TMI Blog1988 (8) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment years 1964-65 to 1968-69 : "Whether, on the facts and in the circumstances of the case, the provisions of section 18(1)(a) of the Wealth-tax Act, 1957, as they stood prior to the amendment with effect from April 1, 1969, will apply in the matter of the quantum of penalty leviable against the assessee for each of the assessment years under consideration ? " The facts as briefly s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration late without any reasonable cause. He, therefore, imposed penalties of Rs. 16,808 (assessment year 1964-65), Rs. 21,728 (assessment year 1965-66), Rs. 17,604 (assessment year 1966-67), Rs. 12,832 (assessment year 1967-68) and Rs. 3,801 (assessment year 1968-69) against the assessee under section 18(1)(a) of the Act. On appeals filed by the assessee before the Appellate Assistant Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when section 18(1)(a) of the Act was amended so as to increase the rate of penalty under section 18(1)(a) of the Act with reference to the net wealth returned. Since the assessee committed the default in filing of the wealth-tax returns on the dates fixed for filing of the returns for those years, i.e., on June 30, 1964, June 30, 1965, June 30, 1966, June 30, 1967, and June 30, 1968, the law for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber 28, 1961, but neither was the return filed by that date nor was any extension asked for. The return was filed after a delay of seven months on May 3, 1962, i.e., after the Income-tax Act, 1961, had come into force. The Income-tax Officer initiated proceedings under section 271 (1) (a) of the 1961 Act holding that the assessee had not been prevented by any reasonable cause from not filing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceeded to hold that penalty is imposable not only for the first default but with reference to the continued default. Non-compliance with the obligation of making a return was an infraction of law as long as the default continued. In this case, returns were filed after the amendment came into force. Accordingly, the law applicable on that day has to be applied and not that which was applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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