1991 (9) TMI 3 - SC - Wealth-tax

Wealth Tax - Whether the Appellate Tribunal was right in holding that the penalty should be calculated on the basis of the law prevailing prior to April 1, 1969, for the assessment year 1967-68 - leviability of penalty - law applicable at assessment year or at time of default - in case of continuing default, the law as at the assessment year cannot be applied

Summary

The Supreme Court allowed the appeal in a wealth-tax case concerning penalty calculation. The Court held that penalty should be based on the law prevailing at the start of the assessment year and continued until compliance. The High Court judgment was set aside, and the penalty amount was to be quantified accordingly. The Tribunal was directed to proceed with the appeal in line with the Supreme Court's decision. No costs were awarded. (Case citation: 1991 (9) TMI 3 - Supreme Court)