9911796707
TMI Blog1978 (10) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to which he was directed to file his returns before 9th July, 1969 and 8th July, 1970. He, however, did not file his returns till 28th Feb., 1973. Thus, there was a delay of 43 months and 31 months respectively. The WTO, therefore, issued notices for imposing penalties and ultimately the penalties were imposed as mentioned above. 3. On appeal before the AAC the substantive contentions of the assessee that no notices under s. 14(2) had been served upon him and there was reasonable cause for the delay in filing of the wealth-tax returns, were over-ruled by the AAC who practically dismissed the appeals except that he directed the penalties be re-calculated as the WTO had rectified the total assessments of the appellant, and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is only an agent who is empowered by Order 3, r.6, who can accept service under this rule. Mere oral authorisation is not sufficient. 6. Coming to the more recent authorities in Johar Forest Works vs. CIT(1), it has been held that service upon on employee was not proper service of a notice under s. 22(2) of the Act, 1922 and even if a manager of the concern had asked for extension of time to file the return, this may be suggestive of the fact that the general manager had known about the issuance of the notice but this could not be considered to be equivalent to or a substitute for the service of the notice tot the assessee. Consequently, service was not legally valid so as to sustain the order of penalty. In another decision relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n were initiated the assessee filed a reply, copy of which is at page 6 of the paper-book. It has been mentioned therein that no notices had been served upon him and he had not authorised any one to receive notice on his behalf. Similarly, it has been contended that he has voluntarily filed his returns. Regarding the delay, the contention of the assessee was that he was under-going financial stringency, he had to obtain huge loans and his peruse of mind was disturbed, his business had suffered losses and he has closed the same. He was an illiterate person. His counsel had also deserted him and his accountant and Munim who were conversation with the accounts had also left him. Ultimately he had to arrange a new counsel who submitted the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalties. But unfortunately when we examined the file of the WTO, it was found that notices asking to show cause against the proposed penalties directed him to appear in person or show cause on 23rd March, 1973. These notice were actually served upon the assessee on 24th March, 1973. Of course, in reply to these notices he sent a reply; but possible he could not be expected to bring his evidence alongwith the reply because the date of hearing had already expired on that day. In these circumstances while it may be generally true that it is for the assessee to lead evidence in support of his reasonable cause, in this case after receipt of the reply the WTO should have called upon him to do so if he disbelieved the allegations made in hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before this Bench which was over ruled was that the language of he show cause notices was defective. The Bench observed that the notices were not required to be provided in a particular form. While no objection can be taken to this conclusion of the Bench, the fact that the notice is served after the date of hearing mentioned in it, would, in our opinion, strike at the root of the service itself. In any case, if the assessee did not produce evidence in support of his allegations mentioned in reply to the notice, it should not be presumed that the allegations are wrong unless another opportunity was given to substantiate the same. 10. Upon a consideration of all the circumstances of the case, we were prima facie of the opinion that this was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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