KUNDAN LAL BEHARI LAL Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution.

(2.) THE petitioner, Behari Lal, runs a business in the name of M/s. Kundan Lal Behari Lal at Chandausi of which he is the sole proprietor. He is being assessed to income-tax in the status of an individual. He, however, was not being assessed to wealth-tax. It has been alleged by the petitioner that on 20th November, 1971, he went to his counsel in connection with his case under the Income-tax Act for the year 1969-70, when he was told by his counsel that he was liable to wealth-tax. On the following day when he appeared before the Income-tax Officer in connection with the income-tax assessment for the year 1969-70, he informed the Income-tax Officer, who was also the Wealth-tax Officer, that he would be submitting his wealth-tax return for the years 1964-65 to 1970-71, according to the legal advice given to him. He goes on to say that the wealth-tax returns for the aforesaid years were prepared on the 28th November, but they could not be finalised on that day and were filed on December 2, 1971. As the returns were not filed within the time allowed under Section 14(1) of the Wealth-tax Act, he applied to the first respondent, the Commissioner of Wealth-tax, Lucknow, on December 3, 1971, for waiver of penalty for filing the returns late, as provided under Section 18(2A) of the Wealth-tax Act. On December 6, 1971, he was served with a set of six notices under Section 17 of the Wealth-tax Act all dated November 29, 1971, issued by the second respondent, the Wealth-tax Officer, Chandausi, for the years 1965-66 to 1970-71. THE returns already filed were accepted and he was assessed to tax by the Wealth-tax Officer by his order dated January 24, 1972. THEreafter, the petitioner's application under Section 18(2A) was taken up by the Commissioner and was finally disposed of on September 7, 1972. THE Commissioner found that as no notice under Section 17 had been issued by the Wealth-tax Officer for the assessment year 1964-65, the return filed by the petitioner for that year was a voluntary return containing a full and true disclosure of his wealth. He, accordingly, waived the penalty for that year. With regard to the remaining years the application was rejected on the ground that the returns filed by the petitioner had been filed after the notice under Section 17 had been issued to him and as such the petitioner was not entitled to any relief by way of waiver or reduction of penalty. He, accordingly, directed the Wealth-tax Officer to proceed with the penalty proceedings for these years in accordance with law. This order of the Commissioner has been challenged in this petition.

(3.) THE petitioner has challenged the impugned order passed by the Commissioner on the following grounds :