TMI Blog2012 (5) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... tter requires re-consideration for factual verification and decision in accordance with law - restore the issue to file of CWT(A) with the direction to decide the issue in accordance with law as observed – in favour of assessee for statistical purpose. . - WTA NO. 01 (AGRA) OF 2011 - - - Dated:- 27-4-2012 - BHAVNESH SAINI, A.L. GEHLOT, JJ. K.K. Jain for the Appellant. A.K. Sharma for the Respondent. ORDER Bhavnesh Saini, Judicial Member This appeal by the assessee is directed against the order of Commissioner of Wealth-tax (Appeals)-II, Agra dated 15.07.2011 for the assessment year 2007-08 on the following grounds : "1. Because the value of plot measuring 336 Sq. Meter at Green Field, Aravali Hills, Haryana wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... W.T. Act simply for the reason that the claim has not been made in the return of wealth and it can only be claimed by filing the revised return, although the request was made for allowing exemption in writing during the course of assessment proceedings. The plea of the assessee was rejected by the AO in view of the judgment of Hon'ble Supreme Court in the case of Goetze (India) Ltd. v. CIT [2006] 284 ITR 323/157 Taxman 1 because the deduction not claimed in the return cannot be entertained by the AO otherwise than by filing a revised return. The assessee similarly pleaded before the ld. CWT(A) that the assessee is entitled for exemption u/s. 5(1)(vi) of the W.T. Act because the area of the plot was less than 500 Sq. meter. It was also p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e corresponding valuation date of every individual, HUF and Company at the rate or rates specified in Schedule-I. The definition of net wealth has been provided in section 2(m) of the W.T. Act, means the amount by which the aggregate value computed in accordance with the provisions of this Act, of all the assets wherever located, belonging to the assessee on the valuation date, including the assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owned by the assessee on the valuation date which have been incurred in relation to the said assets. The definition of asset has been provided in section 2(ea) of the W.T. Act, means any land or building appurtenant there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) One house or part of a house or a plot of land belonging to an individual or a Hindu undivided family : Provided that wealth-tax shall not be payable by an assessee in respect of an asset being a plot of land comprising an area of five hundred square metres or less." 5.1 Since the charging section and defining section provides that net wealth shall be computed in accordance with the provisions of this Act and that wealth tax is payable subject to other provisions contained in this Act, therefore, it was relevant for the AO to have reference to section 5(1)(vi) of the W.T. Act while finalizing the assessment in the matter. However, the AO did not accept the contention of the assessee in view of the decision of Hon'ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal. The appeal was allowed. The Tribunal restored the matter to the Assessing Officer. The Assessing Officer allowed only a reduction of Rs.3,89,625 and disallowed the claim of Rs.15,58,500 on the ground that this was not claimed by the assessee in its return of income in the assessment year 1990-91. The Commissioner (Appeals) held that the Assessing Officer erred in disallowing the expenditure on the sole ground that no claim for deduction of the amount was made in the return of income. This order was confirmed by the Tribunal. On appeal : Held, dismissing the appeal, that there was no prohibition on the powers of the Tribunal to entertain an additional ground which according to the Tribunal arose in the matter and for the just deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section. If two views are possible, the one beneficial to the assessee is to be adopted. Unless a property is chargeable under the charging section, no tax can be levied thereon. 5.4 In the case of Ramco International ( supra ), the Revenue similarly relied upon the decision in the case of Goetze India Ltd. ( supra ), but the departmental appeal was dismissed. 6. Considering the totality of the facts and circumstances in the light of the above decisions, we are of the view that since the plot of land comprising an area of 500 Sq. meter or less is not chargeable to wealth tax as per provisions of section 5(1)(vi) of the W.T. Act, therefore, the same could not be included in the net wealth for the purpose of charging wealth tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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