TaxTMI 
TaxTMI 
1980 (3) TMI 110
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....g., 62. Later on, the WTO reopened these assessments by issuing notice under s. 17. For the asst. yr. 1960-61, notice under s. 17 was served on the assessee on 1st Feb., 1969 and the return was due on 5th, March, 69. For the second assessment year, notice under s. 17 was served on the assessee on 31st March, 1970 and the return was due on 5th May, 70. Both the returns were, however, filed late on the same date, i.e. 9th Sept., 70 and there was a delay of 18 complete months for the asst. yr. 1960-61 and four complete months for the asst. yr. 1961-62. The WTO initiated penalty action for both the years under s. 18(1)(a) which resulted in the levying of two penalties under appeal. The assessee's appeals against these penalties proved unsuccess....
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....h March, 71 at page 11 of the assessee's paper book. However, there was one more development which took place after the award dt. 25th March, 56 when the entire business capital of the HUF M/s Duni chand Devi Das was dividend between the two members on 30th March. 58 and two firms were constituted to take over the Head Office business and the business of the three branches. The business of the Head Office and two branches, M/s Hira Lal Mehra, Delhi and M/s P.H. Mehra, Amritsar, was taken over by a firm of the same name, i.e. M/s Duni Chand Devi Dass, Amritsar in which the partners were Shri Devi Dass and Shri Hira Lal, each having an equal share. In respect of the Amritsar branch business, M/s Pannalal Hira Lal, a separate firm of the same ....
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....1969 and 31st March, 1970 for the asst. yrs. 1960-61 and 1961-62, action against the HUF was started a little earlier for the asst. yr. 1961-62. Shri Kapoor also stated that M/s Duni Chand Devi Dass HUF filed returns in response to the notice under s. 17 on 14th April,1969 and 9th March, 70 and HUF disclosed remitted amounts and paid wealth tax under s. 15-B. Attention was also invited to the action of WTO taken in the case of HUF for including the remitted amount in the assessment of the year 1968-69 and reference was made to a letter dt. 28th Feb., 69 which is at page 24 of the assessee's paper book. Similarly, a query was made in the case of HUF for asst. yr. 1961-62 by the then WTO by a letter dt. 17th March, 62 and when the original as....
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.... " Reference various petitions and discussion with the learned IAC of Income Tax, Range II, Amritsar, regarding assessability of Rs. 5,23,639 being liability of Shri Gursahai Mal and his allied concerns on the books of M/s Dunichand Devidass in which the assessee has 1/2 share, it is submitted that the assessee has no objection to the including of Rs. 2,61,820 being assessee's 1/2 share in the said liability, in the net wealth of the assessee for time being in the assessee's hand on the specific under standing that the said amount will not be added in the hands of M/s Dunichand Devidass (HUF) and there will be no penalty for this agreed arrangement. The return of 1962-63 assessment year is being filed accordingly." 4. Another set of fa....
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....y reasonable cause for the delay. 6. On a consideration of the entirety of the circumstances and the evidence referred to by Shri Kapoor, are we clearly of the opinion that the assessee was not clear about the taxability of the remitted amount either in the hands of the HUF or in the hands of himself and his son, separately. This difficulty was also shared by the Revenue as is clear from the facts stated in the preceding para. It is also noticed that the assessee was approaching the higher authorities of the WTO, i.e. the IAC and the commissioner who were duly considering the assessee's dilemma. Shri Kapoor also invited attention to the fact that this problem was raised by the assessee also before the WTO in the course of s. 17 proceedin....