COMMISSIONER OF WEALTH TAX Vs. MAHARAJA AMARINDER SINGH

JUDGEMENT

(1.) THIS order will dispose of two appeals, viz., WT Appeal Nos. 10 and 11 of 2001, directed against the common order of relating to the asst. yrs. 1982 -83 and 1983 -84, respectively.

(2.) THE return of net wealth for the asst. yrs. 1982 -83 and 1983 -84 were due to be filed by the assessee under s. 14(1) involving a delay of four completed months. While completing the assessments, penalty proceedings under s. 18(1)(a) of the Act were initiated for levy of penalty for the delay in filing the returns. The assessee, in response to the show - cause notices, contended that substantial wealth had been assessed in his hands on protective basis but for which he was not required to file any return under s. 14(1) of the Act. It was further pleaded that there was a delay in filing the IT returns for the two years in question as well and thus, the delay up to the date of filing of those returns should be considered as a reasonable cause for delay in filing the WT returns, which could not have been filed without the determination of tax liability under the IT Act. The AO rejected the explanation and levied the penalty at the rate of 2 per cent per month for the delay involved in the two years.

(3.) THE assessee preferred appeals before the CWT(A) and it was submitted that since the assessments had been framed on protective basis, no penalty was leviable under s. 18(1)(a) of the Act in view of the judgment of this Court in CIT vs. Behari Lal Pyare Lal (1983) 32 CTR (P&H) 279 : (1983) 141 ITR 32 (P&H). This contention was accepted by the CWT(A) who allowed the appeals and cancelled the penalties.