Law: Wealth Tax Act, (XV of 1963)

Section: 14,18,18(1)(a),23,27

Wealth Tax Act (XV of 1963)---Ss. 14, 18, 23, & 27---Imposition of penalty for filing return late---Appeal to High Court---Assessee was burdened with penalties under S.18(1)(a) of Wealth Tax Act, 1963 on account of having filed return late by a number of days---Commissioner (Appeals) refused to interfere finding the default of assessee wilful---Appellate Tribunal finding that Amount of penalties were higher than the tax demand created against assessee during each individual year, directed their reduction to the amount equal to the amount of wealth tax assessed---Validity---Appellate Commissioner and Appellate Tribunal had the jurisdiction to reduce the fixed amounts of penalties provided for under the law. Commissioner of Income Tax, Special Zone, Lahore v. Musarat Textile Mills Ltd. Faisalabad 2005 PTD 2270 ref. ORDER The Commissioner of Income Tax and Wealth Tax, Sialkot Zone, Sialkot claims that the order recorded by a Division Bench of the Income Tax Appellate Tribunal, Lahore on 1-3-2000 gives rise to the following question of law to be considered and answered by this Court:--- "Whether in the facts and circumstances of the case the learned ITAT was justified to direct to restrict the amount of penalty imposed under section 18(1)(a) of Wealth Tax Act, 1963 equal to the tax demand when the default for late riling of the return was wilful and deliberate since the assessee did not suo motu file Wealth Tax return as required under section 14 of the Wealth Tax Act 1963 despite the tact that he had taxable wealth on the valuation date." 2. The respondent, an individual, and a director of a private limited company was an assessee of the Wealth Tax Department. For the assessment years 1992-93 to 1996-97 he was burdened with penalties under section 18(1)(a) of the Wealth Tax Act, 1963 of different amounts on account of having filed the return late by a number of days. That order was challenged before the First Appellate Authority without a success. The C.I.T.(A), Sialkot on 30-10-1999 refused to interfere for the assessee/present respondent on finding the default to be wilful. On further appeal a Division Bench of the Tribunal finding that the amounts of…

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