TMI Blog1992 (1) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year and the balance due at the end of the year. In spite of the fact that such balance due at the end of the year was specifically shown, it was not included in the net wealth of the petitioner and the Wealth-tax Officer did not include the same in the assessment of wealth. The petitioner was following the said pattern since prior to 1972-73 and had continued it up to 1978-79. On the basis of the said returns, the Wealth-tax Officer under section 16(3) of the Act had passed the assessment order after investigation of the case. Thereafter the Wealth-tax Officer issued notices dated February 18, 1981, stating that he had reason to believe that the net wealth chargeable to tax had escaped assessment within the meaning of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his net wealth. It is an admitted fact that along with the return, the petitioner has submitted the statement mentioning fully and truly the rent which was recoverable by him at the end of the calendar year. The Wealth-tax Officer has passed an order under section. 16(3) of the Act which would mean that he has passed the order after considering such evidence as is produced on record and considering such other evidence as he may require on specified points. Hence, the provisions of section 17(1)(a) of the Wealth-tax Act would not be applicable. The assessee had, in his return for the relevant assessment years under reference, disclosed the necessary facts. The Wealth-tax Officer had accepted the returns submitted by the assessee. Under thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer had not at all applied his mind to the question whether the rent due at the end of the calendar year was taxable or not. Normally, it would be presumed that the Wealth-tax Officer had considered and formed an opinion on the said material in the original assessment itself. In any set of circumstances as there is no affidavit-in-reply to the effect that the concerned Wealth-tax Officer had not considered or had not formed any opinion on the said material at the time of original assessment, it would be difficult for us to accept the contention of the learned advocate for the respondent. The Supreme Court in the case of A. L. A Firm v. CIT [1991] 189 ITR 285 has considered all the relevant decisions and dealt with similar contention. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts disclosed thereby or from other enquiry or research into facts or law." That case was considered in the case of Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996, 1004 (SC) and the court observed as under (see [1991] 189 ITR 295 ) : " Now, in the case before us, the Income-tax Officer had, when he made the original assessment, considered the provisions of sections 9 and 10. Any different view taken by him afterwards on the application of those provisions would amount to a change of opinion on material already considered by him. The Revenue contends that it is open to him to do so, and on that basis to reopen the assessment under section 147(b). Reliance is placed on Kalyani Mavji and Co. v. CIT [1976] 102 ITR 287 (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment, it is difficult to take the view that the Income-tax Officer had not at all applied his mind to the question whether the surplus is taxable or not. It is true that the return was filed and the assessment was completed on the same date. Nevertheless, it is opposed to normal human conduct that an officer would complete the assessment without looking it the material placed before him. It is not as if the assessment record contained a large number of documents or the case raised complicated issues rendering it probable that the Income-tax Officer had missed these facts. It is a case where there is only one contention raised before the Income-tax Officer and it is, we think, impossible to hold that the Income-tax Officer did not at all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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