Burden of proving reasonable cause for late wealth-tax return filing lies on the assessee, not the Revenue.

In penalty proceedings for delayed filing of a wealth-tax return, the initial burden to show reasonable cause for the delay lies on the assessee because reasonable cause is a fact within the assessee's special knowledge. Section 18(1)(a) of the Wealth-tax Act, 1957 was treated as analogous to section 271(1)(a) of the Income-tax Act, 1961, and the Revenue was not required to first prove the absence of reasonable cause before penalty could be imposed.

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Issues: Whether, in proceedings for penalty for delayed filing of a wealth-tax return, the burden of showing reasonable cause for the delay lies on the assessee or on the Revenue.

Analysis: The statutory language under section 18(1)(a) of the Wealth-tax Act, 1957 makes penalty contingent on failure to furnish the return without reasonable cause. The provision was treated as analogous to section 271(1)(a) of the Income-tax Act, 1961. Since reasonable cause is a matter within the special knowledge of the assessee, the initial onus to establish such cause lies on the assessee. The Revenue is not required to first prove absence of reasonable cause before penalty can be imposed.

Conclusion: The burden of proving reasonable cause for late filing lies on the assessee, not on the Revenue. The reference was answered in favour of the Revenue and against the assessee.

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