Wealth-tax penalty waiver: Commissioner's pre-18B discretion under section 18(2A) required fresh consideration on remand.

The Commissioner of Wealth-tax had discretionary power to consider waiver of penalty under section 18(2A) of the Wealth-tax Act, 1957, even for assessment years before section 18B was inserted. Rejection of the waiver request solely because tax was said not to have been paid and because section 18B came into force later was therefore unsustainable. The petitioners also claimed that wealth-tax for the relevant years had been paid and were entitled to produce the challans. The Commissioner's order was set aside and the matter remanded for fresh consideration after giving the petitioners an opportunity to place their case on record.

---

---

Issues: Whether the Commissioner of Wealth-tax had power to consider waiver of penalty for the assessment years in question and whether the matter required remand for fresh disposal.

Analysis: The application for waiver of penalty was rejected on the grounds that tax for the relevant years had not been paid and that section 18B had come into force later. The record indicated that even prior to the insertion of section 18B, the Commissioner possessed discretionary power under section 18(2A) of the Wealth-tax Act, 1957. The petitioners also asserted payment of wealth-tax for the assessment years concerned and were to be given an opportunity to produce the challans before the Commissioner.

Conclusion: The order of the Commissioner was set aside and the matter was remanded for fresh decision after giving the petitioners an opportunity to place their case on record.

---