Revision of wealth-tax assessment fails where the disputed valuation was not decided in the order under revision.

A revisional order under wealth-tax law was held unsustainable where the assessment sought to be revised had not dealt with valuation of the assessee's interest in a partnership asset, and that valuation had already been accepted in an earlier assessment. The revisional authority could not treat the later assessment as erroneous on an issue that did not arise for determination in it. As the preconditions for revision were not met, the revision was set aside in favour of the assessee.

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Issues: Whether the Commissioner was justified in revising the wealth-tax assessment under section 25(2) when the assessment order under revision had not dealt with the valuation of the assessee's interest in the partnership asset and the earlier assessment had already accepted that valuation.

Analysis: The assessment order sought to be revised related to the later return and accepted the revised net wealth as declared. The valuation controversy concerning the assessee's interest in Preet Palace Theatre had already been considered in the earlier assessment, and the revisional authority could not treat the later assessment as erroneous on a matter that did not arise for determination in it. Since the revenue could not controvert this position, the preconditions for revision were not satisfied.

Conclusion: The revisional order was not sustainable and was set aside in favour of the assessee.

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