2021 (3) TMI 1185

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....hereinafter referred to as "the Act") dated 28/03/2014 relevant to Assessment Year (AY) 2009-10. 2. The assessee has raised the following grounds of appeal:- 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The learned Commissioner of Wealth-tax (Appeals)-2, Rajkot [hereinafter referred to as the "CWT(A)"] e0072red on facts as also in law in confirming the reopening of assessment as valid. That on facts as also in law, initiation of action u/s.17 of the Act is invalid and assessment made on such invalid initiation deserves to be quashed and may kindly be quashed. 3. The Ld.CWT(A) erred on facts as also in law in rejecting appellant's ground of appeal related to order passed by the AO in violatio....

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....,290/- on the basis of balance-sheet enclosed with the return of income filed by the assessee. 5. Aggrieved assessee filed an appeal before the ld.CWT(A). The Ld.CWT(A) has dismissed the appeal of the assessee, in respect of ground Nos.1 to 3 (regarding technical grounds), by observing as under: "4.2.4 Decision Having considered facts and circumstances of the case and rival contentions I find that notice u/s.17 was issued in view of audit objection during audit of income tax assessment. However, I find that the AO while taking into consideration the audit objection did apply independent mind in making the belief that wealth had escaped assessment. Moreover the audit objection pertained to income tax assessment and not wealth tax asses....

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....een settled in account of revenue. In this case also, the Audit Party had pointed out the issue to the AO which constitutes information on the basis of which the reassessment proceedings have been initiated. In the case of New Light Trading Co. 170 CTR 138 (Delhi) held that Audit Party is entitled to point out a factual error/omission in the assessment and the reopening of the case on that basis is permissible under law." "4.3.3. Decision Having considered facts and circumstances of the case and rival contentions I find that the assessee having been issued notice on 15/01/2014 responded on 14/02/2014 stating that the assessee was not liable to file wealth tax return. Since a notice u/s.17 of the Act had been issued, there was no qu....

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....nly at any of places searched. It could be kept at any place not searched. Therefore in my considered opinion this was nothing but cash in hand and the addition on account of cash is confirmed. I find merit in contention of the assessee that the business assets are not liable for wealth tax. Therefore addition of Rs. 42193 and Rs. 276963 are deleted. Assessee fails on Ground no.V and succeeds on ground VI." 6. Heard both the sides and perused the material available on record. Regarding technical ground of appeal, i.e. Ground Nos.1 to 3 as sited above, it is noticed that notice u/s.17 of the Wealth Tax Act, 1957, was issued by the Assessing Officer after verification of balance-sheet filed by the assessee along with return of income ....