Law: Wealth Tax Act, (XV of 1963)

Section: 17(1)(a),17(1)(b),17,13(1)(d),14,2(16)(i i),16(5)

(a) Wealth Tax Act (XV of 1963)--- ----S.17(1)(a) & (b)---Wealth escaping assessment---Issuance of notice under wrong provision of law i.e. under S.17(1)(a) instead of under S.17(1)(b) of the Wealth Tax Act, 1963---First Appellate Authority set aside the case for the reason that on 29-9-1998 the Assessing Officer sent a letter for permission from the Inspecting Additional Commissioner to reopen the case whereas show-cause notice under S.17(1)(a) of the Wealth Tax Act, 1963 was served upon the assessee on 2-10-1998 and the assessee had not been provided sufficient opportunity of being heard---Assessee contended the assumption of jurisdiction was defective for the reason that notice was issued under wrong provision of law and any proceeding conducted in pursuance thereof was illegal and void ab initio and could not be sustainable in the eye of law---Assessing Officer erred in law while issuing notice under S.17(1)(a) of the Wealth Tax Act, 1963 since it was not attracted in the case of assessee because the case of the assessee was covered by S.17(1)(b) of the Wealth Tax Act, 1963---If Assessing Officer had any definite information about the escapement of Wealth Tax then he should have issued a notice under S.17(1)(b) of the Wealth Tax Act, 1963 requiring him to give all the relevant information---Validity---Assessing Officer sought the permission to invoke S.17 of the Wealth Tax Act, 1963 without waiting for the reply from the assessee despite the fact that the First Appellate Authority showed his astonishment and displeasure about the procedure adopted by the Assessing Officer and observed that "this state of affairs was not sustainable in law as the letter for permission to reopen the 'case was sent well before the service of show-cause notice issued under S.17(1)(a) of the Wealth Tax Act, 1963"---After observing such flagrant violation of legal provision and holding it to be against the law, the First Appellate Authority proceeded to set aside the case and did not annul the assessment proceedings conducted by Assessing Officer---Both the orders passed by the lower authorities were not sustainable in the eye of law which were vacated by the Appellate…

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