TMI Blog1996 (6) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ealth-tax Act, 1957 ('the Act') (mens rea being taken for granted) by virtue of the provisions of Explanation 4 to that section, because in the view of the Tribunal 'the assessee did accept the findings given in the quantum matter in which the value of the properties had been correctly adopted' and 'it was for the assessee to prove that the returned wealth was correct ? 2. Whether the view taken by the Tribunal about the valuation of the properties having been correctly adopted in the assessment was legally right, especially when that view was in direct conflict with the obvious fact that neither the net wealth nor the minimum penalty as determined by the Wealth-tax Officer was final, as is evident from the direction given in the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the Wealth-tax Officer to compute the net wealth afresh. In view of the order, the Wealth-tax Officer ultimately computed the net wealth as mentioned above at Rs. 20,00,100 and at Rs. 20,02,000. During the assessment proceedings, he initiated penalty proceedings also under section 18(1)(c) of the Wealth-tax Act. According to him, the assessee had furnished inaccurate particulars of the assets in view of Explanation 4 of section 18(1)(c) of the Act. The only ground was that the value of assets returned by the assessee was less than 70 per cent. of the value of the assets and they failed to prove that the value of the assets which they disclosed in the returns as correct. In the appeal, the Wealth-tax Officer by two orders imposed pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no quarrel regarding the proposition of law that in case the assessment of the assessee is below 70 per cent. and the announcement of the value of the wealth, it will be normally presumed that the person shall be deemed to have furnished the assets under the meaning of clause (c) of sub-section (1) of section 18 unless he proves the filing of assets as returned by him. As per Explanation 4 to sub-section (1) of section 18 when the value of the net asset in the return is less than 70 per cent. then it is to be deemed with such person. In this case, such person shall be deemed to have been incorporated in this matter. Thereafter, the assessee may also prove that the value of the asset as disclosed by him in the return is correct. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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