Law:

Section:

Section 18(1)(a) of the Wealth-tax Act, 1957 - Penalty - For late filing of return - Assessment years 1975-76 to 1982-83 - Assessee filed its wealth-tax returns for assessment years in question belatedly - WTO levied penalty under section 18(1)(a) - Commissioner (Appeals) observing that due to some abnormal circumstances, Income-tax returns were also filed belatedly deleted penalty for period till date of furnishing income-tax returns by assessee - Whether Commissioner (Appeals) was justified in doing so - Held, yes FACTS The assessee was carrying on money-lending business. The assessee filed wealth-tax return for the assessment years 1975-76 to 1982-83 on 9-11- 1984. On the basis of the return, the assessments were completed. Later, the WTO initiated the penalty proceedings under section 18(1)(a) for late filing of return and subsequently, levied the penalty. Earlier, business and residential premises of the assessee were searched on 29-7-1975 by the police and all account books, etc., were seized which were handed over to the sales-tax department and later on requisitioned by the Income-tax department. The applicant was also put under detention and was released in the year 1977. Thereafter, a second search was conducted by the Income-tax department on 10-8-1983 when some more books, etc., were seized by the Income-tax department. On appeal, Dy. Commissioner (Appeals) observing that due to these abnormal circumstances, the Income-tax returns were also filed belatedly and could be filed on 6-1-1983 held that the assessee was prevented by sufficient cause from filing of the wealth-tax return up to 6-1-1983 and, accordingly, levied penalty only for a period of 21 months i.e., 1-2-1983 to 31-10-1984. On revenue's appeal, the Tribunal set aside the order of the Dy. Commissioner (Appeals) and restored order of the WTO. On reference : HELD A perusal of the order of the Tribunal showed that it had not examined the facts of the case in their entirety while coming to the conclusion that the late filing of the return under the Income-tax Act, 1961, could not be a reasonable cause. From year 1975 onwards account books were in possession of the department which had…

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