9911796707
TMI Blog1984 (3) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee declare the value of the three house properties owned by him at certain figures as determined by a registered valuer. The WTO had completed the original assessments on the basis of these figures. Subsequently, the WTO made a reference to the Departmental Valuation Officer about the market value of three properties because the audit party gave a note that the properties were undervalued. The WTO received the report from the Departmental Valuation Officer, who valued the properties at figures higher than those adopted in the original assessments. Thereupon, the WTO reopened the assessments under s. 17(1)(a) of the Act, for the following reasons: "From the records, it is seen that there is escapement of wealth on account of under valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so regarding certain interpretations of the law. Relying on the decision of the Supreme Court in case of Indian Eastern Newspapers Society vs. CIT (1979) 12 CTR (SC) 190 : (1979) 119 ITR 996 (SC), he held that the opinion of the Audit Party did not constitute "information" for the purpose of s. 17(1)(b). Hence, he came to the conclusion that the reopening of the assessment for the asst. yr. 1972-73 could not be justified even under s. 17(1)(b) of the Act. In this view of the matter, he cancelled the reassessments and allowed the assessee's appeals. 4. Aggrieved by the above order of the AAC the Department has come up in appeals before us. Shri Anjani Kumar, the ld. representative for the Department, urged before us that the AAC erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary for the assessment of his net wealth, the net wealth chargeable to tax has escaped assessment. We find that the assessee had declared the ownership of the three house properties as well as their valuation on the basis of the report of a Registered Valuer at the time of the original assessment. Hence, we agree with the AAC that the assessee did not fail to disclose any material fact necessary for his assessments, in course of the original assessment proceedings. Consequently, we come to the conclusion that the provisions of s. 17(1)(a) did not apply to the facts of this case and the AAC rightly annulled the reassessments on that ground. 7. Coming to the applicability of s. 17(1)(b) of the Act, we find that this contention can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at action was contemplated only u/cl (a), or only u/cl (b). In the instant case, the notice issued to the assessee did not specify whether it was cl. (a), or cl. (b). But the other facts on record clearly show that action was contemplated only u/cl(a) and not u/cl(b). These other facts are found in the reason recorded by the WTO for reopening and the section mentioned at the top of the reassessment order. Hence, respectfully following the aforesaid decision of the Bombay High Court, which is binding on us, we hold that the assessment was reopened under s. 17(1)(a) and the WTO, while exercising the jurisdiction acquired under s. 17(1)(a), cannot make a reassessment under s. 17(1)(b). Hence, we uphold the decision of the AAC for the asst. yr. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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