9911796707
TMI Blog1986 (1) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... either under section 14(1) or under section 14(2). 3. The WTO thereafter issued a notice under section 16(4) of the Act to the assessee and the case was fixed for hearing on various dates such as 23-11-1978, 29-11-1978, 13-12-1978 and 19-12-1978. There was no compliance on any of these dates. Eventually, the assessment was completed on 20-12-1978 under section 16(5). 4. Penalty proceedings were initiated for non-compliance with the notice under section 16(4). There was no reply to the show-cause notice. The WTO finally observed : "So it has to be concluded that the assessee has without reasonable cause failed to comply with the provisions of section 16(4) of the Wealth-tax Act. The penalty leviable for the default as fixed by section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty under section 18(1)(b) of the Act could not be imposed because the computation was not possible in the circumstances of the case. 7. The learned departmental representative placed emphasis on the continued default not only at the stage of the assessment but even before the first appellant authority. He also submitted that there was no evidence to show that cancer had been detected at the stage when the default took place, which was in 1978. 8. We have considered the rival submissions. If a protective assessment is permissible, it stands, to reason that all stages necessary to reach the stage of making a protective assessment have to be gone through i.e., notice to file the return has to be issued and where a return is filed, a not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as it then stood, provided for the computation of the penalty where there was default, which attracted the provisions of section 18(1)(b)(ii) and they read is under: "(ii) in the case referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than ten per cent, but which shall not exceed fifty per cent of the amount of the wealth-tax, if any, which would have been avoided if the net wealth returned by such person had been accepted as the correct net wealth;" The prerequisite, therefore, is that the difference is to be computed of the tax between the net wealth as returned and the net wealth as assessed. Where no return has been filed, it is clear that the tax on the net wealth as re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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