Law: Wealth Tax Act, 1957

Section: 17,16A,2(cb),27(3)

Wealth tax------Reassessment---Assessment for assessment years 1979-80 to 1981-82 obtaining finality in 1984---Reassesssment notices issued in 1988 on basis of a report of Valuation Officer---Report of Valuation Officer not called for during pendency of assessment but after completion of assessment--­Valuation report relating to valuation dates from December, 1981 to December, 1984---Reopening of assessment on basis of valuation report not valid---Notices for reassessment liable to be quashed---Indian Wealth Tax Act, 1957, S.17. (b) Wealth tax------ ----Reassessment---Writ---Firm---Partners of firm issued reassessment notices---Some partners agitating matter by way of appeal---Other partners directed to pursue similar remedy to avoid anomalous situation--Writ petitions dismissed---Indian Wealth Tax Act, 1957---Constitution of India, Art. 226. For the assessment years 1979-80 to 1981-82, the partners of a firm were assessed in respect of their share of property in the firm. Certain additions in the valuation of assets were made and the additions were deleted by the Tribunal on appeal. The assessment attained finality in 1984. Notices, dated February 19, 1988, were issued under section 17 of the Wealth Tax Act, 1957, for reopening the assessment on the basis of a valuation report. On a writ petition challenging the notices as illegal and without jurisdiction: Held, (i) that the report of the Valuation Officer was not called for during the pendency of the assessment but only after its completion. Further, the valuation reports related to the valuation dates December, 1981 to December, 1984, and could have no relevance to the previous years relevant to the assessment years 1979-80 to 1981-82 for which assessments were made. Accordingly, the valuation report could not furnish any basis for reopening the assessment for the assessment years 1979-80 to 1981-82. The reassessment notices were accordingly liable to be quashed. (ii) That for the assessment years 1982-83 and 1983-84, reassessment notices were issued to all the partners of the firm. Since some of the partners had resorted to alternative remedy and had agitated the matter by way of appeal, the other partners…

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