| Case ID |
211fe2cd-8f3a-4bbf-9c63-d023d2513184 |
| Body |
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| Case Number |
D.B. IT REFERENCE No. 1 OF 1977 |
| Decision Date |
Aug 05, 1985 |
| Hearing Date |
|
| Decision |
The Rajasthan High Court held that the penalty for late filing of a wealth-tax return should be calculated based on the law in effect on the due date, rather than any subsequent amendments. The court clarified that the default is committed as soon as the assessee fails to file the return by the last specified date. In this case, since the return due date was June 30, 1966, the law applicable at that time should govern the penalty calculation. The amended provisions that came into effect on April 1, 1969, could not be applied retrospectively. Therefore, the Tribunal was incorrect in sustaining the penalty calculated under the amended section. |
| Summary |
In the case of Jayendra Singh v. Commissioner of Income Tax, the Rajasthan High Court addressed the issue of penalties for late filing of wealth-tax returns under the Wealth-tax Act, 1957. The court emphasized that penalties must be determined according to the law in force at the time of the due date for filing the return, which was June 30, 1966, in this instance. The court ruled that the amendments made to the law after this date could not be used to impose penalties retroactively. The case highlighted the importance of adhering to the legal provisions that were effective at the time of the alleged infraction, establishing a precedent for future cases regarding tax penalties. The ruling serves as a critical reference for tax practitioners and advocates in understanding the implications of timing in legal compliance and penalties. The decision reinforced the principle that tax liabilities and penalties should be assessed according to the law as it stood at the relevant time, ensuring fairness in the application of tax laws. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
D.P. Gupta,
Pana Chand Jain
|
| Lawyers |
V.K. Singhal,
R.N. Surolia
|
| Petitioners |
Jayendra Singh
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1986 SLD 1744,
(1986) 160 ITR 866
|
| Other Citations |
CWT v. Suresh Seth [1981] 129 ITR 328 (SC),
Prithvi Singh v. CWT [1984] 148 ITR 516 (Raj.)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
18(1)(a)
|