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Validity of the reopening of the wealth-tax assessment for the assessment year 1964-65. Detailed Analysis: The judgment concerns the validity of the reopening of the wealth-tax assessment for the assessment year 1964-65. The original assessment was conducted under section 16(3) of the Wealth-tax Act, 1957, where the assessee declared a valuation of Rs. 57,013 as per book value. However, for the assessment year 1968-69, the assessee declared a higher value based on an approved valuer's report. The Wealth Tax Officer (WTO) reopened the assessment under section 17(1)(a) due to the belief that the net wealth had escaped assessment because of the assessee's failure to disclose all material facts fully and truly. The department contended that the assessment was validly reopened based on discrepancies in the valuation report provided by the assessee in a subsequent year. The Commissioner (Appeals) quashed the reassessment order, stating that the reopening was not in accordance with the provisions of section 17(1)(a) as the assessee had disclosed all material facts in the original assessment. The department appealed the decision, arguing that the assessee had not disclosed the cost of land in the original return, which justified the reopening under section 17(1)(a). The department relied on a Bombay High Court decision to support its position. On the other hand, the assessee's counsel contended that the original return included all material facts, and the reassessment was merely a change of opinion by the WTO. The counsel cited the decisions of the Rajasthan High Court and the Calcutta High Court to support the appeal. The Tribunal analyzed the submissions and the original return filed by the assessee. It noted that the original return had provided details of the property, its location, and the mode of valuation. The Tribunal observed that the valuation in the original assessment was based on the assessee's disclosure and accepted by the WTO. The reassessment was triggered by a subsequent valuation report, but the Tribunal held that this did not indicate a failure to disclose material facts initially. The Tribunal distinguished the present case from previous judgments and upheld the Commissioner's decision, stating that the reopening under section 17(1)(a) lacked proper jurisdiction. Consequently, the appeal by the department was dismissed. In conclusion, the Tribunal ruled in favor of the assessee, emphasizing that the original return had adequately disclosed all material facts, and the reassessment based on a subsequent valuation report did not justify the reopening under section 17(1)(a). The judgment highlights the importance of full and accurate disclosure of material facts during assessments to prevent unwarranted reassessments.
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