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TMI Blog1985 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... d there was a delay of 26 months. The WTO initiated penalty proceedings and in his reply the assessee stated that the returns could not be filed in time as the assessee was sick being a chronic patient of heart trouble. This contention was not accepted by the learned WTO as the assessee did not produce any evidence to substantiate the allegation. The WTO levied a penalty of Rs. 2,560 and Rs. 1,110 respectively for the two years. Aggrieved, the assessee preferred appeals to the AAC and contended that since the returns for the income-tax were delayed having been filed on 11-4-1978 and 25-7-1978 for the two years, the assessee could not file his wealth-tax returns earlier and, therefore, as observed by the Hon'ble Madras High Court in Addl. CW ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the summary given below the head-note. The observations of the Hon'ble Madras High Court are as below : "... We are of the view that in certain circumstances the delay in finalising one's income-tax return might by itself be a just reason for the delay in filing the same person's wealth-tax return. Wealth-tax assessees are required to make returns of their net wealth on given valuation dates, and in order to do so, it is essential that they should correctly represent their debts and liabilities as they subsist as on the said valuation dates. If the wealth-tax assessees are also income-tax assessees, their liability towards income-tax would be a necessary ingredient in arriving at the correct net wealth which has to be disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable delay in the preparation of the particulars of the assessee's income for purposes of income can be considered while considering whether there was any reasonable cause for the delay in the submission of the wealth-tax returns. This means that the reasonability of the cause for delay in the submission of the returns of income-tax has to be made out which leads to the result that the reasonability of the cause has to be shown in the wealth-tax proceedings as well and delay in the submission of the income-tax returns cannot be mechanically accepted as a reasonable cause for the delayed submission of wealth-tax returns as canvassed by the learned counsel for the assessee. In a later judgment in the assessee's own case in WT Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental in delaying the payment of tax in his individual assessment there is no reason why penalty should not be imposed on him merely because there was some delay in the firm's case. These illustrations show that it may not be equitable, just or necessary to assume always that a partner cannot be held responsible for the firm's delay. We are, therefore, unable to agree with the attempts of the counsel before us to evolve, from the Mysore, the Orissa and the Punjab and Haryana High Courts on the one hand and the Punjab and the Allahabad High Courts on the other (which are based on the facts of the cases before them), certain general principles universally applicable to all cases. It seems to us that a conclusion has to be reached in each cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee did not lead any evidence to establish the cause why the wealth-tax returns could not be submitted in time. At the first stage, he took up the stand that be was ill. No evidence was produced to substantiate the alleged illness and that contention was later on abandoned. Therefore, the assessee failed to establish the existence of a reasonable cause for the delay in the filing of the two returns and, therefore, he was liable to penalty. 7. At the hearing the learned counsel for the assessee pointed out that for the assessment year 1976-77 the assessee was allowed an extension of time to file his return of income up to 31-12-1976, and, therefore, in terms of the proviso to sub-section (1) of section 14 of the Act, the assessee could fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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