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Section 18(1)(a)(i ) of the wealth-tax act, 1957 [as it stood before 1-4-1969]-Penalty-for late/failure to file return-Assessment year 1965-66 to 1968-69-For assessment year 1965-66, assessee filed return on 28-2-1970 but did not file returns for other assessment years-Whether penalty levied by WTO for late/failure to file return to be computed in conformity with provisions of section 18(1)(a )(i) as they stood before 1-4-1969-Held, on facts, yes Facts For the assessment years 1965-66 to 1968-69, the assessee had to furnish his wealth-tax returns under section 14(1) by 30-6-1965, 30-6-1966, 30-6-1967 and 30-6-1968 and under section 14(2) by 2-8-1965, 10-8-1966, 4-9-1967 and 28-8-1968, respectively. The return for the assessment year 1965-66 was actually filed on 28-2-1970 and no returns were filed at all for remaining assessment years. As the assessee did not explain delay in furnishing the returns, the WTO imposed penalties under section 18(1)(a )(i), which were confirmed by the AAC who did not accept the assessee's plea that he could not file the returns because he was suffering from a heart disease. On further appeal, the Tribunal agreed with the AAC that the delay was not attributable to a reasonable cause. It, however, held that, since the lapses to be penalised under section 18(1)(a)(i ) stood committed prior to 1-4-1969, the law, as it stood before the amendment made by the Finance Act, 1969 (effective from 1-4-1969), was applicable for the computation of penalties. The Tribunal, therefore, directed that penalties for all the four assessment years should be recomputed accordingly. On reference: Held Since the imposition of penalty for not filing the return in time is not a recurring offence, the offence is complete on the date when the return was not filed as per law. The said offences are therefore, committed when the returns were not filed on due dates so that the penalties had to be computed in accordance with the provisions of the law as it prevailed at the time of the commission of the offences. Accordingly, quantum of penalties has to be fixed in conformity with the provisions of section 18( i)(a)( i) as they stood before 1-4-1969. Case review…

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