ANJANAPPA B Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE petitioner who has been assessed to Wealth-tax in the status of HUF has challenged in these writ petitions, the order of the CWT made on the application filed by him under s. 18(2A) of the W.T. Act, 1957, in relation to the penalties imposed under s. 18(1)(a) of the W.T. Act for the assessment years 1966-67, 1967-68 and 1969-70 to 1972-73. THE Commissioner reduced the penalties that had been imposed by the WTO.

(2.) THE petitioner filed the returns on February 22, 1973, and the assessment was completed by the WTO virtually accepting the wealth that had been disclosed, by his order dated March 15, 1973. As the return had been filed beyond the time prescribed, the WTO issued notice under s. 18(1)(A) of the W.T. Act to show cause why penalty for late submission of wealth-tax returns should not be imposed.

(3.) IN these writ petitions, it has been contended that having regard to the facts of the case, penalty should have been waived and the order made by the Commissioner without giving an opportunity to the petitioner to be heard is untenable. About 4 odd acres of agricultural land inherited had been retained by the petitioner and his brothers in common as association of persons and after litigating with the trust board, a layout was formed under its supervision for disposal of sites. As the association of persons was not liable for wealth-tax no return had been filed. Only in 1972-73 when accounts were made up with the help of chartered accountants they were advised that the petitioner should include foe wealth-tax, the value of the share pertaining to his breach and in these circumstances the returns came to be filed.