9911796707
TMI Blog1980 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... , under s. 16(3) of the Act, the regular assessments for the asst. yrs. 1972-73 and 1973-74 were completed under s. 16(1) of the Act on 14th July., 1975; and that for the asst. yr. 1974-75 was completed under s. 16(1) of the Act on 16th July, 1975. None of these assessments resulted in the levy of wealth-tax because the assessed net wealth was below the exemption limit. The net wealth of the assessee for all these years included a sum of Rs. 74,500 as representing the value of the assessee's house property at N.S.M. Ahmedabad. 4. In February, 1977, the WTO initiated proceedings under s. 17(1)(a) of the WT Act for the asst. yrs. 1971-72 to 1974-75. The reasons for initiating the proceedings under s. 17(1)(a) of the WT Act for the asst. yr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e WT Act. He accordingly held that the WTO in the instant case did not have any jurisdiction to invoke even the provisions of s. 17(1)(b) of the WT Act. 6. The Departmental Representative has urged that the provisions of s. 17(1)(a) of the WT Act were attracted in this case. In this connection, he pointed out that in the statement of net wealth filed by the assessee alongwith the returns for the relevant years, the assessee had declared the value of the house property in question at Rs. 74,500 with the follow in narration: "Valur as per Valuer's report Rs. 74,500. The Departmental Representative contended that although the aforesaid statement made a reference to the report of the Valuer, no such report was available on record. He, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 974) 95 ITR (Cal) and ITO vs. Eastern Coal Co. Ltd. (1975) 101 ITR (477) (Cal). In this connection he contended that the valuation report of the Survey Squad, which consisted, inter alia, of a qualified Engineer would constitute "information" for the purposes of s. 17(1)(b) of the WT Act. He also pointed out that the reasons recorded by the WTO for initiating proceedings under s. 17 of the WT Act clearly showed that he had taken action on the basis of the aforesaid report of the Survey Squad and not on any separate valuation made by the Valuation Officer as erroneously assumed by the AAC. 8. The ld. counsel for the assessee has, on the other hand, contended that neither the conditions laid down in s. 17(1)(a) nor those laid down in s. 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is urged that as the report of the Valuer was based on the annual letting value or rental method, the value as determined by the Valuer for the purposes of the asst yrs. 1967-68 would have remained unaltered for the subsequent assessment year as well. In the circumstances, the ld. counsel contended that the AAC was justified in holding that there was no omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of his net wealth. 9. The ld. counsel for the assessee also challenged the action under s. 17 of the WT Act on the ground that the valuation report of the Survey Squad was in respect of the value of the house property as on 31st March. 1975 and 31st March, 1976. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue as the WTO, who made the original assessments had applied his mind and accepted the assessee's valuation, it was not possible for him or a successor WTO to change his opinion regarding the valuation on the same set of facts as were existing when the regular assessments were made. 11. On a consideration of the rival submissions and the facts and the circumstances of the case, we are satisfied that it was not permissible for the WTO to have initiated the reassessment proceedings either under s. 17(1)(a) or under s. 17(1)(b) of the WT Act. The various decisions relied upon by the Departmental Representative to justify the action taken by the WTO turned on the facts and circumstances as obtaining in those cases. The relevant facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the method of computing the income for that of the ITO who made the original assessment, especially when the method of computation adopted at the time of original assessment was permissible in law. The fact that the adoption of a different method of computation would have resulted in higher yield of tax would not in such a case justify the reopening of the assessment. 13. The above mentioned principles enunciated by the Supreme Court are applicable in the instant case as well. In the present case, the WTO accepted after examination the value of the house property as declared by the assessee. The assessee had declared this value on the basis of the report of a Valuer who had followed the rental method which is recognised as a valid me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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