COMMISSIONER OF WEALTH TAX Vs. R N GOYAL

JUDGEMENT

(1.) This order will dispose of Wealth-tax Cases Nos. 59, 60 and 61 of 1982 which are applications under section 27(3) of the Wealth-tax Act, 1957, for directing the Income Tax Appellate Tribunal, Delhi Bench, to draw up a statement of the case and refer certain questions of law to this court which are said to arise out of the order of the Tribunal while disposing of the appeals for the assessment years 1963-64, 1964-65 and 1965-66.

(2.) The brief facts of the case are that wealth-tax returns for the assessment years 1963-64, 1964-65 and 1965-66, which had to be filed by the 30th June of the relevant year under section 14(1) of the Wealth-tax Act, were not filed by the assessed. Notices under section 17 were issued by the Wealth-tax Officer on February 8, 1971, for the assessment year 1963-64 and on December 28, 1971, for the assessment years 1964-65 and 1965-66. The returns for all the three years were filed by the assessed on September 22, 1973. The wealth assessed by the Wealth-tax Officer for these years exceeded the taxable limit and penalty proceedings for late submission of the returns were initiated by the Wealth-tax Officer under section 18(1)(a) of the Wealth-tax Act. The Wealth-tax Officer found that the assessed had no reasonable cause for the late filing of the returns and he imposed substantial penalties for the aforesaid assessment years. The amount of penalty was computed on the basis that the defaults were continuing defaults and thus the penalty was payable as per law prevailing at the time during which the default continued.

(3.) The Tribunal found that penalty can be imposed only as per the law dealing with penalty as on the date the default occurred. Before the Tribunal, it was urged on behalf of the Commissioner that it is a case of continuous default and, Therefore, the law as it stood amended with effect from April 1, 1969, by the Finance Act, 1969, was applicable. The Tribunal decided against the submission of the Commissioner.