P N BANERJEE Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE two assessment years involved in this reference are 1967-68 and 1970-71. The assessee's returns should have been filed on or before 30th June, 1967, and 30th June, 1970, respectively, for the two years in question. No return was, however, filed by the assessee and, accordingly, the WTO issued notice under S. 14(2) of the WT Act, 1957 (hereinafter referred to as "the Act"). The notice under S. 14(2) for the asst. yr. 1967-68 was served on the assessee on 25th of December, 1967, and that for the other year on the 12th of June, 1970. The assessee, however, filed first a return for the asst. yr. 1967-68, on the 12th of June, 1971, and for 1970-71, on 4th June, 1971.

(2.) THE WTO being of the view that the assessee had failed to file the returns in time without any reasonable excuse issued notice under S. 18(1)(a). The assessee's explanation was that one K. P. Chaterji, advocate, had been looking after his affairs from the period of his minority and had also been maintaining accounts and valuation of the property. The assessee was not aware of all the facts necessary for evaluation of the property as he relied upon Sri K. P. Chaterji exclusively in these matters. An affidavit of Sri K. P. Chaterji was also filed stating, inter alia, that an appeal regarding valuation for the asst. yr. 1961-62 had been filed before the Tribunal and there was a dispute as regards the quantum of valuation between the assessee and the Department.

(3.) AT the outset we may dispose of the second question as the matter stands covered by a decision of our own High Court in CWT vs. Ram Narain Agrawal (1977) 106 ITR 965, wherein it has been held that for assessment years earlier to the 1st April, 1969, the rate of penalty would be governed by the Act as it stood in the relevant assessment year. The Tribunal was thus correct in imposing penalty at the lower rate.