COMMISSIONER OF WEALTH TAX Vs. LALJEE RAM BHAGAT

JUDGEMENT

(1.) THIS reference under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), made at the instance of the Commissioner of Wealth-tax, Bihar, must be answered on the authority of the decision of the Supreme Court in Brij Mohan v. CIT [1979] 120 ITR 1.

(2.) THE assessment year in question is 1967-68. THE return for that year under the Act was filed on July 24, 1968. THE assets shown in the return were valued at Rs. 1,20,430. THE Wealth-tax Officer assessed the immovable properties at Rs. 3,37,000. THE assessment was completed on October 25, 1968. On the very same date, the Wealth-tax Officer initiated proceedings under Section 18(1)(c) of the Act. Since the case was likely to involve penalty exceeding Rs. 1,000, the Wealth-tax Officer referred the matter to the Inspecting Assistant Commissioner of Wealth-tax (hereinafter referred to as "the I.A.C."). THE Inspecting Assistant Commissioner issued a notice under Section 18(3) of the Act on October 17, 1970. By this notice, the assessee was required to show cause by October 22, 1970. THE service return in respect of that notice not having been received and since the case was likely to become time-barred, the Inspecting Assistant Commissioner issued a fresh notice on October 22, 1970. This notice was served on the assessee. By this notice, the assessee was required to show cause by October 24, 1970. THE assessee sent a telegram for extension of time for complying with the notice. THE prayer for adjournment was, however, rejected. THE Inspecting Assistant Commissioner thereafter imposed penalty upon the assessee.

(3.) THE reference is thus answered in favour of the Revenue and against the assessee. THEre shall be no order as to costs.