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2016 (1) TMI 1018 - ITAT KOLKATAInclusion of cash-in-hand in the wealth tax assessment - It is argued that “Receivable” is recorded in the balance filed with the Department before income tax scrutiny proceedings for A.Y 2009-10. Simply, the nomenclature changed from “Receivable” to “cash-in-hand” with custodians does not amount the concealment of wealth. However the WTO has disregarded the claim of the assessee and confirmed penalty @ 200% of the tax sought to be evaded - bonafide ignorance, Held that:- The assessee is running a good business in the brand name of ‘Raja Group’ and paying huge taxes. Therefore on merit we find that the assessee has defaulted in the payment of wealth tax. However we find from the order of the AO that the penalty has just been initiated without recording the reason whether it is for the concealment of the wealth or furnishing in accurate particulars of income. The penalty under section 18(1)(c) of the Act can be imposed on the two counts i.e. Firstly, for concealment of wealth and secondly for furnishing the inaccurate particulars of wealth. However the AO has not recorded his satisfaction in the assessment order for levying the penalty but just initiated penalty proceedings. - the orders imposing penalty in all the assessment years have to be held as invalid and consequently penalty imposed is cancelled. - Decided in favor of assessee.
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