SOHAN SINGH BASI Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition is to the notice issued under Section 17 of the Wealth Tax Act on 25th February 1984, seeking to re-open the assessment of the petitioner for the year 1975-76.

(2.) Briefly stated, the facts are that the petitioner had filed his return of Wealth-tax disclosing a total wealth which was taxable at Rs.l,95,906.00 . In part 6 of the return, the petitioner had disclosed that he had shares worth Rs. 20.530.00 . The name of the company of which shares were held, was not disclosed. However, a statement of Wealth-Tax as on 31-3-1975 was filed. This indicated that the petitioner had 200 Equity Shares of Rs.100.00 each of Continental Construction Pvt. Ltd. valued at Rs. 20.000.00 and 5 Equity Shares of Rs. 100.00 each in Basi Agriculture Farm valued at Rs. 500.00 . During the assessment proceedings, the Income had Expenditure account as well as the Balance Sheet of the petitioner was filed with the Wealth Tax Officer. A Certificate on behalf of the Continential Construction Pvt. Ltd dated 6th December, 1978 was also produced which certified that the petitioner was holding 200 Equity Shares of Rs.lOO each of the said company as on 31st March, 1975. It seems that a revised return was also filed wherein the value of the shares was indicated as Rs. 20,500.00 .

(3.) On the basis of the return which was filed and the discussion which was held with the representative of the petitioner, the Wealth Tax Officer assessed the petitioner to Wealth-tax by passing an order undersection 16(3) of the Wealth Tax Act. The Wealth Tax Officer accepted the value of the moveable property as declared which included the value of the shares of Continental Construction Pvt. Ltd.