Law:

Section:

Wealth Tax Act (XV of 1963)--- ----S. 16(2)---Assessment---Non-issuance of notice under S.16(2) of the Wealth Tax Act, 1963 before finalization of assessment---Validity---No notice under S.16(2) of the Wealth Tax Act, 1963 had been issued and served upon assessee---Issuance of notice under S.16(2) of the Wealth Tax Act, 1963 before finalization of assessment was a mandatory provision of law arid by not fulfilling the same, all the assessment proceedings were illegal---Order of First Appellate Authority was vacated and the assessment orders were cancelled by the Appellate Tribunal. 1995 PTD 1239; 1971 SCMR 681 and 2002 PTD (Trib.) 272 rel. ORDER MRS. ABIDA ALI (ACCOUNTANT MEMBER). ---These seven wealth tax appeals at the instance of assessee have been filed against the combined order, dated 26-6-2001 of the learned CIT(A-1), Peshawar wherein combined assessment orders under section 16(3) of the Wealth Tax Act, 1963 hereinafter called the Act) for assessment years, 1994-95 to 1998-99 and combined assessment order under section 16(3) of the Act (erroneously mentioned as under section 35 of the Act in the order of learned CIT(A) were set-aside. 2. The common grounds on which these orders have been agitated is that mandatory provision for finalization of assessments was not adopted as notice under section 16(2) was not issued/served upon the appellant. 3. Brief facts of the case are that appellant is a director in Arzoo Industries (Pvt.) Ltd., Gadoon Amazai. For assessment years, 1994-95 to 1998-99 assessments were finalized as under:-- 1994-95 1995-96 1996-97 1997-98 1998-99 Net Wealth assd. 31,85,000 36,85,000 37,17,000 47,35,000 47,43,300. However, these orders were cancelled on the grounds that value of shares should be assessed at breakup value instead of face value. Accordingly, notice under section 16(3) of the Act was issued and served upon assessee/appellant. Satisfactory reply was not submitted, therefore, re-assessment was made by adopting breakup value of shares held by appellant. 4. For assessment years, 1999-2000 and…

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