TaxTMI 
TaxTMI 
2016 (4) TMI 293
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....f the Wealth-tax Act, 1957 which was itself without jurisdiction; (b) for the reason that it has been passed without observing elementary principles of natural justice;" The learned CWT(A) ought to have appreciated the peculiar facts and circumstances of the appellant's case as elaborately explained in the very Statement of Facts accompanying the appellant's appeal before him and decided the aforesaid Ground in favour of the appellant. 2) Without prejudice to the foregoing, in law and in the facts and circumstances of the appellant's case, the learned CWT(A) has grossly erred, even while partially granting the appellant's claim for deduction of liabilities to the extent they had been incurred specifically for acquisition of taxable assets, in not ordering for the grant of deduction for other liabilities as claimed by the appellant which were deductible in terms of the ratio of the decision of the Hon'ble ITAT in Thermax Limited v. Dy. Commissioner of Wealth Tax [2008] 299 ITR (AT)141 (Pune). 3) In law and in the facts and circumstances of the appellant's case, the learned CWT(A) has grossly erred in dismissing Ground No. 3 of the appellant&....
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.... observed that no details ECB claimed at Rs. 44,98,624/- has been furnished nor any evidence in support of vehicle loan for claiming the deduction of the debt was produced before him despite various opportunities given. 4. Similarly in the case of immovable property in the form of Regency Guest House, Ahmedabad, assessee has claimed debt at Rs. 4,76,316/- against value of Rs. 11,90,790/- but due to lack of evidence being produced before Assessing Officer, and accordingly claim was not allowed and wealth tax of assessee was assessed at Rs. 1,23,75,163/- after allowing liability of wealth at Rs. 62,186/- from total value of wealth from movable and immovable property as discussed above at Rs. 11,90,790/- and movable property at Rs. 1,12,46,559/-. Aggrieved, assessee went in appeal and ld. CWT(A) dismissed the first ground of assessee challenging the jurisdiction of assumed by the Assessing Officer for initiation of proceedings u/s 17 of the W.T. Act and in regard to ground no.2 for non-deduction of debt by Assessing Officer, ld. CWT(A) has observed that no specific nexus between the asset purchased and borrowing thereof were produced before the Assessing Officer and accordingly dir....
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....ssment year under consideration i.e.A.Y.2006-07. It was stated that the assessee company had no net wealth liable to wealth tax except motor car. However, the cars were purchased out of borrowed funds [loans] and the difference between the cost of the cars and the loan amount was paid through cash credit account. It was added that the net wealth as on the last day for the year under consideration: did not exceed the basic exemption limit as prescribed by the Act i.e. Rs. 15 lakhs. Hence, there being no wealth tax liability for, the year under consideration, the assessee company did not file the return of wealth. 2.3 Thus, /fife evident that there are no new facts or material in receipt of th& assessing authority on the basis of which the assessing authority is contending to initiate the wealth tax assessment proceedings, lit is clear that the relevant and necessary information for initiation of .the wealth fax assessment proceedings were on records. Hence, when no material or fact is brought in notice of the assessing authority, it follows that the assessing authority does not have a reason to believe that the wealth has escaped assessment. On this basis, it is submitted that th....
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....s in respect of both the immovable and movable properties, the fact of the matter is that the learned Assessing Officer has actually gone ahead with finalizing the assessment without waiting for the appellant to tender its explanation/evidence. That this is so becomes obvious from the following chronology of events :- (a) That the appellant's return was filed on 19.4.2011; (b) That the order rejecting the appellant's objections for initiation of proceedings u/s. 17 were dismissed vide communication dated 15.11.2011. (c) That the impugned assessment order was passed on 30.11.2011and served on the appellant on 20.12.2011" 7. On the other hand ld. DR supported the orders of lower authorities. 8. We have heard the rival contentions and perused the material on record. We find that ld. CWT(A) has dismissed this ground of appeal in his appellate order by observing as under :- "2.3 Decision; I have carefully considered the facts of the case, the wealth assessment order and the written submission of the appellant. It is seen from the assessment order that the wealth of the appellant company for the present assessment year has been SS for the first time. It is no....
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....Ld. AR also submitted that annual report of the company was submitted before the WTO and the claim should have been allowed. 12. On the other hand, ld. DR supported the orders of lower authorities. 13. We have heard rival contentions and perused the material on record. We find that ld. CWT(A) has observed with reference to this ground in his appellate order as under :- 3.3 Decision:- I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The AO has assessed the Net Wealth of the appellant company by faking the disclosed value of motor cars and did not admit the claim of the vehicle about vehicle loan and ECB for purchasing the motor cars as no evidence was furnished by the appellant. The appellant has submitted that amount of borrowed funds should be proportionately distributed amongst the total assets owned by the company and shown in the balance sheet. If the same is done the cost of assets taxable for wealth fax would be proportionately reduced and the wealth which is taxable would become Nil. The claim of the appellant that the cost of the assets should be reduced by proportion6fely distributing the lo....