2004 (8) TMI 64

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..... years 1982-83 and 1983-84 were due to be filed by the assessee under section 14(1) of the Wealth-tax Act, 1957, (for short "the Act"), on or before June 30, 1982, and June 30, 1983, respectively. The return for the assessment year 1982-83 declaring a net wealth of Rs. 7,60,400 was filed on March 13, 1987, i.e., after a delay of 56 months whereas the return for the assessment year 1983-84 declaring net wealth of Rs. 7,77,900 was filed on November 30, 1983, involving a delay of four completed months. While completing the assessments, penalty proceedings under section 18(1)(a) of the Act were initiated for levy of penalty for the delay in filing the returns. The assessee, in response to the show-cause notices, contended that substantial wealth .....

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..... er consideration, even without the items assessed on protective basis is his hands, was above the taxable limit as prescribed under the Act. The assessee, was therefore, statutorily required to file the returns of net wealth within the time prescribed under section 14(1) of the Act. However, the Tribunal accepted the second contention of the assessee that the delay up to the date of filing of the income-tax returns should be considered as attributable to a reasonable cause as wealth tax returns could not have been filed without the determination of the income-tax liability. Since, the income-tax return for the assessment year 1982-83 had been filed on August 29, 1985, the Tribunal held that the delay for levy of penalty under section 18(1) .....

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..... 961, would be leviable nor would it attract the levy of any penal interest. Thus, an assessee can easily manipulate and delay his liability to pay wealth-tax by not filing the return of income in time. According to us, mere non-availability of a possible income-tax liability by itself cannot constitute a reasonable cause for not filing the wealth-tax return in time. In the present case, there is no material on record to show as to why the income-tax returns had been delayed or as to why the wealth-tax return could not be prepared without the finalization of the income-tax return. There is no information even in respect of the tax liability as per the income-tax returns. The Tribunal has, without examining these aspects, accepted the plea o .....

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