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TMI Blog1987 (2) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... e & Wealth Act, 1976, hereinafter referred to as 'VDS'). The net wealth declared under this voluntary disclosure was as follows: "Statement of value of asset/WT returns not filed. Assessment year Amount of net wealth Rs. 1. 1958-59 3,46,750 2. 1959-60 3,46,750 3. 1960-61 3,46,750 4. 1961-62 &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; 4,95,000 Note: The necessary wealth-tax returns for the above assessment years are not filed." We were given to understand at the time of the hearing of the appeals that the wealth-tax chargeable in respect of the net wealth for the various assessment years for which the declaration was made was paid by the assessee or invested in securities as required under the VDS. Before the Wealth-tax Officer, in the course of the assessment proceedings for the assessment years 1958-59 to 1974-75, it was claimed that since the assessee had made disclosure under the VDS which had been accepted by the Commissioner, it was not open to the Wealth-tax Officer to make an assessment on the value of the properties at an amount higher than what was disclosed in the declaration under the VDS. The Wealth-tax Officer, however, did not accept this contention and made a reference to the Valuation Officer to determine the value of the properties at Koregaon Park, Poona, Worli, Bombay and Dhanji Street, Bombay. The valuation of the Ville Parle property was not referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the VDS were justified and the values estimated by the Wealth-tax Officer were highly excessive and arbitrary. Here it will necessary to point out that grievance of the revenue in the appeals before us is limited to the valuation of the immovable properties at Worli, Bombay, Dhanji Street, Bombay and Koregaon Park, Poona, for all the assessment years under consideration before us, and Ville Parle property only for the assessment years 1958-59 to 1966-67 and not for the subsequent assessment years 1967-68 to 1974-75 since the Ville Parle property was sold during the previous year relevant to the assessment year 1967-68. Similarly, there is no appeal by the revenue against the acceptance of the value of the ancestral property at Ramgarh by the Appellate Assistant Commissioner for the assessment years 1958-59 to 1971-72 and by the Commissioner of Wealth-tax (Appeals) for the assessment years 1972-73 to 1974-75. 4. The learned departmental representative, Sri Srivastava, submitted to us that the declaration under the VDS only gives immunity to the assessee from any penalty or prosecution in respect of the wealth disclosed under the declaration, or to the assessment of the wealth discl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belief that the assessee by making a declaration will put an end to all its troubles and will buy peace and the very purpose of the VDS will be set at naught if the declarations made under the VDS were to be scrutinised by the Wealth-tax Officers of the assessments were made on higher amounts, He, therefore, submission that the Wealth-tax Officer was not justified in taking the value of the properties at a higher amount than what was declared in the declarations under the VDS and the Appellate Assistant Commissioner for the assessment years 1958-59 to 1971-72 and the Commissioner of Wealth-tax (Appeals) for the assessment years 1972-73 to 1974-75 rightly directed that the net wealth as declared by the assessee under the VDS should be accepted. 6. Alternatively, Sri Desai contended before us that even on merits the values of the properties as given in the declaration under the VDS and in the wealth-tax returns were justified and the values adopted by the Wealth-tax Officer on the basis of the report of the Valuation Officer were highly excessive and unjustified. Reference in this connection was made by him to the cross objections filed by the assessee for the assessment years 1972 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee under the VDS is correct and complete. The Wealth-tax Officer can make as assessment on an amount higher than what was declared in the declaration under the VDS and the immunity of the assessee from penalty or prosecution will be limited to the amount which was disclosed in the declaration under the VDS. May be there is some force in the argument of the assessee's learned counsel, Sri Desai, that the declarations under the VDS were made by the assessee in the hope that this will put to an end the troubles and they will buy peace but this cannot be a justified for understatement of the values of the properties in the declaration and on that basis to claim that even if the values of the properties were understated in the declarations under the VDS, the revenue authorities are stopped from making enquiries regarding what was the correct value of the properties and making assessment on the correct net wealth. There is, therefore, a lot of force in the contention of the learned departmental representative, Sri Srivastava, that even where an assessee makes a declaration under the VDS, it is open to the revenue authorities to investigate whether the declaration made is co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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