Wealth-tax penalty law applies as on the due date, with pre-amendment provision governing delayed return defaults.

Penalty for failure to file wealth-tax returns in time was held to arise on the due date of filing and not as a continuing default. In quasi-criminal penalty proceedings, the governing law is the provision in force when the infringement occurs, so the pre-amendment version of section 18(1)(a) applied because the returns had already become overdue before the later amendment took effect. The assessee accordingly succeeded on the reference.

---

---

Issues: Whether penalty under section 18(1)(a) of the Wealth-tax Act for failure to file wealth-tax returns within time was governed by the law in force on the due date of filing or by the amended provision that came into force later.

Analysis: The default was held not to be a continuing default. In penalty proceedings of a quasi-criminal nature, the relevant law is the law in force when the infringement occurs, namely on the due date for filing the return. Since the returns for the assessment years in question became overdue before the amendment effective from 1 April 1969, the pre-amendment provision governed the levy of penalty.

Conclusion: The pre-amendment version of section 18(1)(a) of the Wealth-tax Act applied, and the assessee succeeded on the reference.

---