9911796707
TMI Blog1980 (9) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... urther realised that the assessment being completed after the sale which took place on 21st Nov., 1969 the assessee failed in disclosing at the time of assessment, the material particulars of sale to him. The assessment being completed on 2nd Jan., 1970 was after the date of sale. The assessee having failed in his view to disclose the material particulars of sale, the WTO assessed the value of his share at Rs. 1,10,837 as returned, when the market value of the said property was Rs. 6 lakhs as realized on sale which took place before the completion of the assessment. He, therefore, caused a notice under s. 17(1) to be issued on 20th May, 1976. The assessee filed his return of wealth on 30th July, 1976 disclosing the wealth as was assessed in the original assessment. He contended that WTO had proceeded illegally in reopening the assessment. He had no basis nor any justification to reopen the assessment. He (the assessee) had not failed to disclose any material particulars which was required to be disclosed to the ITO before the first assessment was made. Since he had not filed to disclose the material and primary particulars relating to the property, the WTO had no ground valid in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the WTO knew about the sale of the property of the consideration which he was to receive at the time of making the assessment. He referred to the application for a certificate under s. 230A(1) of the IT Act, 1961 which he had made to enable him to register the sale. The sale having been completed on 20th Nov., 1969, ITO, who is also the WTO, knew from the application the proposed draft agreement of sale, not only about the factum of sale but also about the vendor and also about the consideration. He had to certify to the District Registrar that the assessee had either no liability outstanding or had made satisfactory provision for the payment of taxes under the IT Act, EPTA 1940, B.P.T. Act, 1947, WT Act, 1957, ET and GT Act, etc. The WTO-cum-ITO had to certify that either there were no liability under these Acts and if there were, whether he had made adequate provisions for payment of the liabilities. Therefore, as held in Hem Chandra Kar vs. CIT (1) by Their Lordships of Supreme Court, how could the assessee with hold from the knowledge of the WTO what he had already come to know by his application moved under s. 231 of the IT Act, for obtaining a certificate of clearance. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Self occupied Rs. 5,00,000 5. Owners not known. Tenant Mr. V. Gupta 0.86 acres Approx. 4150 sq. yds. Approx. 5650 Single storey A big single unit Tenant Rs. 600 per month property was sold for Rs. 2,75,000 as per WTO orders in case No. 2. He stressed that the property shown at serial No. 1, 2 and 5 were far bigger properties and yet their valuation made by the WT authorities was not out of pace with the valuation of the property in dispute. He explained that he was able to realize the good price not because of the market value of the property but on account of the keenness of the purchaser to utilize the plot after demolishing the building to raise a multi-storeyed complex for commercial purposes. Normally the local authorities will not accept a purchaser to have a building for commercial use in a residential locality. Because the vendor was a man of means and wealthy man he could manoeuvre political influence. It was by investing some substantial amount only he could succeed in obtaining the sanction of the local authorities to use the plot of the assessee sold to him to raise a multi-storyed complex. The buyer being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for wealth-tax. How else the WTO could certify the wealth-tax liabilities of the assessee on 21st Nov., 1969. Together with the application a draft of the proposed sale deed is also required to be submitted by an assessee who applies for the grant of the clearance certificate under s. 230A. The WTO having certified that there were no liabilities in wealth-tax cannot disclaim the knowledge of the sale of said property in dispute. If he had the knowledge before the assessment was made, how could the assessee further inform him about the sale of the property. In the circumstances it is not possible, therefore, to hold that the assessee had failed to disclose the primary and material facts to the WTO at the time of original assessment. Besides we have a doubt whether a happening which took place subsequent to the valuation date will constitute a primary and material fact referred to under s. 17(1) of the WT Act. In case the assessment had been completed soon after the submission of the return in July, or Aug., 1969 the sale having taken place on 21st Nov., 1969 could not be looked upon by any one as the primary and material facts whose knowledge should have been given to the WTO on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
