TMI Blog1982 (6) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... under. For asst. yr. 1969-70, notice under s. 14(2) was served on one Sh. A.K. Chhabra, an employee of M/s Pearl Mechanical Engg. and Foundry Works Pvt. Ltd. In which the assessee is a shareholder. As the assessee's contention had been that he was out of Ludhiana and he resided at Bombay from Aug., 1968, in response to the said notice application for extension duly signed by Sh. S.K. Behal, brother of the assessee, was filed before the WTO on 9th Aug., 1969. Subsequently, the WTO reminded vide its letter dt. 12th Dec., 1969 the assessee to file the wealth-tax return. The assessee's contention has been that since he was out to Bombay, he was neither aware of notice under s. 14(2) nor of the extension application nor of reminders of the WTO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er s. 14(2) was served on Sh. A.K. Chhabra, an employee of M/s Pearl Mechanical Engg. and Foundry Works Pvt. Ltd. on 4th Aug., 1970 and application for extension in the form of consolidated application signed by Sh. S.K. Behal, brother of the assessee, was filed before the WTO. There were certain reminders by the WTO for filing the return for which the assessee's contention all through has been that the same were never served on him and served on some one during his absence from Ludhiana as he was out to Bombay. Wealth-tax return for this year was filed on 17th July, 1973 in which the assessment was framed on 25th Nov., 1975 and on the very same date show-cause notice for filing the return late was served on Sh. S.K. Behal. The wealth final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h. Ratna that penalty proceedings initiated were not valid as the notices were not served on the assessee himself who was stated to be away to Bombay for his accountancy course. With all the abovesaid pleadings, Sh. Ratna has argued that action for imposition of penalty for late filing of the return does not subsist and, therefore, the penalty proceedings may be allowed to be dropped. While doing so, Sh. Ratna has also drawn my attention towards the appellate decision given in this very case in earlier years where the penalty imposed by the Deptt. for late filing of the return have not been remitted in appeal and these years were not challenged further in appeal by the Department." The WTO rejected the assessee's contention regarding ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod. According to him, whatever cause existed between the period 15th June, 1973 to 16th July, 1973 for non-filing of the return which made the assessee to ask for extension very much existed in the earlier period as well and, therefore, for the earlier period the assessee could not be visited with any penalty. 6. The ld. Deptl. Rep. Mr. M.P. Singh in this regard relied on the order of the AAC and submitted that right from the date when the return was due to be filed and upto 15th June, 1973 when the assessee made the extension application the assessee was in default and was rightly visited with penalty under s. 18(1)(a). 7. From perusal of record and after going carefully through the explanation filed by the assessee in the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier period, i.e., from the date when the return was due to be filed upto the date when he filed the extention application on 15th June, 1973 on which time was explained upto 17th July, 1973. Not condoning the earlier delay is just like asking a pensioner to come forward with evidence that he was alive in a preceding year even after granting pension to him in the succeeding year. We are not entering into war of words regarding service of notices or other disputes raised by the assessee for asst. yr. 1969-70 because on the short reason that the WTO himself finally granted extension of time to file the return of wealth on 17th July, 1973 and the assessee filed the same on the said date, it cannot be visited with any penalty for earlier perio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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