Commissioner of Wealth Tax vs Smt. V.B. Garware

Bharucha, J.—The reference made at the instance of the Revenue raises the following question :

"Whether, on the facts and circumstances of the case the Tribunal was right in holding that the wealth-tax assessments for the asst. yrs. 1965-66 to 1970-71 could not be rectified under s. 35 of the WT Act, 1957, as the question whether the retrospective amendment of s. 5(1)(viii) w.e.f. 1-4-1963, applied to completed assessments was a debatable question and could not be treated as a mistake apparent from the record ?"

Counsels are agreed that the judgment of the Supreme Court in J.M. Bhatia, Appellate Assistant Commissioner of Wealth Tax and Others Vs. J.M. Shah, applies to this case. The Supreme Court has held that the order of the AAC had not become final because the four years period of limitation available under s. 35 of the WT Act had not expired and the power of rectification was exercised not with reference to any provision of the Amending Act but de hors it. Accordingly, following the judgment in the aforesaid case, we hold that the Tribunal was in error in setting aside the order of WTO.

No order as to costs.