9911796707
TMI Blog1993 (9) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3,00,000. Subsequently, the assessment was reopened under section 17(1)(a) of the Act since, according to the assessing authority, the wealth chargeable to tax had escaped assessment by failure on the part of the assessee to file the return. The reassessment completed by the assessing authority was unsuccessfully challenged by the assessee in appeal before the first appellate authority, viz., Commissioner (Appeals). On further appeal, the Income tax Appellate Tribunal held the reopening of the assessment to be bad in law and cancelled the reassessment. The Tribunal has, inter alia, found that, while completing the original assessment ex parte under section 16(5) Of the Act, the Wealth-tax Officer had been guided by the details of the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment assessment, the assessing authority can, in the exercise of his jurisdiction under section 17(1)(a) of the Act, reopen the assessment. On the contrary, Sri S. P. Bhat, learned counsel for the assessee, sought to support the reasoning and the conclusion of the Tribunal in setting aside the reassessment proceedings. In order to appreciate the rival contentions, it is appropriate to refer to the provisions of section 17(1)(a) of the Act as it stood prior to the substitution of sub-section (1) with effect from April 1, 1989, by the Direct Tax Laws (Amendment) Act, 1987. It reads thus : ".17.(1) If the Assessing Officer, (a) has reason to believe that by reason of the omission or failure on the part of any person to make a return under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailure on the part of the assessee to furnish particulars necessary for assessment. This finding of fact is not under challenge in this reference. Even otherwise, the office note at the foot of the reassessment order dated Februray 22, 1983, discloses that the Wealth-tax Officer had admittedly adopted the values taken in respect of the properties in question as per orders for the assessment years 1968-69 and 1969-70, which had been annulled on the ground of limitation. The assessment was reopened under section 17(1)(a) of the Act on the basis of two letters from another Income-tax Officer which are incorporated in the Tribunal's order. There is no dispute that there was no concealment of the property itself. But the Assessing Officer only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material facts necessary for his assessment for that year. Both these conditions must co-exist in order to confer jurisdiction on the Income-tax Officer. It is also imperative for the Income-tax Officer to record his reasons before initiating proceedings as required by section 148(2). Another requirement is that before notice is issued after the expiry of four years from the end of the relevant assessment years, the Commissioner should be satisfied on the reasons recorded by the Income-tax Officer that it is a fit case for the issue of such notice. We may add that the duty which is cast upon the assessee is to make a true and full disclosure of the primary facts at the time of the original assessment. Production before the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r underassessment due to such failure or omission. In the instant case, as found by the Tribunal, the details of the property as disclosed by the assessee in his returns for the earlier years were available to him. If the Wealth-tax Officer doubted the correctness of the valuation as given in the previous year, it was open to him to discard that value and determine the market value on his own enquiry and in accordance with law. In the circumstances of the case, therefore, it cannot be Said that the under estimate of the property is merely on account of the assessee's failure to file the return for the year. It is thus clear that the duty cast upon the assessee to make a full and true disclosure of all material facts does not absolve the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
