1985 (1) TMI 22 - HC - Wealth-tax

Summary

Issues:
1. Assessment years 1967-68 and 1968-69 - Wealth-tax Act, 1957.
2. Entitlement to raise plea on exemption and deduction in penalty determination.
3. Calculation of penalty with reference to the amended Act.
4. Retrospective application of amended provisions of section 18(1)(a).

Analysis:
The judgment delivered by Judges N. D. OJHA and A. N. DIKSHITA pertains to a reference made under section 27(3) of the Wealth-tax Act, 1957 for the assessment years 1967-68 to 1969-70. The applicant, an individual, had submitted returns for the years 1967-68 and 1968-69 after the due dates. The Wealth-tax Officer assessed the total wealth and initiated penalty proceedings under section 18(1)(a) of the Act. Despite the assessee's explanations, penalties were imposed, and subsequent appeals were dismissed by the Appellate Assistant Commissioner and the Tribunal. The questions referred to the High Court included the entitlement to raise pleas on exemption and deduction, the calculation of penalty with reference to the amended Act, and the retrospective application of amended provisions of section 18(1)(a.

Upon hearing the counsels, the court found that questions regarding the calculation of penalty and the retrospective application of amended provisions were answered in favor of the assessee based on a Supreme Court decision. Consequently, these questions were answered in the negative and in favor of the assessee. The counsel for the assessee requested that since questions 2 and 3 were decided in favor, question 1 could remain unanswered as the penalty amount would be negligible. Therefore, the reference was returned unanswered for question 1, and questions 2 and 3 were answered in the negative and in favor of the assessee. The Tribunal was directed to take appropriate consequential actions, and no costs were awarded in this case.