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Issues: The judgment involves the cancellation of an order passed by the Commissioner of Wealth-tax under section 25(2) of the Wealth-tax Act, 1957, directing the Wealth-tax Officer to consider initiating penalty proceedings under section 18(1)(a) in fresh assessment proceedings.
Details: - The Wealth-tax Officer completed the assessment for the year 1967-68 on the individual assessee, with a valuation date of March 31, 1967, without initiating penalty proceedings despite a late filed return. - The Commissioner of Wealth-tax, through suo motu revision u/s 25(2) of the Act, set aside the assessment order and directed a fresh assessment considering the penal provisions. - The assessee appealed to the Tribunal, which set aside the Commissioner's order based on jurisdictional grounds, citing precedents and decisions from Delhi High Court and other cases. - The Tribunal's decision was supported by a Division Bench of the Delhi High Court and further upheld by the Supreme Court, along with other subsequent cases following similar principles. - The judgment concurred with the earlier views of the High Court, stating that the Commissioner lacked the authority u/s 25(2) to deem an assessment order erroneous solely due to the failure to initiate penalty proceedings. - The question was answered in favor of the assessee, and since there was no contestation, each party was directed to bear their own costs for the proceedings.
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