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TMI Blog1982 (3) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, placed all the materials requisite for his assessment for these three years. It may be observed that since the, assessee was assessed to wealth-tax for the earlier years, those materials were also before the WTO. On the basis of all these considerations, the assessments, were completed. Parallel proceedings for penalty were initiated by the WTO under s. 18(1) of the Act for non-filing, of the wealth-tax returns u/s. 14(1). During the pendency: of the proceedings, the petitioner approached the CWT under s. 18(2A) of the Act with a request that the penalties may be waived. It was represented before the Commissioner that the assessee had fulfilled the requirements of s. 18(2A) and he was entitled to indulgence at the hands of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m penalty to be levied by the WTO under s. 18(1) of the Act. Parliament apparently believed that the CWT must be given the discretion, in appropriate cases, to waive or reduce the penalty, even in instances where, on the facts, the assessee would, otherwise be rendered liable for penalty in non-filing or for delayed filing of the returns. A similar power was also thought necessary to be conferred on the Commissioner in the case of penalties leviable for concealment of net wealth. Parliament, accordingly, introduced subs. (2A) in s. 18, investing, the Commissioner with what may be called "reserve powers," for waiver or reduction of penalties which would otherwise be leviable tinder s. 18(1) for default in the matter of filing of returns, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the return where the default is without reasonable cause. Section 18(2A) would come to the aid of such an assessee even in cases where there is no reasonable cause for the default, provided that even before a notice under s. 14(2) goes to an assessee he makes a full disclosure in good faith of particulars of taxable net wealth. According to learned counsel, the Commissioner would have jurisdiction to I waive or reduce the penalty if the assessee's conduct is one of full disclosure in good faith. But according to the learned counsel, " good faith " must have something to do with the non-filing of the return or with the delayed filing of the return. Where the assessee is not in position to 'Urge any explanation for the default in the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having to be " full disclosure in good faith ". What the phrase means is that an assessee who has committed a default in filing the return under s. 14(1) of the Act might nevertheless come out with a full disclosure in good faith thereafter. This phrase does not require the assessee to file a return subsequent to the time-limit under s. 14(1) as a condition precedent for the application for waiver or reduction of penalty under s. 18(2A). In this case, as the learned standing counsel had stated, the assessee had made a full disclosure in the sense that he had filed a return, although belatedly. The only thing which could be put against the assessee is that he did not obtain the leave of the WTO to file the return beyond the expiry of the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... need not have to move the Commissioner under s. 18(2A), for, if he properly moves the WTO for extension of time, there can be no question at all of his being proceeded against for levy of penalty even under s. 18(1)(a) of the Act. We are, therefore, satisfied that the mere fact that the assessee had not applied for extension of time for filing the return beyond the time-limit fixed under s. 14(1) cannot be regarded as conduct wanting in good faith. The absence of neither the default committed in the filing of the return under s. 18(1)(a), nor the omission to obtain extension of time, has any relevance for the limited purpose of invoking the jurisdiction of the Commissioner tinder s. 18(2A). The one and the only criticism of the condu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by the Commissioner, since under s. 18(2A) the decision of the Commissioner is final. This statutory finality, however, does not affect our jurisdiction under art. 226 of the Constitution. The prescription of the statute that the decision of the Commissioner is final only acts as a proper caution in every case that the Commissioner should exercise his discretion by bringing to bear positive attitude, and in accordance with law. In this case, we have held that the grounds on which the Commissioner had declined to exercise his jurisdiction are not proper grounds at ill. In that sense it must also be said that there has been no exercise of discretion at all by him. This provides an additional ground for allowing this writ petition. For ..... X X X X Extracts X X X X X X X X Extracts X X X X
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