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2012 (9) TMI 634 - AT - Wealth-taxPenalty u/s 18(1)(c) – During the course of search under IT Act. assessee furnish Cash Flow statement for the 31.3.2001 to 31.3.2005 – In these years cash balances exceeded minimum exempted amount of Rs. 15.00 lakhs – Assessee has not furnish any return under Wealth Tax Act for these years – AO serve notice u/s 17(1) on 31/5/2007 – AO imposed penalty u/s 18(1)(c) as assessee failed to furnish the return for these years - Such net wealth was deemed to have been concealed – Held that:- By that time the assessee was absolutely knowing the fact that there was cash balance available with the assessee in excess of wealth tax limit of Rs. 15.00 lakhs and at least at that point of time the assessee should have filed wealth tax returns. As per Exp. 3 to Sec 18(1)(c) no notice should have been issued within the limitation period in which the assessment can be completed. Notice has been issue and served on 31.5.2007 and returns up to AY 2004-05 could have been assessed before 31st March, 2007 as per section 17A. Since the notice has been issued only after expiry of time therefore, this condition is also complied for various years upto the Assessment Year 2004-05. Tribunal, confirm the penalty imposed u/s 18(1)(c) for all the years except for Assessment Year 2005-06. Appeal decides in favour of revenue.
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