1973 (5) TMI 14

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..... This reference relates to the assessment year 1960-61. The relevant valuation date is 31st March, 1960. The assessee is an individual. A notice under section 14(2) of the Wealth-tax Act was served on the assessee on the 20th August, 1960. No return was filed. There was no application for extension. A notice under section 16(4) was issued fixing the case on the 24th February, 1961. The assessee applied for adjournment. No return was filed even thereafter and the Wealth-tax Officer made the assessment under section 16(5) of the Wealth-tax Act on the 23rd March, 1961, "due to the failure to comply with the notice under section 14(2)". The wealth was estimated at Rs. 20,00,000. The assessee appealed to the Appellate Assistant Commissioner. In .....

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..... -tax Act, the Tribunal was correct in holding that the Appellate Assistant Commissioner in making an estimate of the net wealth should have confined himself to the previous assessments only ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in enhancing the figure of net wealth, when the quantum of net wealth determined by the Appellate Assistant Commissioner was not challenged by the department in the other grounds of appeal?" The Tribunal, however, referred the first question and did not refer the second question and the assessee did not make any application for direction on the Tribunal to make any reference upon the second question. It appears to us that the section is clear on this point. Se .....

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..... sistant Commissioner had to consider the merit of the assessment and for which it was open to him to hold that the Income-tax Officer acted without material or acted arbitrarily or capriciously. He could, before disposing of such appeal, make such further enquiry as he thinks fit or cause further enquiry to be made by the Income-tax Officer and it was not improper for the Appellate Assistant Commissioner even in cases of best judgment assessments under section 23(4) to look into the books which the assessee failed to produce when asked to do so under section 22(4) in order to ensure that the judgment of the assessing officer was not capricious or arbitrary and, if it is defective, to rectify it on a valid and proper basis. The court also re .....

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