Law:

Section:

Section 18(1)(c), read with section 18(3) of the Wealth-tax Act 1957 - Penalty - For concealment of income - Assessment years 1973-74 and 1974-75 - Whether IAC has no jurisdiction to impose penalty under section 18(1)(c) after amendment of section 18(3), with effect firm 1-4-1976 by Taxation Laws (Amendment) Act, 1975 - Held, yes - Whether, therefore, where reference was made by WTO on 12-1-1977 when provisions of Section 18(3) requiring WTO to refer case to IAC were substituted by amended provisions of section 18(3), act of IAC imposing penalties under section 18(1)(c) was without jurisdiction - Held, yes FACTS For the Assessment years 1973-74 and 1974-75, the assessee had declared her net wealth at Rs. 77,483 and at Rs. 88,205. The WTO had completed the assessments on a net wealth of Rs. 1,22,483 and Rs. 1,33,205/- respectively. The WTO also initiated penalty proceedings under section 18(1)(c) and referred the case to the IAC. The IAC imposed penalties under section 18(1)(c) on 24-3-1977. On appeal, the assessee contended that the IAC had no jurisdiction to impose penalties after 1-4-1976. It was urged that the orders of the IAC dated 24-3-1977 imposing penalties under section 18(1)(c) were without jurisdiction. The Tribunal, however, rejected that contention and with some modification, affirmed the orders imposing penalties passed by the IAC. On reference : HELD The jurisdiction of the IAC for the purpose of imposing penalty is derived on a reference made to him by the WTO and if the reference was not validly made, then if follows that the IAC would have no jurisdiction to impose the penalty. In the instant case, the references were made by the WTO on 12-1-1977 when the provisions of section 18(3) requiring the WTO to refer the case to the IAC were substituted by the amended provisions of section 18(3). Therefore, on the facts and in the circumstances of the case, the IAC had no jurisdiction to impose penalty under section 18(1)(c ) after the amendment of section 18(3), with effect from 1-4-1976 by the Taxation Laws (Amendment) Act, 1975. Note: The case has been decided in favour of the assessee. CASE REFERRED TO CIT v. A.N. Trwari [1980] 124 ITR 680 (MP).…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492