COMMISSIONER OF WEALTH TAX Vs. ABDUL MAZID KHAN

JUDGEMENT

(1.) THIS is a reference under Section 27(1) of the W.T. Act, 1957. The question of law referred is as follows :

(2.) THE facts, briefly stated, are that one Abdul Rashid Khan was an assessee under the W.T. Act. THE assessments for the years 1968-69 to 1972-73 were completed on 16th January, 1975. THE assessee had failed to include a house standing in the name of his son which, in the course of the assessment proceedings, was held to belong to the assessee. Penalty proceedings were started against the assessee under Section 18(1)(c) of the Act on the same date when the assessments were completed, i.e., 16th January, 1975. THE assessee died on 13th December, 1975. Abdul Mazid Khan, the legal representative of the assessee, was substituted in his place, and the penalty proceedings were completed on 31st January, 1977. A penalty of Rs. 20,000 was imposed for each year. In appeal, the AAC cancelled the penalty which order was maintained by the Tribunal in further appeal.

(3.) FOR the reasons given above, our answer to the question is that the Appellate Tribunal was right in law in cancelling the penalties. There will be no order as to costs of this reference.