Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD53(Mum.)
..... shri vohra then referred to section 7 of the wealth-tax act, 1957 where subsection (1) provided for the value of an asset other than cash, being determined as the price, which, in the opinion of the wealth-tax officer, it would fetch if sold in the open market and subsection (2) gave two options to the wealth-tax officer either to determine separately the value of each asset held by the assessee or to determine the net value of the assets of the business ..... section (2) of section 7 of the wealth-tax act, 1957 ..... the next grievance in this appeal is that the commissioner of wealth-tax (appeals) wrongly held that while valuing the unquoted equity shares of companies under rule 1d of the wealth-tax rules, 1957 advance payment of tax should be deducted from the tax payable with reference to the book profits in accordance with the law applicable thereto for the purpose of finding out whether the amount representing the provision for taxation was in ..... elaborating on his arguments, shri vohra submitted that where two alternatives were open to the wealth-tax officer, it was open to the wealth-tax officer to opt for the first alternative of determining the value of each asset held by the assessee separately, which had been done in the present case and on that ..... our attention was invited to rule 2b(2) of the wealth-tax rules, 1957, which lays down that in making adjustments in the value of an asset disclosed in the balance sheet, the value shown in the balance sheet will be disturbed only where .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)21ITD153(Mum.)
..... the calcutta high court in diptl kumar basu's case (supra) had clearly held at page 463 that the wto had been" expressly authorized to make adjustment in the balance sheet under section 7(2)(a) of the wealth-tax act, 1957 ('the act') if the circumstances of the case may require and "the fact that the book debt is not entered in the books is itself a circumstance which justifies its inclusion in the balance sheet under this section for the ..... high court had clearly pointed out the difference between the wealth-tax act, and the income-tax act, 1961 and had observed that system of accounting has no relevance under the wealth-tax act ..... 1 sot 573 had relied and which the special bench had been followed by the delhi special bench in narendra kumar gupta's case (supra), still neither the supreme court in vysyaraju badreenarayana moorthy raju's case (supra) nor the calcutta high court in dipti kumar basu's case (supra) had considered the applicability of rule 2c of the wealth-tax rules, 1957 ('the rules') which had been considered in n.m. ..... making such adjustment in the balance sheet, the tax officer does not convert the cash system of book-keeping into a mercantile system of book-keeping for the purpose of the wealth-tax act. ..... the supreme court had upheld the said observations of the calcutta high court in vysyaraju badreenarayana moorthy .rant's case (supra) when they had observed that system of accounting, mercantile, cash or hybrid, is of no relevance for the purpose of determining the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)21ITD486(Mum.)
..... the result was that the value of the properties at koregaon park, poona, worli, bombay and dhanji street, bombay was taken by the wealth-tax officer in conformity with the report of the valuation officer under section 16a of the wealth-tax act, 1957, while the value of the ville parle property was determined on the basis of the valuation report of the valuation officer, unit-ill bombay, ..... above assessment years are not filed.we were given to understand at the time of the hearing of the appeals that the wealth-tax chargeable in respect of the net wealth for the various assessment years for which the declaration was made was paid by the assessee or invested in securities as required under the vds.before the wealth-tax officer, in the course of the assessment proceedings for the assessment years 1958-59 to 1974 ..... of the assessee's learned counsel, sri desai that even on merits the values of properties as given in the declaration under the vds and in the wealth-tax returns were justified and the values adopted by the wealth-tax officer based on the report of the valuation officer were highly excessive and unjustified. ..... in cross objections which are limited only to the assessment years 1972-73 to 1974-75 with the grievance that even on merits, the commissioner of wealth-tax (appeals) ought to have held that the values of the properties as declared in the declaration under the vds were justified and the values estimated by the wealth-tax officer were highly excessive and arbitrary. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD273(Mum.)
..... refer to sub-section (4) of section 21 of the wealth-tax act, 1957 which is in pari materia with section 164(1) of the income-tax act, 1961. ..... because of deeming the provision contained in the section as explained by the calcutta high court in the case of smt. ..... in those decisions did not have the advantage of considering the above mentioned decision of the calcutta high court where it has been held that the representative assessees would be assessable in the status of a.o.p. ..... saraf [1978] 113 itr 589 that if there is a decision of a high court on any point, the tribunal was bound to follow the same. ..... held that trustees would be treated a.o.p.only for rate purposes and not for the purpose of status of assessment.this is also contrary to decision of calcutta high court where it has been held that status of assessment would be that of a.o.p. ..... we, therefore, follow the above decision of the calcutta high court and hold that the assessee in these cases are liable to be assessed in the status ..... this decision was considered by calcutta high court in the above case and it was observed that the said decision was ..... in view of this direct authority of calcutta high court, we are bound to hold that the trustees of the two funds in these appeals were liable to be assessed in the status of a.o.p, and not that of ..... it was argued before the high court that the said representative assessees cannot be assessed in the status of aop because they had not associated to produce the income and there cannot be .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1988)25ITD479(Mum.)
