Law:

Section:

Section 25 of the Wealth-tax Act, 1957 - Revision by Commissioner - Assessment year 1977-78 - Assessee, who was karta of an HUF and also partner in two firms filed return in respect of net wealth of said family - WTO assessed net wealth and completed assessment under section 16(3) - Subsequently, Commissioner issued a notice under section 25(2) alleging that assessment order was prejudicial to interest of revenue because net wealth was assessed by including value of interest in firms on basis of final account of said firms without reference to actual market value of assets held by firms - Whether value of net wealth of partnership firm while assessing wealth-tax of a partnership, who is not an assessee, is to be made according to principles of advanced accounting and on book value and not according to market value of such assets and provisions of rules of Wealth-tax Rules, 1957 do not apply in such case - Held, yes - Whether in said circumstances, Commissioner was not justified in revising assessment order by invoking revisional power under section 25(2) - Held, yes FACTS The assessee, who was karta of an HUF and also partner in two firms, filed return in respect of net wealth of the said family for the assessment year 1977-78. The WTO assessed the net wealth so declared and, accordingly, completed the assessment under section 16(3) by enhancing the value of the family's interest in the said firms. On appeal, the Commissioner (Appeals) reduced the amount to a certain extent. The assessee filed a second appeal before the Tribunal. Subse-quently, the Commissioner issued a notice under section 25(2) alleging that the assessment order for the relevant assessment year was prejudicial to the interest of the revenue because it was found that the net wealth assessed including the value of interest in firms on the basis of the final account of the said firms without reference to the actual market value of the assets held by the firms. The assessee challenged the said notice by filing a writ petition, but the same was dismissed. On appeal : HELD The language of section 25(2) shows that the revisional power can be exercised by the Commissioner, if he considers that any…

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