Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD83(JP.)
..... am in agreement with the conclusions arrived at in para 4 of the combined order in holding the firm in which the assesses is a partner as an industrial undertaking and in allowing exemption under section 5(1) xxxii) of the wealth-tax act, 1957.3. ..... 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. ..... stock brought forward from earlier years and reflected in the closing stock and appreciation in their value after a period of number of years, their outmodedness or their having become obsolete. ..... 9 (delhi)/1984 where the special bench after considering the elaborate arguments addressed to it and after carefully considering all the relevant aspects of the case came to the conclusion, that the solitary fact that higher rate of gross profit was shown by the trading account would not by itself be taken to ..... old stocks are being brought forward from year after year which required reassortment, recuttjing, etc. ..... point would arise whether after doing reassortment, recutting, etc ..... after considering the relevant facts some time the market value with reference to the valuation dates may be less than the percentage of increase of the gp rate and some times it may be more than the percentage .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1984)10ITD558(JP.)
..... when the assessment for the assessment year 1957-58, which was the first assessment under the act, was taken up by the wto, he raised the question of the exemption of the said palace under section 5(1)(iii) and the extent of its operation with regard to the said palace under the assessee's submission to the wto vide his letter dated 2-1-1969, was, inter alia, as follows : according to section 5(1)(iii) of the wealth-tax act, 1957 (any one palace which is ..... subject of the letter was described as follows : subject: action under section 25(2) of the wealth-tax act, 1957-shri bhim singh, kota-audit objection-file-forwarding of- after referring to the letter of the ito (judicial), the chief ..... c.s. agarwal, that umed bhavan palace building and the entire lands surrounding it constituted one unit which was not divisible or partitioned, being in one compound with one boundary wall, there canno be any doubt that the said entire land admeasuring over 2,000 bighas cannot be considered as ..... . some of the reasons are either certain lands have been sold or belong to other family members of the assessee.reconciliation of lands shown by the assessee and as shown in tehsil records : tehsil records show the agricultural land at 5017 bighas out of which 3674 bighas have either ..... . some of the reasons are : either certain lands have been sold or belong to other family members of the assessee.tehsil records show the agricultural land at 5017 bighas out of which 3674 bighas have either been sold or .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD105(JP.)
..... contrary 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 question ..... now as i have pointed out above, the market value of the closing stock owned by the firm certainly exceeded the value adopted for the purpose of assessment under the income-tax act because for the purpose of that act, the value that has to be taken is cost or market rate whichever is less, so that there can be no dispute that there is always a difference between the cost and market value and the lesser of the ..... that the evidence brought on record by the revenue is inadequate to invoke this rule, the conclusion arrived at by the tribunal is only a finding of fact after a careful appraisal of the evidence on record and that conclusion, in my opinion cannot give rise to a question of law. ..... the third member in a very detailed order after referring to the various decisions of the benches of the tribunal, dealing with the identical point both at delhi and jaipur and calcutta also referring to some high court decisions held that to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD402(JP.)
..... assessee 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. ..... whether, on the facts and in the circumstances of the case, the gp rate in the case of the firm with reference to cost price at 37 per cent for the assessment year 1977-78 will not prima facie show that the difference"as provided under rule 2b(2) of the wt rules is more than 20 per cent and the wto has discharged the initial burden cast upon him 2 ..... 9 (delhi)/1984 where the special bench after considering the elaborate arguments addressed to it and after carefully considering all the relevant aspects of the case came to the conclusion that the solitary fact that higher rate of gross profit was shown by the trading account would not by itself be taken to be conclusive .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1989)28ITD69(JP.)
