1981 (5) TMI 41 - AT - Wealth-tax

Summary

Issues:
1. Reopening of assessments based on valuation reports.
2. Validity of reopening assessments under section 17(1)(b).
3. Consideration of valuation reports as 'information' for reopening assessments.
4. Discretion of the assessing officer in accepting valuation reports.

Detailed Analysis:
1. The appeals consolidated in this judgment relate to the same assessee for the assessment years 1973-74, 1974-75, and 1975-76. The assessments were initially completed, but the WTO reopened them based on a valuation report indicating under-valuation. The assessee objected, but reassessments were made. The AAC later allowed the assessee's appeals against the reopening of assessments.

2. The revenue appealed the AAC's decision, arguing that the assessments were validly reopened under section 17(1)(b) and citing relevant case law. The revenue contended that the valuation report constituted 'information' for reopening assessments, justifying the reassessments based on specific facts and figures from the report.

3. The assessee, on the other hand, argued that the valuation report alone could not constitute 'information' for reopening assessments. The assessee relied on previous judgments to support this argument. The Tribunal examined the original assessments completed based on valuation reports and the subsequent valuation report used to reopen the assessments.

4. The Tribunal found that the valuation report from the Government Valuer was not definitive information for reopening assessments. Valuation being an estimate, the Tribunal noted that two different valuers could provide different estimates. The Tribunal concluded that the reassessment based on a later valuation report amounted to a change of opinion by the assessing officer, rather than a case of wealth escaped assessment or under-assessment. The Tribunal upheld the AAC's decision, dismissing the revenue's appeals.

This detailed analysis highlights the key issues of reopening assessments based on valuation reports, the validity of such reopening under relevant provisions, the interpretation of valuation reports as 'information,' and the discretion of the assessing officer in accepting valuation reports.