COMMISSIONER OF WEALTH TAX Vs. HEMCHAND GOLECHA

JUDGEMENT

(1.) HEARD Shri R. B. Mathur, learned counsel appearing for the Commissioner of Wealth-tax, Bikaner, headquarters at Jaipur. The matter relates to eight Revenue appeals for the assessment years 1981-82 to 1988-89 arising out of the common order dated September 17,1993, passed by the Commissioner of Income-tax (Appeals), Rajasthan-III, Jaipur, holding that the assessment orders are invalid and ab initio void. Against the said order of the Commissioner of Income-tax (Appeals) (hereinafter referred to as "the CIT(A)"), eight appeals were filed in Wealth-tax Appeals Nos. 310 to 317/JP of 1993 before the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (for short "the Tribunal"), which were also disposed of by the Tribunal by a consolidated order as a common issue was involved.

(2.) THE matter involved in these cases pertains to the assessment years 1981-82 to 1988-89. THE facts of these appeals are that the Department on the basis of the information/material in the possession of the Department, which pointed to the fact that the assessee was in possession of wealth of a certain value, which had escaped assessment, a notice under Section 17 of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), was issued in the name of the legal heirs of the assessee on September 12, 1990. No reply was filed in its response. For completing the proceedings initiated under Section 17 of the Act, a notice under Section 16(2) of the Act was issued which was responded to by the authorised representative of the assessee. THE Assessing Officer queried and sought reply from the authorised representative as to why on the basis of the material on record, the assessment should not be completed since no return of wealth was filed by the assessee. THE assessee did not comply with the requirement and accordingly the assessment was completed ex parte under Section 16(4) of the Act. THE Assessing Officer issued notice under Section 17 of the Act on the basis of major audit objections in respect of the assessment years 1981-82 to 1988-89. THE wealth assessed and the tax demanded for the assessment years 1981-82 to 1988-89 are as under : <FRM>JUDGEMENT_70_ITR254_2002Html1.htm</FRM>

(3.) WE have given our thoughtful consideration to the submissions made by Mr. R. B. Mathur. In this case, the following questions of law arise for our consideration :