TMI Blog1973 (5) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, answered in the negative and in favour of the assessee - - - - - Dated:- 30-5-1973 - Judge(s) : SABYASACHI MUKHERJEE., S. HAZRA. JUDGMENT SABYASACHI MUKHARJI J.-In this reference under section 27(1) of the Wealth-tax Act the following question has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in disposing of an appeal against an assessment under section 16(5), the Appellate Assistant Commissioner should confine himself only to the materials on record at the time of assessment, i.e. the previous assessment order?" This reference relates to the assessment year 1960-61. The relevant valuation date is 31st March, 1960. The assessee is an indivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal relying on the decision in the case of Girdher Javer Co. v. Commissioner of Income-tax accepted the department's contention and held that the Appellate Assistant Commissioner should have confined himself to the previous assessment made on the assessee in making an estimate as to the assessee's net wealth. The Tribunal after taking into consideration the past assessments estimated the net wealth at Rs. 16,00,000. Thereafter, the assessee made an application for reference of two questions of law to this court, namely: " (1) Whether, on a true interpretation of the provisions of section 23(5) of the Wealth-tax Act, the Tribunal was correct in holding that the Appellate Assistant Commissioner in making an estimate of the net wealth sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of each case and the propriety of the decision of the Appellate Assistant Commissioner to admit further evidence and materials cannot be judged by any fixed rule and must necessarily depend upon the facts of each particular case but there is undoubtedly in the section the authority for the Appellate Assistant Commissioner to go into further evidence if in any case he thinks fit and proper to do so. It has also been so held in the case of Sundermul Co. v. Commissioner of Income-tax. It was there held by a Division Bench of the Andhra Pradesh High Court that in an appeal under section 23(4) the Appellate Assistant Commissioner had to consider the merit of the assessment and for which it was open to him to hold that the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter making the observation that the Appellate Assistant Commissioner should have confined himself only to the past assessments made and should not have made an estimate of his own, has quantified the net wealth at the figure of Rs. 16,00,000. As the Appellate Assistant Commissioner has the right to make further enquiry, the Tribunal similarly has also that right. The propriety of the Tribunal's decision is not before us. Therefore, it was contended that this question had become of academic interest now. In view, however of the Tribunal's decision about the Appellate Assistant Commissioner's power we must hold that the Tribunal was not right in holding that in disposing of an appeal against an assessment under section 16(5), the Appellate A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
