9911796707
TMI Blog2000 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... n concluding that the Wealth-tax Officer had no jurisdiction to consider in the present reassessment proceedings initiated under section 17(1)(a) of the Wealth-tax Act for the two assessment years 1966-67 and 1967-68, the question of valuation of the two immovable properties the one at 15, Barakhamba Road, and the other at Paharganj at New Delhi and enhance the valuation of the said two properties while completing the said reassessments under section 17(1)(a) of the Act ?" The factual position as indicated in the statement of the case is essentially as follows. For the assessment years 1966-67 and 1967-68, the assessee's father, the late Hans Raj Vadera, filed returns of wealth on August 5, 1966, and October 31, 1967, disclosing net wealt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to the legality of the reopening, it was observed by the Appellate Assistant Commissioner that action under section 17(1)(a) of the Act was validly initiated to reassess wealth in so far as the shares in various companies were concerned and to that extent the reassessments made were valid. With regard to enhancement of valuation in respect of the two properties indicated above, it was held to be beyond the scope of reassessment under section 17(1)(a) of the Act. These conclusions were affirmed by the Tribunal. It has to be noted that the assessee did not assail the conclusions of the Appellate Assistant Commissioner about the valid initiation of proceedings under section 17(1)(a) of the Act relating to the shares. On being moved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eopened, the previous underassessment is set aside and the whole assessment proceedings start afresh. What is set aside is only the previous underassessment and not the original assessment proceedings. An order made in respect of the escaped item does not affect the operative force of the original assessment, particularly if it has acquired finality, and the original order retains both its character and identity. It is only in a case of "underassessment", that the assessment of net income/wealth and tax due has to be recomputed on the entire taxable wealth/income, as the case may be. That being the position, our answer to the identical question referred in the two reference applications is in the negative, i.e., in favour of the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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