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2016 (11) TMI 143 - ITAT DELHI

2016 (11) TMI 143 - ITAT DELHI - TMI - Addition of taxable wealth of the assessee because of surrender of the cash found in locker during the course of search - Held that:- The undisputed fact is that that assessee tried to explain the amount of cash seized from the locker with syndicate bank which was in the name of the assessee and the amount of ₹ 30 lakhs was found there from. Further, the explanation of the assessee was also not found to be correct that money belongs to the parents of .....

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he provisions of section 3 of the wealth tax act every individual shall be charged tax on the “net wealth” as at the valuation date. Further, the “net wealth” has been defined under section 2 (m) of the wealth tax act to mean all the assets belonging to the assessee in excess of the debt owed as on the valuation date. According to the provisions of section 2(ea) of the act “assets” in case of individual includes cash in excess of ₹ 50,000/-. Therefore, as the above sum was belonging to the .....

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2016 - Smt Diva Singh, Judicial Member And Shri Prashant Maharishi, Accountant Member Assessee by : Sh. AK Jain, CA Revenue by : Sh. SK Jain, DR ORDER Per Prashant Maharishi, A. M. 1. These are the four appeals appeals filed by the assessee against the order of the ld CWT (A)-XII, New Delhi dated 25.06.2014 for the Assessment Year 2005-06 to 2008-09. As all these four appeals are involving common grounds and similar facts, therefore, they are disposed of by this common order. 2. The assessee has .....

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inciples of natural justice and has been passed without affording reasonable opportunity of being heard. 3. That the facts and circumstances of the case and the provision of law the CIT(Appeal) has failed to appreciate that the Ld. AO has erred in initiating the proceedings u/s 18(1 )(c ) of Wealth Tax Act, 1957. 4. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of ₹ 25,00.000;- in the taxable wealth on .....

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l income of the assessee u/s 143 (3)/153A of the Income Tax Act dated 30/12/2009. In the wealth tax proceedings, assessee filed his return of Wealth on 16/11/2010 declaring net wealth of ₹ 5,03,300/- in response to notice under section 17 of the wealth tax act. Assessee did not offer this asset in his wealth tax return. Main reason for not including this sum in his return of Wealth by the assessee is that , according to him, this money does not belong to him and therefore it is not chargea .....

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ther prior to the year 2000 in parts from 1998 onwards. The Ld. WTO rejected the contention of the assessee and included the above sum into the total wealth of the assessee. Out of the sum of ₹ 30 lakhs , Ld. WTO granted a deduction of ₹ 5 Lacs already disclosed by the assessee and therefore net addition to the net wealth of the assessee of ₹ 25 Lacs was made at the time of passing an assessment order under section 16 (3) read with section 17 of the wealth tax act, 1957. Aggrie .....

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his appeal is against the addition of ₹ 25 Lacs in to the taxable wealth of the assessee because of surrender of the cash found in locker during the course of search. The Ld. authorized representative submitted that this money does not belong to him and Therefore, it cannot be included into the net wealth of the assessee. He vehemently relied on the para No. 7 of the assessment order under section 143 (3) of the income tax act dated 30th December 2009 wherein during the course of statement .....

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ative submitted that the assessee has surrendered the above sum. During the course of search he also agreed to pay tax on this sum under the income tax act. Therefore this money belongs to him and the amount is added under section 69A of the income tax act. Ld. departmental representative further drew our attention to the para No. 7.2 of the assessment order under section 143 (3) wherein it is submitted that the assessee has tried to disclose the above amount under the voluntary disclosure of in .....

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essee up to year 2000. He therefore submitted that the addition of this sum is rightly been made to the net wealth of the assessee as the money belongs to the assessee and is also owned by him. 7. We have carefully considered the rival contention. The undisputed fact is that that assessee tried to explain the amount of cash seized from the locker with syndicate bank which was in the name of the assessee and the amount of ₹ 30 lakhs was found there from. Further, the explanation of the asse .....

