INDRAMOHAN P ARORA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Rule. We have heard the learned advocates of both the sides at length, and, therefore, we proceed to dispose of this petition finally.

(2.) Shri Indramohan P. Aroda has filed the present petition against the order passed by the respondent under section 18 B of the Wealth Tax Act, 1957 on 10th September, 1996.

(3.) The petitioner Indramohan P. Aroda is an income tax payer and he is filing his incometax returns since prior to 1981-82, but he was not filing wealth tax returns till the year 1992. It is his case that as his wealth was invested in Industrial undertaking, he was exempted from paying wealth tax and consequently he was not filing the wealth tax returns. It is also his claim that he was under that impression that on account of advise given to him, but he subsequently learnt that advise given to him was not correct and that he was liable to file wealth tax returns and to pay wealth tax. Therefore, on 27th February, 1991, he filed wealth tax returns for the assessment years 1981-82 to 1987-88. He also deposited the tax due from him as per his return. After he filed the said returns, the department realised that he was not filing the returns, and, therefore, the department issued a notice under Sec. 17 of Wealth Tax Act, 1957 bearing the date of 4th April, 1991 and the same was served on him on 14th April, 1991. In pursuance of the said notice, the petitioner informed the department that the returns already filed by him should be treated as the compliance of the said notice. Thereafter, the returns filed by him were assessed by the department and the department found that the returns filed by him were correct and proper. The wealth tax was assessed. Thereafter, he was called upon as to why he should not be imposed to pay the interest as well as penalty. Though the petitioner prayed for not levying penalty against him by taking the matter upto the income tax Tribunal, he failed in his endeavour and the department levied penalty as well as interest. The petitioner had paid the interest, but thereafter, he filed an application under Sec. 18 B of the Wealth Tax Act, 1957 before the Commissioner of Income Tax Act, Baroda, seeking waiver of the penalty. That application of him has been rejected by the Commissioner of Income Tax by his order dated 10th September, 1996 and hence, the petitioner has come before this court.