Law: Wealth Tax Act, 1963

Section: 17,17(b),25(i)(ii)

Wealth Tax Act, 1963 (XV of 1963)-- ----Ss. 17, 17(b) 25(i)(ii)--Rectification of assessment order--Reducing of liability of respondent--Exercising of--Suo moto revisional powers--Assessment order was revised--Restoration of original assessment order--Question of--Whether in absence of a limitation period being prescribed under Section 25(2) of Act, said omission can be supplied with reference to limitation period under Section 25(2) of Act--Protection of interest of revenue--Limitation period--Purpose of law--Incorrect conclusion--Challenge to--A revisional remedy to assessee for obtaining an order that is net prejudicial to his interest--Prescribed limitation period for invoking this remedy is one year--Suo Motu power on Commissioner to revise orders in interest of revenue for which no limitation period is prescribed-- High Court has compared two provisions of Section 25 and has read into law by interpreting its sub-sections (1) and (2) to be identical in their effect--Limitation governing Suo Motu exercise of revisional power by Commissioner under Section 25(2) of Act is also one year--It is trite law that when a statute is silent about limitation, a reasonable time limit is to be supplied by Courts--No general standards can be set out, and such time is and shall be dependant again on purpose of law to be achieved by an act or function to be performed--Purpose of Section 25(2) is to protect interest of revenue and to prevent wealth from escaping assessment--This same purpose is also served by two other sections in Act: 17 and 17B--Former provides far exercise of Suo Motu re-assessment power by D.C. to prevent wealth from escaping assessment, and latter provides for exercise of Suo Motu revisional power by Inspecting Additional Commissioner to protect interest of revenue--Limitation period governing section 17B should also govern Section 25(2)--Any finding to contrary will go against spirit of this revisional power protecting interest of revenue, purpose of which was to ensure that no taxable wealth escaped assessment-- Limitation period in Section 25(2) should be governed by limitation period in Section 25(1) will be an incorrect conclusion because two…

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