9911796707
TMI Blog1993 (9) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... p; jewellery original returns assessed ------------------------------------------------------------------------------------------------- Rs. Rs. Rs. Pradeep Kumar Anand 2,73,890 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na fide one. It was thus specifically held that no penalty was leviable for understatement of the value of shares. This finding of learned CWT(A) has been accepted by the revenue and is no more in dispute. The learned CWT(A), however, levied penalty on account of low value of jewellery shown. He held that the difference in the value of jewellery shown and assessee tantamount to concealing the particulars of wealth. He rejected assessee's argument that the valuation was returned and assessed on estimate basis, on pure guess work and no penalty was leviable for honest difference of opinion on point of valuation. The learned CWT(A) also rejected assessee's plea that value of jewellery was shown and revised in good faith. The learned CWT(A) relied upon Explanation 4 to section 18(1)(c) of the W.T. Act. He held that the assessee failed to rebut the presumption raised under Explanation 4 to section 18(1)(c) of the Act and as such was liable for having furnished inaccurate particulars of the wealth. He directed the WTO to recompute the penalty on the difference in the value of jewellery assessed and returned. 5. The assessee has brought the issue in appeal before the Appellate Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not arise from any fraud, gross or wilful neglect. In the present Explanation on the contrary the assessee is required to prove that value of asset returned by him is correct notwithstanding that assessed value has become final. Thus, the onus is shifted to the assessee to show that the determined value of the asset is not correct. Otherwise the assessee will be deemed to have furnished inaccurate particulars of asset where the value returned is less than 70% of the value determined. 8. In order to resolve the controversy relating to applicability of Explanation, in our opinion, proper meaning is required to be given to words and expression employed in the Explanation keeping in mind the general scheme of assessment. An assessment under section 16 or 17 which includes the value of asset "determined" and referred to in the Explanation is made under sub-section (3) of section 16. The said sub-section requires that after gathering all relevant material, the WTO shall by an order in writing "assess the net wealth of the assessee" and determine the amount of wealth-tax payable by him or the amount refundable to him. Section 7(1) provides machinery for determination of value of asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is therefore reasonable to infer that "value estimated" is not synonymous with "value determined". 11. This conclusion is fully supported when provisions of section 7(1) are read with W.T. Rules as applicable in the relevant period. Whereas sub-section 7(1) requires that value of asset be "estimated", the rules in contrast require it to be determined precisely as per the formulae which is anything but estimation. In nutshell the rules provide : Rule 1B provides formula for determination of value of life interest. Rule 1BB provides that for purposes of sub-section (1) to section 7 the value of house which is wholly or mainly used for residential purposes shall be aggregate of certain amounts. Formula is given in the rule : Rule 1D specifically provides that market value of unquoted equity shares of a company other than the investment company, shall be determined as per Rule 2 provides that the value of interest of a person in a firm of which he is a partner............ shall be determined in a manner provided herein. Rule 2A further requires determination of net wealth by applying provision of rules 2-B to 2-G. 12. As per the scheme of assessment, the WTO is enjoined to "de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is applicable only to a residential house. There is thus no question of "estimating" value of any asset. It has only to be "determined" as per the schedule. The amending legislation shows that the Legislature accepted difference between the value "estimated" and "determined". These two words do not convey the same meaning or mode of computation and were clearly employed in contract if not in contradiction to each other. We, therefore, hold that value taken on estimate basis is not value "determined" for the purpose of Explanation 4 to section 18(1)(c) and aforesaid provision is applicable only in those cases where value is determined as per the statutory provisions. 15. In the light of above discussion we consider the facts of present appeal. It is found that the assessee returned value of jewellery on estimate basis and the WTO assessed the same accordingly. The valuation report is merely an opinion of expert and estimation of valuation. The aforesaid report was filed by the assessee bonafidely and in good faith. The assessee thus was not hit by Explanation 4 erroneously applied by the learned CWT(A). In the light of above discussion we see no reason to uphold the levy of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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