TMI Blog1978 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... ately sold, the assessee's wealth is not liable to wealth-tax, and that the assessee filed her wealth-tax returns for all these years voluntarily on 31st day of March, 1970. The assessments were, however, completed computing the assessee's wealth which was taxable and the WTO has recorded a finding in the orders of assessment that penalty proceedings of s. 18(1) (a) were attracted. 2. In reply to show cause memo the assessee stated that she was old and illiterate, that the rental income from the property was much less and that her wealth would not have been taxable even ifs the property was valued by applying multiple of 20 to the net rental income from the property. According to the WTO, the explanation was not satisfactory. He, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the orders of the AAC. In particular he laid great emphasis on the fact that the assessee was old and illiterate; that she was not represented by any Counsel in the income-tax proceedings; that she became liable to wealth-tax for the first time and that the wealth-tax returns were filed voluntarily. For this purpose the learned Counsel invited our attention to a Press Note dated 2nd June, 1969 issued by the Ministry of Finance (Deptt. of Revenue Insurance) (available at Taxman's CBDT Circulars Vol. 1-1977 Page 922 Cir No. 552) to show that where a return making full disclosure of the net wealth is furnished voluntarily before the issue of the Notice and the tax payer extends his full-co-operation, to the Department in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the four respective years is Rs. 180, Rs. 173, Rs. 190, Rs. 213. 7. The consensus of judicial opinion being that penalty under s. 18(1)(a) should not be imposed merely because there is a default, unless the conclusion that the assessee's conduct was contumacious or that she deliberately omitted to file her returns of wealth is justified, we have to consider whether such a conclusion is justified in the case before us. For this purpose it is necessary to take inter alia into account that the assessee was an old and illiterate lady; that she was not represented by any counsel before the income-tax authorities; that even if the valuation of property was done by applying a multiple of 20 to the net rental income, her wealth would not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