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the above sum of ₹ 30 lakhs belonged to the assessee. According to the provisions of section 3 of the wealth tax act every individual shall be charged tax on the net wealth as at the valuation date. Further, the net wealth has been defined under section 2 (m) of the wealth tax act to mean all the assets belonging to the assessee in excess of the debt owed as on the valuation date. According to the provisions of section 2(ea) of the act assets in case of individual includes cash in excess .....

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assessee. Therefore ground No. 4 of the appeal of the assessee is dismissed. 8. In the result, WTA No. 16/del/2014 for assessment year 2005 - 06 preferred by the assessee is dismissed. 9. The assessee has raised the following grounds of appeal in WTA No. 17/Del/2014 for the Assessment Year 2006-07:- 1. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the assessment order passed by the Ld. AC u/s 16(3) is bad in law, wrong o .....

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Wealth Tax Act, 1957, 4. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of ₹ 25,00,000/- in the taxable wealth on account of surrender of the cash found in locker with Syndicate Bank, DP Gupta, Karol Bagh New Delhi. 5. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of ₹ 6,54,750/- in the taxable wealth on account .....

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entical to the ground No. 4 of the appeal of the assessee decided by us for assessment year 2005 - 06 wherein we have dismissed that ground of appeal of the assessee. The parties before us admitted that the facts and circumstances of the issue involved are the same. Therefore we also dismiss ground No. 4 of the appeal of the assessee. 12. The 5th ground of the appeal of the assessee was against the addition of ₹ 654750/- in the taxable wealth on account of industrial plot at Narela. It was .....

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d. assessing officer has treated it under the definition of urban land and therefore charged the same to the total wealth of the assessee. The main argument of the Ld. authorized representative was that the industrial land cannot be charged to the wealth tax. 14. Ld. departmental representative submitted that this issue does not arise from the order of the Ld. Commissioner of wealth tax and therefore this ground of the appeal of the assessee is required to be dismissed. 15. We have carefully con .....

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ew of the above facts we restore ground No. 5 of this appeal back to the file of the Ld. Commissioner of wealth tax to adjudicate on this issue on merit after providing assessee a reasonable opportunity of hearing. In the result ground No. 5 of the appeal of the assessee is allowed accordingly. 16. In the result appeal of the assessee for assessment year 2006 - 07 is partly allowed. 17. The assessee has raised the following grounds of appeal in WTA No. 18/Del/2014 for the Assessment Year 2007-08 .....

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g heard. 3. That on the facts and circumstances of the case and the provision of law the Ld CIT(Appeal) has failed to appreciate that the Ld. AO has erred in initiating the proceedings u/s 18(l)(c ) of Wealth Tax Act, 1957, 4. That on the facts and on the circumstances of the case and the provision of law the Ld CIT Appeal has erred in sustaining an addition of ₹ 25,00,000/- in the taxable wealth on account of surrender of the cash found in locker with Syndicate Bank, DP Gupta, Karol Bagh .....

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eal of the assessee is against the addition of ₹ 25 Lacs in the taxable wealth on account of surrender of the cash found in locker with syndicate bank, New Delhi. The aboveground of appeal is identical to the ground No. 4 of the appeal of the assessee decided by us for assessment year 2005 - 06 wherein we have dismissed that ground of appeal of the assessee. The parties before us admitted that the facts and circumstances of the issue involved are the same. Therefore we also dismiss ground .....

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ances of the case for this year remains same. Therefore we set aside this ground of appeal back to the file of the Ld. Commissioner of wealth tax to adjudicate afresh after providing adequate opportunity of hearing to the appellant. In the result ground No. 5 of the appeal of the assessee is allowed with above direction. 21. In the result appeal of the assessee for assessment year 2007 - 08 is partly allowed 22. The assessee has raised the following grounds of appeal in ITA No. 19/Del/2014 for t .....

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