TMI Blog2021 (3) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... ding due reasons and obtaining necessary approval. Looking to the aforesaid facts and circumstances of the case, we do not find any infirmity in justifying the reopening of wealth-tax assessment and further on the basis of notices issued to the assessee, we consider that sufficient opportunities were provided to the assessee at the time of wealth-tax assessment. In view of the above, Ground Nos.1 to 3 of the assessee s appeal are rejected. Treating disclosed cash in hand as part of total wealth-tax of the assessee - At the time of wealth-tax assessment, assessee has claimed that aforesaid cash was actually represented outstanding amount as a receivable and incorrectly shown as cash in hand in the balance-sheet. In this regard, it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has raised the following grounds of appeal:- 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The learned Commissioner of Wealth-tax (Appeals)-2, Rajkot [hereinafter referred to as the CWT(A) ] e0072red on facts as also in law in confirming the reopening of assessment as valid. That on facts as also in law, initiation of action u/s.17 of the Act is invalid and assessment made on such invalid initiation deserves to be quashed and may kindly be quashed. 3. The Ld.CWT(A) erred on facts as also in law in rejecting appellant s ground of appeal related to order passed by the AO in violation to the principle of natural justice is totally bad on facts as also in law, may kindly be quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee. 5. Aggrieved assessee filed an appeal before the ld.CWT(A). The Ld.CWT(A) has dismissed the appeal of the assessee, in respect of ground Nos.1 to 3 (regarding technical grounds), by observing as under: 4.2.4 Decision Having considered facts and circumstances of the case and rival contentions I find that notice u/s.17 was issued in view of audit objection during audit of income tax assessment. However, I find that the AO while taking into consideration the audit objection did apply independent mind in making the belief that wealth had escaped assessment. Moreover the audit objection pertained to income tax assessment and not wealth tax assessment. Therefore it is not a case where AO had made any wealth tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Party had pointed out the issue to the AO which constitutes information on the basis of which the reassessment proceedings have been initiated. In the case of New Light Trading Co. 170 CTR 138 (Delhi) held that Audit Party is entitled to point out a factual error/omission in the assessment and the reopening of the case on that basis is permissible under law. 4.3.3. Decision Having considered facts and circumstances of the case and rival contentions I find that the assessee having been issued notice on 15/01/2014 responded on 14/02/2014 stating that the assessee was not liable to file wealth tax return. Since a notice u/s.17 of the Act had been issued, there was no question of his not being liable to file wealth tax ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It could be kept at any place not searched. Therefore in my considered opinion this was nothing but cash in hand and the addition on account of cash is confirmed. I find merit in contention of the assessee that the business assets are not liable for wealth tax. Therefore addition of ₹ 42193 and ₹ 276963 are deleted. Assessee fails on Ground no.V and succeeds on ground VI. 6. Heard both the sides and perused the material available on record. Regarding technical ground of appeal, i.e. Ground Nos.1 to 3 as sited above, it is noticed that notice u/s.17 of the Wealth Tax Act, 1957, was issued by the Assessing Officer after verification of balance-sheet filed by the assessee along with return of income pertaining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly shown as cash in hand in the balance-sheet. In this regard, it is noticed that assessee has not shown any debtor or any other receivable to substantiate his claim that actually the cash in hand was receivable. We have also gone through the paper-book filed by the assessee and noticed that assessee has failed to produce any material to authenticate his contention that the cash in hand in his account was actually receivable and pertained to the sales. In the light of above facts and circumstances, it is clear that assessee has not rendered any cogent explanation or documentary evidence to support his contention before the authorities below or before us at the time of appellate proceedings. Even the assessee has not given the basic details ..... X X X X Extracts X X X X X X X X Extracts X X X X
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