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Challenge to notices issued by Wealth-tax Officer under section 17 of the Wealth-tax Act, 1957 for assessment years 1978-79 and 1979-80 based on valuation of agricultural lands. Analysis: The petitioner challenged the notices issued by the Wealth-tax Officer under section 17 of the Wealth-tax Act, 1957 for the assessment years 1978-79 and 1979-80. The petitioner contended that the valuation of agricultural lands was lower in the notices compared to the valuation by the approved valuer. The petitioner argued that the notices were an abuse of power as the Wealth-tax Officer had already considered the valuation report in previous assessments and passed appropriate orders under section 16(3) of the Act. The petitioner also highlighted that appeals were filed and allowed by the Appellate Assistant Commissioner of Income-tax, indicating no basis for reopening the assessment. The court examined the facts and found that the deceased was a wealth-tax assessee, and the petitioner, as the legal heir, filed returns for the relevant assessment years. The court noted that the petitioner continued possession of the property after the deceased's demise, relying on a judgment declaring adverse possession. The Wealth-tax Officer's orders for the assessment years 1978-79 and 1979-80 considered the valuation reports and issued specific valuations for the lands. However, the Appellate Assistant Commissioner of Income-tax allowed appeals, stating that the lands did not constitute assets due to adverse possession and precarious interest. Despite previous orders and appeal decisions, the Wealth-tax Officer issued notices under section 17 of the Act in 1987, alleging that net wealth chargeable to tax had escaped assessment. The court deemed these notices baseless, as the valuation reports were previously considered by the Wealth-tax Officer and the Appellate Assistant Commissioner. The court concluded that there was no failure on the petitioner's part to disclose material facts for assessment, rendering the notices invalid. Consequently, the court allowed the petition, quashed the impugned notices, and restrained the respondent from taking further action based on the notices. In conclusion, the court's judgment favored the petitioner, emphasizing that the notices issued by the Wealth-tax Officer under section 17 of the Act for the assessment years 1978-79 and 1979-80 were unjustified and lacked a legal basis. The court found that the valuation reports were appropriately considered in previous assessments and appeal decisions, leading to the dismissal of the notices and restraining further action by the respondent.
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