TMI Blog1990 (6) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary for answering the references, are these : The assessee is the same in both the references. The assessment years concerned are 1974-75 and 1975-76. During the pendency of these assessment proceedings on February 17, 1976, the Assessing Officer called for a valuation report in respect of a building called "Harsha Mahal" from the Official Valuer under section 16 of the Wealth-tax Act. However, without waiting for the valuation report, the Wealth-tax Officer completed the assessment for both the assessment years on April 2, 1976. The wealth of the assessee was determined at Rs. 2,53,100. This included the value of the building "Harsha Mahal" at Rs. 5,65,000. This valuation had been arrived at by the Wealth -tax Officer by applying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f rental income by applying the well-known method of multiplier of 15, the matter could not have been reopened under section 17 of the Act. He also held that the opinion in the valuation report which was not binding, at the best, could be treated as a mere change of opinion and, therefore, could not constitute a basis for reopening the assessment under section 17 of the Act. The Revenue took the matter in appeal before the Tribunal. The Tribunal gave a categorical finding that the provisions of section 17(1)(a) of the Act would not apply as the assessee had disclosed the facts fully and truly. The Tribunal, however, held that the assessee's case would fall under section 17(1)(b) of the Act as there was information which constituted basis to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... best, be regarded as a change of opinion regarding the value of the property and that it was a well-settled position in law that a mere change of opinion would not constitute a basis for reopening the assessment either under section 17(1)(a) or under section 17(1)(b) of the Act. In support of this proposition, learned counsel relied upon a decision of the Supreme Court in ITO v. Nawab Mir. Barkat Ali Khan Bahadur [1974] 97 ITR 239. In the said case, the Supreme Court held that though there was failure on the part of the assessing authority at the time of original proceedings to draw correct inferences under Mohammedan law, his subsequent opinion about the correct position under Mohammedan law would not constitute a basis for invoking the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, was binding on the Wealth-tax Officer and he was bound to complete the assessment in conformity with the valuation made by the Valuation Officer and, therefore, the said material would constitute information within the meaning of section 17(1)(b) of the Act on which the Wealth-tax Officer could reopen the assessment. It was laid down that, while it was open to the assessee to contest the correctness of the report of the Valuation Officer in appropriate legal proceedings, as far as the Wealth-tax Officer was concerned, it was binding. Similar view was also taken in Amrut Talkies v. Second ITO [1984] 150 ITR 386 (Kar). It was a case under section 147 of the Income-tax Act. The question for consideration was whether the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se can be had to section 147(b) of the Income-tax Act, corresponding to section 17(1)(b) of the Wealth-tax Act, provided the initiation of proceedings was within the period of limitation prescribed under clause (b). As stated earlier, this aspect has been specifically considered by the Tribunal. It found that though the proceedings for reassessment were initiated under section 17(1)(a) of the Act, proceedings cannot be sustained under that provision as the assessee has not committed any default in furnishing all the basic and primary facts. Therefore, on the basis that there was valid information regarding a higher value of the building property, proceedings for reassessment could be taken under section 17(1)(b) for which the period of limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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