Gujarat H.C : The petitioner herein filed a petition under s. 18B of the WT Act for waiving the penalty levied under s. 18(1)(a) for the asst. yrs. 1967-68,1968-69 and 1969-70.

Section WT 18(1)(a), WT 18B, WT 18(2A)

Asst. Year1967-68, 1968-69, 1969-70

Counsel Appeared

R. D. Pathak, for the Petitioner : R. P. Bhatt, for the Respondent

P. R. GOKULAKRISHNAN, C.J.:

Rule. Mr. R. P. Bhatt, appears and waives service of rule. This special civil application is directed against the order passed by the CWT which is at annexure “A-5” to the special civil application. The petitioner herein filed a petition under s. 18B of the WT Act for waiving the penalty levied under s. 18(1)(a) for the asst. yrs. 1967-68,1968-69 and 1969-70.

On prior notice served upon the respondent, Mr. R. P. Bhatt appears, and states that the petitioners have not made payment of wealth-tax for the years in question. The CWT dismissed the petition on two grounds, viz. : (1) The petitioners have not paid the wealth-tax for the years 1967-68 to 1969-70 ; and (2) That s. 18 B is not applicable since it came into force only on 1st Oct., 1975.

It is clear from the facts of the case that even prior to the amendment, inserting s. 18B in the WT Act, 1957, by the Taxation Laws (Amendment) Act, 1975, the waiver at the discretion of the CWT was there by virtue of the relevant s. 18(2A) of the WT Act.

Mr. Pathak, appearing for the petitioners, submits that the tax payable for the years 1967-68, 1968-69 and 1969-70 comes to Rs. 68, Rs. 205 and Rs. 257, respectively. It has also been brought to our notice that the penalty levied is Rs. 1,400, Rs. 1,850 and Rs. 8,480, respectively, for the years 1967-68, 1968-69 and 1969-70. Mr. Pathak, for the petitioners, also states that he is having the challans for the payment of wealth-tax having been made in time in respect of these years. He also points out that his clients’ reply is at annexure “A-4” to the special civil application and states that his client has made a representation to the CWT as early as on 24th Dec., 1988, mentioning that wealth-tax for the years in question has been paid. Inasmuch as the petitioners have paid the wealth-tax for which Mr. R. D. Pathak, for the petitioners, states that necessary challans are available, they can as well produce those challans before the CWT.

In view of the fact that the CWT had the power under s. 18(2A) and that the challans are available for the payment of wealth-tax having been made for the assessment years in question, this ease can be remanded to the file of the CWT in order to pass a fresh order after giving an opportunity to the petitioners to place their case. It is for the CWT to discuss and decide on the facts and circumstances of the case as to whether the petitioners are entitled for waiver of the penalty levied under s. 18 ( I ) (a) of the WT Act for the asst. yrs. 1967-68, 1968-69 and 1969-70.

In view of the discussion made above, the order passed by the CWT is set aside and the matter is remanded to the CWT for disposal afresh in the light of the observations we have made in the foregoing paragraphs.

The CWT is directed to dispose of this matter preferably within a period of three months from today. Writ to be sent to the CWT, Gujarat-I, Ahmedabad. Rule is made absolute to the above extent.

[Citation :180 ITR 291]