9911796707
TMI Blog1995 (4) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... ing further proceedings in pursuance of the above notices. It is the case of the petitioner that he is the heir and legal representative of one Abdul Razak Bannumiya Mistry, who died on September 29, 1981. He was the assessee under the Act. He owned land bearing final Plots Nos. 95/A and 95/B admeasuring about 21,495 sq. mts. It was agricultural land but it lost its character as agricultural land from March 31, 1975. According to the petitioner, for the assessment year 1974-75, the land was valued as agricultural land at Rs. 2,54,947 as on March 31, 1974, on the basis of the valuation report of a registered valuer of the assessee. For the assessment year 1975-76, however, it was valued at Rs. 1,52,255 in view of the provisions of the Guja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Wealth-tax, Baroda, issued notice to the assessee on October 10, 1980, by exercising revisional power under section 25(2) of the Wealth-tax Act, 1957, calling upon the assessee to show cause why the assessment order should not be set aside as the assessee had not adopted the correct market value of the said land. Replies were filed by the assessee. The Commissioner of Wealth-tax by an order dated August 15, 1981, set aside the assessment order and directed the Wealth-tax Officer to reframe the assessment orders after referring to the Departmental Valuation Officer the issue of valuation of the land under section 16A of the Act. The assessee being aggrieved by the said order approached the Income-tax Appellate Tribunal. The Tribunal, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel for the petitioner, raised two objections. Firstly, he submits that the notices issued by the respondent are barred by section 17 of the Act and they are required to be quashed, being time-barred. Secondly, when the Tribunal has allowed the appeals filed by the petitioners and a finding of fact was recorded in his favour on the merits, it was not open to the respondent to issue notices. Mr. B. J. Shelat, learned counsel for the respondents, on the other hand, supported the authorities. He submitted that considering the provisions of section 17(2) of the Act, read with the order of the Tribunal, it cannot be said that the notice was barred by time. On the merits, he submitted that when the notice is issued, it is open to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 14, and may proceed to assess or reassess such net wealth, and the provisions of this Act shall, so far as may be, apply as if the notice had issued under that sub-section. According to Mr. Kaji, admittedly, the period expired on March 31, 1988, since the relevant period were the assessment years 1975-76 to 1979-80. Notice, according to Mr. Kaji, ought to have been served latest by March 31, 1988. Section 17 came to be substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from April 1, 1989. Relying upon the decisions of the Supreme Court in the case of J. P. Jani, ITO v. Induprasad Devshanker Bhatt [1969] 72 ITR 595 and S. S. Gadgil v. Lal and Co. [1964] 53 ITR 231 (SC) ; AIR 1965 SC 171, it was contended that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Kaji in this connection on paragraphs 26 and 27 of the order of the Tribunal. Considering the merits of the matter, the Tribunal observed that the direction given by the Tribunal did not authorise the Commissioner to improve upon his order dated August 18, 1981, so as to bring the appellant, i.e., the present petitioner, to a position worse than that which was occupied by him. Again in paragraph 27, it was observed as under : " The valuation adopted in those sales which were no doubt effected in pursuance of the agreement for sale dated June 21, 1975, could not have been substituted ignoring the facts of various provisions of the Act of 1972 and the Act of 1976 which clearly prohibited the transfer of excess land by an assessee. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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