Allowing the petition the Court held that the provisions of section 147 of the Income-tax Act, 1961 and section 17 of the Wealth-tax Act, 1957 as far as the reopening of the assessments are concerned are pari materia. Therefore decision of the Supreme Court in G. K. N. DRIVESHAFTS (INDIA) LTD. v. ITO ( 2003 ) 259 ITR 19 (SC) was to be applied even for re-opening of assessment under the 1957 Act. The order passed under section 18(1)(c) of the 1957 Act was set aside and the matter was remitted to the ITO to pass a speaking order on merits accordingly. Matter remanded.. ( AY. 2008-09, to 2010-11)
Bharani Hospitals Pvt. Ltd. v. ITO (2021)435 ITR 107/ 204 DTR 397 / 322 CTR 719 (Mad) (HC) Bharani Hospitals Pvt. Ltd. v. ITO (2021)435 ITR 107/ 204 DTR 397 (Mad) (HC)
Wealth Tax Act, 1957
S.17 : Wealth escaping assessment – Reassessment — Concealment of assets or furnishing of inaccurate particulars — Penalty —Provisions in pari materia with provisions of Income-Tax Act, 1961 —Law laid down by Supreme Court in Income-tax Matter is applicable to wealth tax proceedings – Natter remanded to pass speaking order . [ S.17(1), 18(1)(c), ITAct , S.147, Art , 226 ]