Law:

Section:

Section 18(1)(a) of the Wealth-Tax Act, 1957 - Penalty - For late filing of return - Assessment years 1962-63 and 1963-64 - Whether where wealth-tax returns were filed after long delay, law applicable for levy of penalty would be law prevailing on date when returns were filed and not law existing on relevant valuation dates - Held, yes FACTS There was a long delay in filing the returns of net wealth by the assessees. The WTO initiated penalty proceedings under section 18(1)(a) and the question which arose before the Tribunal was as to what law would be applicable for purposes of penalty proceedings. The Tribunal took the view that the penalty should be worked out at the rates prescribed under law as it existed on the relevant valuation dates. On reference : HELD In view of decision of the Supreme Court in Maya Rani Punj v. CIT [1986] 157 ITR 330, it was to be held that the Tribunal was not right in applying the law which was prevailing at the time of valuation date and it should have decided with reference to the law prevailing on the date when the returns were filed. Note: The case was decided against the assessee. CASE REVIEW Maya Rani Punj. v. CIT [1986] 157 ITR 330 (SC) and CWT v. Amolak Singh Jain [1987] 163 ITR 825 (Delhi) followed and relied upon. CASES REFERRED TO Maya Rani Punj v. CIT [1986] 157 ITR 330 (SC) and CWT v. Amolak Singh Jain [1987] 163 ITR 825 (Delhi). D.K. Jain and D.C. Taneja for the Applicant. JUDGMENT Yogeshwar Dayal, J.-The following question has been referred to this court for its opinion: "Whether, the Tribunal was right in law in holding that the penalties to be levied should be worked out at the rates prescribed under the law as it existed on the relevant valuation dates?" These wealth-tax references relate to two assessees, Indersain Jain and Satyapal Jain, both of whom are partners in a firm "M/s. Kumar Brothers." These references relate to the assessment years 1962-63 and 1963-64. For the aforesaid assessment years, Indersain Jain filed his wealth-tax returns on September 18, 1969, in response to notices issued under section 17 of the Wealth-tax Act and Satyapal Jain filed his returns…

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