COMMISSIONER OF WEALTH TAX Vs. RAJMATA GEETA KUMARI

JUDGEMENT

(1.) THIS D.B. wealth-tax reference application under Section 27(3) of the Wealth-tax Act in respect of the assessment year 1970-71 against the order of the Income-tax Appellate Tribunal in WTA No. 313/JP/1979, dated August 8, 1981, has been preferred before this court. Earlier, the Tribunal was moved to make a reference under Section 27(1) of the Wealth-tax Act, but the Tribunal declined to make a reference, vide its order dated January 29, 1980 (sic).

(2.) THE return of net wealth was due to be filed on or before June 30, 1970, but it was filed on November 15, 1971. Proceedings were initiated by the Wealth-tax Officer under Section 18(1)(a) of the Wealth-tax Act. THE Wealth-tax Officer was not satisfied with the explanation offered by the assessee and levied penalty of Rs. 19,144 under Section 18(1)(a) of the Act An appeal was preferred by the assessee before the Appellate Assistant Commissioner, THE Appellate Assistant Commissioner confirmed the order passed by the Wealth-tax Officer. THE assessee preferred a second appeal before the Tribunal. THE assessee contended that her wealth consists, inter alia, of jewellery for personal use worth Rs. 1,40,000 and deposits with her late husband amounting to Rs. 74,221. Excluding the value of the aforesaid assets, the wealth is admittedly below the taxable limit. THE assessee further submitted that there was no knowledge about the taxability of the aforesaid two assets and, therefore, the belief was formed that the wealth was below the taxable limit. It was also contended that only after the Finance Act, 1971, came into force was personal jewellery made taxable. THE petitioner was not conscious of the fact that the personal jewellery was taxable. THE Tribunal, vide its order dated August 8, 1981, accepted the second appeal preferred by the assessee. On the explanation of the assessee, the Tribunal found that it appears that she was prevented from filing the return by reasonable cause.