Review of all cases of Wealth-Tax assessees, having foreign assets. - Income Tax - 467/CBDT

INSTRUCTION NO. 467/CBDT October 24, 1972 Section(s) Referred: 16(3) Statute: Wealth Tax Act, 1957 It has been brought to the notice of the Board by the Revenue Audit that in several wealth-tax assessments, involving the assessment years 1967-68 and onwards the Wealth-tax Officers have failed to revalue the foreign assets on such valuation dates as were subsequent to the date of the Wealth-tax Officers has resulted into a substantial loss to the revenue. When the cases, in which audit objections were raised were scrutinised by the Department it was further noticed that the Wealth-tax Officers had also failed to adopt the correct valuation of the foreign assets, located in countries having their currency based on Pound Sterling, subsequent to the devaluation of Sterling on 18-11-67. In other words the value of the foreign assets of the assessees should have been duly enhanced in accordance with the official rates of exchange subsequent to the devaluation of Rupee on 6-6-66 and also their value reduced correspondingly subsequent to the devaluation of the Pound Sterling on 18-11-67. 2. The Board desire that an immediate review of all cases of W.T. assessees, having foreign assets, whose assessments have been completed for the years 1967-68 and onwards, should be undertaken with a view to examine if the value of these foreign assets was correctly adopted by the W.T. Officers in respect of the assessment years 1967-68 and onward. The result of this review i.e. the number of under-assessment/over-assessments detected, the action taken, and the revenue effect thereon etc. should please be intimated to the Board by 30th December, 1972. 3. It should also be impressed on all assessing officers in your charge that in the pending wealth-tax assessments for 1967-68 and onwards the correct value of foreign assets must be adopted on the basis of the devaluation of rupee and/or the devaluation/revaluation of the currency of such foreign countries where the assets of the assessee are located.