B.P.Jeevan Reddy, C.J. - (1.) This writ petition is directed against an order of the Commissioner of Wealth-tax, Lucknow, made on August 16, 1980, under Section 18B of the Wealth-tax Act, 1957. By the said order, the Commissioner has rejected the application made by the petitioner for waiver of penalties imposed in respect of three assessment years.
(2.) The petitioner filed returns under the Wealth-tax Act in respect of the assessment years 1972-73 and 1973-74 on October 7, 1974. For the assessment year 1974-75, however, he had filed the same on September 30, 1974 itself. The assets owned by him included an agricultural property. He valued the same at Rs. 400 per bigha according to which the value of the said asset ranged near about 80,000. The Wealth-tax Officer, however, did not accept the said valuation. He noticed that the income from the said asset disclosed by the petitioner himself was rupees eight to ten thousand per annum. Applying the multiple of fifteen, he valued the said assets at Rs. 1,50,000. On appeal, the valuation was reduced to Rs. 1,08,000 and that became final. On the ground that the petitioner had not filed the returns for the said three assessment years within the time prescribed, proceedings for levy of penalty were taken under Section 18 of the Act and penalties in a sum of Rs. 11,414 for the first year, Rs. 5,759 for the second year and Rs. 433 for the third year were imposed. This order also became final. The petitioner then applied to the Commissioner under Section 18B for waiving the said penalties which application has been dismissed under the impugned order. The only reason given for rejecting the said application is that "there is much variation between the returned and assessed wealth for all the relevant assessment years. As such, the disclosure of wealth cannot be treated to be full and true".
(3.) Sub-section (1) of Section 18B read as follows : "18B. Power to reduce or waive penalty in certain cases. -- (1) Notwithstanding anything contained in this Act, the Chief Commissioner or Commissioner may, in his discretion, whether on his own motion or otherwise, -- (i) reduce or waive the amount of penalty imposed or imposable on a person under Clause (i) of Sub-section (1) of Section 18 for failure without reasonable cause to furnish the return of net wealth which such person was required to furnish under Sub-section (1) of Section 14 ; (ii) reduce or waive the amount of penalty imposed or imposable on a person under Clause (iii) of Sub-section (1) of Section 18, if he is satisfied that such person,-- (a) in the case referred to in Clause (i), has, prior to the issue of a notice to him under Sub-section (2) of Section 14, voluntarily and in good faith, made full and true disclosure of his net wealth, and (b) in the case referred to in Clause (ii), has prior to the detection by the Assessing Officer, of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of any asset or debt in respect of which the penalty is imposable, voluntarily and in good faith made full and true disclosure of such particulars, and also has co-operated in any inquiry relating to the assessment of his net wealth and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year.";