Law:

Section:

Section 19(3), read with section 18(1)(a), of the Wealth-tax Act, 1957-Executors-Assessment of-Whether in view of fact that section 19(3) specifically makes only provisions of sections 14, 15 and 17 applicable to an executor, administrator or other legal representative, penalty under section 18 cannot be imposed on a legal representative on whom assessment is made under section 19-Held, yes Facts The assessee was assessed to wealth-tax for the assessment year 1966-67 in the capacity of legal representative of her late husband 'B' who died on 21-5-1966. Since the returns had not been filed within the time allowed under section 14(1), penalty was levied under section 18(1)(a) upon the assessee, by the WTO. On appeal, the AAC rejected the assessee's contention that there was no provision in section 19(3), which enabled the WTO to levy penalty under section 18(1)(a) on the legal representative of the deceased as only the provisions of sections 14, 15 and 17 applied to the legal representative, but not that of section 18. On second appeal, the Tribunal, however, accepted the assessee's claim. On reference: Held A perusal of section 14 shows that the return of wealth is required to be filed by every person, if his net wealth or the net wealth of any other person in respect of which he is assessable on the valuation date was of such an amount as to render him liable to wealth-tax. In the instant case, it was an admitted fact that 'B' died on 21-5-1966 after the valuation date, i e., 31-3-1966. Therefore, so far as the assessee was concerned, she was not liable to file the returns as she was not assessable on the valuation date, i.e., 31-3-1966, as 'B' was himself alive on that date. Therefore, it was clear that there was no requirement on the assessee to file the return of wealth under section 14(1) with regard to the wealth of her deceased husband and in that view of the matter, the penalty provisions contained under section 18(1)(a ) could not be applied. Even otherwise, in view of section 19(2), if 'B' had not filed any return, the WTO could have taken an action under section 19(2), but no such action had been taken, in the instant case, and even if such an action…

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