768/CBDT. - Income Tax - 768/CBDT

Instruction No: 768/CBDT Date of Issue: 8/10/1974 Section(s) Referred: 18(2A) Statute: Wealth Tax Act, 1957 In the case of M/s Kundanlal Beharilal, Chandausi Vs. Commissioner of Wealth-tax (Civil Misc. Writ No 60191 of 1972) High Court of Allahabad allowed the writ petition filed by the assessee and quashed the order passed by the Commissioner of Wealth-tax u/s. 18(2A) with a direction that the application u/s 18(2A) filed by the assessee should be decided afresh. In that case notices u/s 17 of the Wealth-tax Act were issued by the Wealth-tax Officer on 29-11-1971 were served on the assessee on 6-12-1971. The assessee, however, filed the returns of wealth on 2-12-1971 i.e. before the notices were served. The Commissioner of Wealth-tax, therefore, held that returns were filed after the issue of the notices u/s. 17 and as such the return could not be described as voluntary returns. He, therefore, rejected application for reduction/waiver of penalty u/s 18(1)(a). On these facts, the High Court held that the word "issue" occurring in section 18(2A) of the Wealth-tax Act have the same meaning as the word "serve". The High Court, therefore, restored the application to the file of the Commissioner of Wealth-tax. The High Court, also rejected the leave petition filed by the Department. 2. The Board have not accepted the decision. Special Leave Petition was filed before the Supreme Court but the Supreme Court were pleased to dismiss the special leave petition filed by the Department. The Board desire that these points should be contested in suitable cases.