9911796707
TMI Blog1997 (6) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ne 18, 1984, disclosing a net wealth of Rs. 3,17,800. The first respondent accepted the return, completed the assessment and passed orders under section 16(1) of the Act, by an order dated September 8, 1986. Similarly, for the assessment year 1985-86, a return was filed on November 29, 1985, disclosing a net wealth at Rs. 4,41,900 and the same was accepted and an order was passed on September 8, 1986. By a notice dated February 15, 1991, the first respondent invoked section 17 of the Act and proposed to assess the escaped wealth both for the assessment years 1984-85 and 1985-86. By a notice dated October 1, 1991, the first respondent referred the valuation of the properties relating to the assessment years ending with March 31, 1983, up to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction to invoke section 17 of the Act. Alternatively, learned counsel for the appellant contends that the notices are beyond the time prescribed in the Act and, therefore, the same should not be given effect to. So far as the notice issued under section 16 of the Act is concerned, the argument is that the same could be invoked, only when the assessment proceedings are pending before the officer concerned. At the outset, we would like to make it clear that section 17 of the Act had undergone a change with effect from April 1, 1989, by the Direct Tax Laws (Amendment) Act, 1987. Inasmuch as the impugned notices under section 17 of the Act have been issued only on February 15, 1991, it goes without saying that it would be only the amended pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-clause (ii) or sub-clause (iii) ; (ii) if four years, but not more than seven years, have elapsed from the end of the relevant assessment year, unless the net wealth chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees five lakhs or more for that year ; (iii) if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the net wealth chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees ten lakhs or more for that year ; (b) in any other case,-- (i) if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub-clause (ii) or sub clause (iii) ; (ii) if four years, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts, like Rs. 7,57,900 for the assessment year 1986-87 and Rs, 6,50,800 for the assessment year 1987-88. The argument of Mr. Sundar, learned counsel for the appellant, is based on the judgment of the Supreme Court in Ganga Saran and Sons Pvt. Ltd. v. ITO [1981] 150 ITR 1. It has to be remembered that the said judgment arose out of the unamended provisions of the Income-tax Act, which contained similar provisions of law like the Wealth-tax Act. It was with reference to the said provisions of law, the apex court pointed out that unless the ingredients are available for reopening an assessment, the power cannot be exercised. Learned counsel for the appellant also relies on the judgment in Acchut Kumar S. Inamdar v. P. R. Hajarnavis [1981] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain jurisdictional facts have got to be ascertained, it cannot be said that the Assessing Officer lacks jurisdiction, he can always issue a notice and ascertain whether such jurisdictional facts to invoke the provisions of section 17 of the Act are available. On the question of limitation, we accept the argument of learned senior counsel appearing for the respondent that a seven year period is available in respect of the assessment years 1984-85 and 1985-86 and, therefore, the notice issued on February 15, 1991, is well before the last date, viz., March 31, 1992, in respect of the assessment year 1984-85. Consequently, the argument based on the question of limitation also fails. We have only to consider the notice issued under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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