SHEILA DAVAR Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1969-70 to 1973-74, the following question has been referred to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the penalty orders made by the Wealth-tax Officer did not exist and the appeals were not maintainable ?"

(2.) To bring out the real controversy, we reframe the question as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the appeals were not maintainable ? "

(3.) The facts leading to this case are that, for the assessment years under consideration, the assessee filed her wealth-tax returns beyond the stipulated dates. As such, penalty proceedings under Section 18(l)(a) of the Act were initiated against her. In spite of service of notice, no explanation was filed by the assessee. So, the Wealth-tax Officer imposed penalty at the rate of 1/2% of the net wealth for each completed month of default. On March 25, 1985, the assessee filed separate petitions under Section 18B of the Act for reduction/waiver of the penalties imposed. On the next date i.e. March 26, 1985, she filed separate appeals against the penalty orders before the Appellate Assistant Commissioner. By an order dated October 18, 1985, the Commissioner of Income-tax rejected the petitions under Section 18B for all these years. On January 10, 1986, the Commissioner of Income-tax rectified the said order under Section 35 of the Act and reduced the penalty under Section 18(l)(a) to the extent of 50% of what is leviable or levied for each of these assessment years. The Appellate Assistant Commissioner heard the appeals on September 2, 1986 and August 27, 1987, and disposed of the appeals for the assessment years 1967-68, 1968-69, 1969-70 and 1974-75 by an order dated April 30, 1987, and the appeals relating to the assessment years 1970-71 to 1973-74 by an order dated August 31, 1987. She cancelled the penalty for the assessment year 1974-75, but upheld the penalty for the remaining assessment years. By his order dated January 10, 1986, the Commissioner of Wealth-tax reduced the penalty under Section 18(l)(a) to the extent of 50% of what is leviable or levied for each of the assessment years 1967-68 to 1974-75. Being aggrieved, the assessee preferred separate appeals against the orders of the Appellate Assistant Commissioner before the Tribunal.