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By Vijay Kumar

Wealth Tax

After assessments are completed, valuation officer's report cannot be called for and the report cannot be used for re-opening assessments: Bombay High Court

THE question before the High Court:

Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in holding that the Assessing Officer was not justified in re-opening the Assessment on the basis of the valuation report obtained by him subsequent to the date of completion of assessment?

To answer the question High Court proceeded to answer the following issues :

(1) Was it open to the assessing Officer to issue notice under Section 17 for reopening of assessment based on the report of the DVO which was called for after the assessment order was passed in so far as assessment years 1988-89 and 1989-90?

(2) Can the report called from the DVO before the Assessment order was passed but received after the order was passed, constitute material for reason to believe based on which notice under Section 17, could have been issued for reopening the assessments already completed?

Customs

Prosecution - when the highest Appellate Authority has absolved the petitioners on merits, no criminal proceedings on the same set of allegations: Delhi High Court

DRI officers intercepted the petitioner Ajay Gulati while he was entering security lounge at departure hall of I.G.I. Airport, New Delhi on the night intervening 11/12th August, 2002. He was scheduled to travel by Flight No.TG-316 for Bangkok . As a result of detailed examination of his bag as well as his personal search, 4,500 U.S. dollars were recovered from the personal search while from his baggage 15,000 (Traveler s Cheque) U.S. dollars were recovered.

High Court held that when the highest Appellate Authority in the present case has absolved these petitioners on merits, no useful purpose will served by continuing the criminal proceedings on the same set of allegations.

Central Excise

Delhi HC rules that penalty is only 25% of duty if duty is paid before show cause notice - Also gives a piece of advice to learned adjudicating authorities to explicitly state the options available to the assessee under Section 11AC

The High Court has a piece of advice for all the Adjudicating authorities:

To obviate any similar situation from arising in future, we are of the opinion that in its adjudication order the adjudicating authority under the Act should explicitly state the options available to the Assessee under Section 11AC of the Act. Once the choices are made known to the Assessee and it still does not take advantage of the first proviso to Section 11AC of the Act, it will be entirely at its own peril. Therefore, it would be beneficial, both from the point of view of the Revenue as well as the Assessee, if the options available to the Assessee are mentioned in the adjudication order itself.

See our columns tomorrow for the judgements