1976 (2) TMI 55

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...., namely, the HUF of Shri R.D. Varshney should have filed its wealth-tax returns for asst. yrs. 1964-65 to 1966-67 by 30th June of each year commencing from 1964. This was not done. Instead the return was submitted as late as 23rd Nov., 1971. The WTO therefore, had recourse to penalty proceedings under s. 18(1)(a) and required the assessee to show cause why the penalties be not levied for the long....

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....ere computed at half percent of the taxable wealth. 3. In appeals the AAC sustained the propriety of the levy of penalties. However, he felt that the penalties had to be computed in accordance with the law as applicable on the first day of the year to which the return related. Consequently the amounts of penalties for these years were reduced to Rs. 44, Rs. 99 and Rs. 134 respectively. 4. It....

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....od of default. For awarding penalty for such offence, we have therefor, to look to the law which was prevalent at the time of the default i.e., the commission of the offence. In this view of the matter we have little hesitation in holding that the AAC was in error in observing that it was the law as applicable on the first day of the year to which the return related that should determine the quant....