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TMI Blog2004 (7) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... was correct in law in confirming the cancellation of reassessments ignoring the fact that even though acquisition proceedings had been dropped by the Government, the amount of compensation offered by the Government in respect of the property in question, viz., Julutang property was an indication of its market value and it was much more than the value assessed originally for the assessment years 1979-80 to 1982-83?" The tax case references arise under the provisions of the Wealth-tax Act, 1957. The two assessees are brothers. They have one other brother, by name, CT. Muthukaruppan, and their grandfather was the owner of a large piece of land measuring 2,16,820 sq.ft. in Malaysia in a portion of which buildings were standing. On the death of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opened the assessments made for the assessment years 1979-80 to 1982-83 in the assessees cases and made reassessments under the relevant provisions of the Wealth-tax Act, 1957. Both the assessees preferred appeals challenging the orders of reassessment before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals), on appeal, held that the reassessment proceedings initiated by the Wealth-tax Officer were erroneous as there was no escapement of wealth in the original assessment made and dismissed the appeals. The Income-tax Appellate Tribunal (hereinafter referred to as "the Appellate Tribunal"), on further appeal by the Revenue, following its earlier decision rendered in the case of another co-owner, CT. Muthukar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that there were materials for the Wealth-tax Officer to make reassessments. She referred to the acquisition proceedings initiated by the Government of Malaysia to acquire the property and the price offered by the Government of Malaysia for the acquisition of property indicated the market value of the property. However, it is seen from the orders of the Appellate Tribunal that the property is a large piece of land adjoining the sea in which there is a row of buildings adjoining the road and the buildings were let out to pre-war tenants with rent being pegged at old rates while the taxes got increased. It was also found as a matter of fact that the land was subject to erosion by the sea and though the Government of Malaysia initiated pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lth-tax Officer to come to the conclusion that there was escapement of wealth. We are of the view that it is a case of change of opinion and the escapement, if any, had not resulted from any default on the part of the assessee to disclose the material facts but because of the erroneous view entertained by the Wealth-tax Officer when he made the assessments and he had enhanced the value of the property at the time of original assessment by 50 per cent, of the value returned. It shows that he has applied his mind to the question of valuation of the property and enhanced the same to the extent done by him. We also find that apart from the report of the valuer, there were no materials before the Wealth-tax Officer to hold that there was escapem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was escapement of wealth with reference to the properties other than the property at Julutang. We find that the conclusion arrived at by the Appellate Tribunal on the facts of the case that there were no materials before the Wealth-tax Officer to come to the conclusion that there was escapement of wealth and only on the basis of mere change of opinion the reassessment proceedings were initiated and completed cannot be faulted as there were no materials before the Wealth-tax Officer to hold that the wealth during the relevant assessment years had escaped assessment warranting initiation and completion of reassessment proceedings. We hold that the view of the Appellate Tribunal that there were no materials for the Wealth-tax Officer to establ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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