W. T. A. No. 14 of 2005 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. Case No. : W. T. A. No. 14 of 2005 Date of Decision : December 22, 2008. Commissioner of Wealth Tax-II, Ludhiana .... Appellant Vs. Begum Munwar-ul-Nisha, widow of Late Nawab Iftikhar Ali Khan, Malerkotla .... Respondent CORAM : HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE L. N. MITTAL * * * Present : Mr. Rajesh Sethi, Senior Standing Counsel for the Revenue. Mr. Akshay Bhan, Advocate for the respondent. * * * ADARSH KUMAR GOEL, J. (Oral) : 1. This appeal has been preferred by the Revenue under Section 27A of the Wealth Tax Act, 1957 for the assessment year 1993-94 against the consolidated order of the Income Tax Appellate Tribunal, Chandigarh Bench `B', Chandigarh passed on 17.05.2004 in W.T.A. No.11, 12 & 13/Chandi/2001 for the assessment years 1993-94, 94-95 and 95-96 respectively, proposing to raise following substantial question of law :- “Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in canceling W. T. A. No. 14 of 2005 2 the penalty imposed u/s 18 (1) (c) on the concealed wealth as upheld by the ITAT ?” 2. The appeal arises out of order of penalty. In appeal arising out of quantum proceedings, which has been separately disposed of today bearing W.T.A. No.33 of 2005, we have reversed the view taken by the Tribunal and upheld the view taken by the Assessing Officer for the leviability of tax on the value of property, in the hands of assessee, under the Wealth Tax Act. However, since the issue of eligibility of ex-Ruler for exemption was a debatable issue, it could not be held that stand of the assessee in claiming exemption was not bona fide. 3. Thus, even though we have upheld claim of the Revenue to levy tax, we do not find any reason to interfere with the view taken by the Tribunal setting aside the penalty. 4. The appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE December 22, 2008 ( L. N. MITTAL ) monika JUDGE