JAGMOHANDAS GOKALDAS Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is an application under article 226 of the Constitution of India. The question that arises for consideration relates to the construction of proviso (b) to sub -section (1) of section 25 of the Wealth -tax Act, 1957 (27 of 1957) (hereinafter referred to as the Act). The petitioner was assessed in the status of an individual under the Act for the assessment years 1957 -58 and 1958 -59, the relevant valuation dates being 2nd November, 1956, and 23rd October, 1957, respectively. One of the assets belonging to the petitioner consisted of shares of Messrs. Lallubhai Amichand Private Limited, Messrs. Metal Rolling Works (Private) Ltd. and Messrs. Rameshchandra Private Ltd. The petitioner in valuing the said assets in the shares of the aforesaid companies had adopted a certain method of valuation. That method, however, was not accepted by the Wealth -tax Officer and he rejected the valuation put by the petitioner on those assets. The Wealth -tax Officer adopted another method, estimated the value of those shares, and included that valuation in the value of net wealth estimated by the Wealth -tax Officer. Feeling aggrieved against the aforesaid orders of the Wealth -tax Officer the petitioner filed appeals against them before the Appellate Assistant Commissioner of Wealth -tax. The Appellate Assistant Commissioner rejected the appeals by his order dated May 1, 1959. Against the orders of the Appellate Assistant Commissioner the petitioner filed two appeals before the Appellate Tribunal on 16th July, 1959. One of the grounds raised related to the valuation of the assets on the aforesaid dates in which the petitioner had objected to the valuation placed on those shares by the Wealth -tax Officer. On 28th September, 1961, the Assistant Registrar of the Appellate Tribunal wrote a letter to the assessee, the material part of which is in the following terms : 'Sir, One of the grounds taken by you in the above Wealth -tax appeal involves valuation of shares. Section 24(6) of the Wealth -tax Act enables you to require the Tribunal to refer the question of the disputed value to the arbitration of two valuers. If it is your intention to make the request to the Tribunal, you are requested to communicate the name and address of the valuer you nominate from the list of appropriate valuers approved under the Act, as also a schedule of the shares to be valued with sufficient description for the valuers to identify them on or before 23rd October, 1961... If it is not your intention to avail yourself of the benefit of the above section, the case will be fixed for hearing in due course and disposed of according to law. Yours faithfully.'

(2.) IN reply to the aforesaid letter of the Assistant Registrar, the petitoner's chartered accountant, who had filed the appeal on behalf of the assessee, informed the Registrar of the Income -tax Appellate Tribunal that they have been instructed by the petitioner to request the members of the Tribunal to grant permission to them to withdraw the appeals. The chartered accountants, therefore, requested the Registrar by this letter to obtain permission of the Tribunal to withdraw the appeals. On 22nd November, 1961, the Bench of the Appellate Tribunal made the following order : 'By their letter dated 7th November, 1961, the assessee's representatives request for permission to withdraw these appeals. Request is granted and the appeals are dismissed for non -prosecution.'

(3.) IT is the aforesaid order of the Commissioner of Wealth -tax (respondent herein) which the petitioner seeks to get quashed by this petition under article 226 of the Constitution of India.