AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 1049
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce sheet, the AO noticed that the assessee was in possession of properties which attracts wealth tax, but the assessee has not filed any returns of wealth. Therefore, notices u/s 17 of the Wealth Tax Act were issued for all the A.Ys. In response to the same, the assessee filed wealth tax returns admitting net wealth of Rs. 6,72,16,000/- and the AO passed the assessment order accepting the wealth tax returns filed by the assessee. Subsequently, there was an amendment to section 2(ea) of the Wealth Tax Act whereby the definition of "urban land" within the Wealth Tax Act has been amended with retrospective effect from 1.4.1993 and the lands classified as agricultural land, in the records of the Govt. and used for agricultural purposes were he....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt alone. 6) Any other grounds that may be urged at the time of hearing". 3. The learned Counsel for the assessee submitted that the lands were purchased by the assessee as agricultural land and were also sold as agricultural land and further that they were held as stock-in-trade by the assessee. She submitted that since the amendment to section 2(ea) of the Act has been made with retrospective effect from 1.4.1993, the said land does not fall within the purview of the Wealth Tax Act and therefore, the assessee should be refunded the wealth tax paid by the assessee. 4. The learned DR has filed a copy of the CBDT Circular No.11/2015 vide F.No.325/02/2014-WT dated 11th June, 2015 wherein the amendment to section 2(ea) has been ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....te. Subsequently. by Finance Act 2013 the said sub clause (b) of Explanation I to clause (ea) was amended to provide that the term "urban land" would not include land classified as agricultural land in the records of the Government and used for agricultural purposes. Accordingly, such land stands exempt from wealth-tax. This amendment was done with retrospective effect from 1.4.1993. 2. Various representations in this regard have been received in the Central Board of Direct Taxes/the Board) that assessees had paid wealth-tax on such agricultural land as per the provisions of the Act as they existed prior to Finance Act 2013. In view of the amendment brought by the Finance Act 2013 w.r.e.f 1.4.1993. the wealth-tax paid in respect of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry to the Government of India Copy to: 1. All officers of CBDT of the level of Dy. Secretary & above 2. All Pr.CCsIT for circulation in their region including Bar associations & Chartered Accountant Associations (Local Chapters) 3. Data base cell for uploading on IRS website 4. ITCC Section, CBDT 5. DIT(PR.PP&OL) (l00 copies) 6. C&AG of India (40 copies) 7, Guard File" 5. The learned Counsel for the assessee submitted that this CBDT Circular has been issued after the disposal of the appeals by the CIT (A) and after the appeals have been filed by the assessee before the Tribunal on 18.05.2014. We find that in the light of the above circular, the assessee was required to file t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which he liable under the law to the Government. The Government on the other hand is obliged to collect only that amount of tax which is legally payable by an assessee. The entire object of administration of tax is to secure the revenue for the development of the Country and not to charge assessee more tax than that which is due and payable by the assessee. It is in aforesaid circumstances that as far back as in 11/04/1955 the Central Board of Direct Tax had issued a circular directing Assessing Officer not to take advantage of assessee's ignorance and/or mistake." 9. Further Circular No. 14(XL-35) of 1955, dated 11.4.1955, issued by the Central Board of Direct Taxes reads as under: "Officers of the department must not take....