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TMI Blog2001 (2) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 3. Without prejudice to the above, the authorities below have erred in law in levying interest under section 17B in respect of an assessment processed by the issue of notice under section 17 of the Act and therefore, no interest under section 17B can be levied since the assessment has not been completed under section 16(5) and further that the return which was filed is non est in law which was regularized by notice under section 17 of the Act and there was no delay in filing the return in response to notice under section 17 of the Act. 4. Without prejudice to the above since the return is filed in response to notice under section 17 of the Act. Under section 17B of the Act as this section does not make reference to the delay in filing the return of wealth in response to notice under section 17 of the Act and only makes reference to section 14(1), 15 or in response to notice under section 16(4) of the Act. 5. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and the Hon'ble Tribunal may be pleased to grant refund of institution fee and make such order as to costs and legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereon, prepaid taxes, interest levied under section 17B, are as under: ------------------------------------------------------------------------------------------------- Net wealth Tax thereon Pre-paid Interest Total as per asst. taxes u/s 17B payable by the order dated assessee as on 28-2-1997 date of order ------------------------------------------------------------------------------------------------- Rs. Rs. Rs. Rs. Rs. ------------------------------------------------------------------------------------------------- M.R.Jayaram (HUF) 4,213,254 104,899 Nil 70,272 179,171 M.R.Prabhavathy 5,949,888 92,748 Nil 59,328 152,076 M.R.Padmavathy Trust 6,658,331 106,917 Nil 68,416 175,333 M.R.Anandaram (HUF) 7,534,346 124,445 Nil 79,616 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal issue raised on the facts of the present case. On the other hand, according to the learned DR, the provisions of the section are crystal clear and do not admit of any ambiguity. Hence, the DR vigorously supported the order of the Assessing Officer passed under section 35 and the appellate order of the CWT(A) in upholding the same. 8. We have given serious thought and careful consideration to the rival submissions with respect to the legal provisions. The question involves interpretation of section 17B of the WT Act, 1957 which is entitled "Interest for defaults in furnishing return of net wealth'. The relevant provisions of this section read as under: "Sec. 17B. (1) Where the return of net wealth for any assessment year under sub-section (1) of section 14 or section 15, or in response to a notice under clause (I) of sub-section (4) of section 16, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of two per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,-- (a) where the return is furnished after the due date, ending on the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment aforesaid. (4) Where, as a result of an order under section 23 or section 24 or section 25 or section 27 or section 29 or section 35 or any order of the Wealth-tax Settlement Commission under sub-section (4) of section 22D, the amount of tax on which interest was payable under this section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and,-- (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 30 and the provisions of this Act shall apply accordingly, and (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. (5) The provision of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years. 9. From the above, it is clear that interest under section 17B is attracted in a case where the return of net wealth is furnished after the due date or where no such return is filed before the completion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, they requested, by a letter dated 26-12-1994 to treat the returns originally filed on 15-2-1994 as filed in pursuance to notice under section 17. This means that the returns filed on 15-2-1994 have been regularized and treated as the returns for the purpose of the assessment under section 17. Since these assessments were made for the first time, they are regular assessments made under the Act. Therefore, we have to proceed to the assumption that a regular assessment has been completed under the Act and all natural consequences of such assessment will have to follow under the different sections of the Act. No doubt, assessment implies not only the determination of net wealth liable to be taxed under the Act, but also the wealth-tax payable by the assessee on the net wealth assessed including liability to interest under section 17B, if chargeable. The intention of the Legislature in enacting the provisions of section 17B is crystal clear. It is to levy interest which is compensatory in nature for withholding the revenue due to the Government on account of delay in filing the return of net wealth. In the present case, such a delay has occurred on the part of the assessees in not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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