COMMISSIONER OF WEALTH TAX Vs. BABULAL AGRAWAL

JUDGEMENT

(1.) THIS order shall also govern the disposal of M.C.C. No. 253 of 1987 (CWT v. Babulal Agrawal) and M.C.C. No. 254 of 1987 (CWT v. Babulal Agrawal) as the petitioner has proposed a common question of law in all these petitions relating to the same party.

(2.) BY these reference applications under Section 27(3) of the Wealth-tax Act, 1957, the applicant has prayed that the Tribunal be called upon to refer the following question of law for the opinion of this court :

(3.) AGAINST the imposition of penalty, the assessee preferred appeals before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner held that the Wealth-tax Officer issued notices under Section 17 for filing wealth-tax returns on December 15, 1981, in response to which the returns were filed on March 18, 1983. As per the provisions of Section 18(1)(a)(i) as amended by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976, penalty is imposable on a sum equal to 2 per cent. of the assessed tax for every month during which the default continued. For all the assessment years in question, the assessee furnished wealth-tax returns after April 1, 1976 and, therefore, in view of the judgment of the Supreme Court in the case of Maya Rani Punj [1986] 157 ITR 330, penalty has to be levied at 2 per cent. of the assessed tax and not at the rate of 1 1/2. per cent. of the net wealth.