TaxTMI 
TaxTMI 
2004 (11) TMI 86
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....merits, and consequently in giving a finding that there was reasonable cause for the delay in filing the wealth-tax return; ignoring the vital fact that the Commissioner of Wealth-tax had passed an order under the provisions of section 18B of the Wealth-tax Act, declining to waive the penalty, and the Wealth-tax Officer's earlier order levying penalty got merged with the Commissioner of Wealth-tax order and became final in view of the specific provisions of section 18B(5) of the Wealth-tax Act?" Briefly stated, the facts giving rise to the present petition are as follows: The reference relates to the assessment years 1974-75 to 1976-77. The respondent-assessee is an individual. He filed his wealth-tax return for the assessment years in qu....
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....appeal of the assessee is not disturbed on account of filing of waiver petition by the assessee or on account of passing an order under section 1813 by the Commissioner of Income-tax. We are of the opinion that the Appellate Assistant Commissioner was correct in holding that he was competent to decide the appeals on merits. The Appellate Assistant Commissioner was further justified in holding that the delay till the date of filing of income-tax returns was due to a reasonable cause." We have heard Sri A.N. Mahajan, learned standing counsel for the Revenue, and Sri Vikram Gulati, learned counsel appearing for the respondent. Learned counsel for the Revenue submitted that as the respondent-assessee had filed the petition for waiver/reductio....
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....made full and true disclosure of the particulars for the concealment of which penalty has been imposed and further the assessee has co-operated in the enquiry relating to the assessment of his net wealth and has either paid or made satisfactory arrangement for the payment of any tax or interest payable in consequence of an order passed under the Act in respect of the relevant assessment year whereas under section 23 of the Act, an appeal lies against a penalty order, which is a statutory appeal, to be adjudicated by the appellate authority on the merits. Thus, we are of the considered opinion that the provisions of section 18B and section 23 of the Act do operate in separate fields and it cannot be said that the penalty order got merged wit....
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....r section 18(2A), i.e., in regard to the quantum of minimum penalty that is directed to be waived or reduced and nothing more. There is no provision that once the assessee filed an application under section 18(2A) before the Commissioner, he waives his other rights. The approach to the Commissioner can be without any such waiver. In contrast, under section 25, if the assessee were to approach the Commissioner in revision, he could do so only if the order challenged is not the subject-matter of appeal before the Appellate Assistant Commissioner or the Appellate Tribunal and the assessee should have waived his right of appeal. There is no such restriction imposed while invoking the provisions of section 18(2A). This is because the ambit and s....
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....on an assessee under section 18(1), do not affect the right conferred by section 23 on the assessee to prefer an appeal against the order of the Wealth-tax Officer imposing penalty. There is no provision in the Act which lays down that once the assessee has filed an application under section 18B before the Commissioner, he waives his other rights. Consequently, the right of appeal available to an assessee against the order of the Wealth-tax Officer imposing penalty under section 18(1)(a) is not lost. Under section 18B(5), what is made final is the order passed under section 18B with regard to the quantum of penalty. It will not in any manner affect the jurisdiction of the Appellate Assistant Commissioner to decide the question as to whether....
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.... the imposition on the ground of satisfaction that the conditions were not fulfilled which attracted the imposition of penalty or that the imposition of penalty was improper or heavy. If it be impliedly accepted that in order to merit consideration under sub-section (2A) of section 18 of the Act, then, in view of sub-section (2B) it cannot be said either the condition that the penalty was not imposable, because the conditions required to be fulfilled under clauses (a), (b) and (c) of sub-section (1) of section 18 of the Act were not complied with, or that the imposition was improper could not be challenged before any court of law or authority as contemplated under section 18. The Calcutta High Court has further held that the expression "not....