RAMA SHANKER GUPTA Vs. WEALTH-TAX OFFICER

JUDGEMENT

(1.) Since the above appeals relate to the same assessee and are inter-related, they are disposed of by this consolidated order for the sake of convenience.

(2.) The assessee is the co-owner of a property situated at 24/73, Birhana Road, Kanpur. Besides, he is also a partner in firms, which in their turn, also own immovable properties. The WTO had made the assessment on 30-31-1981 on a net wealth of Rs. 19,03,120. This included one-third share of the assessee in the firm of Nagarmal "Co. taken at Rs. 26,812.

(3.) The Commissioner being of the opinion that the order passed by the WTO was erroneous insofar as it was prejudicial to the interest of the revenue, initiated proceedings under section 25(2) of the Wealth-tax Act, 1957 (the Act). In the notice issued on 10-2-1983 under the above section, to the assessee, the Commissioner pointed out two errors to the value of the assessees share in the firm of Nagarmal "Co. The Commissioner stated that there was appreciation in the value of the property belonging to the above firm and if that appreciation was taken into account, then the assessees share worked out to Rs. 1,35,724 as against Rs. 26,812 included in the assessment. It was pointed out to the assessee that there was, thus, under-valuation of his share in the above firm to the extent of Rs. 1,08,912. It will be pertinent to mention here that the Commissioner specifically pointed out that the above appreciation of Rs. 1,33,216 included in the above amount in the property had been worked out by the departmental valuer. The second error pointed out by him was that the assessee had been under-charged additional wealth-tax leviable on urban assets. The Commissioner worked out the value of the urban assets at Rs. 11,70,517. On this, the additional wealth-tax worked out to Rs. 36,935. He pointed out in the notice that as against the above charge, actual charge was only Rs. 21,915, thereby resulting in a short charge of Rs. 14,960.