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Issues:
1. Jurisdiction of Wealth-tax Officer to proceed with assessment proceedings after the expiration of the period specified in section 17A of the Wealth-tax Act, 1957. 2. Impact of court orders restraining assessment proceedings on the jurisdiction of the Wealth-tax Officer. 3. Application of Explanation 1 to section 17A regarding exclusion of time during which assessment proceedings are stayed by a court order. 4. Benefit of court orders obtained by one partner or a firm on all partners in a partnership. Detailed Analysis: The judgment pertains to a case where an undivided Hindu family, represented by the karta, challenged the legality of notices served by the Wealth-tax Officer for assessment years 1967-68 to 1972-73. The petitioner contended that the Wealth-tax Officer lacked jurisdiction to proceed with assessment after the period specified in section 17A of the Wealth-tax Act. The respondent, Wealth-tax Officer, argued that a Supreme Court order restrained assessment proceedings until valuation was completed. The court noted that the Valuation Officer's report on one partner's share impacted assessments of all partners in the firm. Therefore, the Wealth-tax Officer in Bombay was justified in relying on the period of limitation as per section 17A, considering the Supreme Court's order. The court rejected the petitioner's claim that the notices were without jurisdiction, emphasizing that orders obtained by one partner or a firm benefit all partners. Another issue addressed was the impact of court orders on assessment proceedings. The court referred to a Supreme Court order restraining the Wealth-tax Officer from making an assessment until valuation was completed. It was held that the Valuation Officer's findings on one partner's share would affect assessments of all partners in the firm, justifying the delay in assessment proceedings by the Wealth-tax Officer in Bombay. The court emphasized the interconnected nature of assessments in a partnership, rejecting the petitioner's argument that the Supreme Court's order only applied to one partner's assessment. Furthermore, the application of Explanation 1 to section 17A was discussed. The court considered the exclusion of time during which assessment proceedings are stayed by a court order. The respondent argued that the period of limitation should be extended due to the Supreme Court's injunction. The court agreed, stating that the Wealth-tax Officer in Bombay was entitled to delay assessment proceedings based on the court order, as per the provisions of Explanation 1 to section 17A. Lastly, the judgment highlighted the benefit of court orders obtained by one partner or a firm on all partners. The court distinguished a decision of the Calcutta High Court where the Supreme Court's order was not considered. It was emphasized that orders obtained at a higher court level, such as the Supreme Court, benefit all partners in a firm, regardless of individual assessment proceedings. Therefore, the court dismissed the petition, ruling in favor of the respondent Wealth-tax Officer and imposing costs on the petitioner.
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