Per Ahmad Fareed,Accountant Member. - This appeal by the assessee is directed against the order of the CWT (A) III, Pune, dated 23-12-1997 for assessment year 1992-93.

2. The grounds raised by the assessee in this appeal are as under :

1.On the facts and circumstances prevailing in the case and as per provisions of law, it can be held that the order passed by the Assessing Officer in violation of rules of natural justice is not tenable in law. The order so passed be cancelled.

2.Without prejudice to ground No. 1, on facts and circumstances prevailing in the case and as per provisions of law it be held that order passed by the Assessing Officer under the designation of Asstt. CIT Inv. Cir. 3(2), Pune, is an order passed without resuming jurisdiction under the relevant provisions of the Act and the order so passed is ab initio void. The order passed by the Assessing Officer be held as null and void.

3.Without prejudice to ground Nos. 1 and 2, on facts and circumstances prevailing in the case and as per provisions of law, it be held that the value of share considered by the appellant at Rs. 194.85 is the proper value and is in accordance with the provisions of law. The value adopted by the Assessing Officer at Rs. 209.33 is arguable and disputed and as such the issue being debatable is beyond the scope of provisions of section 35 of the Act. The order passed by the Assessing Officer, therefore, be cancelled. The appellant be granted just and proper relief in this respect.

4.The appellant prays to be allowed to raise, add, amend, delete, modify, rectify any grounds of appeal at the time of hearing.

3. In Ground No. 1 the assessee has contended that the order under section 35 of the Wealth-tax Act, 1957 was passed by the Assessing Officer in violation of rules of natural justice and be cancelled.

4. We have heard the rival submissions and have perused the orders of the authorities below. It has been observed by the CWT(A) in para 3 of her order that a show-cause notice under section 35 dated 11-9-1995 was issued and served on the assessee on 12-9-1995 asking the assessee to send a reply or to attend the office of the Assessing Officer on 20-9-1995. There was no response from the assessee to this notice and, therefore, the Assessing Officer passed the order on 25-9-1995. The assessee’s claim that the order under section 35 of the Wealth-tax Act, 1957 was passed by the Assessing Officer without giving an opportunity of being heard, was therefore, rejected by the CWT(A). In view of the above facts, we are in agreement with the conclusions reached by the CWT(A) and reject the Ground No. 1.

5. In Ground No. 2, the assessee has challenged the validity of the order passed by the Assessing Officer under section 35 of the W.T. Act, 1957. It was submitted by Shri R.G. Nahan the learned A.R. of the assessee that the order under section 35 of the Wealth-tax Act, 1957, dated 25-9-1995 was signed by the Assessing Officer under the designation of Assistant Commissioner of Income-tax, Investigation Circle 3(2), Pune. He, therefore, contended that this order was ab initio void.

6. We have heard the rival submissions and have perused the orders of the authorities below. We find that the Taxation Laws Amendment Act, 1975 had inserted a new section 42C in the Wealth-tax Act, 1957 with effect from 1-10-1975. The provisions of section 42C are as under :

"42C: No return of wealth, assessment, notice, summons or other proceedings furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of wealth, assessment, notice, summons or other proceeding if such return of wealth, assessment, notice, summons or other proceedings is in substance and effect in conformity with or according to the intent and purpose of this Act."

7. A similar provision was also introduc