COMMISSIONER OF WEALTH TAX Vs. QUDIRA ANWAR S

JUDGEMENT

(1.) THESE references under Section 27(1) of the Wealth-tax Act, 1957, at the instance of the Revenue with respect to the same assessee involving the same question of law have been heard together. The material facts are as follows :

(2.) A period of fifteen years having gone by counsel for the Department agreed that in the absence of the stay order the appeals must have been disposed of on the merits by the appellate authority in the meantime. And, therefore, these references so far as the assessee is concerned must have become infructuous. It appears further that substantial amendments were incorporated in Sub-section (1) of Section 18 and Sub-section (2A) has been omitted and replaced by a new Section 18B by the Taxation Laws (Amendment) Act, 1975. The question perhaps, therefore, has only academic importance. We have, however, heard counsel and considered the matter on the merits as we are given to understand that some more matters involving the same question relating to the period prior to April, 1976, when the aforesaid amendments came into force, might be pending.

(3.) SUB-sections (2A) and (2B) as they stood prior to the amendment have already been quoted above. Section 23 contains a provision regarding appeal. It confers a right upon any person to prefer appeal against the assessment order, inter alia, "objecting to any penalty imposed by the Wealth-tax Officer under Section 15B or Section 18", vide Section 23(1)(d). Section 24 entitles an assessee objecting to any order passed by the Appellate Assistant Commissioner under Section 18 or Section 23 or Section 37(2), etc., to prefer second appeal to the Appellate Tribunal. Section 25(1) confers power upon the Commissioner of Wealth-tax to revise orders of subordinate authorities. It lays down, inter alia, that the Commissioner may, either of his own motion or an application made by an assessee, call for the record of any proceeding under the Act in which an order has been passed by the authority subordinate to him, and may pass such orders thereon after enquiries as he thinks fit. The power is circumscribed by certain conditions as mentioned in the proviso with which we are not concerned in this case. The Commissioner can also under Section 25(2) without prejudice to the provisions of Section 25(1) pass appropriate orders as the circumstances of the case may justify, including an order enhancing or modifying the assessment or cancelling it and directing a fresh assessment, if he considers that any order passed by the Wealth-tax Officer is erroneous and prejudicial to the interests of the Revenue. Exercise of the power by the Commissioner under Section 25(2) of the Act is subject to appeal before the Appellate Tribunal, Section 27 provides for reference to the High Court on a question of law.