Reference of question of law on wealth-tax penalty under the unamended provision was required before the High Court.

The Tribunal was required to state the case and refer the question of law under section 27(3) of the Wealth-tax Act on whether penalty under section 18(1)(a) was leviable under the unamended provision applicable before 1 April 1969. The objection based on the assessee's death was not raised before the appellate authority or the Tribunal as the basis of the impugned proceedings, and no reference was sought on that issue. On that basis, a referable question of law was made out, and the Tribunal had to make the reference to the High Court.

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Issues: Whether the Tribunal was justified in refusing to state the case and refer the question whether penalty under section 18(1)(a) of the Wealth-tax Act, 1957, was leviable under the unamended provision applicable before 1 April 1969.

Analysis: The applications arose under section 27(3) of the Wealth-tax Act, 1957. The question sought to be referred concerned the legal basis for imposing penalty under section 18(1)(a) in the light of the amendment effective from 1 April 1969. The objection based on the death of the assessee was not raised before the appellate authority or the Tribunal as the basis of the impugned proceedings, and no reference was sought on that issue. In these circumstances, the existence of a question of law for reference was held to be made out.

Conclusion: Yes. The Tribunal was required to state the case and refer the question of law to the High Court.

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