TMI Blog1987 (12) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... called M/s. Tulsidas V. Patel. They filed their wealth-tax returns for the A.Y. 1977-78 on 12-2-1982. Sri Parmanand T. Patel, disclosed a net wealth of Rs. 3,45,300 and Sri Ramanlal T. Patel disclosed a net wealth of Rs. 4,73,300. They filed statements showing computation of net wealth along with the returns of net wealth. In such statement, under the head " Immovable property ". they declared their interest in the firm of M/s. Tulsidas V. Patel as nil. It would appear that the said firm of M/s. Tulsidas V. Patel possessed land at Baroda and Ohatkopar. The appellants claimed that this land was agricultural land and that their interest in this partnership was exempt under section 5(1)(xxiii) and 5(1)(xxiv) of the W.T. Act. This claim was rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO rejected this argument. He pointed out that the property concerned was put up for sale and an agreement for sale had been drawn in favour of Rokadnath Co-operative Housing Society for Rs. 11,93,000, and that the appellant had received earnest money, but he also pointed out that at the relevant time, the Land Ceiling Act had not come into force. The material facts were known to the assessees when they filed the returns of wealth on 12-2-1982. He, therefore, levied the aforementioned penalties of Rs. 15,000 and Rs. 12,000 by his order dated 22-3-1988. 4. In appeal, the CWT(A) held that the penalties were leviable, but reduced the quantum penalty to Rs. 6,075 in the case of Sri Parmanand T. Patel and to Rs..4,607 in the case of Sri Paman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was mutually extended from 15-10-1976 till, 20-2-1979 for getting the sanction of the Gujarat Government and getting conveyance within the terms laid by the Government in the sanction. This extension of the agreement was signed by the parties concerned on 1-10-1976. In the meantime, on 13-8-1976, Sri Parmanand T. Patel, on behalf of the firm, addressed a letter to the Addl. Collector, Baroda, enclosing statements in Forms I and V under the Urban Land (Ceiling Regulations) Act, 1976, along with necessary plans and abstracts from land records informing the Addl. Collector that the land at Survey No. 81 and Survey No. 145 was intended to be used for residential purposes and enclosing the plan for development of the land. Thus, the firm had s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to get necessary permission from the competent authority and succeeded in effecting transfer of the land to the society for Rs. 11.93 lakhs as per the agreement to sell. These facts were known to the assessees at the point of time, when they filed their returns, i.e., on 12-2-1982. Even then, in the statement of net wealth, they chose to show the value of their share in the firm at nil. At our instance, the counsel for the assessee has filed'a statement showing the working of the interest of the partners in the firm in which the increase in the value of the agricultural land has been incorporated. It is argued that this working was enclosed with the statement of net wealth. However, the fact that an agreement to sell was drawn in 1974 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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