9911796707
TMI Blog1982 (8) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... er, 1967. The assessee preferred an appeal to the AAC against the penalty order and the AAC, following the decision of this court in the case of CIT v. Vegetable Products Ltd. [1971] 80 ITR 14, gave a direction to the WTO to verify whether the wealth-tax for the assessment year under consideration was paid and, if so, whether there was any justification for imposition of penalty. The WTO preferred an appeal to the Tribunal against the order of the AAC. The Tribunal upheld the order of the AAC relying on the case of CIT v. Vegetable Products Ltd. [1971] 80 ITR 14 (Cal). The Tribunal was of the view that this case was completely covered by the decision of the Calcutta High Court. At the instance of the Revenue, the Tribunal has referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt and the law applicable was explained by the Supreme Court in the case of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192. A Division Bench of the Allahabad High Court had also occasion to go into the question which has now been raised before us in the case of CWT v. Mahatab Chand [1979] 117 ITR 32. In that case it was observed at p. 33 of the report as follows : " There is no doubt that the provisions of s. 18(1)(i) of the W.T. Act are identical in language with s. 271(1)(i) of the I.T. Act. The provisions of the I.T. Act came up for consideration before the Supreme Court in the case of Vegetable Products Ltd. [1973] 88 ITR 192, which was an appeal from the decision of the Calcutta High Court mentioned above. After discussing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192 and to determine the tax that was actually payable under the notice of demand that was issued in this case. It has been mentioned on behalf of the assessee that the assessment order was modified in appeal by the AAC. The order of the AAC, however, is not before us nor has it been referred to by the Tribunal. In our opinion, the best course will be to direct the Tribunal to go into the question whether the amount of tax determined as payable by the WTO has been reduced in appeal or not. If it has been reduced as alleged on behalf of the assessee, the Tribunal should take into consideration the appellate order in determining the amount of tax payable and the quantum of penalty should b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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