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of <h1>High Court upholds validity of Commissioner's order in wealth-tax assessment case despite lack of notice</h1> <h3>Smt. Anantkuverba (Legal Representative Of HH. Maharaja Sri Natwarsinghji Versus Commissioner Of Wealth-Tax</h3> Smt. Anantkuverba (Legal Representative Of HH. Maharaja Sri Natwarsinghji Versus Commissioner Of Wealth-Tax - [1993] 201 ITR 42, 110 CTR 1 Issues:1. Validity of the Commissioner's order without notice to the assessee regarding the valuation of immovable property 'Lal Palace.'2. Tribunal's decision to restore the matter to the Commissioner for fresh orders instead of quashing the initial order.Analysis:The High Court of Gujarat addressed the validity of the Commissioner's order in a wealth-tax assessment case. The Commissioner found errors in the valuation of assets and discrepancies in exemptions granted by the Wealth-tax Officer. The Commissioner initiated proceedings under section 25(2) of the Wealth-tax Act and issued a notice to the assessee regarding the valuation of immovable property 'Lal Bungalow.' The Commissioner directed the Wealth-tax Officer to refer the correct valuation to the Valuation Cell and withdraw excess exemptions granted. The assessee challenged the order, arguing lack of notice for the assessment years under reference. The Tribunal, citing precedents, held that lack of notice did not make the order a nullity and restored the matter to the Commissioner for proper notice and fresh orders.The main contention by the assessee was that the Commissioner's order was void ab initio due to lack of notice regarding the valuation of the property. The High Court referred to Supreme Court decisions, including CIT v. Electro House, stating that breach of natural justice may affect legality but not jurisdiction. Therefore, lack of notice did not impact the Commissioner's jurisdiction under section 25(2) of the Act. The Court emphasized that adequacy of opportunity only affects the order's legality, not jurisdiction. Citing CIT v. National Taj Traders, the Court affirmed that the Tribunal can remand a case for fresh consideration if due opportunity was not given to the assessee.In conclusion, the High Court upheld the validity of the Commissioner's order under section 25(2) of the Act despite lack of notice, following Supreme Court precedents. The Court affirmed the Tribunal's authority to remand the case for fresh consideration when adequate opportunity was not provided. The judgment answered the referred questions in the affirmative, ruling against the assessee. The decision was in line with similar views expressed by other High Courts, ensuring due process in tax assessment matters.
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