TMI Blog1978 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... 60, when that sum had been included in the original assessment? " Ballarpur Industries Ltd., the assessee, at the time of its original assessment, filed a return on or about September 12, 1959, declaring a net wealth of Rs. 56,38,190, calculated on the basis of the balance-sheet as at June 30, 1958. That date was the relevant valuation date for assessment year 1959-60. The balance-sheet included two items shown on the assets side, one of the items being the value of Rs. 5 lakhs of certain shares of Shree Gopal Paper Mills Ltd. and the other item being a sum of Rs. 4,47,369, being rights, concessions, facilities and privileges acquired from the Government of Madhya Pradesh, pursuant to an agreement with them dated July 31, 1947. In the net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that both the sums of Rs. 4,47,369 and Rs. 5 lakhs should be excluded from the net wealth. He stated that the return filed earlier may be treated as revised to the extent that the net wealth declared might be taken at Rs. 51,07,332. The contention of the assessee was that the value of the shares of Rs. 5 lakhs was exempt looking to the provisions of s. 5(1)(xix) read with s. 5(3). On November 30, 1963, the WTO made a reassessment by his order under s. 16(3) read with s. 17 thereof. He added to the net wealth determined in the first instance the sum of Rs. 5 lakhs on the ground that it was not open to the assessee and also to the WTO to consider the relief claimed by the assessee at the time of reassessment. In an appeal preferred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the assessment, he should give the appellant a reasonable opportunity of being heard on the issues involved. " In the appeal before the Tribunal, it was sought to be urged on behalf of the revenue that the AAC had no jurisdiction to give direction that the WTO should consider the matter of includibility in the assessment of the sum of Rs. 5 lakhs in the sense that this item having been included in the original assessment and indeed having been included by the assessee in computing the net wealth declared in the return at the stage of the original assessment, it was not open to the assessee to agitate at the stage of reassessment that the relevant amount should be excluded from net wealth. On behalf of the revenue, reliance was sought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 42 (Bom). He submitted that the view that has been taken by this court in the above case has been followed and approved by the Kerala High Court in the case of CWT v. C. Ravindran [1977] 107 ITR 547, which was a case dealing with reopening of the assessment under s. 17 of the W.T. Act. He submitted that there is a well-recognised convention ordinarily followed by all the High Courts that in respect of an all-India taxing statute, with a view to avoid uncertainty of law, it is customary and usual to follow a decision of another High Court, though otherwise it may be regarded as a persuasive authority. He, therefore, submitted that the same course should be adopted in the present case since the question that arises for consideration has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that whereas the assessment under s. 17 of the W.T. Act, 1957, is of the "net wealth" of the assessee, the jurisdiction of the WTO to reassess the escaped net wealth springs up when either of the contingencies mentioned in cl. (a) or (b) of s. 17(1) of the W.T. Act, 1957, is satisfied and the said jurisdiction enables him to reassess only such net wealth as satisfied the requirements of cl. (a) or (b) of s. 17(1). The nature of the jurisdiction to reassess being very limited, there is nothing in the provisions of s. 17(1) or in the scheme of the Act to enlarge the limited scope of the power and jurisdiction of the WTO in reassessing to tax the escaped net wealth by allowing the assessee to seek a recomputation of net wealth and a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case. We, accordingly, in view of the normal convention, follow the said decision with a view to avoid uncertainty in the law and decide the question referred to us in the light of what was held by the Kerala High Court. The item of Rs. 5 lakhs was already included in the computation of net wealth when the original assessment was made by the WTO for the assessment year 1959-60. Accordingly, when reassessment proceedings are initiated at the instance of the revenue in respect of any item the taxing authority and the Tribunal will have no jurisdiction to consider the question of inclusion or exclusion of Rs. 5 lakhs in the computation of the net wealth at the stage of reassessment. The question referred to us is, therefore, answered i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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