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) has to be computed in accordance with law in force on last day on which return was due to be filed-Held, yes Facts For the assessment years 1964-65 to 1968-69, the assessee filed the returns of wealth belatedly on 3-2-1970 as against due on 30th June of the relevant assessment years. In penalty proceedings initiated under section 18(1)(a), the WTO took into account the amendment of section 18(1)(a) with effect from 1-4-1969 and, accordingly, calculated the penalty on enhanced basis. On second appeal, the Tribunal, following its earlier decision in the case of another assessee, reduced the penalty, holding that the assessment years being dates prior to the coming into force of the amendment, the quantum of penalty could not be determined in accordance with such amendment. On reference: Held It was held in CWT v. Suresh Seth [1981] 129 ITR 328 (SC), that penalty for default under section 18(1)(a) has to be computed in accordance with the law in force on the last date on which the relevant return had to be filed, and that the amendment of 1969 did not have any retrospective effect. The Tribunal was, therefore, justified in reducing the penalty for each of the relevant assessment years. Case review CWT v. Suresh Seth [1981] 129 ITR 328 (SC) followed. Case referred to CWT v. Suresh Seth [1981] 129 ITR 328 (SC). B.P. Rajgarhia and S.K. Sharan for the Applicant. Rameshwar Prasad for the Respondent. ORDER 1. This is a batch of five reference cases under section 27(1) of the Wealth-tax Act, 1957 ('the Act'), in which the point of law involved is common and the questions referred to this Court for opinion are with regard to five assessment years in which different quantums are involved. Hence, the Tribunal has referred the following questions of law for our opinion: Assessment year 1964-65 Whether the Tribunal were justified in law in reducing the penalty to Rs. 346 as against Rs. 7,272 imposed by the WTO? Assessment year 1965-66 Whether the Tribunal were justified in law in reducing the penalty to Rs. 367 as against Rs. 7,707 imposed by the WTO?…

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