TaxTMI 
TaxTMI 
2025 (5) TMI 1125
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....oner of Wealth Tax (Appeals)1, Ludhiana has erred in sustaining the addition of Rs. 2,98,43,000/- to the declared Wealth amounting to Rs. 60,70,000/- of the appellant without any basis and reasons mentioned in hi order. Therefore, addition of Rs. 2,98,43,000/- made by the Learned Assistant Commissioner of Wealth Tax, Circle-2, Ludhiana and sustained by the Learned Commissioner of Wealth Tax (Appeals)-1, Ludhiana is illegal, uncalled for, unwarranted and needs to be deleted. 2. That the Learned Commissioner of Wealth Tax (Appeals)1, Ludhiana has erred in sustaining the addition of Rs. 2,98,43,000/- to the declared Wealth amounting to Rs. 60,70,000/- of the appellant without considering the submissions filed by the appellant. Therefo....
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....e has not been earned from built-up property but has been earned from plots. 4. Based on above income tax assessment and inspector's report, wealth tax reassessment u/s 17(1) was initiated by recording reasons on 30.03.2016 (PB page 12), extract whereof is reproduced as under: "Wealth tax proceedings required initiated separately in the current assessment year. The assessee has claimed a rental income of Rs.1,88,400/- during the year but has failed to produce any rental agreement in support of the same on various plots own by the assessee. During the proceedings it has been established (By recording the statement of Sh. Vipan Kumar Gupta) that these properties do not fall under exemption under Wealth tax and should be ....
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....s report which in turn is based solely on his visit in Oct. 2016 whereas the assessment is for FY 2012-13. The status of plots in Oct. 2016 cannot be the basis for formation of reason to believe that the plots were lying vacant in FY 201213 also. b) The reopening of Wealth tax on 30.03.2016 was triggered due to income tax assessment framed on 23.03. 2016. There is absolute contradiction in income tax assessment and reopening of wealth tax in as much as in income tax assessment, the rental income from plots has been assessed under the head other sources whereas in the reasons, they have been considered as vacant plots. 9. Further, even on merits, the value for the purposes of wealth tax assessment has been adopted as estima....
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....lant could not justify earning of rental income and, hence, the said amount was treated as income from 'other sources.' The appellant has no case at all to get the properties in question treated as exempt from being charged to wealth tax. This appellate authority cannot be detained any longer in rejecting the ground of appeal challenging the impugned assessment of wealth. It is ordered accordingly. 7. In the result, the appeal is dismissed." 5. We have considered the findings given by the A.O. in the Wealth Tax Assessment Order and Commissioner of Wealth Tax (Appeals) in his appellate order. We find that the assessee has declared rental income from the land (under dispute) and the department has accepted that the renta....