Law:

Section:

Section 18(1)(c) Of The Wealth-Tax Act, 1957-Penalty-For Concealment Of Wealth-Tribunal, Primarily Relying On Decision Of Division Bench Of Punjab And Haryana High Court In Addl. Cit V. Karnail Singh V. Kaleran [1974] 94 ITR 505 , Which Was Overruled By Full Bench In Vishwakarma Industries V. Cit [1982] 135 Itr 652, Held That Though Onus To Prove That Concealment Was Not Due To Fraud, Etc., On Part Of Assesses, Was On Assessee, But Since Explanation Offered By Assessee Was Plausible And Revenue Had Failed To Prove That Explanation Of Assessee Was False, No Penalty Was Leviable-Whether Tribunal Was Justified-Held, On Facts, Yes Facts The order of the Tribunal was primarily based on Addl. CIT v. Karnail Singh V. Kaleran [1974] 94 ITR 505 (Punj. & Har.), in regard to the fact as to whether the explanation offered by the assessee under section 18(1)(c) was acceptable or not. The Tribunal held that though onus to prove that the concealment was not due to fraud, etc., on the part of the assessee, was on the assessee, but since considering the facts on the record, the assessee's explanation was plausible and the revenue had failed to prove that explanation of the assessee was false, no penalty was exigible. On reference, the revenue contended that Division Bench decision in Karnail Singh V. Kaleran's case (supra), having been expressly overruled by the Full Bench decision of the Punjab and Haryana Court in Vishwakarma Industries v. CIT[1982] 135 ITR 652, the order of the Tribunal, which was primarily based on Karnail Singh V. Kaleran's case (supra),was erroneous. Held What the Full Bench in Vishwakarma Industries' case (supra) found unacceptable in Karnail Singh V. Kaleran's case(supra) was its view that even though the explanation offered by the assessee was not acceptable, that is, was found to be false, then too penalty would not be imposed under section 271(1)(c) of the Income-tax Act [ the legal import of which isin pari materia with the provisions of section 18(1)(c) of the Act], unless the revenue established as a fact that the assessed income over and above the income disclosed in the return, in fact, accrued to the assessee and the amendment effected by…

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