Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD83(JP.)
..... market value of the closing stock to be found as a fact and whether any value has been fixed by the aac of wealth-tax, if not whether the issue regarding actual market value of the closing stock should be restored to the file of the aac for fresh determination order under section 24(11) of the wealth-tax act, 1957 read with section 255(4) of the income-tax act, 1961 1. ..... result the appeals are partly allowed though for statistical purposes.reference to a third member under section 24(11) of the wealth-tax act, 1957 as the members of the bench differ in opinion on the point: whether the g.p. ..... ground being raised in both the appeals is that the aac erred in holding the firm as an industrial undertaking and in allowing exemption under section 5(1)(xxxii) of the wealth-tax act, 1957 to the assessee in respect of his investment in the firm. ..... shorn of legal verbiage, there being no material, to prove the factual position that market value of closing stock of the firm exceeds more than 20 per cent of the book value, which admittedly represents the cost price, we hold that applicability of rule 2b(2) cannot be sustained on facts themselves.rule 2b(2) can be applied only when the market value, exceeds more than 20 per cent of the book ..... so far as the legal issue is concerned, the same is fully covered in favour of the revenue by three decisions of the itat functioning at jaipur with different ..... one is legal issue whether rule 2b(2) can be invoked for valuing the interest of a partner in the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1984)10ITD558(JP.)
..... in course of the assessment proceedings, you have filed letters dated 27-9-1977 and 29-11-1977 in which you have explained that the entire umed bhavan including rari and compound is a personal property and is exempted from the purview of wealth-tax under section 5(1)(iii) of the wealth-tax act, 1957. ..... for the sake of argument, even if the commissioner had looked into the audit files in this case, it could not at all have affected the validity o assumption of jurisdiction by him under section 25(2) of the act....27.5 without prejudice to his above objections, the learned departmental representative produced the four audit files 'in a sealed cover', with the request that 'these files may be looked into only after the department obtained legal advice in the matter.... ..... 1950; the said provision on each of the valuation dates for the assessment years 1972-73 to 1975-76, by virtue of the finance act, 1970, the rulers of indian states (abolition of privileges) act, 1972, came to read as under : 5(1) subject to the provisions of section (1 a), wealth-tax shall not be payable by an assessee in respect of the following assets and such assets shall not be included in the net wealth of the assessee- (iii) any one building in the occupation of a ruler, being a building which immediately before .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD105(JP.)
..... view in accordance with the general principle of jurisprudence and the provisions of section 255(4) of the income-tax act which would apply to this case, because of section 24(11) of the wealth-tax act, the view of the majority in case of difference of opinion should prevail, i therefore, respectfully concur with all the ultimate conclusion arrived at by my learned brethren.order under section 24(11) op the wealth-tax act, 1957 read with section 255(4) of the income-tax act as there has been a difference of opinion, we refer the following ..... it is the combination of the value placed upon all these kinds of articles that would represent the value of the closing stock and the rate of gross profit shown by the trading account by such a valuation of closing stock would not therefore necessarily mean that the value of the ..... of difference and who is the person who knows about it ordinarily the initial onus of showing the applicability of rule 2b(2) may be on the department, because of sections 102 and 103 of the evidence act, but under section 106 of the evidence act, the fact of market value of the closing stock being within the knowledge of the assessees, the burden of proving the same would be upon them and former sections would have no application to the ..... would differ from person to person and even from ..... three persons are ..... personally speaking i am of the opinion that in relation to the main dispute, the contrary view of the matter would be more appropriate and in accordance with .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD402(JP.)
