9911796707
TMI Blog1983 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... f deduction, came to the conclusion that valuation of the said property as on valuation date relevant for assessment year under consideration was higher and resorted to proceedings u/s 17. When the assessee came before the AAC, he accepted the contention of the assessee that the WTO had no jurisdiction in reopening of the assessment. The revenue carried the matter before the Tribunal and the Tribunal sent back the matter to the AAC vide its order dt. 27th August, 1980 in WTA Nos. 49 to 51/Asr/79, as with this assessment year under consideration 1972-73, dispute regarding asst. yrs. 1970-71, 1971-72 were also involved. Here, we are concerned only with asst. yr. 1972-73. As a consequence of the said Tribunal's order, the AAC reheard the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be dismissed. 4. After taking into consideration the rival submissions we are unable to confirm the finding of the AAC. There is no controversy about the fact that valuation of the property at Pakhowal was shown and included in the original assessment proceedings and was duly included therein. It was only subsequently on the strength of a complaint that the matter regarding valuation of the said property was referred to the official cell and that too to be valued as on 31st March, 1974 and on the strength of the said valuation, the WTO went back to the date of valuation relevant for the year under consideration and initiated proceedings u/s 17 which are apparently u/s 17(1)(b), as observed by the AAC, as the appellant had disclosed al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entirely illegal and misconceived. The provision of s. 17(1)(B) of the WT Act reads as follows: "17(1) If the WTO— (b) has, in consequence of any information in his possession, reason to believe, notwithstanding that there has been no such omission or failure as is referred to in clause (a), that the net wealth chargeable to tax has escaped assessment for any year, whether by reason of under-assessment or assessment at too low a rate or otherwise." This provision enables the WTO to reopen the assessment if in consequence of any information in his possession he has reason to believe that the net wealth chargeable to tax has escaped assessment. It is also urged on behalf of the petitioner that the wealth tax returns for the concerned tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercised jurisdiction illegally and irregularly. The two interim notices dated 26th March, 1973 and 4th February, 1974 require to be struck down." The Gujarat High Court decision in the case of Navinchandra Mohanlal Parikh also supports the contention of the assessee, though it was on a different set of facts. There what under consideration was whether the ITO can reopen an assessment on the ground that certain plot of land which the assessee owned in certain areas had been under-valued on the basis of only material for the ITO's belief that in some other assessment proceedings another plot in the same area was assessed at a high value. 6. After taking into consideration the view as available from the citations from both the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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