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Issues:
1. Challenge to rejection of application for waiver of minimum penalty under section 18B of the Wealth-tax Act. Detailed Analysis: The judgment pertains to two connected cases involving common questions of law and fact. The petitioner had submitted wealth-tax returns for multiple assessment years, starting from 1970-71, after the imposition of wealth-tax on agricultural lands in Punjab. The Wealth-tax Officer initiated penalty proceedings under section 18(1)(a) of the Act for alleged discrepancies in the returns. The petitioner applied for waiver of minimum penalty under section 18B, citing voluntary submission of returns, cooperation with the Department, and payment of tax due. However, the Commissioner of Wealth-tax rejected the application, leading to the challenge by the petitioner through writ petitions. In the judgment, the court analyzed the grounds on which the Commissioner had rejected the petitioner's application for waiver of penalty. The Commissioner had considered the issuance of notices under section 14(2) or 17 of the Act, discrepancies in revised returns, and inquiries into land valuation as reasons for denial. The court emphasized that the conditions specified in section 18B for reducing or waiving penalties must be the sole criteria for decision-making. Extraneous factors, such as notice issuance or valuation discrepancies in related cases, should not influence the assessment of whether the petitioner met the conditions for penalty relief. The court cited a relevant Division Bench judgment to support this interpretation. Consequently, the court held that the Commissioner's order was ultra vires the provisions of section 18B of the Act and unsustainable. The court quashed the impugned orders in both writ petitions and directed the Commissioner to reconsider the applications for penalty relief based solely on the conditions outlined in the Act. The court ordered a rehearing of the applications and instructed the Commissioner to make a decision in accordance with the law, without imposing costs on the petitioners.
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