A N SARVARIA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) The petitioner Shri A. N.Sarvaria, (since expired) had challenged the legality of the orderpassed on 30/12/1974, by the Commissioner ofWealth-tax, New Delhi, refusing to reduce or waive the penaltyimposed on the petitioner by the Wealth Tax Officer on theground that the returns of wealth tax for the assessment years1965-66 to 1971-72 had not been filed voluntarily.

(2.) The wealth tax returns tor the years 1965-66 to 1970-71were filed by the petitioner on 29/12/1970. Accordingto the petitioner he had not received any notice under section14(1) of the Wealth Tax Act, 1957, (hereinafter called 'the Act').However, return in respect of the assessment year 1971-72, it isthe case of 'the petitioner, was filed by him on 8/07/1971.after receipt of a notice dated 16/06/1971, under section14(2) of the Act. It is averred that soon after the filing of thereturns the petitioner paid wealth tax on the basis of those returnsas per the provisions of section 15-B of the Act. The net wealth asdeclared by the petitioner in the said returns, it is stated in thepetition, was accepted by the Wealth Tax Officer as per assessmentorders, copies of which are Annexure A-1 to A-7 to the writpetition. The Wealth Tax Officer initiated proceedings undersection 18(l)(a) of the Act for levying penalty for late filing ofthe returns in respect of the assessment years 1965-66. 1966-67and 1968-69 to 1971-72. For the assessment year 1967-68, theWealth Tax Officer initiated proceedings under section 18(l)(c)of the Act and issued a show cause notice requiring the petitionerto state as to why penalty for concealing of wealth be not levied.This order qua the assessment year 1967-68 was however, dropped by the Inspecting Assistant Commissioner holding that therewas no concealment on the part of the petitioner. Thereafter, theCommissioner of Wealth Tax acting under section 25(2) of theAct directed that penalty proceedings under section 18(1) (a) ofthe Act for late submission of return for that year be initiated.Thereafter, the petitioner by an application dated 29/12/1973, under section 18(2)(A) of the Act filed before the Commissionerof.Wealth Tax, sought that as his wealth tax returns hadbeen filed by him voluntarily and had been accepted penalty forlate filing of those returns be not levied,

(3.) The finding of the Commissioner that the returns filedwere not voluntary are contained in paragraphs 4 and 5 of theimpugned order, Annexure D-1 to the writ petition, It is useful to quote those paragraphs :