RANI INDRA DEVI Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE Tribunal, Allahabad has referred the following question of law under s. 27 of the WT Ac t, 1957 ('the Act') for the opinion of this Court :

(2.) PENALTY proceedings were initiated under S. 18 (1)(a) of the Act for late filing of return for 1971- 72 on 27th March, 1974 only after notice under S. 17 of the Act was issued. claim of the assessee of ignorance of including even bank deposits of Rs. 57,000 in her own name in return was repelled as it was not supported by any evidence nor was the plea raised in response to notice under S. 17. Further, bona fide of the assessee was found not to have been made out by the circumstances nor was the assessee justified in claiming mens rea as an essential element for the levy of penalty. It was also held that burden of proving of reasonable cause for delay in filing of return was on the assessee.

(3.) THE Tribunal, therefore, erred in its approach on question of law. Facts are also quite clear. Husband was no doubt wealth tax assessee but how could this result in finding that the assessee could not have a bona fide belief that in the return she was liable to include her own deposits as well. Moreover even in explanation of the assessee about her lack of knowledge to include the amount was ignored what was material in possession of Department to demonstrate that late filing of return was deliberate. Initial burden is always on the Department. Once it is discharged then only assessee is required to prove these facts which are in its special knowledge. In our opinion principles laid down in Prithvi Nath Bharga's case (supra) applied the assessee's case.