2005 (1) TMI 100

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..... nt years 1967-68, 1968-69, 1970-71 and 1971-72 were barred by time and in further holding that no penalties could be levied on the basis of such assessments?" In case, the answer to the aforesaid question is in the negative, the following further question would arise: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that in case penalty is leviable on the assessee, the same should be calculated only at 2% p.m. of the tax assessed and not at different rates for different periods of default?" While finalising the assessments under the 1957 Act for the assessment years 1967-68, 1968-69, 1970-71 and 1971-72, the Wealth-tax Officer levied penalties on the assessee under section 18(1)(a) of .....

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..... n this case no penalty whatsoever could be legally levied because the assessments have not been validly made. From 1-1-1976 section 17A was introduced in the Wealth-tax Act, 1957 providing for time limits for completion of the assessments. Prior thereto, there was no limit for the completion of an assessment and under section 15 an assessee could furnish a return or a revised return at any time before the assessment is made. Thus, prior to the introduction of section 17A, a return could be filed at any time and so an assessment could also be made at any time. All these returns were, however, filed after the introduction of section 17A. Under section 17 A(1)(a) no order of assessment could be made at any time after the expiration of a period .....

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..... must be filed before the expiry of time mentioned in section 34(3), section 22(3) permitted an assessee to furnish a return at any time before the assessment is made (similar is the provision under the Wealth-tax Act). By virtue of section 34(3) of the Income-tax Act, 1922, as it stood in 1949, assessment could have been made at least up to March 31, 1949. The hon'ble Supreme Court observed that therefore, it may be implied that the return must be filed before the time mentioned in section 34(3) expired. A return filed thereafter was held to be invalid and could be ignored for taking action under section 34. 12. In the case before us the assessee filed returns of his wealth for assessment years 1970-71 and 1971-72 on December 20, 1983, i.e .....

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