S.K. Chander, Accountant Member - (1.) THESE appeals by the revenue are directed against the consolidated order of the Commissioner of Wealth-tax (Appeals), New Delhi, dated 12-11-1987 relating to assessment years 1970-71 to 1975-76. A common and solitary ground taken for all the years reads as below : On the facts and in the circumstances of the case, the learned CWT (Appeals) erred in annulling the assessment holding it as time-barred. In order to appreciate the factual back-drop of the case, we bring into focus the facts which are relevant for determination of this issue.
(2.) The assessee is a Hindu undivided family and from the following tabulated data the date of filing the original return, the date of assessment and the net wealth assessed can be seen placed in juxtaposition : JUDGEMENT_2246_TLIT0_19880.htm The statistical data noted supra shows that the Wealth-tax Officer completed the assessments for the assessment years 1970-71 to 1974-75 on 31-3-1979 and the assessment for the last year, i.e., 1975-76 was completed by him on 29-3-1980. These assessments were challenged in appeal before the Commissioner of Wealth-tax (Appeals). The learned Commissioner of Wealth-tax (Appeals) made a consolidated order for the appeals relating to assessment years 1970-71 to 1974-75 on 25-2-1981. He disposed of the appeal relating to the assessment year 1975-76 vide his order dated 30th March, 1981. The above two orders were received by the Commissioner on 9-3-1981 and 6-4-1981 respectively. By these orders the Commissioner of Wealth-tax (Appeals) while setting aside the assessments gave certain directions to the Wealth-tax Officer for re-doing the assessments accordingly. The Revenue, however, did not accept those orders and filed appeals before the Tribunal being WTA Nos. 694 to 698 (Delhi) of 1981 and 1050 (Delhi) of 1981. The Tribunal disposed of these appeals confirming the orders of the Commissioner of Wealth-tax (Appeals) setting aside the assessments for all the assessment years under appeal and dismissed the appeals of the Revenue, vide order dated 9-6-1982. all the years under appeals on 25-3-1987. The figures of net wealth for each assessment year are the same as in the original assessments made for these years. These assessments were challenged in appeal before the Commissioner of Wealth-tax (Appeals). Before the Commissioner of Wealth-tax (Appeals) it was projected that the asses see had taken up a legal ground before the Wealth-tax Officer that the assessments were barred by time. The learned Commissioner observes that there was no discussion in the body of the impugned assessment orders with regard to this contention. He, "therefore, asked the assessing authority to clarify the position. It was submitted before him in writing on behalf of the Revenue that the time limit for completion of assessments for the assessment years 1970-71 to 1974-75 was 31-3-1985 and that for the assessment year 1975-76, it was 31-3-1986. However, it was pointed out that the orders of the Commissioner of Wealth-tax (Appeals) dated 25-2-1981 and 31-3-1981 respectively received on 9-3-1981 and 6-4-1981 had been challenged in appeal before the Tribunal. It was, therefore, pointed out to him that insofar as limitation provided under Section 17A(3) of the Wealth-tax Act is concerned, the matter was sub judice. It was further contended that the order of the Tribunal was passed on 9-6-1982 for all the years under appeal and as such, the time available for completion of the impugned assessments was up to 31-3-1987. Since the impugned assessments had been completed on 25-3-1987 they were made within the limitation provided under the statute.
(3.) THE learned Commissioner, however, on examination of the provisions of Section 17A(3) of the Act held that the mere fact that the Wealth-tax Officer had gone in appeal before the Tribunal against the Commissioner's order it did not lift the time limit for making fresh assessments as provided under Section 17A(3) which imposed a legal duty on the Wealth-tax Officer to make the assessments afresh within the period of limitation which according to the learned Commissioner for the order of the Commissioner passed on 25-2-1981 ended on 31-3-1985 and for the order passed on 30-3-1981 ended on 31-3-1986. Since all the assessments were framed de novo only on 25-3-1987, these were held as barred by limitation. THEse were cancelled, hence the appeals of the Revenue.;