1979 (12) TMI 8

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....69, should not be applied to reckon the penalty for the period of default after 1-4-1969 for the assessment year 1968-69 ? " The facts relating to this question are as follows: The assessee, a cine-artist, should have filed a wealth-tax return for the year 1968-69 by 30th June, 1968. She, however, filed the return only on 23rd March, 1970. The Wealth-tax Officer completed the assessment on 27th April, 1970, and initiated penalty proceedings under s. 18(1)(a) of the W.T. Act, for delay in submission of return. The assessee gave an explanation that she was not well and that her secretary, who was in charge of the income-tax matters for 15 years, had left her some months previously. She has also stated that her chartered accountant was n....

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....der section 18(5) prior to its amendment, with effect from 1st April, 1971 ? " For the assessment years 1968-69 and 1969-70, the assessee filed the relevant returns on 23rd March, 1970, and 27th April, 1970, respectively. The assessments were completed on 27th April, 1970. Under s. 18(5) of the W.T. Act, at the time of completion of the assessment, no order imposing a penalty could be passed after the expiry of 2 years from the date of completion of the proceedings in the course of which the proceedings for the levy of penalty were commenced. Judged by this criterion, the penalty orders should have been passed by April 26, 1972. However, they were passed only on 30th June, 1972. In the meantime, there was an amendment to s. 18(5) of t....