1984 (6) TMI 26

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....-tax passed an order under section 18(2A) declining to waive penalty ? " For the wealth-tax assessment years 1964-65 to 1969-70 (both years inclusive), the assessee filed returns on December 30, 1970. The WTO completed the assessments on January 28, 1971, and initiated proceedings for the levy of penalty under s. 18(1)(a) of the W.T. Act (hereinafter referred to as " the Act for the assessee's failure to file wealth-tax returns within the time allowed under s. 14(1) of the Act. While the proceedings for levy of penalty were pending before the WTO, the assessee filed a petition dated February 22, 1971, before the CWT praying that the Commissioner may \waive the penalties leviable by exercising powers under s. 18(2A) of the Act. It appears, ....

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....alty was quantified with reference to the law which came into force on April 1, 1969, and the default in the filing of the return occurred subsequent to April 1, 1969. The Department as well as the assessee filed appeals before the Tribunal, the Department contending that the AAC was in error in reducing the penalties by applying the law in existence prior to April 1, 1969, and the assessee contending that for the assessment year 1969-70, the AAC was in error in upholding the levy of penalty. The Tribunal disposed of the appeals filed by the Department as well as the assessee by a common order. The Tribunal dismissed the appeals filed by the Department and allowed the assessee's appeal for the assessment year 1969-70 on the short ground th....

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....if the requirements of s. 1,8(2A) of the Act are satisfied. These two remedies act in different directions. The power of the Commissioner to waive or reduce the penalty is subject to the fulfilment of the conditions specified in s. 18(2A) of the Act, whereas the power of the appellate authorities to confirm or reduce the penalty levied is unconnected with the requirements specified in s. 18(2A) of the Act. Section 23(1)(d) of the Act confers a right on the assessee to file an appeal before the AAC objecting to any penalty imposed by the WTO under s. 18 of the Act. This right of the assessee to file an appeal before the AAC is not taken away either expressly or by necessary implication by the provisions contained in s. 18(2B) of the Act. All....