Oza, J. - (1.) In this petition the petitioner has challenged an order of penalty imposed against the petitioner by the Wealth-tax Officer at the rate of 1/2 per cent of the total wealth assessed for every month of default and out of seven months' default, a penalty imposed was for four months equal to Rs. 6,784/-. The petitioner had sought for extension of time for three months which was granted and, thereafter filed the return four months after the period extended by the Wealth-tax Officer. This order of the Wealth-tax Officer was maintained by the Appellate Assistant Commissioner. It appears that during the pendency of the appeal before the 4th respondent the petitioner filed a writ petition in the High Court of Andhra Pradesh challenging the constitutional validity of S. 18(1)(a) of the Wealth-tax Act, 1957 as amended by the Finance Act, 1969 on the ground that it infringes Arts. 14 and 19(1)(f) of the Constitution. That petition was dismissed by the Division Bench of the Andhra Pradesh High Court on the ground that the petitioner has not exhausted the alternative remedies available to him under the Act. Thereafter the petitioner has filed the present petition challenging the provisions contained in S. 18(1)(a) on the ground that it is invalid as unconstitutional because it infringes the right of the petitioner under Arts. 14 and 19(1)(f) of the Constitution of India.
(2.) It is admitted on all hands that the offending provision has since been amended and no such dispute is likely to arise in future. Even during the period 1969-70 when the offending provision was there, the petition giving rise to the present appeal appears to be the sole petition wherein the provision of S. 18(1) has been challenged. The question involved in the present case is, therefore, only of an academic interest;
(3.) Section 18 of the Wealth-tax Act as it stood at the relevant time reads: "Section 18. Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc. - (1) If the Wealth-tax Officer:Appellate Assistant Commissioner. Commissioner or Appellate Tribunal in the course of any proceedings under this Act is satisfied that any person - (a) has without reasonable cause failed to furnish the return which he is required to furnish under sub-sec. (1) of S. 14 or by notice given under sub-sec. (2) of S. 14 or S. 17. or has without reasonable cause failed to furnish within the time allowed and in the manner required by sub-sec. (1), of S. 14 or by such notice, as the case may be; or (b) has without reasonable cause failed to comply with a notice under sub-sec. (2) or sub-sec. (4) of S. 16; or (c) has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts; he or it may, by order in writing, direct that such person shall pay by way of penalty - (i) in the cases referred to in Cl. (a), in addition to the amount of wealth-tax, if any, payable by him, a sum, for every month during which the default continued, equal to one-half per cent of (A) the net wealth assessed under S. 16 as reduced by the amount of net wealth on which, in accordance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule, the wealth-tax chargeable is nil, or (B) the net wealth assessed under S. 17, where assessment has been made under that section, as reduced by (1) the net wealth, if any, assessed previously under S. 16 or S. 17, or (2) the amount of net wealth on which, in accordance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule. the wealth-tax chargeable is nil, whichever is greater, but not exceeding, in the aggregate, an amount equal to the net wealth assessed under S. 16, or as the case may be, the net wealth assessed under S. 17, as reduced in either case in the manner aforesaid; (ii) in the cases referred to in Cl. (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one per cent of the assessed net wealth but which shall not exceed the amount of the assessed net wealth. Explanation- For the purposes of Cl. (ii), assessed net wealth" shall be taken to be the net wealth assessed under S. 16 as reduced by the net wealth declared in the return, if any, furnished by such person, or as the case may be, the net wealth assessed under S. 17 as reduced by - (i) the net wealth, if any, assessed previously under S. 16 or S. 17, or (ii) the net wealth declared in the return, if any, furnished by such person under S. 17 whichever is greater; (iii) in the cases referred to in Cl. (c), in addition to any wealth-tax payable by him, a sum which shall not be. less than, but which shall not exceed twice, the amount representing the value of any assets in respect of which the particulars have been concealed or any assets or debts in respect of which inaccurate particulars have been furnished. Explanation 1,- Where- (i) the value of any asset returned by any person is less than seventy five per cent of the value of such asset as determined in an assessment under S. 16 or S. 17 (the value so assessed being referred to hereafter in this Explanation as the correct value of the asset), or (ii) the value of any debt returned by any person exceeds the value of such debt as determined in an assessment under Section 16 or Section 17 by more than twenty-five per cent of the value so assessed (the value so assessed being referred to hereafter in this Explanation as the correct value of the debt), or (iii) the net wealth returned by any person is less than seventy-five per cent of the net wealth as assessed under S. 16 or S. 17 (the net wealth so assessed being referred to hereafter in this Explanation as the correct net wealth), then, such person shall, unless he proves that the failure to return the correct value of the asset or, as the case may be, the correct value of the debt or the correct net wealth did not arise from any fraud or any gross or wilful neglect on his part, be deemed to have concealed the particulars of assets or furnished inaccurate particulars of assets or debts for the purposes of Cl. (c) of this sub-section. Explanation 2.- For the purposes of Cl. (iii)- (a) the amount representing the value of any assets in respect of which the particulars have been concealed or any assets in respect of which inaccurate particulars have been furnished, shall be the value of such assets determined for the purposes of this Act as reduced by the value thereof, if any, declared in the return made under S. 14 or S. 15; (b) the amount representing the value of any debts in respect of which inaccurate particulars have been furnished, shall be the amount by which the value of such debts declared in the return made under S. 14 or S. 15 exceeds the value thereof determined for the purposes of this Act. (2) No order shall be made under sub-sec. (1) unless the person concerned has been given a reasonable opportunity of being heard. (2A) Notwithstanding anything contained in Cl. (i) or Cl. (iii) of sub-sec. (1) the Commissioner may in his discretion - (i) reduce or waive the amount of minimum penalty imposable on a person under Cl. (i) of sub-sec. (1) for failure, without reasonable cause, to furnish the return of net wealth which such person was required to furnish under sub-sec. (1) of S. 14, or (ii) reduce or waive the amount of minimum penalty imposable on a person under Cl. (iii) of sub-sec. (1), If he is satisfied that such person- (a) in the case referred to in Cl. (i) of this sub-section has, prior to the issue of notice to him under sub-sec. (2) of. S. 14, voluntarily and in good faith, made full disclosure of his net wealth; and in the case referred to in Cl. (ii) of this sub-section has, prior to the detection by the Wealth-tax Officer of the concealment of particular-, of assets or of the inaccuracy of particulars furnished in respect of the assets or debts in respect of which the penalty is imposable, voluntarily and in good faith. made full and true disclosure of such particulars; (b) has co-operated in any enquiry relating to the assessment of the wealth represented by such assets; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year. (2B) An order under sub-sec. (2A) shall be final and shall not be called in question before any Court of law or any other authority. (3) Notwithstanding anything contained in Cf. (iii) of sub-sec. (1), if in a case falling under Cl. (c) of that sub-section, the minimum penalty imposable exceeds a sum of rupees one thousand, the Wealth-tax Officer shall refer the case to the Inspecting Assistant Commissioner who shall for the purpose, have all the powers conferred under this section for the imposition of penalty. (4) An Appellate Assistant Commissioner, a Commissioner or the Appellate Tribunal on making an order under this section imposing a penalty shall forthwith send a copy of the same to the Wealth-tax Officer. (5) No order imposing a penalty under this section shall be passed after the expiration of two years from the date of the completion of the proceedings in the Course of which the proceedings for the imposition of penalty have been commenced. Explanation - In computing the period of limitation for the purposes of this section, the time taken in giving an opportunity to the assessee to be reheard under the proviso to S. 39 and any period during which a proceeding under this section for the levy of penalty is stayed by an order or injunction of any Court shall be excluded";