COMMISSIONER OF WEALTH TAX Vs. RAM AWATAR

JUDGEMENT

(1.) IN , pursuance of the direction of this Court under S. 27(3) of the WT Act, 1957, in Miscellaneous Civil Case No. 522 of 1981, decided on 19th Nov., 1982, the Tribunal has stated the case and referred the following question of law for this Court's opinion :

(2.) THE assessee filed his returns of wealth for the two years in dispute on 16th Aug., 1974, while the returns were due on 30th June, 1971 and 31st July, 1972. Penalty proceedings for filing the returns late were started and the assessee's counsel was heard, but no reasonable cause was shown. The WTO, therefore, imposed penalty of Rs. 3,000 for the asst. year 1971 -72 and Rs. 16,500 for the asst. year 1972 -73. The WTO also levied a penalty of Rs. 1,075 for the asst. year 1973 -74, which is not the subject -matter of this reference. The assessee went up in appeals before the AAC, who disposed of the appeals for the years 1971 -72 to 1973 -74 by a common order. The explanation of the assessee that he was under a bona fide belief that only his capital in the firm was subject to wealth -tax and the value of the truck owned by him was not subject to wealth -tax, was not accepted. In further appeals to the Tribunal, all the three appeals were disposed of by common order. So far as the appeal for the asst. year 1973 -74 was concerned, the penalty has already been waived by the WTO and regarding the penalties for the years 1971 -72 and 1972 -73, the Tribunal has observed that the order of the CWT is very cryptic and that although there is an entry on 14th Feb., 1978, for hearing of the case, there is no earlier order fixing the hearing on that date. The orders of the WTO, not being speaking orders and against the principles of natural justice, were quashed. On an application being made under S. 27(3) of the Act, the aforesaid question was directed to be referred to this Court. This question is directly covered by the decision of this Court in Sardar Pritam Singh vs. CIT (1985) 154 ITR 133 (MP) : TC 49R.1261.