TaxTMI 
TaxTMI 
2005 (2) TMI 38
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....Act for the assessment year 1979-80, which is being disposed of by a separate order. For the assessment year 1979-80, the assessee was required to file the wealth-tax return on or before July 31, 1979, but he failed to do so despite notice dated November 14, 1981, issued under section 17 of the Act which provides for assessment of escaped wealth. He also did not respond to notices dated September 1, 1982, and December 16, 1985, issued under section 16(4) of the Act for production of records for the purpose of framing assessment. In the meanwhile, the Wealth-tax Officer, vide his letter dated January 21, 1984, asked the Departmental Valuation Officer to value the assessee's property under section 16A(5) of the Act. The latter submitted a report dated March 14, 1985, indicating therein that as on March 31, 1979, the value of the assessee's property was Rs. 15,62,000. After more than one year of the submission of the valuation report, the assessee filed the return dated March 7, 1986, declaring his net wealth at Rs. 2,26,000. The Wealth-tax Officer, vide his order dated March 21, 1986, framed the assessment. He accepted the report of the registered valuer submitted by the assess....
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....sed on the basis of the return filed on March 7, 1986. He submitted that in view of section 17A(1)(b) of the Act, the assessment framed on March 21, 1986, i.e., within 15 days of the filing of the return cannot be treated as time-barred. Shri Suvir Sehgal, learned counsel for the assessee emphasized that in terms of section 16A of the Act, reference to the Valuation Officer can be made only after filing of the return and argued that the Tribunal did not commit any error by recording a finding that the report of the Valuation Officer could not have been relied upon for the purpose of enhancing the value of the assessee's wealth. Shri Sehgal further argued that the assessment proceedings can commence only from the date of filing of the return and a reference in terms of section 16A cannot be made to a Valuation Officer where no return has been filed by the assessee. In support of this argument, Shri Sehgal relied on the judgment of the Madhya Pradesh High Court in Onkarji Kasturchand (HUF) v. WTO [1982] 135 ITR 188; V.K. Jain v. WTO [1992] 193 ITR 89 (All) and Laxmi Devi Jain v. WTO [1992] 193 ITR 154 (All). He also supported the conclusion recorded by the Tribunal that the order ....
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....pportunity to state, on a date to be specified in the notice, his objections either in person or in writing before the Valuation Officer and to produce or cause to be produced on that date such evidence as the assessee may rely in support of his objections." Section 17(1) of the Act "17.(1) If the Wealth-tax Officer- (a) has reason to believe that by reason of the omission or failure on the part of any person to make a return under section 14 of his net wealth or the net wealth of any other person in respect of which he is assessable under this Act for any assessment year or to disclose fully and truly all material facts necessary for assessment of his net wealth or the net wealth of such other person for that year, the net wealth chargeable to tax has escaped assessment for that year, whether by reason of underassessment or assessment at too low a rate or otherwise; or (b) has, in consequence of any information in his possession, reason to believe, notwithstanding that there has been no such omission or failure as is referred to in clause (a), that the net wealth chargeable to tax has escaped assessment for any year, whether by reason of underassessment or assessment a....
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....pportunity to the latter to state his objection to the proposed valuation. The object of section 16A is to enable the Wealth-tax Officer to refer the issue relating to the value of any asset to a Valuation Officer for the purpose of making assessment. To put it differently, the provision contained in section 16A enables the Wealth-tax Officer to take the assistance of the Valuation Officer for the purpose of making assessment. In our opinion, the expression "any other case" appearing in clause (b) of section 16A(1) is wide enough to include a case where no return has been filed by the assessee. If we were to take a narrow view and hold that reference under section 16A(1) can be made only where the return has been filed, the expression "any other case" appearing in clause (b) thereof and expression "where no such return has been made" appearing in sub-section (4) of section 16A, the Act would become redundant. Therefore, keeping in view the well-recognized cannon that the court should not interpret the provisions of a statute so as to render a part thereof surplus or redundant, we hold that a reference under section 16A can be made even where no return has been filed by the asses....