TMI Blog1977 (7) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) of the WT Act, 1957. 3. Return for the asst. yr. 1970-71 was to be filed by 30th Sept., 1970 under s. 14(1) of the Act. The assessee filed the WT return on 30th June, 1973. It was late by 33 months. The WTO computed net wealth at Rs. 2,00,000 and also initiated penalty proceedings under s. 18(1)(a) of the Act. 4. For the asst. yr. 1971-72 return under s. 14(1) of the Act was to be filed by 30th Sept., 1971 but it was filed on 30th Oct., 1972. Thus there was delay of 13 months in filing the return. The WTO at the time of completing the assessment initiated penalty proceedings under s. 18(1)(a) of the Act. In penalty proceedings the assessee filed detailed reply on 14th March, 1974 contending that the wealth of the assessee was below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar that there was no justification for having 2 different dates for submissions of IT and IT returns when the last date on wealth tax side were one and the same and thus the due date for penalty purposes for asst. yr. 1969-70 should be taken as 30th Sept., 1969 instead of 30th Sept., 1969. The last contention of the assessee was that in case it is held that penalty is leviable, then the ITO should be directed to re-work out the penalties for 3 years, because the learned ITO has levied the penalties taking into consideration the assessable wealth for these three years before the order in appeal dt. 31st Dec., 1975 was passed. As a result of this the appellant would be entitled to substantial relied and this will be clear from the following f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee for the asst. yrs. 1969-70 to 1971-72 would come to Rs. 94,500, Rs. 1,00,000 and Rs. 1,05,000 respectively. At the time of filing of the return the assessee was under the bonafide belief that the value of the property belonging to his wife would not be assessed in his hands. The assessee was having overwhelming evidence which was sufficient for coming to the conclusion that the property situated in Bapu Bazar really belonged to his wife. The plot was purchased in the name of his wife and the cost of the construction was also borne by the wife of the assessee. It is different matter that later on the Tribunal vide its order dt. 29th Dec., 1976 while deciding quantum appeal held that Bapu Bazar Property was benami in the name of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property was taken at Rs. 55,200 in all the years under consideration. If this figure is excluded from the assessed wealth, the net wealth in respect of asst. yr. 1969-70, 1970-71 and 1971-72 remained at Rs. 94,500, Rs. 1,00,000 and Rs. 1,05,000 respectively. The assessee has taken consistent view right from the very beginning that he has been under the bonafide belief that value of the Bapu Bazar property was not to be included in the net wealth of the assessee because according to the assessee that property belonged to his wife. The plot on which the property was built was purchased in the name of the wife of the assessee. After the building was constructed the same was let out to bank and the rent notes were executed in favour of the wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the name of the wife shall belong to her husband. 10. The criteria in assessment proceedings is different from the criteria in penalty proceedings. Penalty proceedings are quasi-criminal in nature. So before penalty can be imposed, the entirety of circumstances must reasonable point to the conclusion that the assessee had consciously concealed the particulars of his asset or furnished inaccurate particulars of his assets. What is the point of time when the assessee should know that the estimate furnished by him is untrue or he has reason to believe its to be untrue? In our opinion, the knowledge that the estimate in untrue or which the assessee believes to be untrue must be at the point of time when he submitted the return. Consciousness ..... X X X X Extracts X X X X X X X X Extracts X X X X
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