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TMI Blog1985 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961. The petitioner-assessee is a Hindu undivided family. The assessment year involved is 1973-74. The assessee was required to file a return of wealth by August 15, 1973. The return was despatched by the assessee by registered post on September 12, 1973. It was received by the Wealthtax Officer on September 15, 1973. The Wealth-tax Officer was of the view that there was a delay of 31 days (one month) in filing the return. He issued a show-cause notice to the assessee regarding penalty. He held in his order dated December 5, 1975, that the assessee was a defaulter within the meaning of section 18(1)(a) of the Act and so imposed a penalty of Rs. 1,577. The assessee filed an appeal. The Appellate Assistant Commissioner opined that the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was delay of one month in filing the return under section 14(1) of the Wealth-tax Act, 1957 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in confirming the penalty levied by the Wealth-tax Officer ?" We have heard Mr. R. Balia for Mr. B. R. Arora, for the assessee and Mr. C. R. Mehta, for the Revenue. It is not in dispute that in accordance with section 14(1) of the Act, the assessee should have filed return of his wealth by August 15, 1973. For the present purpose, the parties are further in agreement that the return despatched by registered post was received by the Wealth-tax Officer on September 15, 1973. It was vehemently argued by the learned counsel appearing for the assessee that as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... January 3, 1868, and to all Regulations made on or after January 14, 1887. The Wealth-tax Act is of 1957, and, thus, the definition given in section 3(35) shall be applicable for interpreting the word " month " used in various sections of the Act, unless there is anything repugnant in the subject or context. According to section 3(35) of the General Clauses Act, 1897, the month does not necessarily mean 30 days and it is according to the Gregorian calendar unless the context otherwise requires. The words used in section 18(1)(i) are for every month during which the default continued ", as stated hereinabove. In section 271 (1)(i)(b), the very same words have been used, namely, " for every month during which the default continued ". The qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed its agreement with the view taken by the Division Bench of the Madras High Court in Kadri Mills' case [1977] 106 ITR 846. We have considered the reasoning given in Kadri Mills' case [1977] 106 ITR 846 (Mad) and Brijlal's case [1980] 124 ITR 485 (Cal). There is absolutely nothing in the context of section 18(1)(i) of the Act to exclude the application of the definition of the word " month " occurring in section 3(35) of the General Clauses Act, 1897. There is nothing in the context to exclude the invocation of the definition in section 3(35) of the General Clauses Act, 1897, to construe the words used in section 18(1)(i) of the Act. The view taken in Laxmi Rattan Cotton Mills' case [1974] 97 ITR 285 (All), is that the word " month " o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned as provided for in section 3(35) of the General Clauses Act, 1897. In this view of the matter, the return which was received by the Wealth-tax Officer on September 15, 1973, was within a month and not after a completed month and, therefore, the Tribunal was not right in holding that there was a delay of one month in filing the return under section 14(1) of the Act. The answer to the first question is in the negative, i.e., in favour of the assessee and against the, Revenue. Question No. (2): In view of the, answer given by us to question No. (1), it necessarily follows that no penalty could be imposed under section 18(1)(i) of the Act on the assessee for the return which was received on September 15, 1973, by the Wealth-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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