MEHERBANOO G WADIWALLA Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) THE petitioner has challenged the notices, exhibits 'M -1 and M -2', dated February 20, 1987, issued by the Wealth -tax Officer under section 17 of the Wealth -tax Act, 1957 (hereinafter referred to as the 'Act'), on the basis that the value of the agricultural lands is taken at Rs. 4,85,000 for the assessment year 1978 -79 and at Rs. 5,82,000 for the assessment year 1979 -80 against Rs. 13,21,000 as valued by the approved valuer. Hence, the same has escaped assessment.

(2.) LEARNED counsel for the petitioner vehemently submitted that issuance of notice in the present case under section 17(1) of the Act is nothing but abuse of power by the concerned officer. For this purpose, he relied upon the fact that, in the wealth -tax returns submitted by the petitioner and the assessment orders for the aforesaid two assessment years, the Wealth -tax Officer has considered the valuation report submitted by the agricultural approved valuer and, after taking into consideration the said report, appropriate assessment order have been passed under section 16(3) of the Act. He further submitted that not only this, but against the order passed by the Wealth -tax Officer, the petitioner had preferred an appeal before the Appellate Assistant Commissioner of Income -tax and that appeal was allowed by order dated April 18, 1985, for the assessment year 1979 -80.

(3.) ON the basis of the return submitted by the petitioner for the assessment year 1978 -79, the Wealth -tax Officer, Circle IV, Ward -E, Ahmedabad, passed an order (exhibit 'B -1') under section 16(3) of the Act on March 28, 1983. With regard to the valuation of the agricultural lands, he specifically observed that as per the valuation report dated November 17, 1974, it is valued at Rs. 13,31,030 and against that the petitioner has valued it only at Rs. 3,66,732. The relevant part of the said order is as under.