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TMI Blog1983 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... see in respect of the assessment years 1964-65 to 1968-69 were concerned.? " For the assessment years 1964-65 to 1967-68, the assessee filed returns of his wealth on October 3, 1969, and for the assessment years 1968-69 and 1969-70, he filed them on January 20, 1970. Really, he should have filed them on or before 30th June of each of those assessment years. The WTO noticed these defaults during the assessment proceedings, and after they were over, he initiated penalty proceedings under s. 18(1) of the Act. The contention raised on behalf of the assessee was that the returns were filed voluntarily; and, therefore, no penalty should be levied. The WTO held that the returns were not filed voluntarily, but were filed only after enquiries rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore its amendment which came into force from April 1, 1969, and directed the WTO to recompute the penalty accordingly. Dissatisfied with this decision, the Department moved the Tribunal for making a reference to this court. In all, five applications were filed before the Tribunal. The question of law involved in all those applications being common, a common reference has been made by the Tribunal. The contention of the Revenue is that for the purpose of the imposition of penalty, the law applicable is the law on the date when the officer decides to impose penalty and the Tribunal committed an error of law in holding that the law in force at the time when the default was committed should apply in such cases. In respect of a similar defa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cealment of income. And this is so notwithstanding that the income concealed is the income assessed to tax. In the case of the assessment of income and the determination of the consequent tax liability, the relevant law is the law which rules during the assessment year in respect of which the total income is assessed and the tax liability determined. The rate of tax is determined by the relevant Finance Act. In the case of a penalty, however, we must remember that a penalty is imposed on account of the commission of a wrongful act, and plainly it is the law operating on the date on which the wrongful act is committed which determines the penalty. Where penalty is imposed for concealment of particulars of income, it is the law ruling on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rohibits him from doing it and attaches a penalty for doing it, he is stated to have committed an act of commission which amounts to a wrong in the eye of law. Similarly when a person omits to do an act which is required by law to be performed by him and attaches a penalty for such omission, he is said to have committed an act of omission which is also a wrong in the eye of law. Ordinarily, a wrongful act or failure to perform an act required by law to be done becomes a completed act of commission or of omission, as the case may be, as soon as the wrongful act is committed in the former case and when the time prescribed by law to perform an act expires in the latter case and the liability arising therefrom gets fastened as soon as the act o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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