1977 (7) TMI 65 - AT - Wealth-tax

Summary

Issues:
1. Penalty for belated submission of Wealth Tax return for the assessment year 1972-73.
2. Validity of the explanation provided by the assessee for the delay in filing the return.
3. Whether the assessee was prevented by reasonable cause in filing the return before the due date.
4. Applicability of penalty under section 18(1)(a) of the Wealth Tax Act, 1957.

Analysis:
1. The assessment for the assessment year 1972-73 was made on the assessee in the status of an individual, and a penalty was levied for the belated submission of the Wealth Tax return. The original return was due by 30th June, 1972, but was filed on 27th June, 1973, leading to a penalty of Rs. 16,418 under section 18(1)(a) of the Wealth Tax Act, 1957.

2. The assessee claimed that the return filed on 27th June, 1973, was a revised return and that the original return was submitted before the due date. However, the assessee failed to provide any proof or explanation to support this claim. The Appellate Authority Commissioner (AAC) upheld the penalty, emphasizing that the assessee's previous timely filings for the preceding years contradicted the claim of ignorance or illiteracy.

3. The assessee's counsel argued that the delay was due to the belief that the return had already been filed before the due date. However, the lack of evidence or material supporting this belief led the tribunal to conclude that the delay was not justified by any reasonable cause. The tribunal held that the assessee's actions indicated a defiance of the law, as evidenced by timely filings in the preceding years.

4. Referring to the case law of V.L. Dutt vs. CIT, Madras, the tribunal highlighted that the absence of a reasonable explanation could be considered as circumstantial evidence of acting without a reasonable cause. The tribunal found the explanation provided by the assessee's counsel regarding illiteracy insufficient and unreasonable, given the timely filings in the previous years. Consequently, the tribunal upheld the penalty imposed by the AAC, dismissing the appeal.

In conclusion, the tribunal affirmed the penalty for the belated submission of the Wealth Tax return for the assessment year 1972-73, as the assessee failed to provide a valid explanation or reasonable cause for the delay, and his actions indicated a disregard for legal obligations. The tribunal found no grounds to interfere with the AAC's order, leading to the dismissal of the appeal.