COMMISSIONER OF WEALTH TAX Vs. KULDEEP KAPOOR

JUDGEMENT

(1.) The Tribunal, Delhi, has referred the following question of law under Section 27(1) of the WT Act, 1957 (hereinafter referred to as "the Act") for opinion to this Court: "Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in quashing the order of the CWT under Section 25(2) ?" The reference relates to the asst. yrs. 1983-84 and 1984-85. Briefly stated, the facts giving rise to the present reference are as follows :

(2.) The respondent is an individual. For the assessment years in question the assessment was completed under Section 16(3) of the Act vide order dt. 24th July, 1984 and 22nd March, 1985, respectively determining taxable net wealth at Rs. 11,57,300 and Rs. 11,24,000. The returned wealth of the respondent was accepted but for addition of Rs. 50,000 made in each of the two years in respect of the value of immovable property known as Shah Theatre, shown at Rs. 13,00,000. The WTO noted that the same property was valued at Rs. 13,50,000 subsequent to the completion of the assessment for the two years in question. The CWT examined the record and after coming to the conclusion that the assessment was erroneous and prejudicial to the Revenue, initiated proceedings under Section 25(2) of the Act on the following grounds :

(3.) We have heard Sri A.N. Mahajan, learned standing counsel for the petitioner. Nobody has appeared for the respondent-assessee.