1996 (3) TMI 164 - AT - Wealth-tax

Summary

Issues:
Assessment of ownership for property at 6/1/2 Queen's Park, Calcutta for assessment years 1984-85 to 1988-89; Condonation of delay in filing departmental appeals; Assessability of the assessee-company based on beneficial ownership principle under section 53A of the T.P. Act.

Analysis:

1. Condonation of Delay in Filing Departmental Appeals:
The department filed four appeals with a delay of one day, seeking condonation of the delay. The Appellate Tribunal, after hearing both parties and considering the circumstances, condoned the delay and admitted the appeals.

2. Assessment of Ownership for Property:
The dispute revolved around the ownership of the property at 6/1/2 Queen's Park, Calcutta for the assessment years 1984-85 to 1988-89. The Assessing Officer treated the assessee as the owner based on various grounds. The CWT(A) allowed the assessee's appeal for the assessment years 1984-85 to 1987-88 but disallowed it for 1988-89. The departmental appeals contended that the property should be valued based on the ownership by the assessee. However, the assessee argued that without a registered sale deed, they remained a lessee/tenant and not the legal owner. Citing legal precedents, the Tribunal upheld the CWT(A)'s decision, stating that without a registered sale deed, the lessor remained the legal owner, and the assessee was not assessable for the property.

3. Assessability based on Beneficial Ownership Principle:
The assessee's appeal focused on assessability under the beneficial ownership principle as per section 53A of the T.P. Act for the assessment year 1988-89. The CWT(A) had held the assessee assessable based on equitable ownership. The assessee argued against this, stating that they did not act in furtherance of the contract and did not become the legal owner. The Tribunal analyzed the relevant provisions of the Finance Act, 1983, and the WT Act, concluding that the beneficial ownership principle did not apply in this case. Therefore, the assessee's appeal was allowed, and the departmental appeals were dismissed.

In conclusion, the Tribunal dismissed the departmental appeals regarding property ownership for the assessment years 1984-85 to 1987-88 and allowed the assessee's appeal for the assessment year 1988-89, emphasizing the importance of a registered sale deed in determining ownership for tax assessment purposes.