K.C.Agrawal, Actg.C.J. - (1.) In this reference, the questions referred to this court for opinion by the Income-tax Appellate Tribunal are : "(i) Whether there is a finding of the Tribunal that the assessee was prevented by reasonable cause from filing the wealth-tax returns in time for the assessment years 1970-71 and 1971-72 ? If not, what is the effect on the ultimate order passed by the Tribunal ? (ii) If the answer to the aforesaid question is in the affirmative, whether the decision of the Appellate Tribunal is vitiated by its having relied on the following circumstances : 1. That the penalty under Section 18(1) (a) for the years 1969-70 to 1970-71 had been waived in the case of Shri C. L. Khunnah ; 2. That the penalty for the year 1971-72 had been cancelled by the Tribunal in the case of Shri C. L. Khunnah on the ground that Shri C. L. Khunnah had been prevented by sufficient cause from filing his return within time in respect of that year ; 3. That the Department had not questioned the cancellation of the penalty by the Appellate Assistant Commissioner in the case of Shri M. C, Khunnah ; 4. That the assessee's claim that he was an existing wealth-tax assessee and that by the delayed filing of the return he could not have expected to avoid the payment of wealth-tax."
(2.) These very questions have been referred to in the other connected references.
(3.) The assessee, S.L. Khunnah, is an individual. He was a partner in L.N. Khunnah and Sons. The dispute relates to penalties levied on him under Section 18(1)(a) for the assessment years 1970-71 and 1971-72. The returns for these two years had been filed on December 30, 1971. Since in the opinion of the Wealth-tax Officer, there was delay in the filing of the returns, he issued notices for levy of penalty under Section 18(1)(a) of the Wealth-tax Act.;