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Section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - For failure to furnish returns - Assessment years 1978-79 and 1979-80 - Whether no penalty under section 18(1)(a) for delay in submission of WT return can be levied for period from its due date till date of furnishing of IT return by assessee - Held, yes FACTS The WTO levied penalty upon the assessee under section 18(1)(a) on account of delay in furnishing returns of wealth-tax for the assessment years 1978-79 and 1979-80. On appeal, the AAC reduced the penalty upto date of filing of the income-tax returns. On appeal, the Tribunal upheld the orders of the AAC holding that no penalty under section 18(1)(a) for delay in submission of the wealth-tax return could be levied for the period till the date of furnishing of the income-tax return by the assessee. On reference: HELD On a plain reading of the provisions of the Act, it is apparent that the filing of the wealth-tax return is dependent on filing of the income-tax return, or at least the provisions of the Income-tax Act, 1961 have some bearing. It is settled legal position that liability to pay tax under the 1961 Act is a permissible deduction while computing net wealth of an assessee on the valuation date, and such liability is ascertainable only on the date when the income-tax return is finalised. [Para 6] In the light of the aforesaid scheme of the 1957 Act, there was no infirmity in the order made by the Tribunal upholding order of the AAC whereunder the penalty came to be reduced up to the date of filing of income-tax returns for both the assessment years under consideration. [Para 7] The reference stood disposed of accordingly. CASE REFERRED TO Addl. CWT v. Babulal K. Shah [1978] 114 ITR 370 (Mad.) [Para 5]. Manish R. Bhatt for the Petitioner. JUDGMENT D.A. Mehta, J. - The Tribunal, Ahmedabad Bench 'B', has referred the following question of law under section 27(2) of the Wealth-tax Act, 1957 (the Act), at the instance of the CWT, Gujarat-II, Ahmedabad : "Whether the Tribunal is right in law and on fact in holding that no penalty under section 18(1)(a) of the WT Act for delay in submission of the WT return can be levied for the period till the date…

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