1997 (1) TMI 4

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ade a request for full waiver of the penalty as envisaged in the new provision. The Commissioner of Wealth-tax ("the Commissioner" for short) found that as the appellants have complied with the conditions stipulated in section 18B of the Act they are entitled to the benefit of the new provision. However, keeping in view the facts and circumstances of the case, the Commissioner, instead of granting waiver of the full penalty, had only reduced it to 5 per cent. for the relevant assessment years. The appellants submitted that once a person is found to be entitled to the benefits of the new provision of section 18B of the Act, the Commissioner should have waived the entire amount of penalty payable by that person concerned. So saying they appro .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... lating to the assessment of his net wealth and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under the Act. If the conditions stipulated in the section are satisfied the Commissioner has a discretion in the matter. In exercise of that discretion, the Commissioner can either reduce the amount of the penalty or he may even waive the entire penalty. It is for the Commissioner to decide on the facts of a particular case whether a waiver in entirety or a reduction alone is warranted. The words "the Commissioner may in his discretion ... reduce or waive the amount of penalty" in section 18B of the Act are clear enough to show that the power conferred on the Com .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ore. Learned counsel has cited the following decisions of the various High Courts in support of the contention that waiver in full has to be ordered when all the required conditions have been complied with Shakuntla Mehra v. CWT [1976] 102 ITR 301 of the Delhi High Court Shankara Apaya Swami v. WTO [1976] 103 ITR 649, of the Karnataka High Court; B. Anjanappa v. CWT [1980] 124 ITR 433 of the Karnataka High Court ; Rasiklal Ranchhodbhai Patel v. CWT [1980] 121 ITR 219 of the Gujarat High Court; Sardar Kartar Singh v. CWT [1982] 135 ITR 379 of the Gauhati High Court. In all those decisions the learned judges have pointed out that without indicating any reason whatsoever the Commissioner cannot dispense with his discretion in granting waiver .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X