Law:

Section:

Section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - For late filing of return - For assessment year 1960-61 assessee filed her return in August 1971 beyond stipulated time - Whether failure to furnish return was a continuing offence and penalty leviable was to be calculated with reference to each succeeding month during which default continued as per law prevailing on date of assessment and penalty proceedings initiated - Held, yes - Whether section 18(1)(a) is violative of article 20(1) of the Constitution of India - Held, no Facts For the assessment year 1960-61 the assessee filed her return in August 1971 beyond the stipulated time. The assessment was completed and the WTO thereafter levied penalty under section 18(1)(a). On appeal, the imposition of penalty was upheld but the WTO was directed to impose penalty as per law prior to 31-3-1969. On further appeal, the Tribunal held that the default committed was not a continuing offence since the default arose on the last due day to file the return and, therefore, the law prevailing as on the last day to file the return should be applied to compute the penalty. On reference: Held It is now well settled law that in construing whether commission or omission of a statutory compliance is a continuing offence or not, the purpose of the Act, the language employed, the nature of the contravention and the objects sought to be achieved thereby are the guiding factors to be taken into account and construing the language there under, it is to be considered whether the failure or omission to comply with the statutory provision continues de die in diem or whether it is complete by the date on which the failure or omission has occurred. Under the Act involved, the crucial date to apply the penal provision is the date on which the assessing authority has reached the satisfaction that assessee has committed default in submitting the return of net wealth, namely, passing of the assessment order and intimation of the penalty proceedings. The language in section 18(1)(a) also affords indication that the penalty is to be computed with reference to each succeeding month during which the default continues. Considered from that…

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