Law:

Section:

Section 17(1)(a) of the wealth-tax act, 1957-Reassessment-Non-Disclosure of primary facts-For assessment years 1968-69 to 1970-71, revenue accepted valuation of jewellery furnished by assessee's valuer and assessment completed on that basis-For assessment year 1971-72, jewellery valued by assessee's valuer at higher figure-Whether reassessment for years 1968-69 to 1970-71 can be reopened on basis of valuation of 1971-72-Held, on facts, no Facts For the assessment year 1968-69, the assessee filed wealth-tax returns showing net wealth including jewellery and ornaments, the valuation of which was based on the certificate of an approved valuer. The WTO accepted the valuation so made by the assessee's valuer and, accordingly, completed the assessment. The assessee repeated the aforesaid valuation for the assessment years 1969-70 and 1970-71 with the necessary amendment on account of the change of the number of items and the WTO accepted the same. Later, when the assessee filed his return for the year 1971-72, valuing his ornaments and jewellery at much higher figures in comparison to the valuations of the years 1969-70 and 1970-71, the wealth-tax authorities entertained a suspicion that the valuation disclosed by the assessee for the years 1969-70 and 1970-71 were much too low and in view of audit objections raised in respect of the assessments of those years and the higher authorities' direction, the WTO issued notices for reassessment under section 17(1)(a ). The assessee furnished her reply to the notices explaining that she had based the valuations on the report of the approved valuer and had also indicated the addition or decrease in the items whenever it took place while the returns were filed. She also alleged that there was a steep rise of price in the selected jewellery in the year 1971 and in that respect they furnished the certificate of approved valuers. The WTO rejected the assessee's explanation and completed reassessments for the years 1968-69 to 1970-71. On writ: Held In view of the Supreme Court decision in Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191, the conditions which are conditions precedent for initiation of proceedings under section…

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