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Issues:
1. Whether the orders passed by the WTO for three assessment years were erroneous and prejudicial to the revenue due to undervaluation of properties inherited by the assessee. 2. Whether the Commissioner was justified in initiating proceedings under section 25(2) of the Wealth-tax Act based on the valuation discrepancies found during estate duty assessment proceedings. 3. Whether the valuation reports for estate duty purposes can be considered in wealth-tax assessments. 4. Whether the Commissioner correctly exercised jurisdiction under section 25(2) by considering valuation reports beyond the assessment records. Detailed Analysis: 1. The judgment involved three appeals by the assessee against the order under section 25(2) of the Wealth-tax Act for the assessment years 1979-80 to 1981-82. The Commissioner deemed the orders passed by the WTO as erroneous and prejudicial to the revenue due to undervaluation of three properties inherited by the assessee. 2. The Commissioner initiated proceedings under section 25(2) based on valuation disparities discovered during estate duty assessment proceedings, where the Valuation Officer provided higher values for the properties compared to the values adopted in the wealth-tax assessments. 3. The assessee contended that the estate duty valuation reports should not impact wealth-tax assessments, especially since the estate duty assessments were still pending and had not been accepted. However, the Commissioner held that the valuations from the estate duty assessments were relevant and indicated undervaluation in the wealth-tax assessments. 4. The assessee raised objections, arguing that the WTO had relied on valuation reports from the department and should not be considered erroneous. Additionally, the assessee claimed that the valuation reports for estate duty purposes were not part of the assessment records and should not influence the wealth-tax assessments. The department, on the other hand, argued that the Commissioner was justified in considering the valuation disparities and initiating proceedings under section 25(2). 5. The Tribunal analyzed the jurisdictional aspects of the Commissioner's actions under section 25(2) and referred to legal precedents regarding the limitations of revising authorities in considering additional materials beyond the existing records. Ultimately, the Tribunal concluded that the Commissioner's assumption of jurisdiction was not valid in this case, as the WTO had based the assessments on expert valuation reports and there were no other materials to deem the valuations as erroneous. 6. Consequently, the Tribunal set aside the order under section 25(2) and allowed the appeals in favor of the assessee, highlighting the importance of adhering to the valuation guidelines and expert opinions in such assessments.
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