Law:

Section:

Section 18(1)(a) read with section 14 of the Wealth-tax Act, 1957 - Penalty - For failure to furnish return - Assessment year 1969-70 - Whether an assessee who does not file wealth-tax return under section 14(1) or files it after delay, cannot escape liability to penalty under section 18(1)(a) merely because WTO has issued notice to him under section 14(2) - Held, yes FACTS The assessee filed his wealth-tax return after some delay. The WTO issued a notice to him for late filing of the return under section 14(1). After giving an opportunity of being heard to the assessee, he imposed a penalty on him on account of said delay. The assessee went up in appeal, which was dismissed. On second appeal, the Tribunal held that in the assessment proceedings initiated and completed on the basis of section 14(2), it was not open to the WTO under section 18(1)(a) to penalize the assessee for the default of his failure to furnish the section 14(1) return. On reference : HELD An assessee who does not file a return under section 14(1) or files the same after delay cannot escape liability merely because the WTO has issued a notice to him under section 14(2). Therefore, the return furnished by the assessee was one by way of discharge of his obligation under section 14(1), read with section 15. Therefore, it was held that the said return being a delayed return under section 14(1), penalty for furnishing delayed return under section 14(1) was exigible. Note: The reference was decided partly against the assessee and partly against the revenue. CASES REFERRED TO: CIT v. Indra and Co. [1971] 79 ITR 702 (Raj.), Mullapudi Venkatarayudu v. Union of India [1975] 99 ITR 448 (AP), CIT v. D.V. Save[1979] 119 ITR 266 (Bom.) Chunnilal and Bros. v. CIT [1979] 119 ITR 199 (MP), G.S. Atwal and Co. (Assansol) v. CIT [1979] 117 ITR 171 (Cal.), CIT v. Dehati Co-operative Marketing-cum-Pressing Society [1981] 130 ITR 504 (P&H) and R. Lakshiminarayana Reddiar v. CIT [1980] 121 ITR 767 (Mad.), Commr. Agrl. I.T. v. Sultan Ali Gharami [1951] 20 ITR 432 (Cal.) and Addl. CIT v.Rampratap Shankarlal [1979] 117 ITR 662 (MP). JUDGMENT M.R. Sharma, J.-Daljit Singh, the assessee, filed his wealth-tax return…

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