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TMI Blog1978 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... on these returns. Being of the opinion that the petitioner's house at 22, Katghar Road, Allahabad, was under-assessed, the WTO issued notices for these four assessment years as well as for the assessment year 1965-66 under s. 17 of the W.T. Act on 24th September, 1973. The petitioner contested these notices, but overruling the objections, the WTO, on 22nd January, 1975, passed five separate assessment orders in respect of each of the five years. In the original assessment proceedings the value of the house at 22, Katghar Road, was taken to be Rs. 16,640. In the reassessment proceedings, the value was taken at Rs. 4,66,020. The value of the mining lease rights was also upgraded and computed at Rs. 2,52,000. The assessee went up in appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port will have to be added. On the question of mining lease rights, the Tribunal held that the assessee's interest in the mining lease was an " asset " within the meaning of s. 2(e) of the W.T. Act and was liable to wealth-tax. The WTO had valued the interest in mining lease at Rs. 2,52,000 on the basis of multiplying the average annual income by 12. The Tribunal considered the facts and directed the officer to adopt the multiplier of 8 for 1965-66 and 1966-67, multiplier of 10 for 1967-68 and 1968-69 and the multiplier of 11 for 1969-70. Ultimately, the Tribunal observed : " We have quashed the assessment orders made by the Wealth-tax Officer under section 17(1) of the Wealth-tax Act and, therefore, findings given on quantum are of acade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the second proviso to s. 34(3) of of the Indian I.T. Act, 1922, and s. 150 of the I.T. Act 1961. In each of these three provisions the material phrase used is " in consequence of or to give effect to any finding or direction " contained in an order passed by way of appeal, reference or revision. The Supreme Court in ITO v. Murlidhar Bhagwan Das [1964] 52 ITR 335 considered the second proviso to s. 34(3). It held that the expressions " finding " and " direction " meant a finding necessary for giving relief in respect of the assessment for the year in question and a direction which the appellate or revisional authority, as the case may be, was empowered to give under the sections mentioned in that proviso. A finding could, therefore, only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the business had been gifted to S and B in 1942 was only an incidental finding and not a finding necessary for the disposal of the appeal. It was also held that the directions given by the appellate authority were also not necessary for the disposal of the appeal. In the present case the Tribunal held that proceedings under s. 17 were initiated on the ground that the Katghar house had been under-assessed. This was on a change of opinion. They were held to be without jurisdiction and were quashed. The additional findings as to the quantum of the value of the Katghar house were clearly not necessary for the disposal of the appeal in order to give relief to the appellant. The appellant had obtained complete relief on the basis of the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered the question as to when can a question of law be said to arise out of the Tribunal's order within the meaning of s., 66(1) of the 1922 Act. That is not the problem before us. Here, we have to consider the scope of the words " finding or direction " occurring in s. 17(2) of the W.T. Act, on which the Supreme Court has specifically ruled that the finding or direction must be absolutely necessary for the disposal of the appeal. This case is, therefore, not helpful. On a change of opinion reassessment proceedings could possibly be initiated under cl. (b) of s. 17 provided the officer initiates the proceedings in consequence of any information in his possession obtained subsequent to the original assessment orders. The prescribed period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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