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Section 17(1) of the Wealth-tax Act, 1957-Reassessment-Issue of notice-Assessee valued certain property at Rs. 1,17,793 in return for assessment year 1976-77-Valuation report obtained by assessee himself for next assessment year showed value of same property at Rs. 5,05,000 and soon thereafter, assessee sold it for rs. 5,00,000-Whether notice issued by WTO under section 17, on the basis of these facts, for reopening assessment for assessment year 1976-77 valid-Held, on facts, yes Facts In his return for the assessment year 1976-77, the assessee had shown a certain property valued at Rs. 1,17,793. The valuation report dated 23-1-1978, obtained by the assessee himself, for the succeeding assessment year 1977-78, showed the value of the same property at Rs. 5,05,000. Soon thereafter, the assessee sold away the said property for Rs. 5,00,000. On the basis of these facts, the WTO issued on 7-1-1981 a notice under section 17 seeking to reopen the assessment for the assessment year 1976-77. On writ : Held If, on the undisputed facts of the case cited above, the WTO stated that he had reason to believe, within the meaning of section 17, that net wealth chargeable to tax for the assessment year 1976-77 had escaped assessment, it was well-nigh impossible to find fault therewith. It was difficult to reject the revenue's contention that one and the same property valued for the assessment year 1976-77 at Rs. 1,17,793 could not have been suddenly valued by the assessee himself more than four times over at Rs. 5,05,000 for the very next assessment year, without there having been gross undervaluation in the preceding year. The impugned notice was, therefore, valid and could not be quashed as without jurisdiction ab initio. Case review Tulsidas Kilachand v. D.R. Chawla [1980] 122 ITR 458 (Bom.) and Brig. B. Lall v. WTO [1981] 127 ITR 308 (Raj.) distinguished. Cases referred to Tulsidas Kilachand v. D.R. Chawla [1980] 122 ITR 458 (Bom.) and Brig. B. Lall v. WTO [1981] 127 ITR 308 (Raj.). JUDGMENT Peatap J.-This extremely well-argued petition under art. 226 of the Constitution questions and challenges the jurisdictional validity of the notice dated 7th January, 1981, issued by…

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