Law:

Section:

Section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - For failure to furnish returns - Assessment years 1964-65 to 1967-68 - Whether penalty proceedings under section 18(1)(a) were quasi judicial proceedings and therefore WTO had to pass a speaking order in respect of said proceedings - Held, yes (Matter remanded FACTS The WTO imposed penalty for the relevant assessment years under section 18(1)(a) for the delay in filing the return. On reference: HELD It appeared, in making the assessment, the penalty was fixed as if there was delay in filing the return on the date when the order was passed or on the date when the return was filed. This was patently wrong (sic ). The penalty, if any, could be fixed for the period of assessment year as may be fixed under the Wealth-tax Act or the Finance Act, as the case may be (sic ). Be that as it might, the order itself was not a speaking order. From that order, it was very difficult to consider what led the WTO to pass the relevant order. As this was a quasi-judicial proceedings, the authority concerned must pass a speaking order. Not having passed a speaking order, the order could not be sustained and must be set aside. The matter was remitted to the competent authority for rehearing and decision in accordance with law. -(Matter remanded.) Rajesh Balia for the Petitioner. J.P. Joshi for the Respondent. JUDGMENT P.K. Banerjee, CJ.-This rule is directed against an order passed by the Commissioner, Wealth-tax, under section 18(2A) before amendment of the Wealth-tax Act and after amendment, under section 18B, whereby the petitioner was asked to pay penalty for failure, without reasonable cause, to furnish the return of net wealth under section 14(1) of the Wealth-tax Act. The facts leading to the proceeding is that the petitioner filed a return under section 14 for the period 1964-65 to 1967-68 on July 24, 1970, showing the estimated wealth at Rs. 1,80,250 for the assessment year 1964-65, Rs. 2,06,135 for the assessment year 1965-66, Rs. 2,15,197 for the assessment year 1966-67 and Rs. 2,40,560 for the assessment year 1967-68. The Wealth-tax…

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