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2016 (5) TMI 1430 - AT - Wealth-taxPenalty proceedings u/s 18(1)(c) - wealth tax assessment - Held that:- There is total non-application of mind by the Wealth Tax Officer while dropping penalty proceedings under section 18(1)(c) and in this regard, the assessment order passed is erroneous and since the amount of penalty leviable has failed to be levied, then the said order is also prejudicial to the interest of Revenue. AR for the assessee vehemently stressed before us that no penalty is leviable under section 18(1)(c) in the hands of present case, in view of Explanation 5 under the said section. Wealth Tax Officer has failed to address the issue at all. Even the assessee had not pleaded any such thing before Assessing Officer. The reply only asks the Assessing Officer to drop penalty proceedings and Assessing Officer refers to the said reply and drops proceedings, without any reasons, either raised by assessee or referred by the Assessing Officer. In the absence of the same, we find no merit in the plea of the assessee in this regard. Since the same needs to be addressed by the Assessing Officer, accordingly, we uphold the order of Commissioner in setting aside the order of Wealth Tax Officer. Hence, the grounds of appeal raised by the assessee are dismissed. Commissioner power of revision under section 25(1) against wealth tax assessment order passed by the Assessing Officer under section 16(3) of the Act - Held that:- where the money is deposited in the PD Account of Commissioner, which in turn, is held on behalf of the assessee has changed the form from being cash in hand available with the assessee, which was seized by the Department and is now available in the form of bank deposit. Once the form of cash has changed into a bank deposit, the same is not includable in the hands of assessee as cash in hand as on valuation date. In the totality of the above said facts and circumstances of the case, where the amount of cash seized from the assessee is now deposited in PD Account of Commissioner, the same is not includable in the net wealth of assessee as on 31.03.2010. Consequently, the assessment order passed by the Wealth Tax Officer in not including the same in the hands of assessee is not erroneous. In this regard, we find no merit in the exercise of power by the Commissioner for revision of assessment order passed under section 16(3) of the Act.
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