- (1.) BY this writ petition, under Article 226 of the Constitution of India, the petitioner challenges the order dated December 29, 1983, passed by respondent No. 1, whereby the Commissioner of Wealth-tax, Lucknow, rejected the petitioner's application for waiver or reduction of penalties leviable under Section 18(1)(a) of the Wealth-tax Act, 1957, for the assessment years 1975-76, 1976-77, 1977-78 and 1978-79. The petitioner has also prayed for a direction to respondent No. 1 to deal with the application of the petitioner under Section 18B of the Act, in accordance with law.
(2.) WE have heard Sri A.M. Mahajan, learned counsel for the petitioner, and Sri Ashok Kumar, learned counsel for the Revenue. The petitioner filed returns of wealth for the assessment years 1974-75 to 1978-79 on December 22, 1979. All the returns were, thus, delayed and attracted penalty under Section 18(1)(a) of the Wealth-tax Act (hereinafter referred to as "the Act"), at the rate of two per cent. of the assessed tax for every month during which the default continued. The assessments for all the aforesaid years were made. For the assessment year 1974-75, the net wealth assessed was below the taxable limit ; but for the other years, wealth-tax was leviable on the petitioner, and the Assessing Officer issued notices proposing to levy penalty under Section 18(1)(a) of the Act.
(3.) THE petitioner then moved an application dated May 27, 1980, a copy of which is contained in annexure "N" to the writ petition, invoking the Commissioner's jurisdiction to waive the penalties in exercise of the power under Section 18B(1)(a) of the Act. It was stated that the returns of wealth were filed prior to the service of any notice under Section 14 of the Act, and the petitioner had co-operated in the assessment proceeding, and that the admitted as well as the assessed tax had already been paid. The Commissioner rejected the petitioner's application, observing that on perusal of the records, it was noticed that for the assessment years 1976-77, 1977-78 and 1978-79, notices under Section 17 of the Act were issued on December 6, 1979, and it was after the issuance of those notices, that the assessee filed the aforesaid returns.;