RAJ NARAIN MEHROTRA Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) BY this petition under article 226 of the Constitution of India, the petitioner challenges an order dated June 15, 1982, a copy of which is annexure "7" to the writ petition passed by the Commissioner of Wealth-tax, Lucknow, whereby he rejected an application under Section 18B of the Wealth-tax Act, 1957, for waiver of penalties levied under Section 18(1)(a) for delay in the filing of the returns for the assessment years 1972-73, 1973-74 and 1974-75. The amounts of penalties levied for the three years are Rs. 15,848, Rs. 8,928 and Rs. 3,400, respectively.

(2.) THE learned Commissioner rejected the application observing that the assessee was claiming itself to be a Hindu undivided family while the assessment has been completed on protective basis in the status of individual and in a case of this type where even the status of the assessee is in dispute the provision of Section 18B cannot be applied.

(3.) WE, accordingly, allow the present writ petition and quashing the impugned order dated June 15, 1982, we direct the Commissioner of WEalth- tax, Lucknow, to decide the same afresh taking into account the final decision as to whether the properties in question belonged to the Hindu undivided family or to the present assessee who is an individual. WE also direct that till the waiver application is finally disposed of by the Com missioner, the recovery of the penalties in question for the assessment years 1972-73, 1973-74 and 1974-75 shall remain stayed. The parties will bear their own costs.