Law:

Section:

Section 18(1)(a) of the Wealth-Tax Act, 1957 - Penalty - For late filing of return - Whether penalty under section 18(1)(a) should be imposed upon assessee according to law which was in force on date when default was committed - Held, yes FACTS The Tribunal held that the law, under which penalty was to be computed for the default under section 18(1)(a) was the one which prevailed on the date when the assessment order was completed and not as per law prevailing on date when the default of not furnishing the return had commenced. On reference: HELD Following the decision of the Supreme Court in CWT v. Suresh Seth [1981] 129 ITR 328 it was to be held that the penalty should be imposed upon the assessee according to law which was in force on the date when the default was committed. Note: The case was decided in favour of the assessee. CASE REVIEW CWT v. Suresh Seth [1981] 129 ITR 328 (SC) followed and relied upon. CASE REFERRED TO CWT v. Suresh Seth [1981] 129 ITR 328 (SC). JUDGMENT Following question of law has been referred by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, for being answered by this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the law, under which penalty is to be computed in the present case for the default under section 18(1)(a) is the one which prevailed on the date when the assessment order was completed, i.e ., on October 10, 1972, and not as per law prevailing on July 1, 1968, when the default of not furnishing the return had commenced ?" We need not dwell in detail and note down the facts of this case as the question referred to this court, according to the learned counsel appearing on behalf of the assessee as well as the revenue, stands answered by a decision of the Supreme Court in CWT v. Suresh Seth [1981] 129 ITR 328. In similar circumstances, the hon'ble Supreme Court has observed as under(p. 335): "When a person does an act which law prohibits him from doing it and attaches a penalty for doing it, he is stated to have committed an act of commission which amounts to a wrong in the eye of law. Similarly when a person omits to do an act which is required by law…

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