9911796707
TMI Blog1984 (12) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) because the orders of the Wealth-tax Officer had merged with the order of the Appellate Assistant Commissioner ? " The references before us relate to imposition of penalty for non-filing of returns at the appropriate time. In this reference, we are concerned with the assessment years 1964-65 to 1968-69. The assessee is a Hindu undivided family. The returns of wealth had to be filed by 30th June of each assessment year. They were, in fact, filed for the said five assessment years on October 6, 1969. The returns not having been filed when they were due, the Wealth-tax Officer (hereinafter referred to as "WTO ") initiated proceedings under section 18(1)(a) of the Wealth-tax Act, 1957 (hereinafter called " the Act "), and imposed penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18(1A) of the Act as it stood on the date of passing the orders. In his view, the amount of penalty should have been worked out on the basis of the taxable wealth and not on the basis of the tax payable by the assessee in the respective years. The orders thus being prejudicial to the Revenue, the matter was reopened by the issuance of notice. After hearing the assessee, the Commissioner enhanced the penalties, as mentioned in his order which is annexure-B to the statement of the case. The assessee appealed against the order of the Commissioner to the Appellate Tribunal. One of the submissions urged on behalf of the assessee which found favour with the Tribunal was that the Commissioner of Wealth-tax was not justified in assuming jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated August 12, 1971, quoted above or it stood out as an independent order. Having heard counsel for the parties at length, I am definitely of the view that no question of merger is involved in the instant case. In order to attract the principle of merger, it is essential that an order on merits must have been passed by the appellate or superior authority. In the instant case, no order on merits has been passed. In fact, on the date of hearing of the appeals, there were no appeals on which an order could be passed on merits. The appellant (assessee) sought permission to withdraw the appeals. The learned Appellate Assistant Commissioner granted the prayer. That was the end of the appeals. There was thus no occasion for the Appellate Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the order of the Income-tax Officer having merged in the appellate order of the Appellate Assistant Commissioner, the Commissioner had no jurisdiction to invoke the powers under section 263(1) of the Income-tax Act. The Full Bench laid down that the Commissioner's revisional jurisdiction under section 263 was available over matters not considered and decided by the Appellate Assistant Commissioner. In regard to other matters, he had no jurisdiction. From this decision, it will be seen that even when there is an appellate order, but it does not cover the entire matter filling for consideration before the Income-tax Officer, the matters which did not fall for consideration before the appellate authority could very well fall within the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne where the appeals were withdrawn and the Appellate Assistant Commissioner was forestalled from giving his verdict on merits. This case of the Supreme Court can be of no avail to the assessee. I am a little surprised at the Tribunal placing reliance upon Amritlal Bhogilal's case [1958] 34 ITR 130 (SC). The passage quoted by the Tribunal is entirely irrelevant. There can be no doubt that where the appellate authority modifies, reverses or confirms, there is a decision of the appellate authority, but where there is no decision of the appellate authority, the question of modification, reversion or confirmation does not arise. The Tribunal failed to take note of the following observation in the case of State of Madras v. Madura Mills Co. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
