2016 (2) TMI 487

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....TA Nos. 06 & 07/PN/2014 2. The facts of the case as emanating from the record are: The assessee is an individual. During the course of scrutiny assessment proceedings the assessee submitted that the following assets belong to M.N. Navale (Bigger HUF) : a) Residential Flat No. 101, 102 Building No. D.S. No. 59, 1st Floor, at Kumar Parisar Kothrud, Pune - Valued at Rs. 12,05,000/-. b) Residential Bungalow at Navsahyadri Soc. Karve Nagar, Pune - Valued at Rs. 52,76,510/-. c) Farm House at NDA Road, Pune - Valued at Rs. 63,30,000/-. d) Flat at Meera Co-op. Hsg. Society Oshiwara, Jogeshwari (W) Mumbai - Valued at Rs. 25,51,510/-. e) Flat at 392/6, Sion Dvn; Sion (E), Mumbai - 22. Flat 7, 8 and 9 - Valued at Rs. 1,08,30,000/-. f) Cash in hand Rs. 1,25,57,588/-. The Assessing Officer rejected the contentions of the assessee and questioned the existence of M.N. Navale (Bigger HUF). The Assessing Officer made addition of the aforesaid assets in the net wealth of the assessee in both the impugned assessment years. Aggrieved by the assessment orders, the assessee preferred appeals before the Commissioner of Wealth Tax (Appeals). I....

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.... should be assessed only in the hands of HUF. The said assets cannot be assessed in the hands of the assessee individual merely because the HUF's claim is found to be inadequate. 3.1 The ld. AR further submitted that the Commissioner of Wealth Tax (Appeals) has not given any reason as to why the assets should be assessed in the hands of the assessee in the absence of any evidence. In support of his submissions, the ld. AR placed reliance on the decision rendered in the case of Dy. CIT Vs. Smt. Khadija Rashid in ITA No. 612/PN/2004 decided on 31-03-2011 and in the case of Atul Kumar Jain Vs. Dy. CIT reported as 64 TTJ 786 (Delhi). 4. On the other hand Shri Dheeraj Kumar Jain representing the Department vehemently supported the findings of the Commissioner of Wealth Tax (Appeals). The ld. DR submitted that the impugned order is well reasoned and justified. The Commissioner of Wealth Tax (Appeals) has remitted the issue back to the file of Assessing Officer to exclude the value of the properties in dispute from the net wealth of the assessee in the impugned assessment years, subject to the condition that if the properties are not represented by the source of funds in the HUF, th....

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.... this ground may be treated as partly allowed." We do not find any infirmity in the order of Commissioner of Wealth Tax (Appeals) in directing the Assessing Officer to make addition of assets in the net wealth of M.N. Navale (Bigger HUF) to the extent of matching sources of funds available and the remaining assets, if any in the net wealth of the assessee. The impugned order is reasoned and justified and thus calls for no interference. 6. In the result, WTA Nos. 06 & 07/PN/2014 are dismissed being devoid of merit. WTA Nos. 08 & 11/PN/2014 [M.N. Navale (Bigger HUF)] 7. The only ground raised by the assessee in the appeals is : 1) On the facts and in the circumstances of case the CIT(A) has erred in holding that the substantive assessment in the hand of appellant can only be made on verifying the claim of agricultural income and the available funds for acquiring all these assets by Assessing Officer while giving effect to the order of Tribunal ITA No. 149/PN/2010 dated 30.03.2012 further directing that in the event of Assessing Officer's finding that claim of agricultural income and the available fund is not acceptable fully or partly, in that case assets/wea....

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....ns of the assessee for the assessment year 2004-05, 2005-06 and 2006-07 wherein the impugned assets have been included in the net wealth of the assessee. 10. On the other hand, the ld. DR submitted that search was conducted in the case of Shri M.N. Navale (Individual). During the course of search huge jewellery and cash was found which was admitted by the assessee (individual). Shri Navale has been consistently changing his stand. Initially, he admitted the jewellery and cash in his own individual hands and thereafter he stated that the jewellery and cash belongs to HUF. Therefore, reliance cannot be placed on the statement of the assessee. 11. Both sides heard. The only grievance of the assessee in the present set of appeals is the directions given by the Commissioner of Wealth Tax (Appeals) to Assessing Officer to complete the assessment after ascertaining the source of funds for acquiring assets by the HUF. If the source of funds are established and match the assets the assessment should be made on substantive basis in the hands of the HUF otherwise the assets should be included in the net wealth of the assessee. 12. We observe that the Commissioner of Wealth Tax (Appea....