Law: Wealth Tax Act, (XV of 1963)

Section: 17,17(1),17A(2)(b)(c)

Wealth Tax Act (XV of 1963)---Ss. 17(1) & 17-A(2)(b)(c)---Wealth escaping assessment-'Definite information' received by Revenue regarding purchase of property by assessee in foreign country---Service of demand notice on assessee on 14-9-1998---Failure of assessee to declare such property in return filed after such notice---Passing of assessment order on 30-6-2001---Validity--Such notice would be deemed to have been issued under S.17(1)(a) of Wealth Tax Act, 1963 attracting period of limitation under S.17-A(2)(b) thereof---Such assessment order was not hit by period of limitation. (b) Wealth Tax Act (XV of 1963)--- ----Ss. 17(1)(a)(b)---Wealth escaping assessment, completion of---Limitation, determination of---Test stated. A notice under section 17, Wealth Tax Act, 1963 cannot be issued by the Deputy Commissioner unless definite information has come into his possession, therefore, the real test would not be whether the notice has been issued in consequence of any information. The criteria to determine as to notice has been issued under which clause of section 17(1) would be whether the wealth escaped assessment due to omission or failure on the part of the assessee to make a return of his net-wealth or to disclose fully and truly all material facts necessary for his assessment. In case, the wealth escaped assessment due to omission or failure of the assessee, notice under section 17(1) will be given and since the wealth escaped assessment due to the failure of the assessee, a longer period for completion of the assessment has been provided. This intention of the legislature can be gathered from the use of the phrase "notwithstanding that there has been no such omission or failure as is referred to in clause (a)" used in clause (b) of section 17(1). JUDGMENT MUHAMMAD MUNIR PERACHA, J.---The Assessing Officer passed assessment order on 30-6-2001 in respect of assessment years 1993-1994 and 1994-1995. Paragraphs Nos. 1, 2, 3 and 4 are relevant and are being reproduced:-- "The assessee an individual and Director of Messrs Engineering and Technology International (Pvt.) Limited. No returns filed for the charge years under consideration. Information collected by…

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