Law: Wealth Tax Act, 1957

Section: 17(1)(b)

Wealth tax--- ---- Re-assessment---Information---Valuation Officer's report sought by W.T.O. during pendency of assessment proceedings---Report obtained after completion of assessment---Is information entitling W.T.O. to commence reassessment proceedings---Indian Wealth Tax Act, 1957, S 17(1)(b). The assessee filed a return for the Assessment year 1976-77 supported by a valuation of property given by a registered valuer. The Wealth Tax Officer found that the valuation so returned was less than the fair market value of the property and hence referred the matter to the Valuation Officer under section 16-A of the Wealth Tax Act, 1957. Before the valuation report could be received, the Wealth Tax Officer completed the assessment on the basis of the value returned by the assessee and thereafter the Wealth Tax Officer received the order from the Valuation Officer. The Wealth Tax Officer issued a notice under section MIN of the Wealth Tax Act, 1957, for reassessment on the basis of the Valuation Officer's report and completed the reassessment. The Tribunal held that any reference made under section 16-A could not lead to the reopening of a closed assessment under section 17(l) as the report submitted by the Valuation Officer would be in an invalid reference and must be treated as a nullity and void in the eye of law, that the Wealth Tax Officer had no jurisdiction to reopen the assessment on a reconsideration of the same material which was before the authority, which amounted to a change of opinion and allowed the assessee's appeal. On a reference, the assessee contended that the Valuation Officer's order, which was received by the Wealth Tax Officer after the completion of the assessment could not be construed as information in the possession of the Wealth Tax Officer and hence section 17(1)(b) had no application to the case of the assessee: Held, (i) that merely because the order of the Valuation Officer reached the Wealth Tax Officer after the completion of the assessment proceedings, it did not lose the character of information as envisaged under section 17(1)(b). In a case where the assessment proceedings were completed, the Wealth Tax Officer could not call for…

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