1996 (3) TMI 167 - AT - Wealth-tax

Assessing Officer Assessment Year Co-operative Housing Society His Net Wealth Immovable Property Movable Property Valuation Date

Summary

Issues:
1. Condonation of delay in appeal filing before ITAT
2. Treatment of property contribution by the assessee to a cooperative society for house allotment
3. Dispute over exemption claims under sections 5(1)(xxx) and 5(1A) of the Wealth-tax Act
4. Interpretation of provisions of section 4(7) and section 5(1)(xxx) regarding ownership and valuation of property

Analysis:

1. The appeal before the ITAT was filed by the Revenue against an order by the CIT (Appeals) for the assessment year 1990-91, with a delay of 2 days. The delay was condoned after the Tribunal found a reasonable cause for the delay, allowing the appeal to proceed on merits.

2. The assessee, a member of a cooperative society, contributed Rs. 9,79,000 for a house allotment. The dispute arose regarding the treatment of this contribution in the wealth computation. The Assessing Officer accepted the claim under 'Movable property' but added the value of the flat under 'Immovable property' after granting exemptions under sections 5(1)(xxx) and 5(1A) of the Wealth-tax Act.

3. The CIT (Appeals) ruled in favor of the assessee, stating that the possession of the flat was granted after the valuation date, exempting the contribution under section 5(1)(xxx) and allowing deduction under section 5(1A). The Revenue appealed, arguing against the double deduction and ownership of the flat under section 4(7) of the Act.

4. The ITAT analyzed the provisions of section 4(7) and section 5(1)(xxx) to determine ownership and valuation criteria. It concluded that the conditions for exemption under section 5(1)(xxx) automatically trigger section 4(7) and held in favor of the Revenue, denying double deduction under section 5(1A) and upholding the Assessing Officer's computation.

5. The ITAT's decision allowed the Revenue's appeal in full, emphasizing the correct application of exemption provisions and the inadmissibility of double deductions under the Wealth-tax Act.