1982 (8) TMI 36

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....tely imposed a penalty of Rs. 12,874 under s. 18(1)(a) of the Act on 27th November, 1967. The assessee preferred an appeal to the AAC against the penalty order and the AAC, following the decision of this court in the case of CIT v. Vegetable Products Ltd. [1971] 80 ITR 14, gave a direction to the WTO to verify whether the wealth-tax for the assessment year under consideration was paid and, if so, whether there was any justification for imposition of penalty. The WTO preferred an appeal to the Tribunal against the order of the AAC. The Tribunal upheld the order of the AAC relying on the case of CIT v. Vegetable Products Ltd. [1971] 80 ITR 14 (Cal). The Tribunal was of the view that this case was completely covered by the decision of th....

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....se of Vegetable Products Ltd. [1971] 80 ITR 14 (Cal), ultimately went to the Supreme Court and the law applicable was explained by the Supreme Court in the case of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192. A Division Bench of the Allahabad High Court had also occasion to go into the question which has now been raised before us in the case of CWT v. Mahatab Chand [1979] 117 ITR 32. In that case it was observed at p. 33 of the report as follows : " There is no doubt that the provisions of s. 18(1)(i) of the W.T. Act are identical in language with s. 271(1)(i) of the I.T. Act. The provisions of the I.T. Act came up for consideration before the Supreme Court in the case of Vegetable Products Ltd. [1973] 88 ITR 192, which was an ap....