1985 (12) TMI 128

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....t Rs. 10,50,390. The WTO, therefore, added back 25 per cent of the difference between the two values at Rs. 6,99,369 being the share of the assessee in the said firm which he computed at Rs. 1,74,842 under s. 17 of the WT Act. The said addition has been endorsed by the AAC on appeal filed by the assessee. The assessee has consequently come up in second appeal before us. 2. We have heard the representatives of the parties at length in this appeal. Th main point urged on behalf of the assessee was that the assessee had disclosed her capital in the books of the firm. She had also disclosed that she was a partner in the firm but she was not bound to disclose all the assets held by the firm inasmuch as they were not necessary to determine her....

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....n of her liability under the WT Act. The various authorities cited by the assessee in this beheld, therefore, would not help the assessee, for example, in Seth Satishkumar Modi vs. WTO (1980) 15 CTR (All) 340 : (1983) 139 ITR 373 (All) that was decided was that the valuation of shares adopted by the assessee at the cost price was in accordance with a well recognised Principe of accountancy and the net wealth of a firm has to be calculated on the principles of commercial accountancy. The belief which the WTO entertained that the net wealth of the assessee had escaped assessment was based on in relevant material and was arbitrary. In CWT (Guj) vs. Chatrashal Singhjoi D. Zala (1981) 25 CTR (Guj) 260 : (1982) 135 ITR 826, (Guj) a Valurer's r....

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....eady proceedings reopening the assessment pending and fresh proceedings could not be initiated during the pendency of those proceedings. It was urged that before this reopening a notice under s. 17 had been issued to the assessee on 14th Sept., 1976. A return was filed in pursuance thereof on 28th March 1977. A re-assessment was made on 15th Feb., 1978 by which the net wealth of the assessee was revised from Rs. 6,18,317 to Rs. 6,75,566. This order was the subject matter of appeal before the AAC who decided the same on 2nd Feb., 1980 and that order was served upon the assessee on 8th Feb. 1980. The present notice under s. 17 was issued on 30th March 1979. It was contended that procedings are continuation of the original assessments. For tha....