Wealth-tax penalty relief: pre-notice filing and full disclosure justified reduction of the levy to half.

Delay in filing wealth-tax returns was considered under the discretionary relief provision for penalty reduction. Because the returns were filed before any notice under section 14(2), the assessee had disclosed net wealth and had participated in the assessment proceedings, the Commissioner's refusal to grant relief was treated as unduly harsh on the facts. The substantial delay did not justify retaining the full penalty at the imposed level, and the penalty was reduced to 50 per cent of the amount levied.

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Issues: Whether the penalty imposed for delay in filing wealth-tax returns ought to have been waived or reduced under the discretionary provision for relief from penalty.

Analysis: The returns were filed before any notice under section 14(2) was issued, and the assessee had disclosed the net wealth and participated in the assessment proceedings. The delay in filing was substantial, but the circumstances showed that the Commissioner had taken an unduly harsh view in refusing relief. On the facts, the levy did not justify full retention of the penalty at the level imposed.

Conclusion: The penalty was directed to be reduced to 50 per cent of the amount levied, and the assessee succeeded to that extent.

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