Home Case Index All Cases Wealth-tax Wealth-tax + AT Wealth-tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1124 - AT - Wealth-taxWealth escaping assessment - Lack of jurisdiction of ACIT, Circle-9(1), Bengaluru who issued notice u/s 17 of WT Act - HELD THAT:- We find merits in the submissions made on behalf of the assessee that the validity of notice issued under section 17 of the Act is primarily required to be adjudicated before a decision can be rendered on the merits of the additions made in the assessment. Under section 124 of the Income Tax Act, 1961 when a challenge to jurisdiction is raised, it is incumbent on the part of the AO to adjudicate the same or he has to make reference of the issue of determination of jurisdiction to the authorities specified under section 124(2) of the Income Tax Act, 1961. In the light of the above statutory provisions, we are of the view that it is incumbent on the part of the CWT(A) to have adjudicated on this issue CWT(A), in the impugned order, has not addressed the issue at all and has proceeded on the basis that the reasons for reopening were valid without going to the question as to who formed the belief regarding escapement of wealth chargeable to tax and who subsequently continued the proceedings under section 17 of the Act and whether they authority in law to do so. In our opinion, these issues are very vital and since these issues are not been adjudicated by the CWT(A), we deem it fit and proper to set aside the order of the CWT(A) and remand the question of validity of initiation of reassessment proceedings under section 17 of the Wealth Tax Act, 1957 to the CWT(A) for fresh consideration, after due opportunity of being heard afforded to the assessee.
|