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2011 (11) TMI 342

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....he revision petition under section 25 of the Wealth Tax Act against intimation issued under Section 16(1) of the Act is not an 'order' and therefore, the revision petition under Section 25 of the Act is not maintainable. Being aggrieved by the same, the petitioner - assessee has approached this Court by way of present writ petitions.   2. The learned counsel for the petitioner, Mr. Sanjeev Johri urged that section 25 of the Act of 1957 permits the revision by Commissioner of an order which has been passed by any authority subordinate to him and the learned Commissioner may either on his own motion or on an application made by the assessee in this behalf, call for the record of any proceedings under this Act and revise such orders on t....

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....by the learned Commissioner and even the appeal against such 'intimation' was maintainable before the Appellate Authority under Section 246A of the Income Tax Act. He also submitted that section 16 of the Wealth Tax Act also provides that such 'intimation' shall have effect or being notice for demand and shall be enforced for recovery of Wealth Tax dues, if any.   4. The bone of contention between the parties in the present case is as to whether the interest bearing security deposit taken by the assessee - the Lake Palace Hotels and Motels Ltd. from M/s East India Hotel Limited, which was refundable after a period of lease of 72 years and it was a debt deductible, while computing the net wealth of assessee under Section 2(m) of the Ac....

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....ited undertakes, declared and confirms that it shall promptly pay the interest and the year installments as and when due, failing which EIH is authorized to adjust and appropriate the interest and installment due from the lease rent payable by EIH to the Lake Palace Hotels and Motels Pvt. Limited as per the terms of this Lease Agreement".   21. For A.Y. 1996-97 and 1994-95 the same issue was restored back to the file of the Assessing Officer with a direction to adjudicate the same in accordance with law, after affording due and reasonable opportunity of being heard to the assessee. So, after following the Tribunal order, we also restore this issue on the same lines to the Assessing Officer."   6. The High Court in its order Dtd.....

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....petition before the learned Commissioner of Wealth Tax which came to be dismissed as not maintainable by the impugned order dtd.31.3.2010. Hence the present writ petitions. Therefore, the limited question before this Court in these writ petitions is as to whether the revision is maintainable under Section 25 of the Act against an 'intimation' under Section 16(1) or not and whether such an 'intimation' is an 'order' or not.   8. Having heard the learned counsels, this Court is of the opinion that the learned Commissioner of Wealth Tax has erred in dismissing the revision petition as not maintainable. The 'intimation' issued under Section 16(1) of the Wealth Tax, which is reproduced below has the effect of being a 'notice of demand' iss....

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....d Wealth Tax Tax, 1957. If any intimation/order is appealable before the first appellate authority, there is no reason why the Commissioner cannot invoke his revisional powers under Section 25 of the Act which confers upon him suo moto revisional powers as well as powers to be invoked on the application made by the assessee. He can call for the record of any proceedings under this Act, if an order has been passed by any authority subordinate to him and may make such enquiry or cause such enquiry to be made and pass such order thereon as the Commissioner thinks fit. The learned Commissioner has therefore, clearly erred in holding that the amendment in the Income Tax Act to the effect that an 'intimation' was an 'order' for the limited period....