COMMISSIONER OF WEALTH TAX Vs. RAJAMMA M V

JUDGEMENT

(1.) IN this reference under the W.T. Act, the following question has been referred at the instance of the assessee:

(2.) AT the instance of the CWT, the following questions have been referred :

(3.) THIS provision was amended by Central Act 46 of 1964 with effect from April 1, 1965. In the case of concealment of particulars of assets or furnishing of inaccurate particulars of assets or debts, the quantum of penalty as fixed under the amended provision was that it should not be less than 25 per cent. but should not exceed 1 1/2 times the amount of tax, if any, which would have been avoided if the net wealth as returned by the assessee had been accepted as the correct net wealth. It may be seen that this provision came into force only from April 1, 1965, so that as on the date on which the original return was submitted, this provision fixing a statutory minimum for the levy of penalty was not in operation. Section was again amended by Section 32 of the Finance Act of 1968 with effect from April 1, 1968. Under the provisions in force after that date, the minimum penalty should not be less than the amount representing the value of any assets in respect of which the particulars had been concealed or any assets or debts in respect of which inaccurate particulars had been furnished. The maximum was twice the value of the assets taken as concealed or twice the value of assets or debts in respect of which inaccurate particulars were taken to have been furnished.