..... the assessee lias filed appeals against the common order of the cwt, jodhpur passed under section 25(2) of the wealth-tax act, 1957, for the assessment years 1972-73 to 1984-85 and has raised the following common ground for all these years: in the facts and circumstances of the case the learned cwt, jodhpur has erred in setting aside the assessment order passed by the wto, jodhpur exempting the appellant trust under section 5(1)(c) of the wt act, 1957.2. ..... he also observed that the claim of the assessee that the orders were not received by him were baseless, as wto had merely dropped the proceedings after hearing the case and that the assessee was well in the knowledge as to the contents of the orders directing to drop the proceedings. ..... in case of non-compliance of the notices by the assessee, then he may proceed to make an assessment under section 16(5).it can therefore be concluded that the act only contemplates of passing of assessment orders either as returned by the assessee, or after making of an enquiry finding the return proper by passing an order, or if not satisfied make such additions as circumstances may call for, or a best judgment assessment order. ..... 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 order was made by him. .....
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 and semi-precious stones. ..... given in the balance sheet of the assessee for the relevant year should normally be taken to indicate the real value of the assets, for the purposes of determining the net wealth. ..... referring to the arguments of the revenue that this was a shifting onus, the learned counsel submitted that the ultimate burden was on the revenue and after the assessee had raised several objections and had requested the wto to let him know the materials on the basis of which he was proposing to value the closing stock, the wto did not take ..... , which was a case relating to the wealth-tax and dealt with the question of valuation he particularly pointed out the observations of the hon'ble high court.those observations are as under: a review of the aforesaid decisions makes it clear that the law is now well settled that when the wto proceeds to assess the value of the assets of the assessee, by adopting the global method of valuation under section 7(2)(a) of the act, then the valuation of the assets .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1986)16ITD107(JP.)
..... 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. ..... pointed out that there is no provision or even remote legislative intent to arm the wto with the power to refer the question of valuation of property in a completed assessment after he has accepted the valuation of a registered, valuer simply for the purpose of rinding out whether his suspicion that the completed assessment was based on undervaluation was correct so as to enable him to create a ground or foundation either for a reasonable belief under section 17(1)(a) or for information under ..... 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 same has already been initiated but excludes the proceedings where the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD367(JP.)
..... 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. ..... 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 further scrutiny is necessary on the issues : (1) as to for which years the disclosure was made, (2) whether the assessee ever disclosed wealth to the extent of us.1,75,000 in his wealth-tax return for the assessment year 1976-77, (3) if no such wealth was disclosed in view of the provisions of voluntary disclosure scheme whether still the tax liablity of rs. ..... as 'debt owed' in view of section 2(m)(ii) of the wt act, 1957.thereafter he will redecide the issue after giving an opportunity of being heard to both ..... for the reason that the taxes had been paid after the valuation date ending 1975 ..... after considering the relevant facts sometimes the market value with reference to the valuation dates may be less than the percentage of the increase of the gp rate and sometimes it may even .....
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 'sufficient ..... secondly, it was contended that the imposition of penalty in accordance with the provisions of section 18(1)(o), after its amendment by the wealth-tax (amendment) act, 1964, with effect from 1-4-1965, was illegal as the default was committed very much prior to that amendment, and if at all a penalty was leviable, it should have been levied in accordance with the law, as it stood at ..... the legitimate question that arose for the purpose of wealth-tax and also income-tax was whether these villages and the residential house received for maintenance from the eldest brother constituted individual property or joint family property. ..... the third point was the assessee being a student at the relevant time and belonged to a royal family allowed his matters to be looked after by a kamdar, who developed a very bad eyesight almost becoming blind for which reason he allowed these matters to lie not because it paid to delay the returns but because the question of status was difficult to decide. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Jaipur
Reported in : (1988)25ITD37(JP.)
..... was that the order of the tribunal passed under the wealth-tax act in the case of the assessee contained certain factual errors ..... nature of the agricultural land in question, the plea of the assessee was that there was no dispute under the wealth-tax that its nature was that of agriculture and this evident from the order of the tribunal wherein exemption had been ..... 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 ..... 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 non-fulfilment of his part of the contract and, ..... that he would have no objection if the proceedings in respect of assessment year 1976-77 are taken for bringing into tax the capital gains, if any.reliance was also placed on cit ..... to conclude that the sale was complete on 13th of september, 1972 and action in respect of capital gains, if any, is rightly relatable to assessment year 1973-74 only and not 1976-77 as was pleaded by the assessee.7. .....
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