Assessee in this case liable to file return of wealth on 30th June, 1972. However, he did not do so and ultimately WTO had to issue notice under s. 17 of WT Act. return was filed on 11th April, 1980 on total wealth of Rs. 1,01,550. wealth was actually computed at Rs. 1,18,680. WTO, therefore, initiated penalty proceedings to which assessee did not give any reply. Ultimately penalty of Rs. 16,460 was levied. said penalty has been confirmed by AAC on appeal filed by assessee. assessee has come up in second appeal before us. We have heard representatives of parties at length in this apeal. One point noticed by us was that appeal in question was delayed by as many as 64 days. In this behalf assessee s contention was that he has already moved AAC for rectification of original order and his representative has discussed matter with AAC who had given understanding that there were mistakes in original order and same would be ultimately rectified. It was because of this understanding that assessee did not file appeal earlier. Later his rectification petition was dismissed and therefore, assessee had to file this appeal after period of limitation. affidavit of Shri H. M. Jain, CA was also filed to this effect. After carefully considering all facts and circumstance of case we are of opinion that it is fit case where delay in filing of appeal should be condoned. assessee had actually moved AAC for rectification of order passed by him on appeal. In those proceedings it was submitted that assessee was entitled to exemption of Rs. 1 lac under s. 5(1)(iv) and as such net wealth of assessee would be below taxable limits. This method of calculation had in fact been accepted by Department both before and after this year. wealth of assessee being below taxable limits, no penalty could be levied. AAC did not dispute most of these allegations but according to him he had already confirmed levy of penalty and fresh order by him deleting penalty would amount to review in law which was not possible. It may be that under these circumstances assessee s representative may under bona fide impression that AAC himself would rectify earlier order and may have given same impression to assessee. non-filing of appeal within time could be due to this wrong impression created in his mind. This to our mind is sufficient cause for condemning delay which we do accordingly. Coming to merits, assessee probably wrongly failed to claim exemption under s. 5(1)(iv) of WT Act in respect of assets held by partnership firm of which assessee is partner. Although law on point is doubtful as to whether assessee can at all be entitled to this exemption even some Benches of Tribunal (notwithstanding contrary opinion of dictating member) have held that assessee is so entitled. If exemption were to be allowed to assessee wealth of assessee would be below taxable limits. assessee may have paid tax by not claiming exemption but to our mind, it would be too harsh to further levy penalty on assessee for delay in filing of assessee for delay in filing of return when his wealth actually was no even taxable. penalty under WT Act at relevant period was very high which was wholly incommensurate with tax liveable. For such technical branch, levy of such high penalty would be wholly unfair. We accordingly accept appeal and cancel penalty. In result, appeal of assessee is allowed. *** OM PRAKASH AGARWAL v. WEALTH-TAX OFFICER