COMMISSIONER OF WEALTH TAX Vs. KANCHAN DEVI GOLECHA

JUDGEMENT

(1.) THE Commissioner of Wealth-tax, Jaipur, has filed this reference application under Section 27(3) of the Wealth-tax Act, 1957 (for short, hereinafter, "the Act"), in respect of the assessment year 1977-78,

(2.) THE assessee, Smt Kanchan Devi, filed a return of wealth on August 30, 1977, showing a total wealth at Rs. 5,11,960. THE assessee claimed exemption under Section 5(1)(xxxii) of the Act in respect of the capital of the assessee in the firm, M/s. Ratnalaya. Inquiries were made front the assessee as to whether the firm, M/s. Ratnalaya, was an industrial undertaking. THE assessee filed a reply stating that no registration of M/s. Ratnalaya, being an industrial undertaking, was necessary with the Industries Department, Jaipur. THE assessee was then asked to give bifurcation of the assets that were employed for the purpose of processing, as laid down in Rule 2H of the Wealth-tax Rules, 1957. No bifurcation was given by the assessee. THE Wealth-tax Officer, after examining the case of the assessee, did not accept her claim for exemption under Section 5(1) (xxxii) of the Act.

(3.) MR. Surolia also argued that the principle of res judicata does not apply in such cases, and that every assessment order involves a separate question which has to be assessed on its merit.