9911796707
|
Home
Issues:
Late filing of wealth tax returns for the assessment years 1966-67 and 1967-68 leading to penalties under section 18(1)(a) of the Wealth Tax Act, 1957. Detailed Analysis: 1. Late Filing of Returns and Penalty Imposition: The appeals by the assessee were related to the late filing of wealth tax returns for the assessment years 1966-67 and 1967-68, which were filed in March 1971, significantly delayed from the due dates. The WTO initiated penalty proceedings due to the late filings. The assessee's explanation included the seizure of account books by the Directorate of Intelligence (Income Tax) in May 1968, which were returned in December 1970. The WTO considered the explanations insufficient and imposed penalties amounting to Rs. 4,210 for 1966-67 and Rs. 6,788 for 1967-68. 2. Appeal Before the AAC: The assessee appealed to the AAC against the penalties imposed for six years from 1966-67 to 1971-72. The AAC upheld the penalties for 1966-67 and 1967-68, stating that the assessee, being a partner in the firm, was aware of the income concealment and could not claim ignorance. However, penalties for the subsequent years were canceled by the AAC. 3. Further Appeal Before the Tribunal: The assessee appealed to the ITAT against the penalties imposed for 1966-67 and 1967-68. The counsel for the assessee argued that the law applicable for the delay should be that of the years when the returns were due, not the amended law. The ITAT referred to a previous Tribunal decision and held that penalties were justified due to contumacious conduct but directed the calculation of penalties as per the law applicable during the years of default. 4. Conclusion: The ITAT partly allowed the appeals, upholding the penalties for late filing of wealth tax returns for 1966-67 and 1967-68 but directed the calculation of penalties based on the law applicable during the respective default years. The ITAT's decision aligned with previous judicial interpretations regarding penalty calculations for delayed filings.
|
