Continuing default in wealth-tax return filing attracts penalty under the law in force during the default period, not the initial breach date.

For delay in filing wealth-tax returns, the default was treated as continuing, so penalty fell to be computed under the law in force during the period of continued non-filing. The amended penalty provision in force from 1 April 1969 therefore applied, and the earlier approach of fixing the computation by reference only to the rate prevailing on the initial date of default was rejected as no longer sustainable. The Tribunal's contrary view based on the earlier decision was held unsustainable.

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Issues: Whether, for computing penalty for delay in filing wealth-tax returns, the unamended provision in section 18(1)(a) of the Wealth-tax Act or the amended provision in force from 1 April 1969 applied where the default continued beyond that date.

Analysis: The default in filing the return was treated as a continuing offence. In light of the Supreme Court's ruling that penalty for non-filing is attracted so long as the default continues, the applicable penalty is governed by the law in force during the period of continued default. The earlier view that only the rate prevailing on the initial date of default governs computation was held no longer sustainable.

Conclusion: The amended penalty provision applied to the continuing default, and the Tribunal's view based on the earlier decision was unsustainable.

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