COMMISSIONER OF WEALTH TAX Vs. PHOOLWATI AGARWAL

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following two questions of law under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), for opinion to this court :

(2.) The reference relates to the assessment year 1975-76. The Wealth-tax Officer had valued the immovable property at Rs. 50,809 as on March 31, 1975. The Commissioner of Wealth-tax on examination of the record of the case was of the opinion that the order passed by the Wealth-tax Officer is erroneous and prejudicial to the interests of the Revenue inasmuch as the value of land and building has been placed by the Valuation Cell at Rs. 1,52,000. He initiated a proceeding under Section 25(2) of the Act and after giving opportunity of hearing and considering the reply filed by the respondent-assessee, set aside the assessment order with a direction to give proper opportunity and reframe the assessment according to law. Feeling aggrieved the respondent preferred an appeal before the Tribunal. The Tribunal has allowed the appeal on the ground that the valuation report could not have been taken into consideration by the Commissioner of Wealth-tax for initiating proceedings under Section 25(2) of the Act, the report was brought on record subsequently.

(3.) We have heard Sri A. N. Mahajan, learned counsel for the Revenue. Nobody appears for the respondent-assessee.