2021 (4) TMI 1019

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....statement was recorded on 28.5.2015. The assessee stated that his family members owned several movable and immovable properties which attracts wealth tax. However, the assessee did not file any wealth tax return for the relevant A.Y. Therefore, a notice u/s 17(1) was issued to the assessee vide notice dated 26.03.2008. In response to the said notice also, the assessee did not file any return of wealth. Thereafter, the AO issued a detailed show-cause letter dated 20.11.2008. However, there was no compliance to this notice also by the assessee. Finally, the assessee filed the returns of wealth in tappal for the A.Y 2003-04 and 2004-05 on 24.12.08 but the returns of wealth did not have any supporting documents. The AO observed that the assesse....

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....The Ld. CIT(A) ought to have deleted the entire addition of Rs. 4,19,706/- made in respect of plot at Madhapur village. 7 The Ld. CIT(A) ought to have appreciated that the appreciation of 15% in respect of plot at Madhapur village has no basis, whatsoever, and that the addition made is purely on account of suspicions and surmises. 8 The Ld. CIT(A) grossly erred in not appreciating the written submissions made before him with regard to the addition towards value of plot at Madhapur village. 9 The Ld. CIT(A) ought to have deleted the entire addition of Rs. 34,61,500/-made towards value of movable properties. 10 The Ld. CIT(A) erred in holding that the issue of value of movable properties needs further examination by the Assessing ....

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....y time before or at the time of hearing of the appeal". 4. The learned Counsel for the assessee submitted that the Grounds 3 to 5 relate to addition made in respect of land at Banjara Hills, while grounds 6 to 8 relate to addition made in respect of the Plot at Madhapur. He submitted that the AO has taken the value declared by the assessee for both the properties in the earlier assessment years and increased them by 50% towards appreciation of the value of the assets and has made additions accordingly, while the CIT (A) has reduced it to 15% appreciation. He submitted that as per the CBDT Circular No.3, dated 28.09.1957, the value adopted in a particular year need not be disturbed for the next two succeeding A.Ys. According to the learned....

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....dings - The value of lands and buildings should be estimated with due regard to the nature, size and locality of the property, the amenities available and the price prevailing for similar assets in the same locality or in the neighbourhood of that locality. Where the value is not easily ascertainable in this manner, the Wealth-tax Officer may adopt the capital value of the property determined by the appropriate authority in the latest assessment for purposes of property taxation under the laws and regulations relating to the municipalities and municipal corporations. [However, where the municipal valuation is prima facie too low having in view the rents actually received, or where an assessment of capital value is not made by a municipality....