1983 (4) TMI 23

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....is a reference under s. 27(1) of the W.T. Act, 1957. The question of law referred is as follows : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in cancelling the penalties levied under s. 18(1)(c) of the Wealth-tax Act, 1957, for the assessment years 1968-69 to 1972-73, holding that no penalty could be legally imposed on the legal represen....

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....or each year. In appeal, the AAC cancelled the penalty which order was maintained by the Tribunal in further appeal. Section 18(1) in so far as is relevant provides that if the WTO, in the course of any proceedings under the Act, is satisfied that any person has concealed the particulars of any assets or furnished inaccurate particulars of any assets or debts, he may, by order in writing, direc....

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....y him under this Act if he had not died. (2) Where a person dies without having furnished a return under the provisions of section 14 or after having furnished a return which the Wealth-tax Officer has reason to believe to be incorrect or incomplete, the Wealth-tax Officer may make an assessment of the net wealth of such person and determine the wealth-tax payable by the person on the basis of ....

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.... which would have been payable by him under the Act if he had not died. Section 19(1) deals with the liability of the legal representative inheriting the estate of the deceased who was liable for payment of wealth-tax. This section does not provide for continuation of penalty proceedings against the legal representative when the assessee dies before the proceedings are concluded. The material prov....