..... constitutes adequate material to come to the conclusion that market value of the closing stock of the assessee exceeds the value as adopted by the assessee by more than 20 per cent within the meaning of rule 2b(2) of the wealth-tax rules, 1957 and to invoke the provisions of rule 2b(2) of the wt rules, 1957 order under section 24(11) op the wealth-tax act, 1957 read with section 255(4) of the income-tax act, 1961 1. ..... to in rule 2b(2) of the wt rules, could it be concluded that the market value of the closing stock was more by 20 per cent than the book value so as to treat that value as the market value for the purpose of wealth-tax.the learned accountant member has framed as many as four questions as his points of view, whereas the learned judicial member has framed only one question as his point of view. ..... representative has submitted that the difference in the value taken for the purpose of income-tax assessments at cost price and the market price was more than 20 per cent in view of the ..... without considering the legal objection whether rule 2b(2) can be invoked or not, the jaipur bench on facts only gave the decision against the revenue that there was no adequate material on the basis of which rule 2b(2) could be invoked by the ..... the assessee took legal objections stating that rule 2b(2) was not applicable for determining the value of assets of business as a ..... also a legal objection was taken that rule 2b(2) could not be invoked while finding out the interest of a partner in the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1989)28ITD69(JP.)
..... years 1972-73 to 1984-85, and has raised one common issue which is as follows: in the facts and circumstances of the case the learned commissioner of wealth-tax, jodhpur has erred in setting aside the assessment order passed by the wealth-tax officer, jodhpur, exempting the appellant-trust under section 5(1)(z) of the wealth-tax act, 1957.7. ..... powers to the commissioner in relation to his subordinates and these are contained in sections 8a, 8aa, 8b, 11aa & 13a of the wt act.section 8a (effective from 1-4-67) gives the power to the commissioner to issue a general or special order in writing directing that: (a) powers conferred on the wto shall be exercised by iac for any specific cases/classes of cases/persons/classes of persons ; (b) functions assigned to wto may be performed by the inspector of wealth-tax: provided that commissioner shall not issue any such direction in cases falling ..... ito should have passed an order of assessment, even if the result of the determination was that the tax payable was nil, and that, therefore, the order that the case be filed would be invalid, the effect could not be that the proceedings before the addl.ito must be held to have continued after the ..... basis that such an order amounted to the acceptance of the return filed by the assessee, and there would be no grievance caused to the assessee and the assessee should not be allowed to thwart the proceedings which is otherwise legally valid. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1986)15ITD96a(JP.)
..... while making the assessments under the wealth-tax act, 1957 ('the act') the wto found that the firm rawat jewellers was dealing in precious ..... the written down value arrived at, according to the provisions of the income-tax act, merely represents notional allowance permissible under the act but neither as a matter of law nor of right, the assessee could claim without anything more that the same correctly represents the real value of the assets and unless the assessee produces reliable material before the wto to show that the written down value of the assets ..... lordships of the supreme court in the cases referred to above, the assessee is the best person to know about the real value of his assets and it is for him to adduce evidence before the wto, if he desires to convince the authority that the value specified in the balance sheet does not represent the correct figure about the value of his assets. ..... respected and learned brethren have taken a contrary view, in accordance with the general principle of jurisprudence and the provisions of section 255(4) of the 1961 act which would apply to this case, because of section 24(11) of the 1957 act, the view of the majority in case of difference of opinion should prevail. ..... he, however, contended that the law has not incorporated any legal presumption that wherever the gross profit is more than 20 per cent, the market value of the closing stock which is valued at cost will also be more ..... the question involved is not one of any legal principle. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1986)16ITD107(JP.)
..... the aac was correct and the present appeal ought to be dismissed.order under section 24(11) of the wealth-tax act, 1957, read with sub-section (4) of section 255 of the income-tax act, 1961 as there has been difference of opinion between us, the following point is referred to the third member for his opinion under sub-section (11) of section 24 of the 1957 act, read with sub-section (4) of section 255 of the income-tax act, 1961 : whether the reopening of the wealth-tax assessment completed on 25-3-1976 by the wealth-tax officer was in accordance with law 1. ..... one case the basis for reopening was the revenue audit of the department and in relation to other cases the argument of the assessee's representative is contained in the penultimate paragraph, which reads as under : the first and the foremost contention of the learned counsel for the petitioners is that section 16a can be invoked only for the purpose of making an assessment and this assessment can include the proceedings of reassessment also after the ..... applications, therefore, deserve to be accepted on this short but surest ground as the notices, in view of our finding above discussed, are without any legal and valid foundation both under section 17(1)(a) and (b) of the act (pp. ..... based on an absence of the existence of any legal foundation which could have given rise to a valid belief or reason to believe, as contemplated by section 17(1)(a) or could have provided information as contemplated by section 17(1)(b) of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD367(JP.)
