TMI Blog1981 (9) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... net wealth. The WTO on 17th June, 1978, made the following noting on the order sheet: The rates applied for 1970-71 and 1971-72 assessment years in respect of land are very low; asked to produce the following information : (i) Sale deed of land sold to Rakha Land Colonisers. (ii) Exact location of land (iii) (iv) To file wealth-tax returns for 1972-73, 1973-74 and 1974-75 ........ " The petitioner filed the returns of net wealth under s. 14(1) read with s. 13 for the assessment years 1972-73, 1973-74, 1974-75 and 1975-76 without the issuance of any statutory notice under s. 14(2)/17 of the Act. In the annexures to the returns, he showed his agricultural land as measuring 24 acres 6 kanals for the assessment year 1972-73 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice under s. 14/17 of the Act and that the condition of s. 18B of the Act was not satisfied. The petitioner has impugned the order through this writ petition. The question that arises for determination is as to whether, in the facts and circumstances of the case, the provisions of s. 18B(1)(i)(a) of the Act are attracted for the assessment years 1972-73 to 1975-76. In order to determine the question, it is necessary to read the relevant part of the section which is as follows : " 18B. (1) Notwithstanding anything contained in this Act, the Commissioner may, in his discretion, whether on his own motion or otherwise, (i) reduce or waive the amount of penalty imposed or imposable on a person under clause (i) of sub-section (1) of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was completed. The ITO imposed penalty for late filing of returns for all the three assessment years. No notice under s. 14(2) had been served for late filing of returns. He made an application to the Commissioner under s. 18(2A) praying that the amount of minimum penalty imposable on him in respect of all the three assessment years be waived. The latter waived the minimum penalty imposable on him for late filing of the return for the assessment year 1971-72, but refused to waive the penalty for the assessment years 1969-70 and 1970-71, on the grounds that the returns for the assessment years 1969-70 and 1970-71 were filed only after the assessee was asked during the course of the assessment proceedings for the assessment year 1971-72 to fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, it does not cease to be a voluntary return. Thirdly, there is nothing in section 18(2A) which restricts the relief to assessees who file their returns for the first time. Imposition of such condition would amount to addition of a new condition in the relevant statutory provision. " I am in respectful agreement with the above observations. It may be mentioned that the provisions of s. 18B were included first in s. 18 as cl. (2A). Later, by the T.L. (Amend.) Act, 1975, cl. (2A) of s. 18 was deleted and an independent s. 18B was introduced. The language of s. 18B is in pari materia with that of cl. (2A) of s. 18. Similar view was taken by the Karnataka High Court in B. Anjanappa v. CWT [1980] 124 ITR 433. It was observed therein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the benefit of s. 18B. What is to be seen is whether an assessee has made a full and true disclosure of his wealth in good faith, voluntarily and before the issuance of a notice under s. 14(2). If he has done so, his case is covered by s. 18B. Filing of the return at the instance of the WTO may not be sufficient to hold otherwise. The facts of Hakam Singh's case [1980] 124 ITR 228 (All), are distinguishable. In that case, the books of account of the assessee had been seized in a raid by the I.T. department and, thereafter, the assessee filed the return under an apprehension that he was likely to be dealt with under the penal provisions of the I.T. Act. It may be mentioned that the learned Bench did not disagree with the observations in Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural property is included in the taxable wealth for the purposes of the levy of wealth-tax. At the time when agricultural property was brought within the tax net, it was hoped that it would be potent instrument for mobilising resources from the affluent section of agriculturists. But our experience of over the last decade has been most disappointing. The amount realised as wealth-tax on agricultural property has generally been less than Rs. 1 crore per annum. The valuation of agricultural land has posed difficulties leading to complaints of harassment. As this tax has clearly failed to achieve its original objective, I propose to discontinue the levy of wealth-tax on agricultural property except in the case of owners of tea, coffee, rubber ..... X X X X Extracts X X X X X X X X Extracts X X X X
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