COMMISSIONER OF WEALTH TAX Vs. TARAWIA S N

JUDGEMENT

(1.) THE wealth-tax returns of the assessee for the assessment years 1965-66 and 1966-67 were due on 30th June, 1965, and 30th June, 1966, respectively. THE assessee filed the returns for both the assessment years only on 31st July, 1970. THE assessee was called upon to show cause why penalty should not be imposed upon him for the delay. THE assessee's explanation was rejected by the WTO and he imposed upon the assessee a penalty in the sum of Rs. 1,620 for the asst. yr. 1965-66 and in the sum of Rs. 1,649 for the asst. yr. 1966-67. In so doing, the WTO applied, for the period of default up to 31st March, 1969, the provisions of s. 18(1)(a) of the WT Act, 1957, as they stood before the amendment thereof, effective on and from 1st April, 1969, made by s. 24(2) (c) of the Finance Act, 1969, and, for the period of default subsequent to 1st April, 1969, the amended provision. On appeal, the AAC rejected the assessee's contentions. THE Tribunal, however, in further appeal, found no words in s. 24(2)(c) of the Finance Act, 1969, or in the amended s. 18(1)(a) to indicate that this amendment had retrospective operation. THE Tribunal held that the amended provision did not apply to defaults which had taken place before 1st April, 1969. It held that the penalty for the entire period of the delay had to be computed under the provisions operative on the day on which the defaults occurred. THE defaults had, it said, occurred once and for all on the last day prescribed for filing the returns. Accordingly, the Tribunal allowed the assessee's appeal. THE question that is posed to us arises out of the Tribunal's order. It reads thus :