BAIDYA NATH SARMA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE CWT, for short "the CIT", in exercise of his powers under S. 18(2A) of the WT Act, 1957, by a common order dt. 26th Aug.,, 1974, restricted the penalties imposed on the petitioner -assessee to 25per cent for the asst. yrs. 1966 -67 to 1969 -70. The assessee -petitioner has filed four writ applications questioning the validity of the order. As all the cases raise common questions of law and are based on similar facts we propose to dispose of them by a common order.

(2.) THE petitioner contends that, (a) the impugned order has no backing or reasons and suffers from infirmity of non -application of the mind by the authority to the requirements of the provisions of s. 18(2A) of "the Act", (b) the impugned order is violative of the principles of natural justice, and (c) his claim for waiver was turned down mechanically without due application of mind.

(3.) FOR late submissions of the returns the WTO imposed penalties on the assessee under S. 18(1) of the Act for the assessment years. The assessee filed four separate applications under S. 18(2A) of "the Act" before the CIT. The CIT held that the disclosures of the wealth had been made by the assessee voluntarily before the issue of any notice under S. 14(2), the disclosures were full and complete, the assessee had extended all co -operation in the matter of completion of the assessments and further held that "...the applications under S. 18(2A) ... are well founded. The assessee -family is, therefore, entitled to claim relief as provided under the said provision of law". Having held so, the learned Commissioner proceeded to cogitate about the causes for late submissions of the returns and held that the explanations offered were bona fide, though they might not constitute conclusive defence and reasonable cause under S. 18(1)(a) for non -levy of any penalty but thereafter concluded thus :