TMI Blog1997 (1) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... jewellery and the case was adjourned to 17-12-1992. On 17-12-1992, the assessee's representative appeared and filed a letter bearing the same date. It was stated in the letter that the value of the land at Bombay was estimated at Rs. 50,000 up to the assessment year 1991-92 and it was requested that reasonable value of the same may be taken while completing the assessment for the year under consideration. 4. The assessment was completed on 2-3-1994 under section 16(3) of the Act in which the value of the land and building at Chiprupalli, Andhra Pradesh and the vacant plot of land at Chincholi, Bombay was estimated at Rs. 3 lakhs. The assessment was completed accordingly. 5. Subsequent thereto, notice under section 25(2) of the Act was issued by the C.W.T. It was stated therein that it had come to his notice that the land at Bombay was sold by the assessee at Rs. 25 lakhs in October 1991 and he was therefore of the opinion that the Assessing Officer fell into an error in taking the sum total of the value of the said land as well as the properties in Andhra Pradesh at an aggregate sum of Rs. 3 lakhs as on 31-3-1991. He, therefore, considered the assessment to be erroneous insofa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there was no finding by the C.W.T. in the order that the assessment was erroneous and prejudicial to the interests of the revenue. His next submission was that even assuming that one could infer that the action was taken on the ground of lack of enquiry, that would not hold good because the value of the land in Bombay together with the value of the properties in Andhra Pradesh was enhanced from Rs. 1,19,656 to Rs. 3 lakhs on estimate by the W.T.O only after making necessary enquiries, which will be clear from the letter filed by the assessee in the course of the assessment proceedings. This showed not only that there was an enquiry but also that the W.T.O had applied his mind to the question of valuation. 7. The ld. D.R., however, submitted that the order of the C.W.T. should be read as a whole and together with the notice, and if so read, it would be clear that the assessee had been put on notice that the action was proposed on the ground of lack of enquiry or non-application of mind on the part of the W.T.O. to the question of valuation of the plot in Bombay. He further contended that when the very same property was sold for a price which was nearly nine times than that of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the explanation relates to the valuation of the plot in Bombay, it is as under: "Regarding valuation report of land.-My client has purchased a small plot of land at Chincholi village, Bombay, suburban dist. for a sum of Rs. 31,228. The value thereof has been estimated at Rs. 50,000 in assessment years 1988-89, 1989-90, 1990-91 and Rs. 60,000 in assessment year 1991-92. In assessment years 1978-79 to 1980-81 your predecessor had estimated the value thereof at Rs. 50,000 which was confirmed by A.A.C. in the assessment years 1978-79, 1979-80 and 1980-81. In the above premises, we submit that a reasonable value of the same be taken while completing the assessment. I trust you will find the particulars in order. If any further or other particulars are required by client is ready and willing to comply with the same. Assuring you the best co-operation of my client." On 17-12-1992, the order sheet entry is as below: "Shri O.P. Singhania, A.R. appears and filed written statement explaining the points raised, bank pass-book produced. Discussed. Sd/- Illegible." There was a further hearing on 28-2-1994 on which date the A.R. again appeared and the case was discussed with him. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied with the conclusion. It has been held that on such cases the order of the assessing authority may be prejudicial to the interests of the revenue but cannot be termed erroneous. At page 114, the High Court observed that an erroneous assessment refers to an assessment that deviates from law and is, therefore, invalid and is a defect the At is jurisdictional in nature and does not refer to the judgment of the Assessing Officer in fixing the amount of valuation of the property. In the present case the ratio of the above two decisions applies with full force. As rightly pointed out by the ld. counsel for the assessee, there is no finding in the order of the C.W.T. that the assessment made by estimating the value of the properties at Bombay and Andhra Pradesh at Rs 3 lakhs was erroneous, though such an allegation had been made in the notice issued proposing the revision. Thus, the allegation remains unsubstantiated. It has to be remembered that under section 7(1) of the Wealth-tax Act as it applies from the assessment year 1989-90, the value of the plot in Bombay shall be the value determined in the manner laid down in Schedule III. Rule 20(1) of Part H of Schedule III, which m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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