TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 143
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.... is against the principles of natural justice and has been passed without affording reasonable opportunity of being heard. 3. That the facts and circumstances of the case and the provision of law the CIT(Appeal) has failed to appreciate that the Ld. AO has erred in initiating the proceedings u/s 18(1 )(c ) of Wealth Tax Act, 1957. 4. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of Rs. 25,00.000;- in the taxable wealth on account of surrender of the cash found in locker with Syndicate Bank, DP Gupta. Karol Bagh New Delhi." 3. The brief fact of the case is that search and seizure operation was carried out on 14/02/2008. During the course of search Rs. 30 lakhs were found in the locker No. 216 in the name of the assessee with syndicate bank, Karol Baug branch, New Delhi. During the course of search , assessee surrendered this sum as income for the assessment year 2005 - 06 and therefore, it was added to the total income of the assessee u/s 143 (3)/153A of the Income Tax Act dated 30/12/2009. In the wealth tax proceedings, assessee filed his return of Wealth on 16/11/2010 declaring net wealt....
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....ubmitted that he disclosed the above sum and agreed for payment of the tax on this additional income of Rs. 30 lakhs only because of the reason that he wanted to save penalty and prosecution on this sum. He therefore submitted that this sum is not includible into the net wealth of the assessee for the purpose of computation of wealth tax liability of the assessee. 6. Ld. departmental representative submitted that the assessee has surrendered the above sum. During the course of search he also agreed to pay tax on this sum under the income tax act. Therefore this money belongs to him and the amount is added under section 69A of the income tax act. Ld. departmental representative further drew our attention to the para No. 7.2 of the assessment order under section 143 (3) wherein it is submitted that the assessee has tried to disclose the above amount under the voluntary disclosure of income scheme 1997 and despite this, the addition has been confirmed into the hands of above cash seized from the locker. He further submitted that the statement of the assessee was also found to be erroneous and wrong, which has been proved by the Ld. assessing officer in para No. 7.1 of that assessment....
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....e following grounds of appeal in WTA No. 17/Del/2014 for the Assessment Year 2006-07:- "1. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the assessment order passed by the Ld. AC u/s 16(3) is bad in law, wrong on facts. 2. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the impugned assessment order passed by the Ld. AO is against the principles of natural justice and has been passed without affording reasonable opportunity of being heard. 3. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the Ld. AO has erred in initiating the proceedings u/s 18(l)(c ) of Wealth Tax Act, 1957, 4. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of Rs. 25,00,000/- in the taxable wealth on account of surrender of the cash found in locker with Syndicate Bank, DP Gupta, Karol Bagh New Delhi. 5. That on the facts and on the circumstances of the case and the provision of law the Ld CIT ....
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....this ground on the last page of his order. However, while giving the finding on the various grounds of appeal raised by the assessee before him, he has not disposed of this ground of appeal. In view of the above facts we restore ground No. 5 of this appeal back to the file of the Ld. Commissioner of wealth tax to adjudicate on this issue on merit after providing assessee a reasonable opportunity of hearing. In the result ground No. 5 of the appeal of the assessee is allowed accordingly. 16. In the result appeal of the assessee for assessment year 2006 - 07 is partly allowed. 17. The assessee has raised the following grounds of appeal in WTA No. 18/Del/2014 for the Assessment Year 2007-08:- 1. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the assessment order passed by the Ld. AC u/s 16(3) is bad in law, wrong on facts. 2. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the impugned assessment order passed by the Ld. AO is against the principles of natural justice and has been passed without affording reasonable opportunity of ....