ANANTKUVERBA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) INCOME tax Appellate Tribunal ('Tribunal' for short) has referred to us for our opinion the following questions :

(2.) THIS Reference arises out of the assessee's WT assessment for the asst. yrs. 1972 73 to 1975 76. The WTO while making wealth tax assessment for the years under reference included the value of immovable property known as "Lal Bungalow" in the net wealth of the assessee. We do not consider it necessary to set out the details of the other properties of the assessee, the value whereof was included in the assessee's net wealth for the assessment years under reference because they are not the subject matter of this reference. On examining the records of the assessment proceedings for the assessment years under reference and asst. yrs. 1976 77 to 1979 80, the Commissioner of Wealth tax ('Commissioner' for short) noticed that the WTO had granted excess exemption under various provisions of S. 5(1) of the WT Act, 1957 ('Act' for short). The Commissioner also found discrepancies in respect of the valuation of movable and immovable assets. He was, therefore, of the view that the assessment orders passed by the WTO for the aforesaid assessment years were erroneous and prejudicial to the interests of the Revenue. He, therefore, initiated proceedings under S. 25(2) of the Act and issued notice dt. 26th July, 1980 to the assessee in respect of the aforesaid assessment years, which include the assessment years under reference. In the annexure to the notice details of the excess exemption granted under S. 5 (1) of the Act and the discrepancies in respect of the valuation of movable and immovable assets were stated. So far as the immovable property known as "Lal Bungalow", which is the subject matter of this reference, is concerned in the annexure it was stated as follows :

(3.) THE main provision of S. 25(2) of the Act is in pari materia with the main provision of S. 263(1) of the IT Act, 1961. The provisions contained in S. 25(2) of the Act and S. 263(1) of the IT Act, 1961, in so far as relevant, read as under :