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Issues:
1. Imposition of penalty under section 18(1)(a) of the Wealth Tax Act for delayed filing of wealth tax return. Detailed Analysis: The appeal in question pertains to the assessment year 1975-76 and concerns the imposition of a penalty of Rs. 1,510 under section 18(1)(a) of the Wealth Tax Act. The appellant contested the penalty, arguing that the delay in filing the wealth tax return was due to a reasonable cause. The appellant had filed the return of wealth on 31st March, 1976, seven months after the due date of 31st July, 1975, leading to the penalty imposition by the WTO. Upon appeal before the AAC, the appellant's counsel contended that the delay in filing the wealth tax return was a result of the delay in filing the income tax return, as the appellant needed to ascertain her assets and liabilities before filing the wealth tax return. The AAC, however, upheld the penalty, stating that the appellant's wealth mainly comprised advances and income from a truck business, and there was no justification for the delay in filing the return. The AAC also noted that the appellant was aware of the deposits earning interest, further negating the appellant's reasoning for the delay. The appellant's counsel relied on a decision of the Madras High Court to support the argument that the delay in filing the income tax return should be considered a reasonable cause for the delay in filing the wealth tax return. The Tribunal, after considering the submissions from both sides, held that the delay in filing the income tax return indeed constituted a reasonable cause for the delay in filing the wealth tax return. Citing the legal proposition from the Madras High Court case, the Tribunal canceled the penalty imposed by the WTO and upheld by the AAC. In conclusion, the Tribunal allowed the appeal of the assessee, canceling the penalty imposed under section 18(1)(a) of the Wealth Tax Act. The decision was based on the finding that the delay in filing the income tax return constituted a reasonable cause for the delay in filing the wealth tax return, as per the legal precedent cited during the proceedings.
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