Penalty under section 18(1)(c) of the Wealth-tax Act--Cases where tolerance margin of 25% is exceeded because of disallowance of disputed tax liability.

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..... f 25% is exceeded because of disallowance of disputed tax liability. The Board have received representations that even in cases where the disputed income-tax and wealth-tax demands, outstanding on the valuation date, are disallowed and such disallowances account for the shortfall of the returned wealth by more than 25% of the assessed wealth, some Wealth-tax Officers have been levying penalty un .....

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..... ses of the type mentioned in paragraph 1, the assessee should be considered to have discharged the onus of proving that the failure to declare the correct net wealth was not due to any fraud or gross or wilful neglect on their part. No penalty under section 18(1)(c) should be levied in such cases. 4. Other instructions of the Board on the scope of the Explanation to section 18(1) may be seen in .....

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