Law: Wealth Tax Act, (XV of 1963)

Section: 25(2),25(1)

Law: Income Tax Act, 1922

Section: 33,34,35

Law: Income Tax Act, 1961

Section: 220

Law: Business Profits Tax Act, 1947

Section: 14,11(1)

(a) Wealth Tax Act (XV of 1963)-- ----S. 25(1) & (2)---Power of revision by Commissioner---Limitation---Provision of S.25(2) is controlled by S. 25(1) and the period of limitation provided in S.25(1) shall be attracted to the provisions contained in S.25(2). Under section 25 of the Wealth Tax Act, 1963 the Commissioner of Wealth Tax has been conferred with the power of revision. Under subsection (1) the power has been conferred which cannot be prejudicial to the assessee meaning thereby that it can be exercised in favour of assessee only. While under subsection (2) of this section the Commissioner can exercise revisional powers in favour of revenue and for this purpose can modify, enhance or cancel the assessment with the direction for fresh assessment. The purpose of subsections (1) and (2) both is to confer power of revision on the Commissioner in respect of the orders passed by an authority subordinate to him. Thus, the purpose of both the subsections being same, it would be unreasonable and illogical to hold that in the first eventuality the legislature has fixed the time limit up to one year of passing of order by the subordinate authority and in the second eventuality the assessee has been left to the peril of Commissioner of Wealth Tax for indefinite period. The concept of finality of assessment is firmly ingrained in the scheme under the Wealth Tax Act, 1963 as well as the Income Tax Ordinance, 1979. The assessments once completed under these statutes attain finality and cannot be disturbed or reopened except under the specific conditions provided in the statute and within reasonable period prescribed under various provisions of law. Thus, m the totality of the scheme of entire Wealth Tax Act it cannot be held that the legislature intended to leave an assessee at the mercy of Commissioner of Wealth Tax for indefinite period. The Sword of Damocles in the shape of risk of enhancement of assessment cannot be allowed to be hanging for all times to come. The only intention of the legislature which can be gathered from the reading of section 25 as a whole is that subsection (2) of section 25 is controlled by subsection (1) thereof and, therefore, the…

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