9911796707
|
Home
Issues:
1. Quashing of assessment proceedings under the Wealth-tax Act for specific assessment years. 2. Legality of proceedings initiated under section 17 of the Wealth-tax Act based on an audit objection. Detailed Analysis: Issue 1: Quashing of assessment proceedings under the Wealth-tax Act for specific assessment years The judgment pertains to two writ petitions seeking the quashing of assessment proceedings under the Wealth-tax Act for different assessment years. The petitioners sought to challenge the assessment proceedings initiated under section 17 of the Wealth-tax Act for the years 1976-77, 1977-78, and 1978-79. Despite time extensions granted to the Revenue's counsel in the past, no counter-affidavit was filed within a significant period of over 13 years. The court decided to finalize the judgment based solely on the averments in the writ petitions. The petitioners contended that the assessment proceedings were initiated erroneously after rectification applications were allowed, and subsequent notices were issued by the Valuation Officer. The court, after considering the arguments, quashed the impugned notices and orders for being illegal and unsustainable, ultimately allowing the writ petitions with costs. Issue 2: Legality of proceedings initiated under section 17 of the Wealth-tax Act based on an audit objection The second issue in the judgment revolved around the legality of proceedings initiated under section 17 of the Wealth-tax Act based solely on an audit objection. The petitioners argued that the initiation of proceedings and the impugned notices by the Valuation Officer were solely based on an audit objection, which was not refuted by the respondent during the proceedings. The court referred to legal precedents, including the decision in Ashoke Gupta v. Asst. CED [1991] 188 ITR 715 (All), which highlighted that proceedings initiated only on the basis of an audit objection are not sustainable. Additionally, the court cited the decision in Indian and Eastern Newspaper Society Ltd.'s case [1979] 119 ITR 996 (SC) to support its ruling. The court held that the impugned notices and orders were illegal and quashed them based on the established legal principles and precedents, ultimately allowing the writ petitions with costs. Overall, the judgment addressed the issues of quashing assessment proceedings under the Wealth-tax Act for specific assessment years and the legality of proceedings initiated based on an audit objection, providing a detailed analysis of the facts, legal arguments, and relevant legal precedents to arrive at its decision.
|
