TaxTMI 
TaxTMI 
2012 (5) TMI 515
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....r dated 06.11.2009 during the course of assessment proceedings. The authorities below erred in denying exemption by relying on the decision of Apex Court in Goetz India Ltd. vs. CIT, 284 ITR 323 (SC) which is not applicable on the facts of the present case. 2. Because the justice and equity has been totally denied by both the authorities in assessing the asset as taxable which is totally exempt u/s. 5(1)(vi) of the W.T. Act, 1957. It is bounden duty of the authorities below to make a judicious and proper assessment of taxable wealth irrespective of the fact the exemption in respect of that asset could not be claimed in the return. 3. Because under law tax cannot be levied on an income/wealth not taxable under the r....
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....t is the duty of the AO to grant exemption to the assessee as per law. Certain decisions were relied upon in respect of the same. However, the ld. CWT(A) also confirmed the order of AO on the same reasoning as given by the AO that the assessee had not made any claim for exemption by filing the revised return. The appeal of the assessee was, accordingly, dismissed. 4. The ld. counsel for the assessee reiterated the submissions made before the authorities below and relied upon the following decisions : (i) CWT v. N.B. Ataulla Khan [1996] 217 ITR 17/86 Taxman 396 (AP) (ii) Maynak Poddar (HUF) v. WTO [2003] 262 ITR 633/130 Taxman 500 (Cal.) (iii) Jute Corpn. of India Ltd. v. CIT [1991] 187 ITR 688/[1990] 53 Taxman 85 (SC) ....
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.... farm house situated within 25 kilometers from the local limits of any municipality or other cantonment Board, but does not include certain items, which items are not reproduced here because same are not relevant for the purpose of deciding the issue in controversy. The combined reading of the above provisions would show that wealth-tax shall be charged on the net wealth subject to other provisions contained in this Act and the net wealth will be computed in accordance with the provisions of this Act, of all the assets belonging to the assessee. Therefore, charging section of wealth-tax and defining section of net wealth would clearly reveal that net wealth would be computed in accordance with the provisions of this Act and on such net weal....
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....e W.T. Act in the return of wealth. However, the said prohibition was not applicable to the first appellate authority and as such a claim should have been considered by the ld. CIT(A) for deciding the issue in accordance with law. Hon'ble Delhi High Court in the case of CIT v. Jai Parabolic Springs Ltd., [2008] 306 ITR 42/172 Taxman 258 considering the decision of Hon'ble Supreme Court in the case of Goetze India Ltd. (supra), Jute Corpn. of India Ltd (supra) and National Thermal Power Co. Ltd. (supra), decided the identical issue as under : "The assessee filed a return of income declaring a net loss at Rs.4,40,36,000 for the assessment year 1990-91. The loss was computed at Rs.4,27,63,353, inter alia, by making several additions and disal....
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.... Ataulla Khan (supra) in which the Hon'ble High Court considering the definition of net wealth held that to arrive at the correct net wealth it is necessary to take into consideration not only the assets and liabilities, but also the exemption, to which an assessee is entitled to. Just as in a case where the assets are not properly mentioned or where the assets which have to be included by virtue of the provisions of the Act, are not included, have to be taken into consideration by the WTO for arriving at the correct net wealth, so also it is obligatory on the part of the WTO to take into consideration the exemption granted by the Act whether such exemptions are claimed or not by the assessee because the WTO is bound to levy tax on net weal....