SURESH SETH Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, has referred to us the following two questions of law for our opinion:

(2.) THE wealth-tax returns of the assessee for the assessment years 1964-65 and 1965-66 were due on June 30, 1964, and June 30, 1965, as laid down in Section 14 (1) of the Wealth-tax Act, 1957 (hereinafter called "the Act" ). The same were, however, filed on March 18, 1971, after a delay of about six years. The Wealth-tax Officer completed the assessments for the aforementioned years on March 22, 1971, on a total wealth of Rs. 1,45,800 and Rs. 1,65,200, respectively, as against the declared wealth of Rs. 1,38,550 and Rs. 1,59,127, respectively. For the late submission of the returns of wealth, penalty proceedings were initiated against the assessee. Since the assessee failed to advance any reason which prevented him from filing his wealth-tax returns within the time allowed by law, the Wealth-tax Officer levied penalties of Rs. 5,382 and Rs. 7,759 on him under Section 18 (1) (a) of the Act for the aforementioned assessment years. The amounts of penalty were worked out as follows : Rs. " Assessment year 1964-65 : (i) For the period July 1, 1964, to March 31, 1969 : Penalty at 2% p. m. subject to a maximum of 50% of the wealth-tax payable under section 18 (l) (a) before its amendment on April 1, 1969, by the Finance Act, 1969 115 (ii) For the period from April 1, 1969, to March 18, 1971 : Penalty at ½% of the net wealth for each month of default under section 18 (l) (a) as amended by the Finance Act, 1969 5,2 67 5,3 82 Assessment year 1965-66 : (i) For the period from June 1, 1965, to March 31, 1969 : Penalty at 2% p. m. subject to a maximum of 50% of the wealth- tax payable under section 18 (l) (a) before its amendment on April 1, 1969, by the Finance Act, 1969 163 1971 : Penalty at ½% of the net wealth for each 7,5 month of default under section 18 (l) (a) as amended 96 on April 1, 1969, by the Finance Act, 1969 7,7 59

(3.) THE precise question involved in the case is whether penalties should be imposed on the assessee on the basis of Section 18 (1) (a) of the Act as it stood prior to its amendment on April 1, 1969, by the Finance Act, 1969, or the same should be increased from April 1, 1969, onwards by which date this section had been amended by the Finance Act, 1969.