Commissioner of Wealth Tax vs Palanimalai Gounder

N.V. Balasubramanian, J.—In pursuance of the directions of this Court, the Tribunal has stated a case and referred the following question of

law in relation to asst. yrs. 1965-66 to 1972-73.

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the wealth disclosed under Voluntary

Disclosure of IT and WT Act, 1976, is eligible for exclusion from the wealth base for the purpose of reckoning penalty u/s 18(1)(a) and the limits

mentioned in that section cannot be applied without considering Section 14(1) of the Voluntary Disclosure of IT and WT Act, 1976 ?

The reference is pending from the year 1990 and the Department has not taken any steps to serve the notice on the respondent. We have given

sufficient opportunity to the counsel for the Department to serve the notice on the respondent. In spite of the steps taken by the counsel, the notice

could not be served on the respondent. Further, we find that the amount involved is very meagre and in view of the directions issued by the CBDT,

we are of the view it may not be necessary to go into the merits of the case. However, we went into the merits of the case also. We find that if it is

a case of levy of penalty for delayed filing of the return u/s 18(1)(a) of the WT Act. The Tribunal has found as a fact that the penalty should be on

the difference between the wealth assessed and the wealth disclosed in the voluntary disclosure scheme and would be subject to the wealth that

would be determined by giving effect to the order of the Tribunal. We find the said findings are based on materials and reasonable. It is not brought

to our notice that any contrary view to that expressed earlier has been taken. Since the findings are reasonable, we do not find any reason to

interfere in the order of the Tribunal. Accordingly, the questions referred to us are answered against the Revenue.