COMMISSIONER OF WEALTH TAX Vs. VISWANATHIAH B

JUDGEMENT

(1.) THE Commissioner of Income -tax has applied under s. 27(3) of the W.T. Act, 1957, for a reference of the following question Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the provisions of s. 18(1)(a), as they stood before the amendment, should be the basis for the computation of penalty under s. 18(1)(a) notwithstanding the fact that the default continued even after April 1, 1969 ?

(2.) THE question is common for four years, viz., 1964 -65 to 1967 -68. For these years, the assessee did not file the returns within the prescribed time. The WTO issued notices under s. 17(1)(a) of the W.T. Act and in response the assessee filed the returns as follows Assessment year Date of return 1964 -65 15 -1 -1970 1965 -66 16 -2 -1970 1966 -67 and 1967 -68 18 -2 -1970

(3.) IN the case of a penalty, however we must remember that a penalty is imposed on account of the commission of a wrongful act, and plainly it is the law operating on the date, on which the wrongful act is committed which determines the penalty. Where penalty is imposed for concealment of particulars of income, it is the law ruling on the date when the act of concealment takes place which is relevent. It is wholly immaterial that the income concealed was to be assessed in relation to an assessment year in the pastThe Supreme Court, therefore, was of the opinion that as the return was filed after 1st April, 1968, the law as amended by the Finance Act, 1968, would govern the levy of penalty. Thus, the view of the Supreme Court is that the penalty has, to be levied with reference to the law in force on the date when the default occurred. In the present case., the default occurred immediately on the day following the day on which the return was due. Taking into account the date of default, the penalty as reduced by the Tribunal was proper and legal. Therefore, there is no referable question of law that can be said, to arise out of the Tribunal's order The petitions are rejected with costs. Counsel's fee Rs. 250.