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Issues Involved:
1. Validity of Wealth-tax Officer's assessment exceeding declared values under VDS. 2. Justification of property valuations declared under VDS versus those determined by Wealth-tax Officer. Detailed Analysis: 1. Validity of Wealth-tax Officer's assessment exceeding declared values under VDS: The primary issue revolved around whether the Wealth-tax Officer (WTO) had the authority to assess the value of properties at amounts higher than those declared under the Voluntary Disclosure of Income and Wealth Scheme (VDS). The assessee argued that the declaration under VDS, once accepted by the Commissioner, should be final and not subject to further scrutiny or reassessment by the WTO. The assessee's counsel, Sri R. C. Desai, referenced Circular No. 180, dated 15-10-1975, asserting that the VDS was intended to provide peace and end troubles for declarants. Conversely, the revenue's representative, Sri Srivastava, contended that the VDS provided immunity only from penalties and prosecution, not from assessment of the correct net wealth. He argued that the WTO was justified in referring the properties' valuations to the Valuation Officer and assessing them based on the Valuation Officer's report, as the VDS did not preclude the revenue authorities from ensuring the correctness and completeness of the declarations. The Tribunal agreed with the revenue's stance, stating that the VDS did not stop wealth-tax authorities from investigating the accuracy of the declarations. The Tribunal emphasized that the assessment proceedings, once initiated by the filing of returns, must adhere to legal provisions, allowing the WTO to ascertain and assess the correct net wealth. 2. Justification of property valuations declared under VDS versus those determined by Wealth-tax Officer: The alternative contention by the assessee was that even on merits, the property values declared under the VDS were justified, and the values determined by the WTO were excessive and arbitrary. This issue was not addressed by the Appellate Assistant Commissioner or the Commissioner of Wealth-tax (Appeals) since they had accepted the primary contention that the VDS declarations should be final. The Tribunal directed the Appellate Assistant Commissioner/Commissioner of Wealth-tax (Appeals) to consider this alternative contention and decide on the merits and in accordance with the law. This was to ensure that the assessee's arguments regarding the reasonableness of the declared values were duly considered. Conclusion: The appeals filed by the revenue were partly allowed. The Tribunal held that the WTO was within his rights to investigate and assess the correct value of the properties, notwithstanding the VDS declarations. However, the Tribunal also directed the first appellate authority to consider the merits of the property valuations declared by the assessee under the VDS. The cross objections filed by the assessee for the assessment years 1972-73 to 1974-75 were treated as dismissed for statistical purposes.
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