COMMISSIONER OF WEALTH TAX Vs. KEMPANNA B

JUDGEMENT

(1.) THESE are two sets of references made under s. 27(1) of the WT Act, 1957 (hereinafter referred to as "the Act"), at the instance of the CWT and the assessee. The questions referred are four in number and relate to the penalties imposed under s. 18(1)(a) of the Act for default in filing the returns within the time without reasonable cause. The matter relates to the asst. yrs. 1966-67, 1967-68 and 1968-69. T.R.Cs. No. 142, 144 and 146 of 1978 are at the instance of the Department and the other three are at the instance of the assessee. The questions referred are as follows :

(2.) THE material facts which are not in dispute are as follows : THE assessee filed returns of wealth in respect of these three assessment years on 22nd Feb., 1973. As the returns had been filed beyond the prescribed time, the WTO initiated proceedings under s. 18(1)(a) and issued notice to the assessee fixing the date of hearing as 6th April, 1973. THE assessee filed a petition before the CWT for waiver of the minimum penalty leviable under s. 18(1)(a) of the Act, and by an application dt. 6th April, 1973, he also intimated the WTO the fact of his having filed such an application before the CWT and requesting the WTO to stay the penalty proceedings till the disposal of the application by the CWT. THE proceedings were being conducted before the WTO, I, Special Survey Circle. It, however, transpires that subsequently consequent on the abolition of the Special Survey Circle, the files were transferred to the VIth WTO, Circle I. He made an order on 11th March, 1975, imposing penalties, which, according to him, were the minimum penalties imposable under the Act. It transpires that the CWT passed orders on the application filed under s. 18(2A) on 21st March, 1975. He reduced the minimum penalty leviable and fixed them as follows : as against the minimum penalty leviable, according to the WTO, at Rs. 16,860, Rs. 16,500 and Rs. 16,330, respectively. Consequent on this, the WTO communicated to the assessee on 11th April, 1975, about the penalties as determined by the CWT, further intimating him that necessary challan would be issued on his request and that if the amounts were not paid, coercive steps will be taken. THE assessee preferred appeals to the AAC on 11th April, 1975, contending, inter alia, that he had reasonable cause for not filing the returns within time and there was no justfication for imposing the penalties and that no opportunity had been given by the WTO before he made the order levying penalties.

(3.) THE main contention on behalf of the Department in the references sought for by it is in regard to the conclusion about the quantum of penalty that could be levied and that is question No. 4 referred to this Court. THE other three questions have been referred at the instance of the assessee.