1988 (11) TMI 132

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..... d by the WTO at a total wealth of Rs. 5,00,000 which was subsequently set aside by the AAC 'M' Range,New Delhi. It this case no return has been filed, Notice under s. 16(2) was served upon the assessee. He was asked to file the evidence of having filed the return of wealth. Case was adjourned to19th March, 1986. On this date, nobody appeared, nor any application for adjournment received. No evidence has been filed. I proceed under s. 16(5) In the absence of any material or evidence, I assess at a total wealth of Rs. 5,00,000. Issue separate forms. Sd/- (Shyam Singh) W.T. O. VIII (16).NEW DELHI." Dt.21-7-1986. It is an accepted position that notices under s. 17(1)(a) was issued and served for all the years sometime in 1981. This aspect .....

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..... son fails to make a return in response to any notice under sub-s. (2) of s. 14, or fails to comply with the terms of any notice issued under sub-s. (2) or sub-s. (4). The WTO, after taking into account all relevant material which he has gathered, shall estimate the net wealth to the best of his judgment and determine the amount of wealth tax payable by the person or the amount refundable to him on the basis of such assessment." A bare reading of the above would project that failure to make return in itself would justify an ex-parte assessment. Failure to comply with notices under s. 16(2) and/or s. 16(4) would also give a cause for ex-parte assessment, but we find no mandate that in addition to failure to file a return there should be no c .....

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..... assessee's non-co-operative attitude must necessarily be kept aside but here even the AAC's order gives no basis for fixing the taxable wealth at Rs. 3,00,000 for each of the 9 years as against the figure of Rs. 5,00,000 adopted by the WTO. 8. Though on the peculiar facts of the case the WTO's action in resorting to ex-parte assessments cannot be said to suffer from any infirmity and is upheld, we direct the AAC to decide the appeals afresh and if the assessee had raised the contention against initiation of proceedings under s. 17(1)(a) he must decide that aspect also besides analysing the facts for fixing the taxable wealth for each of the 9 years. Since the order of the first appellate authority is vacated, but we have upheld the framin .....

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