JAGANNATH SINGH Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) BY an order dated 26th February, 1975, this court framed the following question :

(2.) FOR the assessment year 1969-70, the wealth-tax return of the assessee was due by 30th June, 1969. It was filed on 3rd February, 1970. The return being late by seven months the WTO issued show-cause notice under Section 18(1)(a) of the W.T. Act to the assessee. In the cause shown in response to the notice, the assessee submitted that he had furnished the return of the wealth-tax voluntarily and had paid the "amount soon after filing the return. He further stated that although the return was filed late, he filed the return as soon as he came to know about his liability and accordingly prayed that no penal action be taken as it was not called for. The WTO, having found the explanation not satisfactory, held the assessee to be in default and imposed a penalty as provided under Section 18(1)(a) of the Act which was to the tune of Rs. 6,825.

(3.) THE main question that falls for consideration in this reference is as to when a penalty can be imposed under Section 18(1)(a) of the W.T. Act. It would, at this stage, be convenient to quote it, which runs thus :