Delhi, from Ram Gopal Podar, on March 4, 1966. The assessee filed a return for the assessment year 1968-69 on November 14, 1968, without declaring the aforesaid plot of land or the value thereof as part of her assessable wealth. Assessment was finalised on February 28, 1969. Subsequently, a notice under Section 17 of the Wealth-tax Act (hereinafter called "the Act") was issued to the assessee and on October 14, 1970, the assessee filed a fresh return disclosing the purchase of the aforesaid plot, as on March 31, 1968, fixing its value at Rs. 50,000. The assessment was finalised and subsequently penalty proceedings were initiated against the assessee for concealment of the item of wealth aforesaid. The Inspecting Assistant Commissioner imposed penalty under Section 18 (1) (c) of the Act to the tune of Rs. 50,000, vide order dated August 29, 1973. Some other items were also assessed with which we are not concerned in this reference. Against the order of the Inspecting Assistant Commissioner, the assessee filed an appeal before the Tribunal. The order of the Inspecting Assistant Commissioner imposing a penalty of Rs. 50,000 was maintained.