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TMI Blog1996 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether the Tribunal was justified to hold that the fresh assessments made by the Assessing Officer for the assessment years 1964-65 to 1974-75 on January 27, 1987, were barred by limitation ? " The assessee, Shri Parmanand Bhai Patel, was a partner in the firm, Mohanlal Hargovinddas, and had a 50 per cent. share therein. He retired therefrom on October 24, 1963, and the remaining partners were Shri Shravan Kumar Patel and Smt. Ujjambai. An agreement was entered into between the assessee on the one hand and the remaining two partners on the other, providing, inter alia, that notwithstanding the retirement of the assessee from the partnership, he would continue to hold a 50 per cent. share in the goodwill of the firm and for the user ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent. of the total yield of goodwill, which according to him, was to be calculated on the basis of profit of goodwill of the share of the assessee at Rs. 18 lakhs for each of the assessment years vide order dated January 21, 1987. The assessee went in appeal before the Commissioner of Wealth-tax (Appeals) against the order of the Assessing Officer dated January 21, 1987. According to the assessee, the actuarial valuation of the asset of goodwill was Rs. 2,03,125 vide report of K. P. Pandit, Consulting Actuary. Alternatively, it was contended on behalf of the assessee that the valuation of the goodwill should be taken as yield of Rs. 50,000 at the prevailing market rate of interest which was 18 per cent. per annum. It was also claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 333. Learned counsel for the Department submitted that the Tribunal erred in law in holding that there was no challenge before the Tribunal regarding the order of the Commissioner of Wealth-tax (Appeals) setting aside the assessments. It was submitted that the order of the Commissioner of Wealth-tax (Appeals) was on the same ground which is the subject-matter of the appeals. Therefore, the order of the Commissioner of Wealth-tax (Appeals) merged in the order of the Income-tax Appellate Tribunal and hence the order of the Assessing Officer is within the time-limit prescribed under the Act and the Tribunal erred in holding that the reassessments for the assessment years 1964-65 to 1974-75 are barred by limitation. This was opposed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be done by the Assessing Officer in compliance with the order of the Commissioner of Wealth-tax (Appeals) setting aside the assessment. Therefore, the period of limitation is to be computed from the date of the order of the Commissioner of Wealth-tax (Appeals) and if that be so, then the reassessment for the assessment years 1964-65 to 1974-75 is barred by limitation. In fact, the chronological events as mentioned above show that the Revenue did not approach the Tribunal against order dated September 14, 1979, and there was nothing to prevent them from making the assessment. Though the assessee had filed an appeal before the Tribunal and that was only with regard to the mode of valuation of assets adopted by the Assessing Officer and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wealth-tax Officer will give due weight to the yield aspect of the assets. " Since the factual data was not before the Commissioner of Wealth tax (Appeals) and the Tribunal, therefore, both the authorities only directed to do this exercise and categorically recorded that the order will be confined to this limited purpose only. The rest of the order thus remained undisturbed and if the Assessing Officer wanted, he could have passed the assessment order within a period of four years. There was no question of merger because no issue of assessment was decided by the Commissioner of Wealth-tax (Appeals), he only confined himself to the valuation of goodwill. Hence, the Tribunal has rightly held that the assessment is barred by time. We answer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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