COMMISSIONER OF WEALTH TAX Vs. H S CHAUHAN

JUDGEMENT

(1.) ON being moved by the Revenue, following question has been referred by the Income -tax Appellate Tribunal, Delhi Bench 'B' (for short the 'Tribunal') under Section 27(1) of the Wealth -tax Act, 1957 (for short the Act) for the opinion of this Court:

(2.) SINCE the question is a pure question of law factual aspects need not be dealt with in detail except stating the bare essentials briefly. Shri H.S. Chauhan is legal heir of one late Shri Bawa Singh Chauhan. He is referred to as assesseed. For the assessment years 1960 -61 to 71 -72 returns were filed by late Bawa Singh Chauhan. He died after completion of assessments. Since there was delay in filing of the returns by him, proceedings under Section 18(1)(a) of the Act had been initiated which were continued against legal heir. Various amounts were levied as penalty for delay in filing of the returns. The matter was carried in appeal before the Appellate Assistant Commissioner of Income -tax, Special Range -III, New Delhi (hereinafter referred to as the AAC). The said authority was of the view that penalty could not have been levied on the legal heir. Reference was made for the purpose to sub -section (3) of Section 19 of the Act. Matter was carried in further appeal by the revenue before the Tribunal which concurred with the view of the AAC and sustained deletion of penalties.

(3.) SCHEME of the Act needs to be noted in some detail while considering the question whether penalty can be levied on the legal heir. Wealth -tax is charged in respect of net wealth on the corresponding valuation date of every individual, HUF and company at the rates specified in the schedule under Section 3 of the Act. Section 14 postulates filing of return of wealth in the prescribed form before the prescribed date by every person who is assessable under the Act to tax. A return beyond the prescribed time or a revised return can be filed under certain circumstances as contemplated under Section 15. Modalities of assessment and determination of tax payable is done under Section 16 by the Assessing Officer. The expression 'assessee' is defined in clause (c) of Section 2 of the Act in the following manner: