1984 (7) TMI 55 - HC - Wealth-tax

Summary

Issues involved:
The judgment addresses three main issues raised by the assessee regarding the Wealth-tax Act. These issues include the treatment of disputed kist and interest as assets, inclusion of interest awarded by the civil court in net wealth, and the determination of the assessment order's validity concerning the limitation period.

Issue I:
The first issue pertains to whether the right to receive the kist in dispute and the interest on it can be considered as assets, and if 50% of the kist amount and interest claimed represent the market value despite the ongoing dispute. The court noted that previous decisions had already settled these questions against the assessee, making further discussion unnecessary.

Issue II:
The second issue involves the inclusion of interest awarded by the civil court under the Land Acquisition Act in the net wealth until final determination, and whether 50% of the enhanced compensation and interest represent the correct market value during the dispute. The court did not delve into this issue due to previous decisions that were unfavorable to the assessee.

Issue III:
The final issue concerns the assessment order's validity in relation to the limitation period. The assessee argued that the orders served after the prescribed period should be deemed to have been made on the date of service, thus exceeding the limitation period. The court disagreed, emphasizing that an order of assessment is a quasi-judicial order that must be made within the prescribed period, not necessarily communicated within that time frame. Citing relevant legal precedents, the court rejected the assessee's contentions and dismissed the cases.

Therefore, the judgment concluded by dismissing the Wealth-tax cases, emphasizing the importance of the timing of making quasi-judicial orders within the statutory period, regardless of the date of communication to the assessee.