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Section 23, read with section 18(1) and 18(2A) [new section 18B], of the Wealth-tax Act, 1957-Appellate assistant commissioner/commissioner (appeals)-procedure in appeal-Whether appeal before AAC against order imposing penalty was maintainable even though commissioner had earlier dismissed assessee's application for waiver of penalty-Held, yes Facts The WTO imposed penalty on the assessee for late filing of returns and the Commissioner rejected the waiver applications. The AAC dismissed the assessee's appeal on the ground that as the Commissioner had already rejected its petition under section 18(2A), the appeals were not competent. The Tribunal, however, directed the AAC to consider the appeals on merits. On reference: Held It is clear from the language of section 18(2A) that the Commissioner has to consider the case on the assumption that the assessee had, without reasonable cause, failed to furnish the return and had become liable for penalty. He is not to consider the question as to whether there was reasonable cause or not for late filing of the return. The WTO imposed the penalty as the cause shown by the assessee was not considered to be reasonable. Thus, the considerations for imposition of penalty are different from those provided in section 18(2A) for the Commissioner to waive the penalty. Therefore, merely because the Commissioner had chosen not to waive the penalty under section 18(2A), it could not be a ground for holding that the appeals were not competent. The Tribunal was, in the circumstances, justified in making the aforesaid direction. JUDGMENT OZA, ACTG. CJ. - This is a reference made by the Tribunal, Jabalpur, for answering the following question: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that an appeal before the AAC was maintainable against WTO's penalty order under section 18(1)(a) of the Wealth-tax Act, 1957, irrespective of the fact that the Commissioner had dismissed the petition filed by the assessee for waiver or reduction of penalty under section 18(2A) of the Wealth-tax Act?" 2. Facts stated in this reference are that the assessee had submitted returns for the…

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