2004 (12) TMI 47

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....Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred the following question of law under section 27(2) of the Wealth-tax Act, 1957 (the Act), at the instance of the Commissioner of Wealth-tax, Gujarat-II, Ahmedabad: "Whether the Appellate Tribunal is right in law and on fact in holding that no penalty under section 18(1)(a) of the Wealth-tax Act for delay in submission of the wealth....

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....ishing the return of wealth. For the assessment year 1979-80, the return which was due on July 31, 1979, was filed on August 9, 1983. The Wealth-tax Officer levied the penalty of Rs. 19,008 under section 18(1)(a) of the Act considering the period of default of 44 months. The assessee carried the matter in appeal before the Appellate Assistant Commissioner who passed two separate orders and r....

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....ed on the decision in the case of Addl. CWT v. Babulal K. Shah [1978] 114 ITR 370 (Mad) for the purpose of upholding the orders of the Appellate Assistant Commissioner without assigning any independent reasons. That merely because the income-tax returns for the assessment years under consideration were delayed, that by itself was not a reasonable cause for submitting wealth-tax returns belatedly. ....

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....n a plain reading of the provisions of the Act it is apparent that the filing of the wealth-tax return is dependent on filing of the income-tax return, or at least the provisions of the Income-tax Act have some bearing. It is settled legal position that the liability to pay tax under the Income-tax Act is a permissible deduction while computing net wealth of an assessee on the valuation date, and ....