1996 (8) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... fact and law, therefore, they are disposed of by this common order. For convenient disposal of all the aforesaid seven references the facts given in M. C. C. No. 73 of 1991 are taken up for consideration. This is a wealth-tax reference under section 27(3) of the Act for the assessment period 1979-80. The assessee submitted a return for the assessment year 1979-80 under section 16(1) of the Act. The assessee showed the total value of 3,845 gms. net gold ornaments at the rate of Rs. 520 in the assessment year 1975-76 and assessed the value of that gold to the extent of Rs. 1,69,000, and this was repeated in all the subsequent years. The assessment was made accordingly. Thereafter, this assessment was sought to be reopened under section....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....en no fault can be found with the assessee and, accordingly, the Tribunal upheld the order passed by the Deputy Commissioner of Wealth-tax (Appeals), Gwalior, and rejected the appeal of the Revenue. Therefore, an application was moved by the Revenue for making a reference before this court and that was declined by the Tribunal. Hence, the Department has approached this court under section 27(3) of the Act for calling the statement of the case. We have heard learned counsel for the parties and perused the record. According to section 17 of the Act, what is required of the assessee is to state the material facts truly and correctly. It is correct that the assessee has disclosed the quantum of the gold but the rate which has been given by t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... time and totally misled himself on the basis of facts given by the assessee. The assessee was also under obligation to give the correct market rate prevalent during the assessment years, but that has not been given and the Assessing Officer was totally misled on that basis. In this connection, it may also be relevant to refer to the decision of the Supreme Court in Indian Oil Corporation v. ITO [1986] 159 ITR 956, and there also, their Lordships observed : "There must be materials to come to the conclusion that there was omission or failure to disclose fully and truly all material facts necessary for the assessment of the year'. This postulates a duty on every assessee to disclose fully and truly all material facts necessary for the ass....