MANJULADEVI TODY Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) BY this reference under Section 27 (1) of the W. T. Act, 1957 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following questions of law to this court for its opinion :

(2.) THE material facts giving rise to this reference briefly are as follows :

(3.) FOR the assessment year 1973-74, the assessee declared her net wealth at Rs. 77,483. The WTO completed the assessment on a net wealth of Rs. 1,22,483. Similarly, for the assessment year 1974-75, the assessee had declared her net wealth at Rs. 88,205 but the WTO determined her net wealth at Rs. 1,33,205. The WTO also initiated penalty proceedings under Section 18 (1) (c) of the Act and referred the case to the IAC. When the penalty proceedings came up for consideration before the IAC, he found that the assessee had committed default for the two assessment years in question in terms of the Explanation to Section 18 (1) (c) of the Act and accordingly penalties were imposed on her. Aggrieved by those orders, the assessee preferred appeals before the Tribunal. On behalf of the assessee, it was, inter alia, contended before the Tribunal that the IAC had no jurisdiction to impose penalties after 1st of April, 1976. It was urged that the orders of the IAC dated 24th of March, 1977, imposing penalties under Section 18 (1) (c) of the Act were without jurisdiction. The Appellate Tribunal, however, rejected that contention and with some modifications, affirmed the orders imposing penalties passed by the IAC. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid questions have been referred to this court for its opinion.