1976 (9) TMI 87

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....under s. 18(1)(a) of the WT Act. The ITO has imposed a penalty of Rs. 4,328 by calculating the penalty at 1/2 per cent of the taxable wealth for every month of default. The AAC while holding that the penalty was leviable held that the calculation of penalty by the ITO was not correct. He held that as the penalty was imposed in respect of asst. yr. 1967-68, the amended law which came into force fro....

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....ore the amendment. 3. The learned counsel for the assessee had submitted that the law applicable would be that law which was in force in the assessment year and at the time when the return was due and have not been filed. He submitted that it would not be correct to apply the enhance rate coming into force from 1st April, 1969 in case of the asst. yr. 1967-68. He also pointed out that under the....

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....r Lordships further observed as under:- "We may further point out that the question referred for our opinion is only in regard to the applicability of Finance Act, 1969 with retrospective effect. No argument appears to have been raised on behalf of the Department before the Tribunal that penalty upto 1st April, 1969 should be levied in accordance with the unamended Act and thereafter under the ....

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....he default upto 1st April, 1969 would be governed by the law which was in force upto that day and for the continued default after 1st April, 1969 the penalty would be imposed on the basis of amended law. The default does not cease unless the return is filed. We find that this question has been considered in detail in the Full Bench decision of the Tribunal in the case of WTO vs. Smt. G.S. Poddar a....