RAM SINGH Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) Pursuant to a direction of this Court under s. 27(3) of the WT Act, 1957 (hereinafter to be referred to as the Act) the ITAT, Patna Bench A, has referred the following question of law for the opinion of this Court.

(2.) The assessee being aggrieved by the order of the WTO preferred an appeal before the AAC, who upheld the order of the WTO as he found that the assessee had wealth above the taxable limit. He also held that there was nothing to suggest from the records that till the date of filing of the return the assessee was under the belief that his wealth did not exceed the taxable limit. He also upheld the quantum of penalty. A copy of the order of the AAC has been marked Annexure-B forming part of the statement of the case.

(3.) On a further appeal being pursued before the Tribunal it was submitted on behalf of the assessee that he was under a bona fide belief that his wealth was not taxable. It was also submitted that in such a case it was for the department to prove that the default was deliberate and reliance was placed on certain case laws. The Tribunal considered the facts and held that -