COMMISSIONER OF WEALTH TAX Vs. BASUMAL AND SONS

JUDGEMENT

(1.) THIS reference has bee made by the Tribunal, Jabalpur, for answering the following question :

(2.) FACTS stated in the reference are that returns for the asst. yrs. 1967-68 and 1968-69 which were due on 30th June, 1967 and 30th June, 1968 were filed by the assessee on 7th Jan., 1972 for both years. The WTO, while computing the assessment, instituted penalty proceedings under S. 18 (1)(a) of the WT Act and issued notice to the assessee to show cause. In response to the notice, the assessee contended that as he had moved the CWT under S. 18 (2A) for waiver of penalty, the proceedings before the WTO be kept pending. The WTO levied penalty under S. 18 (1)(a) for asst. yrs. 1967-68 at Rs. 14,370.00 and for the asst. yr. 1968-69 at Rs. 20,570.00.

(3.) FOR the reasons stated by us in the judgment delivered in MCC No. 444/79 (CWT vs. Kekatpura Ginning & pressing Factory, since reported in (1982) 31 CTR (MP) 287) today, our answer to the question referred to above is in the affirmative and we hold that the Tribunal was justified in holding that the appeal before the AAC was maintainable against the order of the WTO imposing penalty under s. 18 (1)(a) of the WT Act irrespective of the fact that the CWT had dismissed the petition of the assessee under S. 18 (2A) of the Act. In the circumstances of the case, parties are directed to bear their own costs.