K.C.Agrawal, Actg.C.J. - (1.) This reference application has been filed by the Commissioner of Wealth-tax against the judgment of the Income-tax Appellate Tribunal deciding the reference against the Department and in favour of the assessee. The question which had been referred by the Tribunal is : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in deleting the penalties of Rs. 11,125 for the assessment year 1970-71 and Rs. 5,370 for the assessment year 1971-72 imposed under Section 18(1)(a) of the Wealth-tax Act ?"
(2.) It is evident from the aforesaid question that the dispute was in respect of two assessment years. Hence, two assessment orders were passed by the Wealth-tax Officer followed by two judgments in the appeal.
(3.) On reference having been made, the Bench which heard the same reframed the questions which are as under : "(1)(a) Whether, on the facts and in the circumstances of the case, the successor officer was under an obligation to give notice under Section 39 of the Act to the assessee before continuing and concluding the proceedings concerned ? (b) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in deleting the penalties of Rs. 11,125 for the assessment year 1970-71 and of Rs. 5,370 for the assessment year 1971-72 imposed under Section 18(1)(a) of the Wealth-tax Act ?";