1994 (1) TMI 112 - AT - Income Tax

Agricultural Land Assessing Officer Assessment Year Delay In Filing Return Late Filing Tribunal s Order

Summary

Issues:
Penalty for delay in submission of wealth-tax returns and quantification thereof.

Analysis:
1. The appeals by the department and cross-objections by the assessee involve common issues related to penalty for delay in submitting wealth-tax returns. The dispute primarily revolves around the quantification of penalties for the respective assessment years.

2. The basic facts provided by the Departmental Representative show that penalties were levied based on the wealth assessed by the Assessing Officer. The difference between the wealth returned and assessed was mainly due to the valuation of agricultural lands. The returns were filed in response to notices issued under section 17(1)(a) in March 1979.

3. The Appellate Assistant Commissioner (AAC) rejected the assessee's claim of reasonable cause for the delay in filing returns but directed that penalties be quantified based on the wealth and tax determined on appeal. The department's main contention is regarding the applicability of the law for quantifying penalties during different periods when different statutory provisions were in force.

4. The assessee filed cross-objections, requesting condonation of delay and arguing that penalties should be deleted due to reasonable cause and a genuine belief that the wealth was below the taxable limit. The delay in filing cross-objections was substantial, leading to rejection on the grounds of being time-barred.

5. The Tribunal considered the rival submissions and upheld the department's contention on quantifying penalties based on prevailing legal provisions. However, they agreed with the assessee that the delay to be penalized should be considered separately. The penalties were found leviable but with a different approach to quantification based on the service of notices under section 17(1).

6. The Tribunal rejected the condonation of delay for the cross-objections due to the substantial delay and discrepancies in the filed affidavits. Consequently, the departmental appeals were partly allowed, and the assessee's cross-objections were dismissed. The quantification of penalties would be done by the Assessing Officer based on the Tribunal's directions.