I. T. A. NO. 3496/L-B 84-85 DECIDED ON 12TH OCTOBER, 1985. Versus I. T. A. NO. 3496/L-B 84-85 DECIDED ON 12TH OCTOBER, 1985.
ORDER
In this further appeal relating to assessment year 1982‑83 the facts in brief are that the appellant an individual derived income from salary as a Director of a Limited Company, alongwith share income from a registered firm. Return was filed by the appellant declaring an income of Rs.52,00, The declared income being more than Rs. 50,000 the appellant was under an obligation to tile alongwith the return his wealth statement for the period ending 30‑6‑1982. For the year under review it was a statutory provision as laid down in. section 58 (2) of the income Tax Ordinance, 1979 (hereinafter called the Ordinance). On 31‑3‑1983 the ITO intimating the lacuna of note‑compliance of the said statutory provision directed the appellant to file wealth statement. In compliance, the appellant filed wealth statement on 18‑4‑1983. Thereafter in response to notice issued under section 116 of the Ordinance on 13-5-1983 the appellant admitted default of non‑filing of wealth statement alongwith the return. It was stated that the default was not deliberate as the appellant was out of station. On 30‑6‑1983 the ITO imposed penalty of Rs. 4,000 with prior approval of the learned I.A.C. This treatment was maintained in appeal.
2. The grievance of the appellant's AR was that section 108 of the Ordinance having not provided for any penalty for default of section 58 of the Ordinance, the impugned penalty being without lawful ' authority is inexigible. This submission of the appellant's AR is totally misconceived. Levy of penalties has been provided in Chapter XI of the Ordinance which comprises of sections 108 through 116 Though section 108 of the Ordinance does not speak of default of section 58 but section 110 of the Ordinance has specifically provided for levy of penalty for default of that section. It is pertinent to point out that section 58 comprises of two parts; clause (1) empowers the ITO to require any assessee in writing to furnish wealth statement and clause (2) lays down that every assessee whose total income in the year under review was not leas than fifty thousand rupees, shall furnish a wealth statement alongwith his return of total income and ail the provisions of the Ordinance shall apply to the wealth statement as they apply to a return of total income. Under section 110, the Legislature has mentioned section 58 as a whole without making any distinction of sub‑clauses (1) or (2) of that section. The reason is quite obvious as provision of the Ordinance pertaining to a return of total income has been made applicable in extenso to sub motu filing of wealth statement as Section 110 of the Ordinance is thus in part materia with section 108 of the Ordinance for the purposes of penal action to be taken for default of section 58 of the Ordinance. Section 110 of the Ordinance provides for levy of penalty in case of non‑compliance of notice issued under section 58 of the Ordinance. Obviously this is preferable to section 58 (1) of the Ordinance wherein the ITO is empowered to issue a notice calling for wealth statement of an assessee. For the purposes of sub‑clause (2) of Section 58 of the Ordinance no notice is prescribed and every assessee whose total Income in the year under con sideration exceeded Rs. 50,000 was sub motu required to file wealth statement. Provision of the Ordinance relating to filing of return of total income having been made applicable to sub motu tiling of wealth statement as well, the resultant effect will be that provisions of penalty prescribed for non‑filing of return shall be applicable for default of Section 58 (2) of the Ordinance as well.
3. Taking up the facts of the case, I find that the appellant's default of non‑filing of wealth statement being established, imposed penalty is inexigible
4. In these circumstances the impugned‑:order does not suffer from any legal ailment. Appeal filed at the instance of the assessee being devoid of any merits is dismissed.
M. Y. H. Appeal dismissed.