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TMI Blog2016 (1) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... o as 'the Act') vide his order dated 31.03.2011 for assessment year 2005-06. 2. Issue raised by assessee in this appeal is that Ld. CWT(A) has erred in confirming the action of Assessing Officer for imposing penalty of Rs. 35,386/- u/s 18(1)(c) of the Act. 3. Briefly stated facts are that for the year under consideration assessment was completed on 26.06.2007 u/s. 143(3) of the Act. From the records, the AO found that assessee has jewellery value of Rs. 20,28,227/- and cash-in-hand to the tune of Rs. 30,10,348/- therefore liable for wealth tax as specified u/s. 2(ea)(iii) and 2(ea)(vi) of the Act. Thus AO issued notice u/s 17 of the Act on dated 4.11.2009 to file the return of wealth. In reply to the notice, assessee has submitted his wea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity to simultaneously file his return of wealth. The disclosure in the balance-sheet is not sufficient as far as the proceedings under the wealth tax Act are concerned. The appellant has further argued that he was under the bonafide belief that his net wealth did not exceed the taxable limit. That, he was udder the belief that cash in hand was to be utilized for the purpose of business and therefore, it would not form part of the taxable wealth and against the value of jeweellery thee was tax liability and thereby the net value of the jewerllery would be less than the taxable limit. However, on careful consideration of fact, I find no force in the submission of appellant because in sec. 2(ea) of W.T. Act, the definition of 'assets' has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the judgment of judicial Authority. 3. For that the Ld. CWT(A) erred in confirming the imposition of penalty when there was no concealment, the facts were disclosed before the AO in the Income Tax Return filed and the default, if any, for omission to file the return of wealth was only technical in nature for which no penalty should have been imposed. 4. For that the Ld. CWT(A) erred in confirming the imposition of penalty when there was no specific charge that the assessee concealed the particulars of any assets or furnished inaccurate particulars of any assets." Shri Sunil Surana, Ld. Authorized Representative appearing on behalf of assessee and Shri Niloy Baran Som, Ld. Departmental Representative appearing on behalf of Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submitted that the cash as shown in the Balance Sheet of the Assessee for AY 2004-05 in income tax proceedings was cash generated from business and was meant to be used for business necessities. It was his submission that such cash being business asset cannot be regarded as Asset within the meaning of the definition of the term as given in Sec.2(ea)(vi) of the Act. In this regard he drew our attention to the order of assessment u/s.17/16(3) of the Wealth Tax Act, for AY 2004-05 dated 31.3.2008 in assessee's own case, wherein the AO has accepted that cash in hand was cash generated from business and was meant for payment of business debts and for business use. Therefore the Assessee entertained bona fide belief that cash in hand was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) but that was only after the due date for filing return of wealth by the Assessee which was 30.9.2005 for AY 2005-06. Therefore according to him as on the due date for filing return of wealth, the Assessee entertained a bona fide belief that the net wealth chargeable to wealth tax was well below the limit of Rs. 15 lakhs and therefore no return of wealth was filed. He pointed out that the Assessee filed a return of wealth in response to notice u/s.17 of the Act for AY 2005-06 and offered cash and jewellery to tax and the same was accepted by the WTO. It was his submission that in the situation that prevailed as on the due date for filing the return of income the assessee was under bona fide belief that there was no requirement for fili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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