2016 (12) TMI 399

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....EAL No.498 of 2011 as the leading case. This is an appeal filed under Section 27-A of the Wealth Tax Act, 1957 against the order dated 25.8.2006 of the Income Tax Appellate Tribunal for the Assessment Year, 1996-1997. The following question of law has been sought to be answered by this Court is as under :- "Whether, interest could be charged from the legal representative of the deceased assessee, the deceased assessee having not filed his return within prescribed time and in his life time." The facts of the case are very limited. One Shri Inder Verma expired on 29.08.1999, without filing his return for the assessment year in question, which was 1996-97. Re-assessment proceedings were initiated in respect of his estate much....

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.... be levied. We have heard Sri S.D.Singh, learned Senior Counsel for the appellant and Sri Praveen Kumar, learned Counsel for the department. The view taken by the Tribunal and the Commissioner (Appeals) appears to be palpably wrong. In view of the provisions of Sections 17, 17B and 19 of the Act , which deal with the liabilities of the legal representatives. Section 19 of the Act is quoted herein below :- "Tax of deceased persons payable by legal representative: (1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the wealth-tax assessed as payable by such ....

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....th comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of furnishing of the return, or (b) where no return has been furnished, ending on the date of completion of the assessment under sub-section (5) of section 16, on the amount of tax payable on the net wealth as determined under sub-section (1) of section 16 or on regular assessment. Explanation 1.- In this section, "due date" means the date specified in sub-section (1) of section 14 as applicable in the case of the assessee. Explanation2.- In this sub-section, "tax payable on the net wealth as determined under sub-section (1) of sectio....

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....foresaid, ending on the date of furnished the return; or (b) where no return has been furnished, ending on the date of completion of the reassessment under section 17, on the amount by which the tax on the net wealth determined on the basis of such reassessment exceeds the tax on the net wealth as determined under sub-section (1) of section 16 or on the basis of the earlier assessment aforesaid. (4) Where, as a result of an order under section 23 or section 24 or section 25 or Section 27 or Section 29 or Section 35 or any order of the Wealth Tax Settlement Commission under sub-section (4) of Section 22D, the amount of tax on which interest was payable under this section has been increased or reduced, as the case m....

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....payable. He further argues that in his case, the provisions of Section 19 (2) of the Act would apply and under the provisions of 19 (2) of the Act, the only liability on a legal representative is the payment of wealth tax. Had any other sum being payable including interest then at the time when Section 17 (B) of the Act was introduced to impose interest then necessary amendment would have been made in the provisions of Section 19 (2) of the Act as well but no such amendment has been made. The legislature in its wisdom sought not to impose any such liability on a legal representative, who was filing a return in a case when no return had been filed by the original wealth tax payer. Learned counsel also seeks to argue that in any case pr....