9911796707
TMI Blog1982 (9) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... the justification thereof by the AAC. 3. The assessee is an individual. For the asst. yr. 1968-69 to 1971-72, he filed the returns of his net wealth declaring therein, inter alia, value of immovable property owned by the assessee and the value of the jewellery possessed by him. The WTO made the WT assessments for all the years under appeal under s. 16(3) of the WT Act, 1957 and the position regarding net wealth returned and the net wealth assessed can be seen from the following data placed in juxtaposition: Asst. yr. Net wealth declared Net wealth assessed Date of order . Rs. Rs. . 1968-69 5,78,804 . . revised to . . 6,77, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd according to him, the assessee had property bearing Nos. 23 and 24, Gandi Gali, Bazar Fatehpuri, Delhi which had been valued by the V.O. at a higher figure than what had been declared by the assessee. In none of these assessments, the WTO has recorded that he had reason to believe that net wealth for any of the assessment years had escaped assessment by reason of omission or failure of the assessee to disclose fully and truly all material facts necessary for the assessment. In fact, the WTO has not indicated as to which limb of s. 17 i.e. cl. (a) or cl. (B) was applicable to the reopened assessments. However, in each of the assessment years under appeal, he has added to the net wealth already assessed, the amount of Rs. 24,481, Rs. 27, 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Act for any of the assessment year or to disclose fully and truly all material facts necessary for assessment of his net wealth, the net wealth, chargeable to tax had escaped assessment for that year. However, the WTO has for the reasons best known to him omitted this most important part when he made the impugned reassessments. 6. It is apparent that the reassessments were resorted to by getting report from V. O. about the impugned property and by taking the valuation shown in the valuation report, the reassessment proceedings were initiated and completed by adding the difference between the V.O.'s report and the valuation originally declared by the assessee. In our considered opinion, this was not justified because the WTO at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been considered by the WTO at the time of original assessment proceedings. The WTO cannot under the pretext of collateral fact not disclosed, justify his action. What the WTO has relied on can also work to the great disadvantage of the revenue because if what is shown for purposes of insurance is to be taken as sacrosanct, then a lower valuation shown by any assessee in the insurance will have to be accepted by the WTO. We are of the opinion that either way it does not affect the assessment of a particular asset which has to be made by application of a judicial mind by the WTO himself and once a property and its value has been declared in the return by the assessee, the WTO has a duty to determine its value and include in the net wealth of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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