1987 (2) TMI 39

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....eference under section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as " the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was Tight in holding that the assessment for the assessment year 1970-71 was rightly reopened by the....

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....was assessed at Rs. 7,800 and Rs. 67,500. The home at Tijori Gali was sold in 1972 for Rs. 24,000. In the circumstances, the value declared at Rs. 7,800 in 1970-71 was understated. The sale of house at Tijori Gali indicates that the value of properties is increasing. The value of Shiv Niwas Kothi is being taken at Rs. 67,000 for the last so many years. In view of the information now available, ....

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....been referred to this court for its opinion. It is well settled that the jurisdiction of the Wealth-tax Officer to reopen an assessment under section 17(1)(b) of the Act would depend upon the satisfaction of the two conditions precedent, specified in section 17(1)(b) of the Act. The Wealth-tax Officer should have reason to believe that net wealth chargeable to tax has escaped assessment and tha....

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....lear that in the reasons recorded by the Wealth-tax Officer for reopening the assessment, incorrect facts have been set out and there is nothing to indicate that the Wealth-tax Officer came into possession of any information received after the original assessment. The Tribunal, however, held that the Wealth-tax Officer was justified in reopening the assessment in view of the valuation report submi....