1989 (3) TMI 101

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..... the Income-tax Appellate Tribunal has referred the following question of law for the decision of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in sustaining the penalty holding that penalty exigible in a case where return is filed in response to the notice under section 14(2) of the Wealth-tax Act, 1957, within the time allowed after committing .....

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..... t to file the returns, as enjoined by section 14(1) of the Wealth-tax Act, the Wealth-tax Officer initiated penalty proceedings under section 18(1)(a) of the Act. By order dated March 19, 1979, he levied a penalty of Rs. 10,248 for each assessment year. It was confirmed in appeal by the Appellate Assistant Commissioner and in second appeal by the Appellate Tribunal. Thereafter, at the instance of .....

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..... 14(2) of the Act, it wipes out the earlier default incurred by non-filing of the returns as enjoined in section 14(1) of the Act. The short question that arises for consideration is, whether the issue of a notice under section 14(2) of the Act will have the effect of wiping out or condoning the earlier default which occurred or arose, in not filing the returns as per section 14(1) of the Act. The .....

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..... e levy of penalty for failure to file the returns as enjoined by section 14(1) of the Act will be proper and authorised. Substantially similar provisions in the Income-tax Act, namely, section 139(1) and (2) read with section 271(l)(a) of the Act, came up for consideration before several High Courts. The courts have held that failure to furnish the return within the time prescribed under sub-secti .....

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..... ] 79 ITR 702. The Appellate Tribunal was justified in sustaining the penalty levied for both the years for default incurred by non-filing of the returns under section 14(1) of the Wealthtax Act. We, therefore, answer the question referred to us, for both the years, in the affirmative, against the assessee and in favour of the Revenue. A copy of this judgment under the seal of this court and the .....

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