Law: Wealth Tax Act, 1957

Section: 17(1),17(1)(a)

Law: Income Tax Act, 1961

Section: 230A,147,256

(a) Wealth tax--- ----Reassessment---Notice---Notice purporting to be under S.17(1)(a) of the Indian Wealth Tax Act, 1957---Notice can be sustained under S.17(1)(b) of the Act. Where a Wealth Tax Officer initiates proceedings for reassessment, it is not the clause of section 17(1) of the Wealth Tax Act, 1957, which he mentions that is relevant; what is relevant is the substance of the "reasons recorded". If the reasons recorded arc relatable to section 17(1)(b) of the Wealth Tax Act, 1957, it would be appropriate to sustain the notices under that clause, notwithstanding the fact that the Wealth Tax Officer has expressed an opinion that the case attracted his power under section 17(1)(a). (b) Wealth tax--- ----Reassessment---Information that wealth has escaped assessment---Value of land disclosed in wealth tax return---Subsequent application for tax clearance certificate to income-tax authorities to sell land at much higher price--­Constitutes "information"---Reassessment proceedings valid. The assessee had been disclosing the fact that he owned a piece of land in New Delhi. It was valued at Rs.60,000 for the assessment year 1976-77, at Rs.75,00 for the assessment year 1980-81 and at Rs.3,00,(00 for the assessment year 1986-87. The assessee entered into an agreement with a third party, agreeing to sell the said plot of land for a consideration of twenty-five lakhs of rupees. The agreement was entered into in the year 1986. With a view to enable him to execute a sale decd, he applied to the Income-tax Department for an income-tax clearance certificate. From the contents of the application for the clearance certificate, the Wealth Tax officer came to know that the said plot was being sold for rupees twenty-five lakhs. Thereupon he issued notices under section 17(1) of the Indian Wealth Tax Act proposing to reopen the wealth-tax assessments for the assessment years 1979-80 to 1986-87 and value the plot in question on the basis of the said consideration amount for all the assessment years 1979-80 to 1986-87. On a writ petition to quash the reassessment proceedings: Held. that though the notices of reassessment were purported to be issued under section 17(1)(a), they…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492