9911796707
TMI Blog1989 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Tribunal, in compliance with the directions of this court given under section 27(3) of the Wealth-tax Act and made in T. C. P. Nos. 142 to 144 of 1978, has drawn up a consolidated statement of the case relating to the assessment years 1966-67 to 1968-69. The common question of law referred to this court for its opinion reads as follows : "Whether, on the facts and in the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of penalty must be at the rates prevailing on the date when the default occurred and not on the date when the Wealth-tax Officer passed the order. On that view, the Appellate Assistant Commissioner remanded the matter to the Wealthtax Officer to recompute the penalties with reference to the rates of penalty in force on the dates of default, namely, the dates on which the wealth-tax returns w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. Mr. N. V. Balasubramaniam, learned counsel appearing for the Revenue, placing reliance on the latest decision of the Supreme Court in Maya Rani Punj v. CIT [1986] 157 ITR 330, submitted that the view taken by the Tribunal following the decision of the court in CGT v. C. Muthukumaraswamy Mudaliar [1975] 98 ITR 540 can no longer hold the field. Learned counsel appearing for the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out in Jain Brothers' case [1970] 77 ITR 107 (SC), the question of imposition of penalty would arise only after assessment of tax is made and, therefore, in Suresh Seth's case [1981] 129 ITR 328 (SC) on the analogy of the ratio accepted by this court in Jain Brothers' case, the amended provisions would become applicable." The Supreme Court further held (at p. 341 of 157 ITR) "The impositio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court, we are of the view that the decision in CGT v. C. Muthukumaraswamy Mudaliar [1975] 98 ITR 540 (Mad), referred to above, cannot be considered good law. Consequently, the decision of the Tribunal which applied the principle laid down in C. Muthukumaraswamy Mudaliar's case[1975] 98 ITR 540 cannot also be sustained. In the result, we answer the question referred to us in the negative and ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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