9911796707
TMI Blog1980 (1) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... -12-1962. The assessee was originally assessed for the aforesaid assessment years, but subsequently, it was found out by the WTO from the relevant assessment records pertaining to income-tax, that a letter from the assessee dated 25th March, 1965, addressed to the ITO, 'E' Ward, District III(1), who was the assessing-ITO of the assessee, informed him (the ITO) that the assessee had made disclosure of Rs. 2,28.000 under the Voluntary Disclosure Scheme under s. 68 of the Finance Act, 1965, and paid tax of Rs. 1, 69,800 on 25th March, 1965. The said ITO was also informed that the balance amount of Rs. 1,28,140 was taken into the assessee's accounts. A copy of the assessee's letter dated 15th March, 1965, addressed to the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessments, both under-the I.T. Act as wall as the W.T. Act, and, accordingly, the assessee's letter dated 25th March, 1965, and his disclosure , petition constituted information enabling the WTO in initiating proceedings under s. 17 of the W.T. Act. The AAC was also of the opinion that s. 68 of the Finance Act, 1965, did not contain any provision debarring the taxing authority from assessing the disclosed income to the wealth-tax. Being aggrieved by the order of the AAC, the assessee preferred appeals therefrom to the Income-tax Appellate Tribunal. Before the Tribunal referring to s. 68 of the Finance Act, 1965, and s. 24 of the Finance (No. 2) Act, 1965, it was contended, on behalf of the assessee, that a greater degree of sanctity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the parties and was of the view that the initiation of the proceedings under s. 17 of the W.T. Act was valid. According to the Tribunal, s. 68(8) does not prevent the WTO from utilising the information received by him as an ITO from the assessee in taking action under s. 17 of the W.T. Act. It was further held by the Tribunal that the restriction imposed by s. 68(6)(a) of the Finance Act was imposed only with reference to the income-tax assessment and the wealth-tax assessment being an asset, the said section had no application in the instant case. The Tribunal, therefore, upheld the initiation of proceedings under s. 17 of the W.T. Act. The assessee, thereafter, made a reference application under s. 27(1) of the W.T. Act, requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal, however, after reframing questions Nos. 1 and 2 as sought to be raised by the assessee, referred the following question under s. 27(1) to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the Wealth-tax Officer was right in initiating proceedings under s. 17 of the wealth-tax Act, 1957, on the basis of disclosure made under s. 68 of the Finance Act, 1965, by the assessee ? " The Tribunal, however, refused to refer question No. 3 as framed by the assessee. Mr. K. Ray, learned counsel for the assessee, has submitted that the question referred to this court is wide enough to cover the contention of the assessee relating to the jurisdiction of the W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the question referred to this court for its opinion is very limited. According to him the only controversy that arises in the instant reference is whether the WTO was right in initiating the proceedings. The question does not cover the contention as made by the assessee regarding the WTO's jurisdiction to initiate the proceedings. Mr. Sengupta has further submitted that in the instant case, as will appear from the statement of the case and the order of the Tribunal, the initiation of proceedings under s. 17 was on the basis of the letters written by the assessee to the ITO giving particulars of the disclosure made by the assessee under s. 68 of the Finance Act, 1965. According to Mr. Sengupta the initiation of proceedings in the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 965, addressed to the ITO, 'I" Ward, Dist. III(1), informing him that the appellant had made a disclosure of Rs. 2,98,000 under the Voluntary Disclosure Scheme, 1965, and paid a tax of Rs. 1,69,860 on 23rd March, 1965. He was further informed that the balance amount of Rs. 1,29,140 was taken into the appellant's accounts. Along with this letter a copy of the letter dated 15th Feb., 1963 to the Commissioner of Income-tax was also enclosed." It appears from the statement of the case and from the Tribunal's order that the initiation of proceedings by the WTO under s.17 was on the basis of the two letters mentioned hereinbefore. Those facts found by the Tribunal are binding on the parties in the instant reference and in that view of the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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