TMI Blog1994 (1) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... figures are furnished by the learned Departmental Representative in a tabular form somewhat as follows: -------------------------------------------------------------------------------------------------------------------------------------------------- Sr. No. Item 1. Appeal No. 859 860 861 2. Assessment year 1972-73 1973-74 1974-75 3. Due date of filing return 30-7-1972 30-7-1973 30-7-1974 4. Date of filing the return 20-8-1980 20-8-1980 20-8-1980 5. Penalty levied Rs. 26,770 Rs. 13,160 Rs. 7,750 6. Wealth returned Rs. 28,800 Rs. 30,750 Rs. 42,250 7. Wealth assessed Rs. 4,41,680 Rs. 4,01,668 Rs. 4,13,053 8. Wealth determined in appeal Rs. 2,11,200 Rs. 1,71,000 Rs. 1,59,000 ------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax determined on appeal. Secondly, he directed that In accordance with the judgments then available penalty should be quantified with reference to the tax levied for the whole period of delay. 5. The department has filed appeals by taking identical grounds of which only one ground is substantive which is as follows - "On the facts and in the circumstances of the case and in law, the learned AAC erred in directing the WTO to recompute the penalty imposable upon the assessee in accordance with law which prevailed on 7-2-1983 instead of recomputing the same under the unamended section 18(1)(a) for the period of delay prior to 1-4-1976 and under the amended section 18(1)(a) for the period of delay subsequent thereto." Thus, the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the learned Departmental Representative submitted that on the quantification of penalty for different periods of delay the order of the first appellate authority was clearly contrary to the Hon'ble Supreme Court decision in the case of CWT v. P.N. Banerjee [1991] 192 ITR 399. He submitted that for respective parts of period of delay penalty was required to be quantified with reference to then prevailing provisions of law. 8. The learned C.A. for the assessee resisted the plea of the department by relying on the Supreme Court decision in the case of Maya Rani Punj v. CIT [1 986] 157 ITR 330. 9. In regard to the cross-objections he pleaded very vehemently for a condonation of delay. He submitted that the appeal papers were served on or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st ITO [1987] 166 ITR 18 to say that the merits of the point involved are also important for considering the delay in submission of appeal, etc. In that case since it was held that the order under section 263 passed by the CIT was wholly without jurisdiction a delay of about three years was directed to be condoned. He submitted that in this case also this aspect goes to the root of the matter and the delay in submission of cross-objections should be condoned. He further relied on the Hon'ble Gujarat High Court decision in the case of Smt. Ramalaxmi Jivraj v. CWT [1982] 138 ITR 731 and submitted that the AAC should have accepted the plea that when assessee had a bonafide belief of not having taxable wealth there was no necessity of filing we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m that the wealth returned for each of the three years was very small and the difference arose wholly on account of valuation of agricultural lands. The wide variation between the values originally assessed and values determined on appeal (vide figures against side head Nos. 7 and 8 in the table given in para 3 above) shows the inherent nature of the possibility of variations in the estimates. On this basis, we would agree with the learned C.A. that assessee would not be expected to file the voluntary returns. We would further agree with him that the delay, therefore, should not be counted from the dates for filing of wealth-tax returns voluntarily. We agree with him that the Hon'ble Gujarat High Court decision in Ramalaxmi Jivraj's case su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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