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TMI Blog1982 (7) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... th within the prescribed time. The wealth-tax returns for all these years were filed by the assessee on 27-1-1976 voluntarily, in the sense that before any notice was issued to him to submit the returns. In response to the notice issued by the WTO under section 18(2) proposing levy of penalty, the assessee submitted that he was not aware of the provisions of the Act and Rules and it is only when the Government of India publicised the Voluntary Disclosure Scheme ('VDS') that he consulted his tax practitioner and it is on his advice, that he filed the returns. The WTO refused to accept this explanation, on the ground that ignorance of the provisions of the Act is no reasonable cause, and further held that the assessee has not availed the VDS. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ought to have availed of the VDS itself, but instead, it is pointed out, he has chosen to file the returns and get the assessments made in the regular way, and in such circumstances, to uphold his claim for cancellation of penalty would amount to putting a premium on the defaulters who do not choose to come under the VDS and defeat its very purpose. The learned representative for the assessee relied on the orders of the AAC. 3. On a consideration of the facts and the contention of the parties, we do not find any merit in the department's objections. The salient features which eminently make the claim made by the assessee that he was ignorant of the provisions of the Act and Rules are firstly, that he has not been assessed to income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption that every one knows the law. The presumption is stated to be irrebuttable. Three reasons are said to be rendered for this somewhat rigorous principle. In the first place, the law is in legal theory definite and knowable, secondly, that even if invincible ignorance of the law is in fact possible, as indeed it is, the evidential difficulties in the way of the judicial recognition of such ignorance are insuperable, and for the sake of any benefit derivable therefrom it is not advisable to weaken the administration of justice by making liability dependent on well-nigh inscrutable conditions touching knowledge or means of knowledge of the law, and thirdly, that the law is in most instances derived from and in harmony with the rules of nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated that it must be admitted, however, that while each of the reasons on which the principle is based is valid and weighty, they do not constitute altogether sufficient basis for so stringent and severe a rule and the theory that the law is knowable throughout by all to whom it concerns is an ideal rather than a fact in any system as indefinite and mutable, that in a complex legal system a man requires other guidance than that of commonsense and a good conscience and the fact seems to be that the rule in question, while in general sound, does not in its full extent and uncompromising rigidity admit of any sufficient justification. It is further observed that certain exceptions to it are being developed, particularly in respect of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. That the tax laws of this country are complex and complicated and often require for compliance, therewith the assistance of tax practitioners specialising in this field, is a well known fact. It is equally well known fact that the legislation in this field undergoes so frequent changes and amendments that it is not possible for even a person specialising in this field, including the tax administrator, to claim that he knows what exactly the law is on a particular given day or period without making references to the history of the enactments. In such circumstances, it would be a travesty of truth and justice to hold that the assessee knew or ought to have known the correct law and comply therewith, even though, in fact, he was not awar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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