BARUAH T K Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) TAPAN Kumar Baruah is the assessee in this case. The reference in this case is made under sub -s. (1) of S. 27 of the WT Act, 1957. The following question is referred :

(2.) THIS case relates to five orders of penalty in relation to the assessment years 1964 -65, 1965 -66, 1966 -67, 1967 -68 and 1968 -69. For all the five years all through, a consolidt. order was passed by the Revenue authorities.

(3.) THE AAC, Dibrugarh, on appeal, imposed the rate of penalty of 2 per cnet monthly of the total wealth -tax and modified the order subject to 50 per cnet of the total wealth -tax. In effect, the penalty referable to after 1st April, 1969, was overturned. The Tribunal held that the assessee failed to submit returns under S. 14(1) of the WT Act, 1957, and that proceeding under S. 18(1)(a) was properly initiated. The Tribunal affirmed the penalties imposed by the WTO at the rate of 2 per cnet per month before 1st April, 1969, since he crossed the limit of maximum 50 per cnet of the total tax, and, therefore, directed that penalties be calculated for each completed month of default subject to a maximum of 50 per cnet of the tax payable. This part of the order was affirmed. The Tribunal further held that the WTO was justified in calculating the penalty at the rate of = per cnet on the total net wealth for the period beyond 1st April, 1969.