Revised wealth-tax assessments upheld on appeal due to timely reopening based on assessee's admission.

The appeals challenging revised wealth-tax assessments were dismissed by the Tribunal. The assessments were upheld under section 17(1A)(iii) of the Wealth-tax Act, 1957, as the net wealth that escaped assessment exceeded Rs. 10 lakhs and the original assessments were completed within 10 years. The reopening of assessments was justified based on the assessee's admission of a higher property value in income-tax assessment, benefiting from a lower tax liability. The court held that the assessments were not time-barred, leading to the dismissal of the appeals.

---

---

Issues:
1. Questioning revised wealth-tax assessments as time-barred due to chargeable wealth escaping assessment.
2. Reopening of assessments based on higher value declared for properties in income-tax assessment.

Issue 1:
The connected appeals were filed by the assessee challenging the revised wealth-tax assessments, contending that they were time-barred. The original assessments were reopened because chargeable wealth had escaped assessment. The Tribunal upheld the assessments under section 17(1A)(iii) of the Wealth-tax Act, 1957, as the net wealth that escaped assessment exceeded Rs. 10 lakhs and the original assessments were completed within 10 years.

Issue 2:
The reopening of assessments was based on the assessee declaring a higher value for properties in the income-tax assessment for a subsequent year when the properties were sold. The market value declared as on April 1, 1981, was significantly higher than the value declared in the wealth-tax returns used for the original assessments. The Department accepted this higher market value for computing long-term capital gains in the income-tax assessments. The court found that the assessee benefited from this situation, as the Income-tax Officer could have demanded higher tax if the claim was rejected in the income-tax assessment. By accepting the higher value in the wealth-tax assessment, the officer acted in the assessee's interest. Therefore, the court held that the reopening of assessments was justified based on the assessee's admission of the higher value. Since the net wealth exceeded Rs. 10 lakhs, the Tribunal correctly ruled that the assessments were not time-barred, leading to the dismissal of the appeals.

This detailed analysis of the judgment covers the issues involved comprehensively, highlighting the reasons for the court's decision in each aspect of the case.

---