1980 (2) TMI 44 - HC - Wealth-tax

Summary

Issues involved:
The judgment involves two sets of references under section 27(1) of the Wealth Tax Act, 1957, regarding penalties imposed under section 18(1)(a) for default in filing returns without reasonable cause for the assessment years 1966-67, 1967-68, and 1968-69. The questions referred relate to the competency of appeals to the Appellate Assistant Commissioner and the Tribunal, adequacy of opportunity for showing cause against the levy of penalty, and calculation of penalty based on the law applicable at the time of the default.

Question 1:
The Tribunal was justified in entertaining the ground raised by the department regarding the competency of appeals, as it was a legal question not dependent on factual establishment, within the Tribunal's discretion.

Question 2:
The Tribunal's conclusion that the orders of the Wealth Tax Officer were effaced due to the Commissioner's order under section 18(2A) was incorrect. The Commissioner's power to reduce or waive penalties did not override the jurisdiction of other authorities, and the appeals to the Appellate Tribunal were maintainable.

Question 3:
The Tribunal's consideration of whether the assessee had adequate opportunity before the Appellate Assistant Commissioner was deemed incongruous and unnecessary, as the relevant issue was the opportunity provided by the Wealth Tax Officer.

Question 4:
The calculation of penalty should be based on the law applicable at the time the return was due to be filed and the default occurred, as established by precedent.

The judgment clarifies the scope of the Commissioner's powers under section 18(2A) and affirms the maintainability of appeals despite the Commissioner's order. The Tribunal's findings on the adequacy of opportunity provided before the Appellate Assistant Commissioner were deemed irrelevant. The calculation of penalties was to be in accordance with the law applicable at the time of the default.