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TMI Blog1984 (2) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... . 31-40/708, Ajmeri Gate, Delhi, was shown as nil with the note that plus and minus adjustment will be done on the finalisation of balance sheet. A revised return was filed on2-1-1975showing the net wealth at Rs. 9,46,884. In this return the value of one-fourth share in the aforesaid property was shown at Rs. 12 lakhs less liabilities of Rs. 50,000. The WTO completed the assessment on a net wealth of Rs. 15,75,300 which was reduced by the Commissioner (Appeals) by Rs. 2,50,143. 3. The WTO initiated penalty proceedings under section 18(1)(c) of the Wealth-tax Act, 1957 ('the Act') and levied a penalty of Rs. 11,50,000 which was confirmed by the Commissioner (Appeals) vide his order dated31-3-1982impugned before us. 4. In the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 18(1)(a) for the assessment year 1974-75 was reduced to Rs. 10,000. 6. The appeals of the assessee for these two years came up before us for hearing on17-1-1984. On a query whether the appeals are maintainable in view of the provisions of section 18B(5), Shri R.S. Singhvi, the learned counsel for the assessee, contended that the appeals are maintainable. Reliance was placed on the decision of the Karnataka High Court in CWT v. B. Kempanna [1980] 126 ITR 825 and also the decision of the Tribunal, Ahmedabad Bench in the case of WTO v. Gamanlal Kacharabhai [1983] 5 ITD 651. Since the order passed by the Commissioner under section 18(2A) (equivalent to section 18B) does not efface the order of the WTO imposing penalty, the appeal li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of minimum penalty that is directed to be waived or reduced and nothing more. There is no provision that once the assessee filed an application under section 18(2A) before the Commissioner, he waives his other rights. " However, it is important to note that their Lordships held this view after considering the non-obstante clause of section 18(2A) which then read as follows : " 18.(2A) Notwithstanding anything contained in clause (i) or clause (iii) of sub-section (1), the Commissioner may, in his discretion,---" The provisions of section 18(2A) and section 18(2B) were omitted by the Taxation Laws (Amendment) Act, 1975, with effect from1-4-1976and the new section 18B was inserted in its place. Non-obstante clause was duly amended to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , would be ludicrous. To avoid such possible faux pas, the new section has among other things the following non obstante clause 'Notwithstanding anything contained in this Act' as the opening words and sub-section (1) of section 18B makes the order totally final. 10. The Hon'ble High Court of Calcutta had an occasion to consider section 18(2A)/18(2B) in the case of Smt. Ichhabai Panchal v. CWT [1982] 137 ITR 232 from an entirely different angle. In that case their Lordships, following a dissenting opinion of Farooqi J. in Fairdeal Motors v. CIT [1979] 117 ITR 137 (J K) held : " The expression 'notwithstanding' in section 18(2A) of the Wealth-tax Act, 1957, makes it clear that only on the fulfilment of the conditions where penalty was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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