COMMISSIONER OF WEALTH TAX Vs. SANDEEP JAJODIA

JUDGEMENT

(1.) The assessments for the asst. yrs. 1984-85 and 1985-86 in respect of the respondent/assessee were computed under Section 16(3) of the WT Act, 1957, on 29th April, 1986 and 22nd Aug., 1986, at a net wealth of Rs. 12,57,100 and Rs. 12,35,900 respectively. The wealth assessed included the value of a flat situated at 1, Arcade, Nariman Point, Bombay, accepted by the WTO at Rs. 2,50,000. Subsequently, the assessee filed returns of wealth for the aforesaid years under the Amnesty Scheme on 29th April, 1986, disclosing certain additional wealth in the shape of jewellery, silver utensils, ornaments and a half share of a house property at 1/17, Shantiniketan, New Delhi. Pursuant thereto, notices were issued under Section 17 of the WT Act and fresh assessments were completed on net wealth of Rs. 18,60,800 and Rs. 18,94,200 respectively on 19th Nov., 1986.

(2.) Subsequently, the CWT, West Bengal IX, Calcutta, initiated action under Section 25(2) of the above Act to revise the assessments made on 29th April, 1986 and 22nd Aug., 1986, since in his view, the said assessments were erroneous and against the interest of the Revenue. The said CWT set aside the assessments and directed the AO to take into account the gross and net annual rent of the property at Bombay and to determine the value of the property on yield basis.

(3.) Being aggrieved by the order of the CWT under Section 25(2) of the above Act, the assessee moved the Tribunal contending that the proceedings under Section 25(2) were without jurisdiction as the original assessment made on 29th April, 1986 and 22nd Aug., 1986, were no longer in existence having been replaced by the fresh assessments made on 19th Nov., 1986.