SARDAR KARTAR SINGH Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE petitioner is a wealth-tax assessee. He was late in filing returns for the assessment years 1964-65 to 1969-70. THE respondent No. 2, therefore, issued show-cause notice on the petitioner as to why penalty should not be imposed on him under Section 18(1)(a) of the W.T. Act, 1957 (for short "the Act"). THE petitioner thereupon approached the Commissioner of Wealth-tax (respondent No. 1) stating that as the petitioner had voluntarily and in good faith made a full disclosure of his net wealth, the penalty may be waived under the power conferred on the former by Section 18(2A) of the Act. THE learned Commissioner went through the facts of the case and stated in his impugned order that all the conditions laid down in Section 18(2A) of the Act were satisfied. He thereafter stated as below:

(2.) HE, therefore, directed such a reduction.

(3.) AS, in the present case, the learned Commissioner has ordered to reduce the penalty to 25% without giving any reason, the same, cannot be sustained. No doubt the section in terms dues not require the recording of reasons, but as the action taken under the provision is not purely administrative in character, being not based on policy, the thinking of the authority has to find a place in the order. This would provide a check on the arbitrary use of power as well. Any order passed under this section is also of some moment for the assessee which is yet another reason to pass a reasoned order, so that if the assesses be aggrieved by it, he may ventilate his grievance before the appropriate forum.