Law:

Section:

Section 17B of the Wealth-tax Act, 1957 - Return of wealth - Interest for default in furnishing of On payment of tax and interest on a date anterior to date of filing of return under Wealth-tax Act, interest at rate of 2 per cent. prescribed in section 17B is chargeable up to period when amount of tax and interest has been deposited; and not up to date of furnishing of return [A.Y. 1992-93] The charging of interest on the delayed deposit of wealth-tax is compensatory in nature and not punitive. It is clear from the provision itself that it is not on account of delay in not furnishing the return, but on account of delay in depositing the amount due from the assessee, that provision has been incorporated to compensate the revenue for the loss occasioned by the delayed deposit. Thus, on payment of tax and interest on a date anterior to the date of filing of the return under the Wealth-tax Act, the interest at the rate of 2 per cent. prescribed in section 17B is chargeable up to the period when the amount of tax and interest has been deposited and not up to the date of furnishing the return. JUDGMENT S.K. Kulshrestha, J. -By this petition, the petitioner assails the order dated December 9, 1999 (annexure P/7), passed by the first respondent, Commissioner of Wealth-tax, Indore, by which the said respondent has rejected the revision and declined the claim of the petitioner for deleting the interest charged under section 17B of the Wealth-tax Act, 1957. The facts not in dispute before this court are that the petitioner is an assessee under the Wealth-tax Act and for the assessment year 1992-93, she was required to furnish return by July 31, 1992 for the year ending on March 31, 1992. The petitioner has submitted that on account of the inadvertent lapse of her accountant, the said return could not be filed by the due date but the amount of tax along with interest thereon as required under section 17B of the Wealth-tax Act, was deposited on March 30,1994. To substantiate the said contention, the petitioner has submitted exhibit P/3 indicating the calculations and the amount of tax and interest worked out by her. Learned senior counsel for the petitioner submits that…

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