Law: Wealth Tax Act, 1957

Section: 27(3),16(1),17

Wealth tax--- ----Reference---Reassessment---Failure to disclose material facts fully and truly ---Assessee disclosing possession of gold ornaments from 1975-76 to 1986-87 but valuing them at same rate throughout---Valuation accepted in original assessments ---Under valuation of gold whether formed basis for reassessment was a question of law---Indian Wealth Tax Act, 1957, Ss. 17 & 27(3). Held, that an obligation is cast on the assessee to disclose material facts fully and truly. In the instant case, the assessee had disclosed possession of gold ornaments from 1975-76 to 1986-87 but she had valued them throughout of Rs.520 per 10 gins. The questions whether, on the facts and in the circumstances of the case, the Tribunal was justified in law and in holding that there was no under assessment in terms of section 17 of the Wealth Tax Act, 1957, and, whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the Wealth Tax Officer was not justified in taking action under section 17 when there was admittedly under valuation of gold as on the relevant valuation dates had to be referred. CWT v. Ajay Kumar B. Tody (1983) 143 ITR 148 (MP); Indian Oil Corporation v. ITO (1986) 159 ITR 956 (SC); Indo-Aden Salt Mfg. and Trading Co. (P.) Ltd. v. CIT (1986) 159 ITR 624 (SC); Lokendrasingh v. ITO (1981) 128 ITR 450 (MP); M. V. Kibe v. CWT (1988) 169 ITR 40 (MP); Sahu Dharmatma Saran v. CWT (1971) 90 ITR 194 (All.) and Smt. Shantidevi v. ITO (1996) 217 ITR 776 (MP) ref. JUDGMENT A.K. MATHUR, C.J.---These are seven references under section 27(3) of the Wealth Tax Act, 1957 (hereinafter referred to as the "Act"), at the instance of the applicant/Revenue arising out of the order of the Tribunal for the assessment years 1979-80, 1980-81, 1981-82, 1982-83, 1983-84, 1984-85 and 1985-86, against the same assessee/non-applicant. They involve common question of fact and law, therefore, they are disposed of by this common order. For convenient disposal of all the aforesaid seven references the facts given in M.C. No.73 of 1991 are taken up for consideration. This is a wealth tax reference under section 27(3) of the Act for the…

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