Judgment

VENKATARAMIAH, J.:- The Commissioner of Wealth Tax, Amritsar has filed the above appeals by special leave against the judgment of the High Court of Punjab and Haryana in a reference made under Section 27 (1) of the Wealth-tax Act, 1957 (hereinafter referred to as the Act) answering in favour of the assessee the following two questions :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the offence relating to the omission to file the Wealth-tax returns was a continuing offence?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the penalties of Rs. 5382/- and Rs. 7759/- levied by the department on the assessee under Section 18 (1) (a) of the Wealth-tax Act, 1957, for the assessment years 1964-65 and 1965-66 respectively?"

2. The assessee, the respondent in these appeals filed his wealth-tax returns, for the assessment years 1964-65 and 1965-66 on March 18, 1971 while he was required by Section 14 (1) of the Act to file the return for the assessment year 1964-65, on or before June 30, 1964 and the return for the assessment year 1965-66 on or before June 30, 1965. T