TMI Blog1995 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court answering the question referred to it, at the instance of the Revenue, in favour of the Revenue. The question, stated under section 27(1) of the Wealth-tax Act, 1957, reads : " Whether the Income-tax Appellate Tribunal has been right in law in vacating the orders passed by the Commissioner of Wealth-tax under section 25(2) of the Wealth-tax Act, 1957, for the assessment years 1959-60 to 1967-68 on the ground that on his own recorded findings, the Commissioner wrongly assumed jurisdiction ? " For the assessment years 1959-60 to 1967-68, the appellant-assessee filed returns on August 30, 1969, declaring the value of his house property at Rs. 5,02,762. Since the returns were filed beyond the prescribed period, the Wealth-tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid assessment orders. The main reason assigned by him is to be found in paragraph 3 of his order, which reads : " I have carefully considered the various points made by the assessee in its note dated September 27, 1974, as well as those made during the course of hearings. According to me, there is no force in the submissions of the assessee. No assessment can validly be made under section 16(3) without issuing a notice under section 16(2). Such an assessment can always be challenged by the assessee legally even after the period for reopening the assessment under section 17 of the Wealth-tax Act is over. And if this happens, the Department would have no remedy for collecting the wealth-tax dues from the assessee for this year as it wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... once such was the case, his application of mind for vacating the assessments which he himself thought to be invalid and void ab initio could not clothe him with power or authority of ordering fresh assessments." The Tribunal also characterised the reason given by the Commissioner for revising as imaginary and unreal. The High Court answered the question aforesaid in favour of the Revenue on three grounds, viz., (1) the orders of the Wealth-tax Officer though purporting to be under sub-section (3) are in substance and effect under sub-section (1) of section 16 of the Act, since he had accepted the revised returns submitted by the assessee. It cannot, therefore, be said that the orders of assessment are defective for violation of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him on the basis of such return. (2) If the Wealth-tax Officer is not so satisfied, he shall serve a notice on the assessee either to attend in person at his office on a date to be specified in the notice or to produce or cause to be produced on that date any evidence on which the assessee may rely in support of his return. (3) The Wealth-tax Officer, after hearing such evidence as the person may produce and such other evidence as he may require on any specified points, and after taking into account all relevant material which the Wealth-tax Officer has gathered, shall, by order in writing, assess the net wealth of the assessee and determine the amount of wealth-tax payable by him or the amount refundable to him on the basis of such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section and sub-section under which the assessment is made", in the preamble to the order, the Wealth-tax Officer mentioned "16(3)"). The assessment order is obviously one made under sub-section (1) though wrongly mentioning section 16(3). Indeed, the High Court has held further that even if the said assessments are deemed to be under sub-section (3), yet they cannot be held to be without jurisdiction merely because notice under sub-section (2) was not issued. Now, coming to the apprehension expressed by the Commissioner, which constitutes the basis of his order, it is, in our opinion, a remote one at best. Counsel for the Revenue could not also explain the observation of the Commissioner that if an assessment is made under sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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