TMI Blog1998 (2) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... net wealth of ₹ 4,40,700. For the assessment year 1973-74, the original assessment was made on January 29, 1974, on a net wealth of ₹ 5,56,500. The Wealth-tax Officer determined the value of the said property in the original assessment at ₹ 2,22,048 on the basis of the registered valuer s report. Subsequent to the completion of the original assessment for the assessment year 1972-73, the Wealth-tax Officer referred the matter to the Departmental Valuation Officer under section 16A of the Act to determine the value of the property who determined the property s value at ₹ 4,65,000. According to the Departmental Valuation Officer, the area of the property was 90 cents and on that basis, the value of the property was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property as mentioned by the assessee in the original assessment would come to 91 cents. The Appellate Assistant Commissioner also found that the assessee obtained the property on a partition in the joint family and in the partition, the area of the site was mentioned as 81 cents and so, the assessee repeated the same at the time of filing of the return during the course of original assessment. He also found that as regards the valuation of shares, the assessee had furnished sale particulars at the time of original assessment and after taking into account the particulars, the value of the shares was fixed at ₹ 35,000. He, therefore, held that the reassessment proceedings initiated by the Wealth- tax Officer for both the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d no knowledge about the area of the property and it cannot be stated that the assessee omitted to produce material particulars. Challenging the order of the Appellate Tribunal, the Department sought for a reference and the following questions of law have been referred by the Tribunal for our consideration : 1. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in upholding the cancellation by the Appellate Assistant Commissioner of the reassessments made under section 17(1)(a) of the Wealth-tax Act, 1957, for the assessment years 1972-73 and 1973-74 ? 2. Whether the Appellate Tribunal had valid and relevant materials to hold that the assessee could not be said to have knowingly omitted or fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sq. ft. When relevant particulars were available before the Wealth-tax Officer, it is the duty of the Wealth-tax Officer to find out the exact area and on that basis, to determine the value of the property. The assessee had furnished full and true particulars regarding the valuation of the property and that value returned by the assessee was also supported by the report of the registered valuer. We are, therefore, of the opinion that it cannot be stated that the assessee had omitted to disclose full and true particulars at the time of original assessment. In so far as the valuation of shares is concerned, the finding of the Appellate Tribunal is that there was a full discussion as regards the valuation of the shares at the time of origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Tribunal was correct in holding that the Wealth-tax Officer lacked the jurisdiction to make the reassessment in the instant case. Though the Tribunal had made an observation regarding the action of the Assessing Officer in obtaining the valuation report from the Departmental Valuation Officer invoking his powers under section 16A of the Act, we are of the opinion that the report will be relevant only if the reassessment proceedings were taken under section 17(1)(b) of the Act. Since the proceedings were initiated under section 17(1)(a) of the Act, it is unnecessary for us to express any opinion on the correctness of the view of the Appellate Tribunal as to whether the powers under section 16A of the Act were properly invoked by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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