9911796707
TMI Blog1976 (9) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns voluntarily but not within the prescribed time. The return for the year 1969-70 was filed after the expiry of 20 months, while the return for the year 1970-71 was filed after the expiry of 13 months. Because of the late filing of the returns, penalty proceedings were started against the petitioner, and respondent No. 2 imposed penalty on the petitioner under section 18(1)(a) of the Wealth-tax Act, 1957. Aggrieved against the imposition of penalty, the petitioner filed a petition under section 18(2A) of the Wealth-tax Act, 1957, before respondent No. 1. On 7th February, 1975, the following order was passed by respondent No. 1 . "Order under section 18(2A) of the Wealth-tax Act, 1957. The petition under section 18(2A) has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sting assessees, who are under an obligation to file the returns. It is asserted that since the petitioner is admittedly a defaulter, no manifest injustice has been done to him by the impugned order. I have given my anxious consideration to the divergent contentions raised at the bar. With a view to resolve the controversy, it is necessary to understand the working of the Wealth-tax Act, 1957 (hereinafter called "the Act"). Under the Act, every person whose wealth in a particular year exceeds the taxable limit, is obliged to pay wealth-tax. Section 14(1) of the Act provides that such a person, whose wealth is liable to be taxed, must file a return within the prescribed time. Under section 14(2) of the Act, the Wealth-tax Officer has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has, prior to the issue of notice to him under sub-section (2) of section 14, voluntarily and in good faith, made full disclosure of his net wealth; and in the case referred to in clause (ii) of this sub-section has, prior to the detection by the Wealth-tax Officer of the concealment of particulars of assets or of the inaccuracy of particulars furnished in respect of the assets or debts in respect of which the penalty is imposable, voluntarily and in good faith, made full and true disclosure of such particulars; (b) has co-operated in any enquiry relating to the assessment of the wealth represented by such assets; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the taxing statute itself is not desirable. It is settled law that a taxing statute has to be strictly construed and the benefit of any ambiguity must go to the assessee and not to the department. Since the interpretation put by respondent No. 1 is not borne out from the provisions of section 18(2A) of the Act, I am of the view that placing of such a restriction, as has been done by respondent No. 1, would be doing violence to the language of section 18(2A) of the Act and would be importing something into the section which the legislature never intended. Such a restriction cannot be read into the proviso to section 18(2A) of the Act by any stretch of imagination. Apart from the phraseology of section 18(2A) of the Act, the restrictio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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