Wealth-tax penalty must be computed under the law in force when the return is filed, not on the valuation date.

For penalty under the Wealth-tax Act, the applicable law is the law in force on the date the return is filed, not the law prevailing on the valuation date. Applying that principle, the Tribunal's approach was incorrect and the penalty had to be computed by reference to the filing date. The analysis followed prior binding authority and the Supreme Court decision relied upon, confirming that delay in filing does not shift the governing legal position to the valuation date.

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Issues: Whether penalty under the Wealth-tax Act was to be worked out with reference to the law prevailing on the valuation date or the law prevailing on the date the return was filed.

Analysis: The returns for the relevant assessment years were filed after a long delay, and penalty proceedings were initiated under the Wealth-tax Act. The question was whether the applicable law for determining the quantum of penalty was the law in force on the valuation date or on the date of filing of the return. Following the binding principle applied in prior authority and the Supreme Court decision relied upon, the applicable law was held to be the law prevailing when the return was filed, not the law prevailing on the valuation date.

Conclusion: The Tribunal's view was incorrect. Penalty had to be computed with reference to the law in force on the date of filing of the return, and the answer to the reference was against the assessee and in favour of the Revenue.

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