MAJOR NARANJAN SINGH Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) THIS is a writ petition under Articles 226/227 of the Constitution of India for the issuance of a writ of certiorari quashing the order, annex. P-2.

(2.) THE facts giving rise to this petition may be briefly stated. The petitioner, who is a retired Major from the Army and an old man, could not file his wealth-tax returns under Section 14 (1) of the W. T. Act, 1957 (hereinafter to be called "the Act"), for the assessment years 1972-73, 1973-74 and 1974-75, before 30th day of June, 1972, 1973 and 1974, respectively. He filed his wealth-tax returns for these years on 25th July, 1977, 28th July, 1977, and 28th July, 1977, respectively, in good faith and voluntarily. The WTO, District 11 (9), Jullundur, completed the. petitioner's assessment of the wealth-tax as required by Section 16 (3) of the Act. The tax assessed was also paid by the petitioner. The WTO initiated penalty proceedings for the aforesaid three years and issued notices under Section 18 (1) (a) of the Act.

(3.) THE petitioner filed an application under Section 18b of the Act praying that the penalty for the assessment years 1972-73, 1973-74 and 1974-75, be waived. The learned Income-tax Commissioner, Jullundur, rejected the application, vide his order dated 15th January, 1980, on the ground that the wealth declared by the petitioner was not voluntary, though it was in good faith. The petitioner admittedly had made the returns of wealth before the issuance of any notice under Section 14 or Section 17 of the Act. The Commissioner declined the application holding that the returns were not filed voluntarily, because the petitioner was already an assessee for the assessment year 1970-71. The department, as well as the assessee knew about the net wealth of the petitioner. The knowledge of the Department about the taxability of the assessee's wealth, prior to the filing of the return of wealth, would definitely run counter to the claim that the declaration of wealth was voluntary.