Law: Wealth Tax Act, 1957

Section: 25(2),16A

Wealth tax------Revision---Powers of CWT---Meaning of "record" for purposes of revision---Record includes material available at time of examination by CWT---Wealth Tax Officer referring question of valuation of properties to Valuation Officer under S.16A---Report of Valuation Officer received after completion of assessment---Commissioner could take such valuation into consideration in passing order under S.25(2) setting aside assessment--­Indian Wealth Tax Act, 1957, S.25(2). The Wealth Tax Officer adopted an estimated value of Rs.3 lakhs, Rs.2 lakhs and Rs.1.25 lakhs in respect of three different properties respectively as against the values Rs.1,06,000, Rs.84,750 and Rs.47,504, respectively, made in the return submitted by the assessee. The Wealth Tax Officer referred the question of valuation under section 16A of the Wealth Tax Act, 1957, to the Valuation Officer and received tentative valuation proposals from the Valuation Officer on February 24, 1986. As the assessment was getting time-barred by March 31, 1986, the Wealth Tax Officer completed the assessment on the estimated value mentioned above, on March 17, 1986. The final valuation was received by the Wealth Tax Officer on March 26, 1986, determining the valuation at higher figures. The Commissioner of Wealth Tax, acting under section 25(2) of the Act, set aside the assessment, directing the Wealth Tax Officer to redo the assessment adopting the correct valuation as per valuation report. On appeal, the Tribunal set aside the order of the Commissioner of Wealth Tax, holding that the "record" in section 25(2) could not mean the record as it stood at the time of examination by the Commissioner, but it meant the record as it stood at the time the order was passed by the Wealth Tax Officer. On a reference: Held, that the Commissioner of Wealth Tax was perfectly justified in setting aside the order of assessment and directing the Wealth Tax Officer to redo the assessment, taking into consideration the records relating to the proceedings available at the time of examination by the Commissioner of Income-tax and that the record was not confined to the material available to the Income-tax Officer. CIT v. Shree…

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