Law: Wealth Tax Act, 1957

Section: 27(1),17,18(3)

(a) Wealth tax--- ----Penalty---Voluntary disclosure of wealth---Returns filed before enactment of Voluntary Disclosure of Income and Wealth Act but assessments not made---Returns later filed under Act for same periods voluntarily disclosing higher net wealth---Immunity from penalty available in respect of entire net wealth voluntarily disclosed in later returns---Indian Wealth Tax Act, 1957, S.18---Voluntary Disclosure of Indian Income and Wealth Act, 1976, S. 15. The assessee filed her returns of net wealth for the assessment years 1970-71 and 1971-72 on September 17, 1975. In the returns she declared her net wealth at Rs.1,34,228 for the assessment year 1970-71 and at Rs.1,46,142 for the assessment year 1971-72. The Voluntary Disclosure of Income and Wealth Ordinance, 1975, was promulgated with effect from October 8, 1975. The assessee then filed before the Commissioner of Income-tax further returns for the assessment years in question on December 31, 1975. In the later returns she declared wealth amounting to Rs.1,94,832 for the assessment year 1970-71 and Rs.2,08,955 for the assessment year 1971-72. In assessment proceedings, her net wealth was assessed at Rs.1,97,200 for the year 1970-71 and Rs.2,11,300 for the year 1971-72. The Assessing Officer imposed penalty under section 18 of the Wealth Tax Act, 1957, for both the years. The assessee, in appeal, questioned the imposition of penalty, claiming immunity under section 15(1) of the Voluntary Disclosure of Income and Wealth Act, 1976. According to the appellate authority, the assessee had not fulfilled the conditions laid down in section 5 of the Voluntary Disclosure of Income and Wealth Act and was, therefore, not entitled to the protection of section 15(1) as provided under section 15(5) of that Act. It was further held that the assessee had filed the returns after the issuance of the notices under section 17 of the Wealth Tax Act, on September 9, 1970, and in response to those notices and hence her case was also hit by proviso (i) to subsection (1) of section 15 of the Voluntary Disclosure of Income and Wealth Act. The Appellate Tribunal, on further appeal, set aside the orders imposing penalty against…

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