Law: Wealth Tax Act, 1957

Section: 18B

Law: Income Tax Act, 1961

Section: 273A,139,215,217,148,132,273

Law: Constitution of Pakistan, 1973

Section: 226

(a) Wealth-tax- ----Penalty---Failure to furnish returns on time---Waiver or reduction of penalty---Scope of power under subsection (4) of S.18B, Indian Wealth Tax Act, 1957---Relief can be granted under subsection (4) of S.18B even where assessee had applied under subsection (1) of S.18B. Under subsection (1) of section 18B of the Indian Wealth-tax Act, 1957, the power conferred upon the Commissioner is to reduce or waive the amount of penalty under certain circumstances. The power conferred upon the Commissioner under subsection (4) of section 18B is not confined only to reduction or waiver of the amount of penalty payable by the assessee but extends also to stay or to compound any proceeding for the recovery of any such amount after recording reasons there for, if he is satisfied that to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case, provided the assessee has co-operated in the enquiry relating to the assessment or in any proceeding for the recovery of any amount due from him. Quite clearly, the scope of the power conferred under subsection (4) is wider than that conferred by subsection (1) of section 18B, provided the circumstances contemplated by subsection (4) for grant of relief exist to the satisfaction of the Commissioner. The power under subsection (4), on the language used therein, can be exercised even at the stage when the amount of penalty imposed upon the assessee is in the process of being recovered. Subsection (4) of section 18B begins by saying that the Commissioner may, "without prejudice to the powers conferred on him by any other provision of this Act", reduce or waive the amount of any penalty or stay or compound any proceeding for the recovery thereof in case he was satisfied about the fact of the assessee having co-operated in the proceeding and the result of recovery against him causing genuine hardship to him. The further discretion contemplated under subsection (4) is to be in addition to and not in substitution of the power contemplated in the matter for the Commissioner under subsection (1). If the contents of the power under both the subsections were to be treated as in…

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