COMMISSIONER OF WEALTH TAX Vs. MASTER KAIRAS TARAPORE

JUDGEMENT

(1.) THESE six applications under s. 27(3) of the WT Act arise in similar circumstances and raise similar questions and are, therefore, disposed of by a common order.

(2.) MR. Naushir K. Marfatia and Smt. Gulnar Marfatia were partners in the firm, New Majestic Talkies, Ajmer. Master Kairas Tarapore (minor) was also admitted to the benefits of the partnership. Smt. Gulnar Marfatia filed returns of wealth in respect of the asst. yrs. 1975-76 and 1976-77 showing the value of the assets of the firm at Rs. 3,05,522 and submitted that the net wealth of the assessee was not liable to payment of under the WT Act. She submitted an approved valuer's report in respect of her contention and the assessments were completed by the WTO, accepting the report of the approved valuer.

(3.) LEARNED counsel for the Department submitted before us that the decisions of the Calcutta and Rajasthan High Courts referred to by the Tribunal related to the question as to whether a reference could be made under s. 16A(1) of the WT Act after the assessments were completed and it was held that such a reference after the completion of the assessments was without jurisdiction and that the assessments made in such cases could not be reopened under s. 17 on the basis of the report of the Valuation Officer. However, the decisions of the aforesaid two Courts did not consider the question as to whether in the case of assessees who did not file the returns under s. 14(1) and were not called upon to file a return under s. 14(2) by the WTO, the report of the Valuation Officer in respect of a partner of the firm would constitute material for having reason to believe that the net wealth of the said assessee had escaped assessment to tax under the WT Act, because such a question did not arise in those cases. It was further submitted that the Tribunal failed to consider this aspect of the matter, as to whether the report of the Valuation Officer in the case of Smt. Gulnar Marfatia could constitute material for the WTO for having reason to believe within the meaning of s. 17(1)(a), in the cases of Naushir K. Marfatia and Mst. Kairas Tarapore on account of the omission on the part of those persons to file returns of their wealth in respect of the asst. yrs. 1973-74 to 1976-77.