COMMISSIONER OF WEALTH TAX Vs. TARANATH TONDON

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following question of law arising out of its order dated June 28, 1980, in respect of the assessment year 1972-73 :

(2.) THE brief facts of the case are that the assessee was required to furnish the return of wealth as on March 31, 1972, on or before July 31, 1972. THE return was filed on January 14, 1976, and thus there was a delay of 41 months. In the return submitted by the assessee, net wealth of Rs. 91,704 was declared but the assessment was made at a figure of Rs. 74,596 (sic). THE main dispute is with regard to the property situated at Ajmer which was declared at a figure of Rs. 85,200, but the value of which was enhanced by the Wealth-tax Officer to Rs. 1,70,000. THE basis for such enhancement was that the assessee entered into a contract of sale of such building on February 3, 1973, for a sum of Rs. 1,75,000. This agreement did not materialise but the property was ultimately sold on January 4, 1975, for a sum of Rs. 1,82,500. THE Wealth-tax Officer found that since the assessee has not got it valued by the approved valuer, the fair market value has to be taken on the basis of the sale agreement and sale ultimately effected before filing of the return. THE Income-tax Officer passed an order under Section 18(1)(a) and levied a penalty of Rs. 12,423 as he was not satisfied with the explanation submitted by the assessee for not filing the return.