TaxTMI 
TaxTMI 
TaxTMI 
1986 (4) TMI 2
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....ges articles 14 and 19(1)(f) of the Constitution. That petition was dismissed by the Division Bench of the Andhra Pradesh High Court on the ground that the petitioner has not exhausted the alternative remedies available to him under the Act. Thereafter, the petitioner has filed the present petition challenging the provisions contained in section 18(1)(a) on the ground that it is invalid and unconstitutional because it infringes the right of the petitioner under articles 14 and 19(1)(f) of the Constitution of India. It is admitted on all hands that the off ending provision has since been amended and no such dispute is likely to arise in future. Even during the period 1969-70, when the offending provision was there, the petition giving rise to the present appeal appears to be the sole petition wherein the provision of section 18(1) has been challenged. The question involved in the present case is, therefore, only of an academic interest. Section 18 of the Wealth-tax Act, as it stood at the relevant time, reads : " 18. Penalty for failure to furnish returns, to comply with notices and concealment of assets, etc.-(1) If the Wealth-tax Officer, Appellate Assistant Commissioner, Commi....
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....under section 17 as reduced by (i) the net wealth, if any, assessed previously under section 16 or section 17, or (ii) the net wealth declared in the return, if any, furnished by such person under section 17, whichever is greater; (iii) in the cases referred to in clause (c), in addition to any wealthtax payable by him, a sum which shall not be less than, but which shall not exceed twice the amount representing the value of any assets in respect of which the particulars have been concealed or any assets or debts in respect of which inaccurate particulars have been furnished. Explanation 1.-Where,- (i) the value of any assets returned by any person is less than seventy-five per cent. of the value of such asset as determined in an assessment under section 16 or section 17 (the value so assessed being referred to hereafter in this Explanation as the correct value of the asset), or (ii) the value of any debt returned by any person exceeds the value of such debt as determined in an assessment under section 16 or section 17 by more than twenty-five per cent. of the value so assessed (the value so assessed being referred to hereafter in this Explanation as the correct value of the d....
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....ment of particulars of assets or of the inaccuracy of particulars furnished in respect of the assets or debts in respect of which the penalty is imposable, voluntarily and in good faith, made full and true disclosure of such particulars; (b) has co-operated in any enquiry relating to the assessment of the wealth represented by such assets; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year. (2B) An order under sub-section (2A) shall be final and shall not be called in question before any court of law or any other authority. (3) Notwithstanding anything contained in clause (iii) of sub-section (1), if in a case falling under clause (c) of that sub-section, the minimum penalty imposable exceeds a sum of rupees one thousand. The Wealthtax Officer shall refer the case to the Inspecting Assistant Commissioner who shall, for the purpose, have all the powers conferred under this section for the imposition of penalty. (4) An Appellate Assistant Commissioner, a Commissioner or the Appellate Tribunal on making an order under this section imposing ....
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...., still the penalty which could be imposed is only 1/2 per cent. and in this manner so far as a smaller assessee is concerned, it is harsh, whereas for a substantial assessee it is rather lenient and thus is discriminatory and, therefore, contrary to the provisions contained in article 14 of the Constitution. It is clear from what has been stated earlier that the question is not at all of public importance nor is it going to affect a number of assessees as admittedly the law has been amended thereafter and the present petition is the only petition in respect of the provisions of section 18 as it stood in 1969-70. So far as the question of confiscatory nature of the provision is concerned, it is clear that the penalty has been provided at the rate of 1/2 per cent. of the net assessed wealth per month for each month's delay. It is, therefore, clear that for a month's delay in filing the return, the only penalty which could be imposed is 1/2 per cent. of the total wealth. It was contended that if this delay goes on to the extent that the penalty will be equal to the wealth as that is the maximum limit permissible, it is confiscatory and, therefore, contravenes article 19(1)(f) of th....