COMMISSIONER OF WEALTH-TAX Vs. RAJLAXMI

JUDGEMENT

(1.) THIS is a reference under Section 256 (1) of the Income-tax Act, 1961 (Section 27 (1) of the Wealth-tax Act, 1957), at the instance of the Revenue.

(2.) THE brief facts of the case are that the Wealth-tax Officer made assessments relating to the years 1964-65 to 1969-70 of the assessee by a consolidated order dated May 29, 1973. He initiated penalty proceedings under Section 18 (1) (a) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), and by order dated March 16, 1976, imposed various amounts as penalty for late filing of the returns. The assessee preferred an appeal. By order dated August 13, 1976, the Appellate Assistant Commissioner of Wealth-tax set aside the impugned orders and remanded the case with a direction to decide the same afresh after affording a reasonable opportunity of being heard to the assessee. In compliance with the order of remand, the matter was decided afresh by order annexure "a" dated March 15, 1978. The assessee made an application for rectification of the order, pointing out that penalty had to be calculated at the rates laid down before the amendment which came into force from April 1, 1969. The said application for rectification was allowed and the amount of penalty was revised by order, annexure 'b', dated March 30, 1978. The assessee preferred an appeal before the Appellate Assistant Commissioner. The order of the Wealth-tax Officer was set aside and it was held that the penalty had been imposed after the expiry of the period of limitation and thus the order imposing the penalty was void ab initio and without jurisdiction. The Revenue challenged the order before the Income-tax Appellate Tribunal, Amritsar Bench. Those appeals were dismissed by order, annexure "e", dated December 7, 1979. The question referred to this court is :

(3.) WE have heard Mr. R. P. Sawhney, learned counsel for the Revenue, and Mr. S. C. Nagpal, learned counsel for the assessee.