1979 (11) TMI 9 - HC - Wealth-tax

Summary

Issues:
Assessment of penalty under section 18(1)(a) of the Wealth Tax Act, 1957 for late filing of returns. Interpretation of reasonable cause for delay in filing returns. Review of the Appellate Assistant Commissioner's decision by the Appellate Tribunal.

Analysis:
The judgment pertains to three references arising from the same set of facts, involving penalty proceedings under section 18(1)(a) of the Wealth Tax Act, 1957 for late filing of returns by three assessees. The assessees, being purdanashin ladies, cited reasons such as lack of information on share values and partnership interests for the delay in filing returns. The Appellate Assistant Commissioner (AAC) accepted some submissions but not all, canceling the penalty orders based on reasonable cause preventing timely filing.

The Revenue appealed to the Appellate Tribunal, arguing that the AAC did not consider the case properly and failed to assess the circumstances justifying the delay. The Tribunal emphasized the statutory obligation to file returns timely and the necessity for assessees to explain any delays adequately. Consequently, the Tribunal set aside the AAC's decision and directed a re-examination based on reasonable cause for the delay, particularly due to lack of information from the partnership firm.

The High Court, upon considering the matter, found no fault in the Tribunal's decision. It noted the absence of explanations by the assessees before the Wealth Tax Officer (WTO) and emphasized the need for proper verification of submissions by the AAC. Therefore, the Court upheld the Tribunal's order, affirming the remand of the case to the AAC for a lawful decision.

In response to the question referred, the High Court ruled in favor of the Revenue, supporting the decision of the Appellate Tribunal to set aside the AAC's order. The Court awarded costs to the Revenue and assessed them at Rs. 200, along with the counsel's fee at the same amount. The judgment underscores the importance of justifying delays in filing returns and the obligation on assessees to provide adequate explanations for any delays, even in cases involving reasonable cause.