..... conclusion that market value of the closing stock of the firm exceeds the cost price as adopted by the firm by more than 20 per cent and whether merely on that basis, can rule 2b(2) of the wealth-tax rules, 1957 be invoked the same is referred for hearing by a third member in view of section 24(11) of the wealth-tax act, 1957, read with section 255, sub-sections (4), (5) of the income-tax act, 1961.order 24(11) of the wealth-tax act, 1957 read with section 255(4) of the income-tax act, 1961 1. ..... as other benches have consistently taken the view in several cases that the firm carrying on this type of business is an industrial undertaking within the meaning of explanation to clause (xxxi) of section 5(1) of the wealth-tax act, 1957. ..... that the aac erred in not allowing an opportunity to the valuation officer as required by section 23(3a)(a) of the act, 1957 and in reducing the value of the immovable property as made by the valuation officer by ..... the revenue is that the aac erred in holding that the wto was not justified in invoking the provisions of rule 2b(2) of the wealth-tax rules, 1957 (for short 'the rule 1957') for determining the value of the assessee's interest in the firm m/s.sardarmal umraomal. ..... we have heard the representatives of both the parties ..... the dispute regarding applicability of rule 2b(2) of the wt rules, 1957 is twofold.one is legal issue whether rule 2b(2) can be invoked in valuing the interest of a ..... of the assessee did not (sic) or the legal aspect of the issue. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1985)14ITD445(JP.)
..... jaipur bench of the tribunal was : whether, on the facts and in the circumstances of the case, the assessee was prevented by reasonable cause in not filing the returns of net wealth for the assessment years 1958-59 to 1961-62 within the time allowed under section 14(1) of the wealth-tax act, 1957 or not originally the question framed used the words 'sufficient cause' but later on the members of the jaipur bench substituted the word 'reasonable' for the word ..... , did not belong to him as an individual but the impartible estate represented by these assets bore the character of joint family property and he was not assessable in respect of them, as an individual. ..... to ascribe this view to the assessee from beginning having due regard to the welter of the legal complications that were involved in this case which was not denied or could not be denied is rather very unfair. ..... mere use of the expression 'without reasonable cause' cannot import a mental element or mens rea.before imposition of penalty under section 271 what is required is that the officer must be satisfied not arbitrarily but judicially that the person has without reasonable cause failed to furnish the return. ..... it was further contended that the penalties, if at all leviable, should have been levied with reference to the tax that remained to be payable after adjusting the tax on provisional assessments paid by the assessee. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD37(JP.)
..... the learned senior departmental representative mr.dave referred to the order of the tribunal in the case of the assessee passed under the wealth-tax dated 12-5-1982 and submitted that the issue regarding when the agricultural land of about 9 bighas was sold to the housing co-operative society was considered and it was decided that the sale did take ..... the plea further was that the order of the tribunal passed under the wealth-tax act in the case of the assessee contained certain factual errors. ..... one of the arguments that was advanced by the assessee was that he invested the sale proceeds in 1975 to claim exemption under section 54b so that no capital gains is attracted and did not do so soon after the substantial amount of sale consideration was received only for the reason that in case the sale has to be cancelled consequent to the purchaser's ..... of in 1975 would be in the category of the self-serving statement, that is, they would have no evidentiary value.in case, the assessee and the purchaser had evidences available which would go to establish that they did act upon the deed, then positively in accordance with the rajasthan high court decision the claim of the assessee would necessarily be needed to be upheld. ..... the view had been that the receipt on sale of agricultural land, is of the nature of agricultural income only and would be exempt under section 2(1)(&) of the it act. ..... basically, the transfer of an immovable property is governed by section 54 of the transfer of property act. .....
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