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2016 (1) TMI 210 - ITAT KOLKATA

2016 (1) TMI 210 - ITAT KOLKATA - TMI - Reduction of debt for working out the net wealth of assessee - AO framed the wealth tax assessment at Rs. nil value after taking into consideration of loan taken for the said land & building of assessee. However, Ld. CIT opined that the loan is not reflected in the balance-sheet of assessee. So the order of AO is erroneous and prejudicial to the interest of Revenue - Held that:- we find force from the submission made before us including the audited balance .....

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ded in favor of assessee. - WTA No. 35-38/Kol /2013 - Dated:- 31-12-2015 - Shri Mahavir Singh, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Petitioner : Shri Miraj D Shah, AR For the Respondent : None ORDER Per Bench These four appeals filed single assessee against the common order passed u/s 25(2) of the Wealth Tax Act, 1957 (hereinafter referred to as the Act ) by Commissioner of Income Tax-IV, Kolkata vide dated 28.03.2013. Assessments were framed by Wealth Tax Officer War .....

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en fixed for hearing as many as eight times (including today s hearing). Hence, we rejected the adjournment application and proceeded for hearing Ld. AR, Shri Miraj D Shah appearing on behalf of assessee. 3. Since the issues raised by assessee in these appeals relate to common issue, therefore, we are hearing them together for the sake of convenience and disposing by passing a consolidated order. We take a lead case in assessee s appeal in WTA No. 35/Kol/2013 for the AY 2005-06 which is reproduc .....

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nt, the debt of ₹ 71,00,000/- was duly reflected in audited Books of Accounts and the assessee is eligible for deduction of the same. From a close look of the audited accounts, it would be apparent that the debt amounting to ₹ 71,00,000/- was directly related to construction and acquisition of house property. 5. FOR THAT an order which is not erroneous cannot be revised u/s. 25(2) of the Wealth Tax Act. 6. FOR THAT a legally framed assessment cannot be revised merely because another .....

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31st March 2003, land and building for a value of ₹ 71,66,775/- (cost of land ₹ 19,96,475/- and cost of building of ₹ 51,70,300/-). The land & building was located at P-214, Lake Town, Block- A, Kolkata-700 089. AO sought explanation from the assessee for not showing such land & building in the wealth tax returns, the assessee explained that aforesaid land & building has been used exclusively by the Director of the company for residential purposes. Therefore the la .....

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response thereto, assessee submitted its return of wealth tax. During the assessment proceedings, AO found that assessee took a debt on land & building for an amount of ₹ 71 lacs. So the net wealth of assessee after deducting the loan taken from the value of said land & building becomes zero. Therefore, assessment was framed by WTO at Rs. nil. 5. However, Ld. CIT found the balance-sheet of the assessee that there is no loan reflecting on the land & building. Accordingly, the de .....

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ore Ld. CIT that land & building in question is outside the purview of wealth Tax Act. However, Ld. CIT has disregarded the claim of assessee by stating that assessee s submission is silent about the debt which was allowed in the due course of assessment proceeding made by AO. Therefore, Ld. CIT held that the debt of ₹ 71 lakh ought to have been disallowed and directed the AO to look into the issue afresh and pass necessary order according to law. 6. Aggrieved by this order of Ld. CIT .....

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