9911796707
TMI Blog1993 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ication under section 18B(4) of the Wealth-tax Act contending therein that on the assessed tax of only Rs. 500, the penalty has been levied of Rs. 16,880 for delay in filing of the return. Levy of penalty is not in consonance with the default committed by the petitioner and the assessment of the wealth-tax, the petitioner further stated that in fact the return has been submitted by him during the period, however, on account of some mistake, the office has not put the correct date of the filing of the return. Looking to the circumstances and the quantum of tax the penalty is very heavy and the recovery of the same will result in genuine hardship to the petitioner. The Commissioner of Wealth-tax by his order dated January 19, 1984 (annexure " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, having regard to the circumstances of the case, and the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him. The " case " referred to in clause (i) of sub-section (4) of section 18B of the Act has a reference to the entire case commencing from filing of the return of the wealth-tax till the final adjudication and the assessment of the tax liability, penalty proceedings, proceedings for waiver or reduction of the penalty, and not the proceedings which commences from filing of the application under sub-section (4) of section 18B for waiver or reduction of the penalty. This interpretation is borne out and is commensurate with clause (ii) of sub-section (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m filing of the wealth-tax return. No doubt, the powers conferred on the Commissioner under sub-section (4) of section 18B are discretionary powers, and normally the discretion exercised by the authority shall not be interfered with by this court in the exercise of writ jurisdiction. But, in the circumstances of the case, the Commissioner of Wealth-tax who has been entrusted with the discretionary powers has misdirected himself in law and has not considered the entire case which he is bound to consider and thus the discretion exercised by the Commissioner of Wealth-tax cannot be said to be a judicious exercise of discretion vested in him. Under clause (i) of sub-section (4) of section 18B, the Commissioner is required to consider the genuin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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