This is departmental appeal against order of AAC who has deleted penalty imposed by WTO under s. 18(1) (a) of WT Act. return was due on or before 30th June, 1975, whereas same was filed on 23rd March, 1977. WTO initiated penalty proceedings under s. 18(1) (a) of Act and issued show cause notice to assessee. assessee did not appear nor submitted any explanation and WTO imposed penalty of Rs. 41,000. assessee came in appeal before AAC and contended that she did not have taxable wealth and, therefore, she did not file her return. It was further indicated that she applied for time and extension was sought till 31st Dec., 1975. However, as according to assessee, return was in minus figure, assessee was under bona fide belief that she did not have any obligation to file her return. AAC accepted that assessee was prevented from reasonable cause and, accordingly, he deleted penalty. Shri Jha, senior departmental representative, urged that bona fide belief of assessee was not correct when assessee has been assessed to tax during asst. yr. 1975-76. Moreover, assessee filed application for extension of time which shows that assessee was having taxable wealth. Consequently, order of AAC may be set aside. counsel of assessee filed paper book which included explanation of assessee before WTO and AAC and statement of wealth for asst. yr. 1975-76 on basis of which return was filed. Accordingly, it was urged that assessee was under bona fide belief that she did not have taxable wealth and, therefore, penalty was rightly deleted by AAC. penalty imposed by WTO for late submission of return for asst. yr. 1975-76 under s. 18(1) (a) was deleted by AAC on ground that assessee was under bona fide belief that she did not have taxable wealth. assessee has filed letter dt. 20th April, 1981 which was submitted before WTO in response to show cause notice issued by him. Therefore, observation of WTO in order is not correct that assessee did not submit any explanation. assessee has filed in paper book statement of wealth as at 31st Chaitra 1381 B.S. According to above statement, assessee has worked out gross wealth of Rs. 3,82,297 from which deduction has been made for debts at Rs. 4,44,797. Therefore, resultant wealth is in minus figure at Rs. 62,499 for which return was filed by assessee for asst. yr. 1975-76 and photostat copy of receipt as well as return had been included in paper book. It is clear from wealth-tax return filed by assessee that till return was filed, assessee was of bona fide belief that she did not have taxable wealth. extension of time was sought just as precautionary measure. When actual wealth was worked out, it was found that assessee was having minus wealth of Rs. 62,449. bona fide belief of assessee may be true or untrue. But fact is that assessee being under this belief could not file her return and, therefore, she was prevented from reasonable cause. Consequently, AAC was perfectly, justified in deleting penalty. In result, appeal is dismissed. *** WEALTH TAX OFFICER v. SMT. ALOKA BALA DHAR