COMMISSIONER OF WEALTH TAX, AMRITSAR vs SURESH SETH

The Supreme Court ruled that under Section 18(1)(a) of the Wealth Tax Act, 1957, penalties for late filing of wealth tax returns must be calculated based on the law in effect on the last day the return was due, affirming that the 1964 and 1969 amendments do not have retrospective effect. The Court clarified that a default in filing is a single event, not a continuing offence, and penalties should not be imposed for each month of delay post the due date. The appeals by the Department were dismissed, upholding the High Court's decision in favor of the assessee.