Law:

Section:

Section 18B, read with section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - Power to reduce or waive - Assessment years 1965-66 to 1973-74 - Whether there is no legal bar to assessment of wealth-tax for previous year provided return is filed voluntarily - Held, yes - WTO imposed penalties on assessee-HUF for delayed filing of return - On application filed by assessee under section 18B, Commissioner refused to waive penalty on ground that assessee was not making a full and true disclosure of his assets, and that although he was liable to wealth-tax for assessment years 1956-57 to 1964-65, he did not file return for those years - Whether since Commissioner had not invited assessee to file returns for earlier years, an opportunity was to be given to assessee to do so and to pay tax due on it - Held, yes FACTS The WTO after accepting the returns filed by the assessee-HUF for the relevant assessment years, assessed the wealth-tax. The assessee paid the tax in due course. The WTO under section 18(1)(a) imposed penalties for the delayed filing of returns. On application filed under section 18B, the Commissioner refused to waive the penalty on the ground that the assessee was not making a full and true disclosure of his assets, that although he was liable to wealth-tax for the assessment years 1956-57, to 1964-65 he did not file returns for those years. It was further held that the assessee's failure to file return prior to 1965-66 smacked of lack of an element of good faith in making the disclosure. On writ : HELD Since the only feature which affected the case of the assessee was the lack of good faith in not filing his returns for the earlier years and since it was not known as to what happened previously because of which the assessee did not file his returns for the earlier years, his prayer for time to file the returns even now, should be favourably considered. Section 17A permits an assessment order to be made under section 16 up to a period of four years commencing from 1-4-1975, or one year from the date of the filing of a return or a revised return under section 15, whichever is later. This shows that now wealth-tax returns can be filed at any time even…

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