1986 (1) TMI 167 - AT - Wealth-tax

Summary

Issues:
1. Assessment for the asst. yr. 1979-80 under s. 16(3) of the WT Act, 1957.
2. Assessment for the asst. yr. 1980-81 under s. 16(1) of the WT Act, 1957.
3. Erroneous assessments pre-judicial to the interest of Revenue.
4. Adequacy of opportunity of being heard at CIT level.
5. Material available with CIT for exercising jurisdiction under s. 25(2) of the Act.
6. Impugned orders beyond the limitation period.

Analysis:
The judgment pertains to assessments for the years 1979-80 and 1980-81 under the Wealth Tax Act, 1957. The assessments were framed on 30th Jan. 1984, and the net wealth components included balances with different firms. The authorized representative conceded that the balance sheets of the firms were not filed with the return of new wealth. The Tribunal found the assessments erroneous and prejudicial to the Revenue's interest due to lack of proper inquiries and failure to consider the partner's interest in a firm as per statutory rules.

The Tribunal conducted hearings to address the grievances raised by the assessee, including the lack of opportunity to be heard at the CIT level, absence of material for CIT's jurisdiction under s. 25(2), and the impugned orders being beyond the limitation period. The Tribunal dismissed the contentions of the assessee regarding these issues.

Regarding the adequacy of opportunity to be heard, the Tribunal noted that the authorized representative was present during the proceedings at the CIT level, and no adjournment was sought, thus rejecting the contention of inadequate hearing. The Tribunal also held that once assessments are not in accordance with the law, no further material is needed to establish their erroneous nature pre-judicial to Revenue's interest.

The Tribunal addressed the issue of impugned orders being beyond the limitation period by citing an amendment to the WT Act in 1984, which clarified the time limit for making such orders. As the impugned orders were issued within the statutory limitation period, the Tribunal rejected the assessee's argument on this point.

In conclusion, the Tribunal upheld the impugned orders made under s. 25(2) of the WT Act for both years, finding the appeals filed by the assessee unsuccessful. The judgment emphasizes the importance of conducting assessments in accordance with the law and ensuring proper consideration of all relevant factors to protect the Revenue's interests.