TMI Blog1981 (2) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ter Kailash-II,New Delhi. In respect of this plot the agreement to sell was entered into during the financial year relevant to the asst. yr. 1971-72 but the Sale Deed was registered on28th April, 1973. According to the Sale Deed, the consideration paid was Rs. 12,980. The plot measured 565 sq. yds. A building was under construction of the aforesaid plot and it was completed on8th May, 1975. On the construction of the building the assessee had spent Rs. 1,34,652 as on31st March, 1974and Rs. 2,58,887 as on31st March, 1975. These amounts were included in the net wealth declared for both the years. The WTO referred the matter of valuation of the aforesaid property to the Valuation Officer on13th Feb., 1976. The Valuation Officer issued a notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the assessments he initiated the proceedings under s. 18(1)(c) for concealment of particulars of net wealth in respect of the aforesaid plot. 3. The assessee filed appeals against both the assessments. In both the appeals the valuation of the aforesaid property was challenged. The assessee relied on two registered Sale Deeds, one dt.26th March, 1975in respect of plot No. M-175, Greater Kailash-II and the second dt.16th June, 1975, in respect of Plot No. S-489, Greater Kailash-II, which were sold respectively at the rate of Rs. 210 per sq. yd. and Rs. 182 per sq. yd. On the basis of these sales it was submitted that the value of the plot taken in both the years was excessive. The AAC directed that for the asst. yr. 1974-75 the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of this case, no penalty under s. 271(1)(c) was leviable. It was requested that the penalty proceedings should be dropped. The WTO, however, did not accept the assessee's submissions. According to the WTO no cognizance of the revised returns could be taken because these returns were not filed upon after the report of the Registered Valuer, which was dt.11th March, 1976. The WTO held that the assessee was liable to penalty under s. 18(1)(c) and levied penalties of Rs. 56,500 for each year. 5. Aggrieved, the assessee filed appeals to the CIT(A). Before the CIT(A) it was pleaded that no penalties should have been levied because the estimate of the value of the plot at Rs. 150 per sq. yd. was an honest estimate and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In our opinion, no penalty either under s. 18(1)(c) or under s. 18(1)(c) r/w the Explanation thereto is called for. The only thing that has happened in this case is that in his own voluntary returns the assessee declared the value of the plot at Rs. 150 per sq. yd. whereas ultimately the value of the plot came to Rs. 250 per sq. yd. The increase in the value of the net plot which was admittedly disclosed in the returns does not warrant any penalty for concealment of any asset. When the proceedings were initiated by the WTO he initiated the proceedings on the ground that the assessee has concealed the particulars of his net wealth. The concealment, if any, could have been if the assessee had not disclosed the value of this plot while fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished inaccurate particulars of an asset. The assessee has done his best in complying with the requirements of law in filing the returns of net wealth. Firstly he filed the returns of net wealth voluntarily. Secondly, when the WTO referred the matter to the Valuation Officer and when the Valuation Officer gave his notice he himself got the property valued and furnished a copy to the Valuation Officer. He may not have revised the returns immediately after his own Registered Valuer's report was received but when he himself furnished a copy of his valuer's report to the Valuation Officer, who on land and building method had taken the value of land at Rs. 250 per sq. yd. it cannot be said that the assessee either concealed any asset from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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