Law:

Section:

Section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - For failure to file return - Whether failure to file return is a continuing offence - Held, no - Whether penalty under section 18(1)(a) has to be computed in accordance with law in force on last date on which impugned return had to be filed - Held, yes Facts The assessee filed his wealth-tax returns for the assessment years 1964-65 and 1965-66 on 18-3-1971 whereas he was required by section 14(1) to file the return for the assessment year 1964-65 on or before 30-6-1964 and the return for the assessment year 1965-66 on or before 30-6-1965. The WTO imposed penalty (i) from 1-7-1964 to 31-3-1969 for the assessment year 1964-65 and from 1-7-1965 to 31-3-1969 for the assessment year 1965-66, in accordance with the provisions of section 18(1)(a ) as they stood prior to their amendment on 1-4-1969; and (ii) from 1-4-1969 to 18-3-1971 in respect of both the assessment years in accordance with the provision of section 18(1)(a) as amended on 1-4-1969. On appeal, the AAC and the Tribunal upheld the WTO's order. On reference, the High Court rejected the revenue's contention that the default or failure to file the return in time was a continuing default and hence penalty had to be computed for the period prior to 1-4-1965 in accordance with section 18 as it stood prior to its amendment by the Wealth-tax (Amendment) Act, 1964, for the period between 1-4-1965 to 31-3-1969 in accordance with section 18 of the Act as amended by the Wealth-tax (Amendment) Act, 1964, and for the period between 1-4-1969 to 18-3-1971 (on which date the returns were filed) in accordance with section 18 of the Act as amended by the Finance Act, 1969. On appeal: Held 1. Ordinarily a wrongful act or failure to perform an act required by law to be done becomes a completed, act of commission or of omission, as the case may be, as soon as the wrongful act is committed in the former case and when the time prescribed by law to perform an act expires in the latter case and the liability arising therefrom gets fastened as soon as the act of commission or of omission is completed. The extent of that liability is ordinarily measured according to the law…

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