2004 (7) TMI 64

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....t year 1983-84 and relates to the validity of the proceedings of reassessment in pursuance of the notice dated March 23, 1994 in respect of the assessment year 1983-84. The facts which are found by the Tribunal and are not in dispute show that in the first instance, the assessment for 1983-84 under the Wealth-tax Act, 1957, was completed on February 16, 1984, which was founded on the order of the Tribunal in the case of Seth Pussalal Mansinghka Trust for the assessment years 1980-81 and 1982-83 in which the assessee was allowed to exercise the option about inclusion of the value of the immovable property in question, which was under the said trust in the hands of the appellant from the assessment year 1982-83 onwards. In the first instan....

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.... part of the assessee to disclose fully and truly all material facts necessary for the assessment for that assessment year. The law also enjoins upon the Assessing Officer to record reasons before issuing notice under section 17. The Tribunal found that, since it was not a case in which notice under section 17 has been issued either for the reason of failure on the part of the assessee to file the return as required under the provisions of sections 14 to 15, 16 or 17, nor is it a case where the initiation of reassessment proceedings was on account of any failure on the part of the assessee to disclose truly and fully all material facts necessary for his assessment for the assessment year in question, no proceedings for reassessment could....

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....7 was also enacted for contingency which was earlier governed by section 17(1)(b); and fell beyond section 17(1)(a). The proviso to section 17(1) as it now stands with effect from April 1, 1989 reads as under: "Provided that where an assessment under sub-section (3) of section 16 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any net wealth chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 14 or section 15 or in response to a notice issued under sub-section (4) of section 16 or this section or to ....

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....he one hand and cases where notwithstanding no such default is attributable to the assessee, still for some reason or the other the Assessing Officer is satisfied that wealth chargeable to tax has escaped assessment, may be because of an interpretation which is found to be erroneous, or such other reason which cannot be attributed to the assessee's failure to disclose truly and fully all material facts necessary for assessment. Prior to the amendment of section 17, this distinction was apparent between cases falling under clauses (a) and (b) of section 17(1), respectively. While clause (b) of section 17(1) could be invoked only on the basis of information that comes to the Assessing Officer subsequent to earlier assessment and which did not....

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....cepted, on' any canon of interpretation of the statute. If there was no distinction, the proviso will become inapplicable in any case. We have noticed above that in the present case on the findings of the Tribunal, there is no failure on the part of the assessee either to make return as required of him under any provision referred to above, nor was there any failure on his part to disclose fully and truly any necessary fact for the assessment year in question. Admittedly, it was only subsequent furnishing of the valuation report by the Departmental Valuation Officer founded on different methodology of valuation of immovable property that this notice has been issued. Obviously, this exercise falls in the realm of the Assessing Officer whi....