1,38,550/ and at Rs.
115/ For the period from 1.4.69 to 18.3.71 Penalty at 1/2 of the net wealth for each month of the default under section 18 1 a as amended by the Finance Act, 1969 Rs.
Ultimately the penalties were levied as follows Assessment year 1964 65 For the period from 1.7.64 to 31.3.69 Penalty at 2 p.m. subject to maximum of 50 of the wealth tax payable under section 18 1 a before its amendments on 1.4.69 by the Finance Act, 1969 Rs.
Aggrieved by the decision of the High Court, the Department has filed these appeals under Article 136 of the Constitution .
The High Court answered the said questions in favour of the assessee after rejecting the companytention of the department that the default or failure to file the return in time was a companytinuing default and that the penalty had to be companyputed for the period prior to April 1, 1965 in accordance with section 18 as it stood prior to its amendment by the Wealth tax Amendment Act, 1964, for the period between April 1, 1965 to March 3, 1969 in accordance with section 18 of the Act as amended by the Wealth tax Amendment Act, 1964 and for the period between April 1, 969 to March 18, 1971 on which date the returns were filed in accordance with sec.
18 of the Act as amended by the Finance Act, 1966.
5,267/ Rs.
5,382/ Assessment year 1965 66 For the period from 1.7.65 to 30.3.69 Penalty at 2 p.m. subject to maximum of 50 of the wealth tax payable under section 18 1 a before its amendment on 1.4.69 by the Finance Act, 1969 Rs.163/ For the period from 1.4.69 to 18.3.71 Penalty at 1/2 of the net wealth for each month of default under section 8 1 a as amended on 1.4.69 by the Finance Act, 1969 Rs.
Appeals by Special Leave from the Judgment and order dated 28.1.1977 of the Punjab and Haryana High Court in Income Tax Reference No.
768 769 of 1978.
7,759/ The above orders levying penalties were upheld in appeal by the Appellate Assistant Commissioner and the Income tax Appellate Tribunal, Amritsar Bench, Amritsar.
29 of 1975.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
At the instance of the assessee a companysolidated reference was made by the Income tax Appellate Tribunal to the High Court referring the above two questions for its opinion.
Whether, on the facts and in the circumstances of the case, the Tribunal was right in law upholding the penalties of Rs.
1,65,200/ for the assessment year 1965 66 as against the declared wealth of Rs.
C. Sharma, E.D. Helms, R.S. Sharma and K.B. Rohtagi for the Respondent.
5382/ and Rs.
The Judgment of the Court was delivered by VENKATARAMIAH, J. The Commissioner of Wealth Tax, Amritsar has filed the above appeals by special leave against the judgment of the High Court of Punjab and Haryana in a reference made under section 27 1 of the Wealth tax Act, 1957 hereinafter referred to as the Act answering in favour of the assessee the following two questions Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the offence relating to the omission to file the Wealth tax returns was a companytinuing offence ?
1,59,127/ and also companymenced proceedings for the levying penalty under section 18 1 a of the Act for late submission of returns.
The assessee, the respondent in these appeals filed his wealth tax returns for the assessment years 1964 65 and 1965 66 on March 18, 1971 while he was required by section 14 1 of the Act to file the return for the assessment year 1964 65 on or before June 30, 1964 and the return for the assessment year 1965 66 on or before June 30, 1965.
B. Ahuja and Miss A. Subhashini for the Appellant.
1,45,800/ for the assessment year 1964 65 as against the declared wealth of Rs.
7,596/ Rs.
7759/ levied by the department on the assessee under section 18 1 a of the Wealth tax Act, 1957, for the assessment years 1964 65 and 1965 66 respectively ?
The Wealth tax Officer companypleted the assessments for the aforementioned years on March 22, 1971 determining the total wealth at Rs.
