1983 (12) TMI 97 - AT - Wealth-tax

Summary

Issues:
- Delay in filing appeals by assessees
- Imposition of penalty under section 18(1)(a) by WTO
- Appeal before AAC of WT
- Arguments of both sides regarding condonation of delay
- Examination of facts and contentions by ITAT
- Assessment of penalty for different assessment years
- Appeal by assessees against penalty orders
- Comparison with similar cases
- Arguments by both sides before ITAT
- Examination of orders by authorities below
- Decision of ITAT to cancel penalty orders

Analysis:

The judgment involves appeals by four different assessees against penalty orders passed by the Wealth Tax Officer (WTO) under section 18(1)(a) for various assessment years. The assessees contended that the delay in filing the appeals was due to genuine difficulties beyond their control, which the Departmental Representative opposed, stating that each day of delay should be satisfactorily explained. The ITAT examined the facts and contentions and decided to condone the delay, proceeding to dispose of the appeals on merit and as per grounds of appeals.

In the case of the first assessee, the penalty orders were imposed by the WTO for delay in filing returns for the assessment years 1968-69 and 1969-70. The AAC of WT confirmed the penalty for the first year and partially allowed the appeal for the second year. The assessee argued that the penalty was unjustified as their wealth was below the taxable limit, and similar stands were accepted in other cases by the Tribunal. The ITAT considered these arguments and decided that the penalty for both years should be canceled.

The ITAT further noted that the AAC of WT did not provide sufficient reasoning for upholding the penalties and did not address the genuine difficulties faced by the assessees in filing returns on time. The ITAT observed that the wealth of the assessees was initially marginal and increased in subsequent years due to valuation by the Departmental valuer. Considering all circumstances, the ITAT concluded that the penalties imposed were not warranted and canceled the orders of the authorities below.

In conclusion, the ITAT allowed the appeals, canceling the penalty orders imposed by the authorities below.