2004 (8) TMI 16

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....tion 16(3) of the Wealth-tax Act, 1957, passed by the Wealth-tax Officer?" Briefly stated the facts giving rise to the present reference are as follows: The assessee opposite party is an individual, who owned a cinema building, the construction of which was completed on March 31, 1970. He started running the cinema with effect from April 20, 1970. While framing the assessment under the Act, the Wealth-tax Officer referred the valuation of the cinema building to a Valuation Officer. According to the valuer, the value of the property as on March 31, 1970, and March 31, 1971, was taken at Rs. 3,63,330 in each of the two assessment years 1970-71 and 1971-72. It appears that the Valuation Officer has given his report on the basis of cost of la....

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....ttled by the apex court that all materials, which are available before the Commissioner at the time of scrutiny by him can be taken into consideration in the proceedings under section 25 of the Act. He referred to the following decisions of the apex court. (1) South India Steel Rolling Mills v. CIT [1997] 224 ITR 654; (2) CIT v. Shree Manjunathesware Packing Products and Camphor Works [1998] 231 ITR 53. According to him, the provisions of section 25 of the Act are in pari materia to the provisions of section 263 of the Income-tax Act, 1961. Therefore, the principles laid down by the hon'ble Supreme Court in the aforesaid two cases would squarely apply to the provisions of section 25 of the Act. In the case of South India Steel Rolling M....

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....onsiders the order to be erroneous then he can pass the order thereon as the circumstances of the case justify. Obviously, as a result of the enquiry he may come into possession of new material and he would be entitled to take that new material into account. If the material, which was not available to the Income-tax Officer when he made the assessment could thus be taken into consideration by the Commissioner after holding an enquiry, there is no reason why the material which had already come on record though subsequently to the making of the assessment cannot be taken into consideration by him. Moreover, in view of the clear words used in clause (b) of the Explanation to section 263(1), it has to be held that while calling for and examinin....