9911796707
TMI Blog1990 (4) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of the assessee's interest in the firm of M/s. Sudarshan 70 MM should not have been estimated at Rs. 7,43,750 as against Rs. 2,34,310. The second point involved in this appeal is that the credit balance of Rs. 94,722 which the assessee had in the firm of M/s. Sudarshan 70 MM should not have been added separately but should have been telescoped into the higher estimated interest of the assessee in M/s. Sudarshan 70 MM, which was taken at Rs. 7,43,750. The third ground of appeal is that the additional income-tax and wealth-tax liabilities amounting to Rs. 78,640 claimed by the assessee should have been allowed as a deduction while computing her wealth for the assessment year 1978-79. 3. The facts leading to the present appeal briefly st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made the amnesty assessment dated 23-3-1987. 4. However, when the matter was taken in appeal before the Appellate Assistant Commissioner the contention that the interest of the assessee in M/s. Sudarshan 70 MM was estimated at an inflationary figure of Rs. 7,43,750 and that the credit balance of Rs. 94,722 in the books of the firm M/s. Sudarshan 70 MM should not be added separately to the wealth of the assessee but should have been telescoped while working out the value of her interest at Rs. 7,43,750 in the firm of M/s. Sudarshan 70 MM was advanced before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner held in his impugned common order dated 7-1-1988 that these two grounds do not arise from out of the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture which was inadvertently omitted in the original assessment proceedings. Likewise, the assessee can also put forward claims for non-taxability of items of receipt which were not put forward in the original assessment. (ii) In any event, the income for purposes of reassessment cannot be reduced beyond the income originally assessed, as basically the assessment is reopened on account of escapement of income and by allowing an assessee to claim deductions, it is not permissible under law to reduce the income originally assessed. Even if the assessee's fresh claims during the course of reassessment enquiry are accepted, still the allowance of the claims should be limited to the extent to which they reduce the income to that originally asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uming for a while that such a course is open to the assessee still the scope of such grounds should be hedged and limited to the extent to which they reduced the income to that originally assessed under section 143(3). That means in this case it should not be allowed to go below Rs. 9,23,027, which was determined as per the assessment order dated 31-3-1986. On behalf of the assessee Shri Parthasarathy contended that the total value of M/s. Sudarshan 70 MM as on 31-3-1978 was estimated by the District Valuation Officer, Income-tax Department, Hyderabad at Rs. 28.10 lakhs by his report dated 15-3-1983. Having regard to the said value the interest of the assessee should have been accepted at Rs. 2,34,310 at which it was returned instead of est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings that to the extent of the excess income which is sought to be added in the reassessment proceedings, he was already assessed in excess, in the original proceedings itself and so no prejudice would be caused to the department even though reassessment proceedings are not continued against her. However, there is no corresponding provisions of section 152 of the Income-tax Act available in the Wealth-tax Act. Therefore in our considered opinion the Andhra Pradesh High Court decision in State Bank of Hyderabad's case rendered in the context of Income-tax Act, cannot be applied to a wealth-tax case, which is now before us. One of the questions sought to be canvassed before the Madras High Court in Chettinad Corpn. (P.) Ltd. v. CIT [1983 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med by the assessee which are not relevant to the items which are the subject-matter of the enquiry during reassessment cannot be considered again by the ITO at the stage of the reassessment. Therefore, in reassessment proceedings, the assessee cannot reagitate questions which have been decided in the original assessment ; nor can the ITO make a reassessment inconsistent with the original assessment in respect of matters which are not the subject-matter of proceedings under section 8 of the Surtax Act". We should hold that either the present two grounds with which we are concerned were not raised or were raised and held against the assessee in the assessment proceedings which culminated in the order dated 31-3-1986. These questions are nowh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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