Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Avantika Dalmia Versus DCWT, New Delhi

2016 (4) TMI 333 - ITAT DELHI

Addition to the declared value of the jewellery while framing the assessment - Requirement of obtaining report of registered valuer for value of jewellery exceeding ₹ 5 lakhs - Held that:- It is seen from the records and has also been found by the Assessing Officer as correct that the valuation of stones in the wealth tax return in respect of valuation date as on 31.3.12 has been based on the last valuation report on 31.03.08. Hence, we agree with the contention of the Ld. AR that as per t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

BDT which lays down that where the jewellery includes gold or silver or any alloy containing god or silver, the value of such gold or silver or alloy as on the valuation date relevant to the subsequent year shall be substituted for the value of such gold or silver or alloy on the valuation date relevant to the first Assessment Year. This, in effect, would mean that in the valuation of jewellery, the value of the metal, be it gold, silver or alloy, will have to be substituted every year whereas f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er For the Appellant : Shri M.L. Dujari CA For the Respondent : Shri O. P. Meena, Sr. DR ORDER Per Sudhanshu Srivastava, Judicial Member This appeal of the assessee arises out of the order dated 6.5.2015 passed by the Ld. Commissioner of Wealth Tax (A)-29 New Delhi and pertains to Assessment Year 2012-13. 2. The facts in brief are as under:- Return declaring a net wealth of ₹ 3,32,73,735/- was filed. Notice u/s 16(2) of the Wealth Tax Act, 1957 was issued and the case was taken up for scru .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tment for the increase in value of metals. A search was conducted on 20th January, 2012 and 27th January, 2012 at the residential premises of the assessee and lockers were opened subsequently. Registered valuers of the department inventorised the jewellery found at the residence and in the lockers and estimated the market value of the jewellery on the date of search, which was higher than the value of the jewellery declared by the assessee for valuation date 31.3.2012 in accordance with Rule 18( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

into appeal. The Ld. CWT(A) was of the opinion that 'net wealth' is to be valued at a price which exists on 'valuation date'. He was of the opinion that the intention behind the issuance of the circular was to obviate the hardship of obtaining the valuation report every year and no further. As per him, the circular could not override the provisions of the charging section. The Ld. CWT(A) also relied on the decision of the Hon'ble Delhi High Court in the case of CIT vs. Nages .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hile framing the assessment. 2.2 That the ld. Assessing Officer was bound by the CBDT Circular No. 646 dated 15th March, 1993 and was accordingly required to accept the valuation of the jewellery declared by the assessee for the valuation date in accordance with the said circular. 3. That the addition of ₹ 15,96,147/- made by the Assessing Officer to the declared wealth of the assessee deserves to be deleted. 5. The Ld. AR submitted that the assessee had made suitable appreciation adjustme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

preted the ratio of judgment laid down in CIT vs Nagesh Knitwears (P) Ltd. (supra). 6. The Ld. DR on the other hand relied on the order of the Ld. CWT(A). 7. Before proceeding to adjudicate on the issues before us, it will be worthwhile to reproduce Circular No. 646 dated 15.3.1993. 1434. Requirement of obtaining report of registered valuer for value of jewellery exceeding ₹ 5 lakhs 1. Under the Wealth-tax Act, value of any asset on the valuation date has to be determined in the manner lai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uncalled for hardship to the assessees. 3. The matter has been considered by the Board. It has been decided that the report of the registered valuer obtained for one assessment year also be used in subsequent four assessment years subject to the following adjustments, namely:- (a) Where the jewellery includes gold or silver or any alloy containing gold or silver, the value of such gold or silver or such alloy as on the valuation date relevant to the concerned subsequent assessment year shall be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r increased shall be the value of the jewellery for such subsequent assessment years. 1. In such subsequent four assessment years, the requirement of rule 18(2)(ii) can be taken to have been complied with if the report of the registered valuer for the initial assessment year along with a chart showing adjustments made as above are enclosed along with the return of the net wealth furnished by the assessee. Circular: No. 646 dated 15.3.1993 8. It is seen from the Circular that Para 3(a) in the Cir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he other items in the jewellery, the value as per the valuation report can be continued to be taken for a period of four years at the same valuation. 9. Therefore, in our considered opinion, the stand and conduct of the assessee is correct in so far as the interpretation of the Circular is concerned. It is seen from the records and has also been found by the Assessing Officer as correct that the valuation of stones in the wealth tax return in respect of valuation date as on 31.3.12 has been base .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in value of stones. We hold accordingly. 10. As far as the issue of the binding nature of the circulars is concerned, the Ld. CWT(A) has held that as per the judgment of the Hon'ble High Court of Delhi in the case of CIT vs Nagesh Knitwears (P) Ltd. (supra), circulars issued by the CBDT cannot override the provisions of the Act. On a careful reading of the judgement (supra), we find that the Ld. CWT(A) has misinterpreted the ratio laid down in the aforesaid judgment. Paras 15 & 16 of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

challenge a decision on interpretation or question of law, even if there is a beneficial circular in favour of the assessee on the said aspect. The High Court or the Supreme Court can also adjudicate and once they give a decision, it will apply to all cases. However, the earlier cases, which have been decided, cannot be reopened. The decision will be only applicable to cases sub judice before the Court or the tribunal and effect will be given to the law as elucidated regardless of what has been .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f a circular but where the revenue has not filed an appeal challenging the Circular, the Circular will be binding on the Revenue. The Hon'ble Delhi High Court in Addl. CIT vs Mrs. Avtar Mohan Singh 136 ITR 645 (Del) has observed that though the Circulars of the Central Board are not binding on the court, yet general circulars are binding on the income tax authorities. Through them, the Board cannot impose a burden on the tax payer greater than what the statute provides, but it can relax the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the circulars which are in force and are issued by the Central Board of Direct Taxes in exercise of the power vested in it under Section 119 of the Act. Circulars can be issued by the Board to explain or tone down the rigors of law and to ensure fair enforcement of its provisions. These circulars have the force of law and are binding on the income tax authorities, though they cannot be enforced adversely against the assessee. Normally, these circulars cannot be ignored. A circular may not overr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t Lal C. Javeri v. K.K. Sen 56 ITR 198 (SC) and the other in Ellerman Lines Ltd. v. CIT 82 ITR 913 (SC) that circulars issued by the CBDT under section 119 of the Act are binding on all officers and persons employed in the execution of the Act even if they deviate from the provisions of the Act. 14. It was held by the Hon'ble Bombay High Court in the case of Tata Iron & Steel Co. Ltd. vs N.C. Upadhyaya 96 ITR 1 (Bom), that circulars issued by the Central Board of Direct Taxes would be bi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ht of the circular. The Hon'ble Madras High Court, in CIT v. Prasad Productions (P) Ltd. 179 ITR 147 (Mad) had held that if a circular was in force on the first day of the assessment year, the benefit of the should be made available to the assessee. The Hon'ble Punjab & Haryana High Court in B.S. Bajaj v. CIT (1996) 222 ITR 418 (P&H) has held that benevolent circulars providing administrative relief to the assessee, even if they are issued subsequent to the decision by an authori .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version