Law:

Section:

Section 17(1)(b) of the wealth-tax act, 1975-Reassessment-Information-WTO completed four assessments after accepting valuation of properties made by authorised valuer-WTO subsequently issued notices under section 17(1)(b) on ground of understatement of value relying on government valuer's report-Whether WTO legally justified in reopening of assessments-Held, on facts, no Facts The WTO, accepting the valuation of certain properties made by authorised valuer as per his report dated 25-1-1969, completed the assessment on 3-5-1971 for the assessment years 1966-67 to 1969-70. Thereafter, on the basis of a valuation report, dated 12-7-1972, received from another Government valuer that the properties were not properly valued, the WTO served notices, on 26-7-1973 and 4-2-1974, for reopening the said four assessments under section 17(1)(6). On writ : Held 1. It is now well settled that the jurisdiction to reopen the assessment orders, which have become final, can be exercised provided the officer has reason to believe from information in his possession that the earlier orders escaped the net wealth chargeable to tax. Mere change of opinion of the succeeding officer is not enough, and especially when, before passing the assessment order, the officer could have easily ascertained the correctness of the statements made in the return. 2. The mere fact that the two valuers have given conflicting reports about the true value of the properties is not sufficient to reopen the assessment under section 17(1)(b). The action of the WTO was, therefore, totally erroneous and he had assumed jurisdiction illegally and irregularly. The impugned notices were, accordingly, struck down. Cases referred to CIT v. Dinesh Chandra H. Shah [1971] 82 ITR 367 (SC) and CIT v. Simon Carves Ltd. [1976] 105 ITR 212 (SC). JUDGMENT Pendse, J. - The petitioner, Shri Tulsidas Kilachand, was assessed for wealth-tax since 1957 as "individual" resident of India. The petitioner filed his wealth-tax return for the assessment years 1966-67 and 1967-68, and the property assessed for wealth-tax, inter alia, included immovable properties in which the petitioner was holding ¼th undivided share along with his three…

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