TaxTMI 
TaxTMI 
2023 (1) TMI 1038
X X X X Extracts X X X X
X X X X Extracts X X X X
....eing general in nature and not supported by any specific written submissions. 2. The Learned Commissioner of Wealth Tax (Appeals) has erred in confirming the of Rs-9,85,737/- made by the Assessing Officer for the alleged two cars. 3. The Learned Commissioner of Wealth Tax (Appeals) has erred in confirming the addition of Rs.31,70,225/- made by the Assessing Officer adopting the value of residential house at Rs.37,88,500/- which has been valued by the appellant at Rs.6,18.375/-as per Part- B of Schedule-Ill of the Wealth Tax Act 1957. 4. The appellant craves leave to add, alter, amend, alter and modify any of the grounds of appeal on or before the date of hearing of appeal. 3. At the outset, the learned counsel for the assessee before us submitted that he has been instructed not to press ground No. 1 and 2 filed in the memo of appeal. Accordingly, we dismiss the same as not pressed. 4. The only issue raised by the assessee is that the learned Commissioner of wealth tax (appeal) erred in confirming the order of the AO by sustaining the addition of Rs. 31,70,225 to the wealth of the assessee on account of immovable property. 5. The facts in brief ar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lues i.e one valuation is under the Wealth Tax Assessment and another is under Income Tax Act". 7. Being aggrieved by the order of the learned Commissioner of Wealth Tax (Appeals), the assessee is in appeal before us. 8. The learned AR before us filed a paper book running from pages 1 to 20 and submitted that the value of the property in dispute has to be determined in the manner laid down in part B of schedule III of the Wealth Tax Act. According to the provisions of the Act the net maintainable rent has to be multiplied by the figure 12.5 to determine the gross maintainable rent which has to be reduced by the amount of taxes levied by any local authority and a sum equal to 15% of the gross maintainable rent. The net maintainable rent for the property which has not been let out, is the amount of annual rent assessed by the local authority for the purpose of the property tax. As per the learned AR the correct value of the bungalow in dispute as per the provisions of wealth tax is worked out at Rs. 6,18,375.00 which should be included in the net wealth of the assessee for the purpose of the wealth tax after ignoring the value of the bungalow declared in the balance sheet filed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ses of rule 3, "net maintainable rent" in relation to an immovable property referred to in that rule, shall be the amount of gross maintainable rent as reduced by- (i) the amount of taxes levied by any local authority in respect of the property ; and (ii) a sum equal to fifteen per cent of the gross maintainable rent. Gross maintainable rent how to be computed. 5. For the purposes of rule 4, "gross maintainable rent", in relation to any immovable property referred to in rule 3, means- (i) where the property is let, the amount received or receivable by the owner as annual rent or the annual value assessed by the local authority in whose area the property is situated for the purposes of levy of property tax or any other tax on the basis of such assessment, whichever is higher; (ii) where the property is not let, the amount of annual rent assessed by the local authority in whose area the property is situated for the purpose of levy of property tax or any other tax on the basis of such assessment, or, if there is no such assessment or the property is situated outside the area of any local authority the amount which the owner can rea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rectly disclosed value of the immovable property at Rs.57,96,267/- on the basis of valuation as on 31.3.2012. Therefore, the discrepancies stands explained and no adverse inference with regaVd immovable property is required to be drawn. 10.3 From the above, there remains no ambiguity to the fact that the assessee has furnished the necessary details before the AO during the assessment proceedings. However, the AO without pointing out any defect in the details furnished by the assessee has adopted the value of the bungalow in dispute declared in the balance sheet filed in the income tax return. 10.4 Besides the above, we note that the provisions of section 7 of the Wealth Tax Act is a substantive procedure as laid down by the Hon'ble Supreme Court in the case Commissioner of Wealth Tax Vs Shravan Kumar Swarup & Sons reported in 210 ITR 886 wherein it was held as under: 3. Section 7 of the Act and this provision is of particular relevance here speaks as to how the value of the assets has to be determined. Section 7(1), as it stood during the relevant period, i.e., prior to 1-4-1989 when it stood substituted by the Direct Tax Laws (Amendment) Act, 1989 with effect from 1....