Law:

Section:

Section 17 of the Wealth-tax Act, 1957 - Reassessment - General - Assessment year 1968-69 - Whether jurisdiction of WTO to assess escaped net wealth enables him to reassess only such net wealth that satisfied requirements under clause (a) or (b) of section 17(1) and this limited jurisdiction cannot be enlarged by allowing assessee to ask for recomputation of net wealth, especially when assessment of net wealth of assessee has become final - Held, yes - Whether, therefore, at time of reassessment, assessee's claim for exemption in respect of agricultural land, which claim he should have made at time of original assessment but omitted to make, was not admissible - Held, yes FACTS The assessee was partner in a firm which owned an agricultural property. The original assessment of the assessee was completed by including the value of the interest in the agricultural property also in the net wealth of the assessee. The WTO subsequently reopened the assessment under section 17 on the ground that the land acquisition compensation awarded in respect of certain property had not been included in the return. In the reassessment proceedings the assessee contended that the value of his interest in the partnership firm as computed in the original assessment was wrong, inasmuch as the value of the agricultural property owned by the firm became automatically included when the assessee had shown the entire credit balance in the capital account and the current account. As the assets of the firm consisted of agricultural and non-agricultural items, it was claimed that the WTO should recompute the interest in the firm by applying rule 2 of the Wealth-tax Rules, 1957 and excluding the agricultural assets of the firm. The WTO rejected the claim. The AAC held that the assessee had not claimed any such deduction in the original assessment, that the said assessment had become final, and it was, therefore, not open to the assessee to take up this new claim when the WTO reopened the assessment to net in some other items of wealth which had escaped assessment. On further appeal, the Tribunal took the view that the WTO was bound to recompute the taxable wealth of the assessee according to…

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