1978 (8) TMI 5 - HC - Wealth-tax

Summary

Issues:
1. Imposition of penalties under section 18(1)(a) of the Wealth Tax Act for delayed filing of returns.
2. Application for waiver of penalties under section 18B of the Wealth Tax Act.
3. Consideration of conduct of the assessee in relation to previous assessment years for waiver of penalties.
4. Provision under section 17A allowing filing of wealth tax returns for previous years voluntarily.
5. Requirement for the assessee to file returns for the years 1957-58 to 1964-65 and pay wealth tax due within a specified timeframe for reconsideration of waiver of penalties.

Analysis:
1. The High Court addressed the issue of penalties imposed by the Wealth Tax Officer (WTO) under section 18(1)(a) of the Wealth Tax Act for delayed filing of returns. The penalties were imposed for various assessment years totaling Rs. 12,67,175. The applicant argued for the waiver of these penalties under section 18B of the Act.

2. The Commissioner dismissed the applicant's application for penalty waiver, citing lack of full and true disclosure of assets by the assessee. The Commissioner considered the assessee's failure to file returns for assessment years prior to 1965-66 as indicative of a lack of good faith and only partial disclosure. The applicant contended that the Commissioner erred in considering conduct related to previous assessment years.

3. The Court considered the applicant's submission regarding the requirement of good faith and full disclosure under section 18B. The applicant expressed willingness to file returns for the earlier years and pay the tax due, seeking to mitigate the lack of good faith in not filing returns for those years. The Court noted that there was no legal bar to filing returns for previous years voluntarily.

4. Addressing the provision under section 17A allowing assessment for previous years, the Court directed the assessee to file returns for the years 1957-58 to 1964-65 and pay the wealth tax due within a specified timeframe. The Court emphasized that if the assessee complied, the application for waiver of penalties would be reconsidered by the Commissioner.

5. The Court set aside the Commissioner's order and directed the assessee to file returns and pay wealth tax for the specified years within the given timeframe. Failure to comply would result in the dismissal of the writ petition with costs. The parties were directed to bear their own costs in the proceedings.