TaxTMI 
TaxTMI 
1981 (8) TMI 57
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....reduced by the basic exemption, from April 1, 1969, to March 31, 1970. On appeal, the AAC turned down the claim of the assessee that he had reasonable cause for not filing the return by the due date. However the AAC held that the amended provisions of the Act brought in by the Finance Act, 1969, would not apply and the penalty should be on the basis of the law that existed in the assessment year and accordingly directed that the penalty should be calculated at the rate of 2% of the net assessed tax from the date of the default. The revenue took the matter to the Income-tax Appellate Tribunal, Gauhati, for short " the Tribunal " and the asseseee also filed cross objection. The learned Tribunal followed its earlier decision in W.T.A. 96 (Gau)....
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.... circumstances of the case, the Tribunal was right in holding that the calculation of penalty up to March 31, 1969, was to be made under section 18(1)(i) of the Wealth-tax Act, 1957, as it originally stood from April 1, 1965, to March 31, 1969, as substituted with effect from April 1, 1965, by section 18 of the Wealth-tax (Amendment) Act, 1964, and thereafter under section 18(1)(i) as substituted by section 24 of the Finance Act, 1969 ?" Sections 14, 15 and 18 of the W.T. Act were amended on and from April 1, 1965, by the W.T. (Amend.) Act, 1964, and again amended by the Finance Act, 1969, which came into force from April 1, 1969. Section 14 has not undergone any striking change from the original provision. The section provides when and ho....
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....ued but not exceeding in the aggregate 50% of the tax. Therefore, the penalty imposable during the period is less onerous than prior to April 1, 1965. By the Finance Act, 1969, after April 1, 1969, the penalty imposable was altered to a sum for every month, during which the default continued, at the rate of one-half per cent. of the net wealth calculated according to the amended provision in s. 18. The penalty leviable was more drastic than before. In the instant case, the return was due on June 30, 1965, and the assessee had defaulted and continued to default until he filed his return on June 30, 1970. The AAC held that the petitioner would be governed by the then existing law prevalent on June 30, 1969, and the provision of the amendment....