9911796707
TMI Blog1982 (4) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... . On behalf of the revenue, the learned departmental representative states briefly the facts of the case and the background in order to clarify the position why the Commissioner took action under section 25(2) of the Wealth-tax Act, 1957 ('the Act'). According to him, there was full justification for the Commissioner to take action under the above section in view of the facts as narrated by him in the revision order. It is stated that the WTO committed error in allowing liabilities as deduction from the value of the wealth of the assessee which resulted in a loss to the revenue. It is submitted that the Commissioner took action to cancel the assessment orders passed by the WTO under section 16(3), read with section 17(1)(a), of the Act. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, the assessments made by the WTO by ignoring the non-admissibility of the liability, as indicated above, resulted in under-assessment's and short levy of tax. According to him, the orders of the WTO appeared to be erroneous and prejudicial to the interests of revenue. Accordingly, action under section 25(2) was taken in respect of all the assessees for all the years under appeals. 4. It was contended before the Commissioner on behalf of the assessee that there was no justification for taking action under section 25(2) as in the original assessment orders for all the years, the liability, in question, has been allowed and, therefore, there was no jurisdiction for taking action under section 25(2) when such assessment orders w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e department had not accepted that decision and the matter was taken to the High Court. He observed that the assessees being the legal heirs of late Nawabzada Rashid-ur-Zaffar Khan, it cannot be said that the WTO was not aware of this fact. He concluded, therefore, that the WTO should have applied his mind to the withdrawals of the liability already allowed at the time of the original assessments when he reopened the same under section 17(1)(a). Having failed to do so, the assessment orders passed by him can be said to be erroneous insofar as these are prejudicial to the interests of revenue. On the reasons recorded by him, the Commissioner rejected the submissions made on behalf of the assessees and cancelled the assessment orders with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reover, the appellant has transferred one building to M. P. Waqf Board in the year 1972 in lieu of this liability. This also proves that there was a clear liability which existed during the above year. 6. That the appellant crave leave to add, amend, alter, modify or withdraw any of the above grounds of appeal at the time of hearing." 7. After going through the papers it is apparent that the Commissioner took action under section 25(2) as the WTO did not disallow the claim of liability in spite of the fact that the department did not accept the decision of the Tribunal in connection with the aforesaid estate duty case. Briefly speaking, the Tribunal has given its decision to the effect that the liability was attached to the estate. In o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the department might have taken up the issue to the High Court. Such orders cannot be said to be erroneous and if such orders are prejudicial to the interests of revenue, action under section 25(2) could not lie. Accordingly, in our opinion, when there is no error, the Commissioner would have no jurisdiction under section 25(2). 8. We have perused the order of the Tribunal in the estate duty case referred to in the order and it is seen that the Tribunal noted among other things that the liability was allowed by the Appellate Controller and contested by the revenue. It confirmed the view taken by the Appellate Controller which was passed on the order of the AAC in the wealth-tax assessment of the deceased for the assessment year 1957-58. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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