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2023 (7) TMI 819 - AT - Wealth-taxWealth tax assessment - Computation of taxable wealth - addition on account of Net accretion to the assets on the basis of the additions made under the income tax proceedings - addition of on account of appreciation in the value of assets - HELD THAT:- As most of the details of the transactions were maintained by the assessee on a number of computers, which were seized, and upon the analysis of the seized data, it was found that complete share market transactions were not available therein. Therefore, it was held that complete books of account could not be generated from the seized data as well. Thus, the original income tax assessment was also completed on the basis of the material available in the seized computer data, other records, and information gathered from various sources. It was held that the income of the assessee is represented by accounted and unaccounted investment in shares, jewellery, cash, unexplained money, and other unexplained assets, which in any case represents assets liable for levy of wealth tax. AR apart from making general submissions did not bring any material on record to controvert the aforesaid findings of the learned CIT(A). In view of the peculiar facts of the present case, we find no merits in the submissions of the learned AR. We find that the coordinate bench of the Tribunal in assessee’s own case in Smt. Jyoti H. Mehta v/s DCIT, [2019 (2) TMI 1198 - ITAT MUMBAI] granted substantial relief to the assessee. Accordingly, giving effect to the directions of the Tribunal, the total taxable income of Rs.299,77,95,160 was reduced to Rs.32,54,186, which has been adopted by the learned CIT(A) for computation of taxable wealth in the present case. Further, since from the very first Wealth Tax assessment order dated 28/03/1995, passed by the WTO under section 16(3) of the Act, the total income of the assessee is considered for computation of gross wealth, we find no merits in the ground raised by the Revenue in its appeal Addition on account of appreciation in the value of shareholding - As evident that the coordinate bench in late Shri Harshad S Mehta v/s DCIT, [2019 (2) TMI 1198 - ITAT MUMBAI] observed that despite sufficient opportunity the Revenue failed to adduce the relevant material on the basis of which figures of purchase and sale of shares have been computed. Therefore, in view of the above, we deem it appropriate to restore this issue to the file of the WTO for de novo adjudication in light of the aforesaid decision of the coordinate bench of the Tribunal in assessee’s own case. To the extent the shares in respect of which figures of purchase and sale have been found to be unsubstantiated by the Tribunal in the absence of relevant material being available on record, the WTO is directed to delete the addition on account of appreciation in the value of shares. To this extent, the impugned order is set aside. Accordingly, ground no.3, raised in assessee’s appeal is allowed for statistical purposes. Addition on account of the value of stock exchange membership card - We find that the coordinate bench of the Tribunal in DCIT v/s Ashwin C. Shah [2001 (12) TMI 195 - ITAT BOMBAY] held that the right of membership of the BSE under the stock exchange card is merely a personal privilege granted to a member by the BSE and it cannot amount to “property” or “interest in property” to constitute an “asset” within the meaning of section 2(e) of the Act and thus no tax is payable in respect of such stock exchange card of the BSE. Therefore, addition made on account of the value of the stock exchange membership card is deleted. As a result, ground no.5 raised in assessee’s appeal is allowed. Deduction on account of various liabilities incurred in relation to the assets belonging to the assessee - HELD THAT:- As further held that the figure of total income has been taken as the basis of computation of taxable wealth in the case of the assessee for the assessment year 1991-92 and a net wealth determined for the assessment year 1991-92 has, in turn, become the base figure for computing the net wealth for the assessment year 1992-93. Thus, it was held that the assessee cannot claim that the liabilities incurred in relation to assets belonging to the assessee while determining the net wealth have not been considered in the case of the assessee. We deem it appropriate to set aside the impugned order on this issue and restore the issue to the file of the WTO for de novo adjudication as per law after necessary verification. As a result, ground raised in assessee’s appeal is allowed for statistical purposes. Levy of interest u/s 17B - This issue by following the decision of its predecessor in earlier rounds of litigation. We find that the interest u/s 17B of the Act is to be charged for the period commencing from the due date of filing the return till the date of filing the return or till the date of assessment, whichever is earlier. Therefore, we deem it appropriate to set aside the impugned order on this issue and direct the AO to levy interest u/s17B of the Act in accordance with the provisions of the Act. As a result, ground raised in assessee’s appeal is allowed for statistical purposes. Levy of interest under section 31 - We find that in CIT v/s Chika Overseas Pvt. Ltd. [2011 (11) TMI 118 - BOMBAY HIGH COURT] held that where pursuant to remand, the AO passed a fresh assessment order, on failure of the assessee to pay the demand within the prescribed time the interest u/s 220 (2) is to be levied from the date of fresh demand. Since, provisions of section 220(2) are pari materia to section 31 of the Act, we find no infirmity in the aforesaid findings of the learned CIT(A). Accordingly, ground raised in Revenue's appeal is dismissed.
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