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2008] 305 ITR 92 2008] 172 TAXMAN 162 (ALL.) HIGH COURT OF ALLAHABAD Commissioner of Wealth-tax v. Smt. Shakuntala Devi Dalmia * PRAKASH KRISHNA AND BHARATI SAPRU, JJ. WT APPEAL NO. 74 OF 1999â-  SEPTEMBER 24, 2007 Section 18(1)(c) of the Wealth-tax Act, 1957 - Penalty - For concealment of wealth - Assessment year 1989-90 - In her return of wealth, assessee had shown value of an immovable property on basis of an approved valuer's report - Assessing Officer, however, adopted value of said property at much higher figure as determined by Departmental Valuation Officer (DVO) - He also imposed penalty under section 18(1)(c) holding that Explanation 4 to section 18(1)(c) was applicable inasmuch as value of immovable property as shown by assessee was less than 70 per cent of value as determined by DVO - Tribunal deleted penalty holding that neither Explanation 2 nor Explanation 4 to section 18(1)(c) could be applied because explanation offered by assessee was sufficient to rebut presumption of concealing of particulars in relation to value of property in question or for furnishing inaccurate particulars of asset - Whether Tribunal was justified in its views - Held, yes FACTS In her return of wealth, the assessee had shown value of an immovable property at Rs. 82,500 based on an approved valuer's report. The Assessing Officer made a reference to the DVO under section 16A for determining the value of that property. The DVO determined the fair market value of the property at Rs. 37,14,000. The Assessing Officer adopted that value and completed the assessment. He also imposed penalty under section 18(1)(c), for the reason that the Explanation 4 to section 18(1)(c) was applicable inasmuch as the value of the immovable property, as shown by the assessee, was less than 70 per cent of the value as determined by the DVO. On appeal, the Commissioner (Appeals) cancelled the penalty. On the revenue's appeal, the Tribunal confirmed the order of the Commissioner (Appeals) holding that neither the Explanation 2 nor the Explanation 4 to section 18(1)(c) could be applied because the explanation offered by the assessee was sufficient to rebut the presumption of concealing of…

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