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Issues involved:
The issue involves the correctness of the order of the Additional Commissioner of Wealth-tax under section 25(2) of the Wealth-tax Act, 1957, directing the Wealth Tax Officer to make a fresh assessment considering the applicability of section 18(1)(a) of the Act. Summary: The High Court of Madhya Pradesh was presented with a reference under section 27(1) of the Wealth Tax Act, 1957, by the Income-tax Appellate Tribunal, Indore Bench, Indore. The question at hand was whether the Tribunal was justified in holding that the Additional Commissioner's order directing the Wealth Tax Officer to conduct a fresh assessment, taking into account section 18(1)(a) of the Wealth Tax Act, was legally flawed. The case stemmed from the assessee's delayed filing of wealth return for the assessment year 1970-71, leading to the Additional Commissioner's intervention to initiate penalty proceedings under section 25(2) of the Act. It was established that the provisions of section 18(1)(a) were applicable as the assessee failed to submit the wealth return within the stipulated timeframe, which the Wealth Tax Officer overlooked during the initial assessment. The court rejected the argument that the assessment order was not erroneous merely due to the officer's oversight of penalty provisions. Citing precedents related to the Income-tax Act, the court emphasized that such omissions render the assessment order erroneous, granting the Commissioner authority to revise it under section 25(2) of the Wealth Tax Act. In conclusion, the court ruled in favor of the department, disagreeing with the Tribunal's stance and affirming the Additional Commissioner's directive for a fresh assessment considering the penalty provisions. The parties were directed to bear their own costs in the reference proceedings.
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