TaxTMI 
TaxTMI 
2020 (2) TMI 540
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....craves leave and prays that the relief claimed above or any other relief, to which the appellant is entitled, may kindly be allowed." (B) Assessment Order under Section 16(3) of the Wealth Tax Act, 1957 ("W.T. Act", for short) was passed by the Assessing Officer on 23.09.2014. The Assessing Officer noted, on perusal of Balance Sheet filed by the assessee with the return of income for Assessment Year 2009-10 that the assessee had not disclosed, in the Wealth Tax Return, property at Aralias DLF valuing Rs. 83,84,011/-. He added the aforesaid amount of Rs. 83,84,011/- to the taxable wealth of the assessee, vide aforesaid order dated 23.09.2014. The assessee filed appeal before the Commissioner (Appeals) vide order dated 29.07.2016. The Commissioner (Appeals) enhanced the taxable wealth by a further amount of Rs. 83,62,752/-. The relevant portion of the impugned appellate order dated 29.07.2016 of the Commissioner (Appeals) is reproduced as under: 3. The AO in his assessment order has stated as under:- Return declaring wealth of Rs. 9,16,380/- was filed on 21.01.2014. Later on, after perusal of balance sheet filed with the return of income for the A.Y. 2009-10 it was noticed th....
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....claimed exemption u/s 5(vi) of WT Act for the property at Shimla valued at Rs. 12,50,000/-. In View of that, you are not eligible to claim exemption for any other property owned by you. On perusal of your submissions, it is seen that conveyance deed of your property-Apartment No. AR0404, Aralias DLF was executed in the office of Treasury Cum Collector Gurgaon on 06.03.2009, wherein sale price of the property has been shown at Rs. 1,56,50,991 = 08 and the stamp duty paid in Rs. 10,95,772/-. As this property was purchased by you on 06.03.2009, it is clear that this property was owned by you as on 31.03.2009 and should have been included in your taxable Wealth for AY 2009-10 at Rs. 1,67,46,763/-. The AO had made an addition of only Rs. 83,84,011/- in the Wealth Tax Assessment Therefore, it is proposed to enhance your Taxable wealth by Rs. 83,62,752/- (1,67,46,763-83,84,011) during the year under consideration. Your reply should be submitted by 28.07.2016. A separate notice fixed up the next date of hearing on 28.07.2016 is also enclosed herewith. 5. The AR of the appellant has filed the following submissions during appellate proceedings, in response to the notice u/s 25....
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.... Property at Aralias DLF was valued at Rs. 83,84,011/-. On perusal of submissions filed during the appellate proceedings, it was noticed that the property at Aralias, DLF was purchased by the appellant on 06.03.2009 and as per the conveyance dead executed on that date, sales price of the property was shown at Rs. 1,56,50,991=08 and the stamp duty paid was Rs. 10,95,772/-. In view of the fact that the property was owned by the appellant as on 31.03.2009 and true value of the asset was not shown, notice of enhancement u/s 251(2) of the Act was issued to the appellant, as to why the taxable wealth of the appellant should not be enhanced by Rs. 83,62,752/- for the year under consideration. No submission was filed by the appellant in this regard and hence it is clear that appellant has nothing to submit in response to the notice for enhancement. 6.3.7 The appellant has however submitted that during the year under appeal, the appellant has claimed, the property situated at Shimla as selfoccupied and accordingly claimed as exempted asset as per the provision of Section 5(vi) of the Wealth Tax Act and it was requested that property at Aralias, Gurgaon may be treated as exempt asset as p....
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.... Taxable Wealth 916,380 Note: During the year, the assessee had made investment into the following properties which are under construction. (i) AR0404, The Aralias, DLF Phase-V, Gurgoan 27,758,313 (ii) D-802, crew BOS Coop. Group Housing Society, GH-53, Sector-I, IMT Manesar, Gurgoan." 1,775,000 2.2 Before the assessee could remove the errors in the declaration of his taxable wealth the assessment was completed on the basis of the assessee's Balance Sheet (Page 28 of the paper book) as under:- "A. Immovable Properties (i) Property at Aralias DLF 83,84,011/- (ii) property at Hyderabad 2,19,550/- (iii) property at Shimla (Claimed as exempt u/s 5(vi) 12,50,000/- Total: 98,53,561/- B. Movable Properties (i) Jewellery (Appx. 250 Gms.) 3,79,110/- (ii) Cash in Hand (in excess of Rs. 50,000/-) 3,17,720/- Gross Wealth: 1,05,50,391/- Less: Exempt u/s 5(iv): (property at Shimpla) 12,50,000 Taxable Wealth : 93,00,391/- Assessed at wealth of Rs. 93,00,391/-. Charge interest u/s 17B if any. Issue tax calculation sheet in ITNS 150, demand notice, challan & a copy of this order to the assessee. Issue penalty notice u/s 18(1) (c) of the W....
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....property." 4.3 The CIT (Appeals) declined to substitute Aralias - DLF flat for the exemption under Section 5(1) (vi) of the Act in lieu of the Shimla flat. 4.4 In this context it is submitted that Section 5(1)(vi) of the Wealth Tax Act provides an option to the assessee to claim exemption for self- occupancy with regard to any one property. Assessee's insistence was that the flat having a higher value should be granted the exemption. This has not been acceded to by the authorities below. Such refusal is arbitrary and erroneous. Law provides the option to the assessee which the administrative authorities cannot refuse. 4.5 The following extract from the order of the Tribunal in ACWT Vs. Ku. Ragini Sanghi (2010) 123 ITD 384 (Indore) is not only illuminating but also directly supporting :- "However, in the present case, the assessee did not claim any deduction. The claim of the assessee was with regard to exemption under section 5(1) (vi) of the Wealth Tax Act. The aforesaid provision as noted above clearly provides that one house are a part of house belonging to an Individual shall not be included in the net wealth of the assessee and the assessee shall not be liable ....