..... [the court was not concerned with the expression "owner" found in the income-tax statute but with the term "belonging to" found in the wealth-tax act]. ..... of the tribunal in regard to the point as to whether the aac was justified in setting aside the assessment and directing the ito to re-do the assessment and further whether the question of assessing the profits under section 41(2) of the income-tax act, 1961 in the hands of a holding company arises in case of sale by a holding company as a going concern to its hundred per cent subsidiary company. ..... lordships of the supreme court held in that case that as the assessee-company sold the property for a stated consideration which was not shown to be notional and that consideration was in excess of the original cost of the building, the difference between its original cost and its written down value was profit within the meaning of the second proviso to section 10(2)(vii) of the indian income-tax act. ..... their lordships of the gujarat high court held in that case that in the absence of the presumption arising under section 269c(2)(a), there was no material to show that the consideration had not been truly stated in the instrument of transfer and that the condition precedent as to the object of reducing or evading liability to tax could not be satisfied since the sale was by a parent company to its wholly-owned subsidiary and the consideration for the depreciable assets ..... after hearing the parties, we uphold the ..... cit [1957] 31 itr 99 ( .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1988)26ITD143(Mum.)
..... to go through the spirit of the legislature mentioned in section 8 and we have to give a wider meaning to the term of the wto ..... ito having territorial jurisdiction has been empowered to act as a wto if the case is transferred from the file of the ito automatically the jurisdic-tion is vested with that officer in wealth-tax cases also.there is no need to pass a separate order or notification, because by virtue of section 8, the ito has been empowered to function as a wto.it is further submitted that provision has been made under the income-tax act but the wealth-tax act is silent on this point, but for that, we have ..... further submitted that the case before the madras high court was in relation to section 125a of the it act read with section 8aa of the wt act but in the pre-sent case, the order of the cit(a) was passed under section 127(1) of the it act and it is that section which has to be read with section 8 of the wt act. ..... at the time of hearing, the learned assessee's counsel raised a preliminary issue of jurisdiction. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1989)31ITD359(Mum.)
..... similar view was expressed by the madras high court in another decision under the wealth-tax act in the case of cwt v. ..... enough pointers to conclude that the estate had been administered and the executors under the will were holding the same as trustees and therefore such trustees had to be assessed under section 21 of the wealth-tax act in the like manner and to the same extent.8. ..... another assessment was made under section 16(3) of the wealth-tax act by the wto on 18-3-1982 which was again set aside by the cwt(a) by his order dated 6-ll-1982.the assessments so set aside for all these ..... divided between the beneficiaries on the relevant valuation date and, therefore, the provisions of section 19a(5) of the wealth-tax act were clearly applicable. ..... in my judgment, that is not so.finally, although section 3 of the wealth-tax act read along with the definition of the term "net wealth" in section 2(m) has to be taken to impose a charge of wealth-tax on individuals to whom the wealth belongs, while interpreting the words "belonging to" occurring in the definition of 'net wealth' in section 2(m), it is not possible to say that the properties in the hands of the executors, who are appointed under the will for administering the estate of the deceased, belong ..... .he, however, proceeded to add that the above was only a prima facie view and the question will have to be considered in detail with the help of oral evidence that may be adduced at the time of hearing and final disposal of the suit. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)45ITD49(Mum.)
..... notification that every dealer whose gross turnover during the year immediately preceding the commencement of this act exceeds taxable quantum shall be liable to pay tax under this act on all sales effected after the date so notified....after considering the said provision and the particular interpretation by the supreme court in the cases cited supra it was held by the calcutta high court that the assessees claiming deduction of such a tax debt under section 2(m) of the wealth-tax act was justified. ..... section 2(m) of the wealth-tax act defines net wealth to mean the amounts by which the aggregate value computed in accordance with the provisions of wealth-tax act of all the assets belonging to the assessee on the valuation date is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than certain debts.the sub-clause (iii) of the said provision provides that the amount of tax, penalty or interest payable in consequence of any order passed under or in pursuance ..... , 31-3-1957 and shall as such chargeable in computing the net wealth. ..... in the said case it was held that the provisions for payment of income-tax in respect of the year of accounts ending on 31-3-1957 was a "debt owed" within the meaning of section 2(m) on the valuation date, i.e. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1997)63ITD138(Mum.)
..... the assessee individual has filed this appeal under the wealth-tax act, 1957 (hereinafter referred to as the act) aggrieved by the order of commissioner of wealth-tax (appeals) [hereinafter referred to as cwt(a)]. ..... this is evidence from the observation from the rulings above where it has been categorically observed that because, the act permits filing of a revised return that is so made to correct any mistake in the return filed earlier, it would be sufficient compliance if the assessee complies with the requirements during the hearing.the decision of the bombay high court in cit v. ..... the departmental representative however, pleaded that in the light of the jurisdictional high court decision, the order of cit(a) should be upheld.the bombay high court in shivanand electronics (supra) considered the question "whether, on the facts and in the circumstances of the case, the non-compliance with condition of filing of audit report is fatal to given relief to the assessee under section 80j(6a) ? ..... 511, had held that the condition is merely directory in nature and filing of the report and the accounts during the hearing was sufficient compliance.in rai bahadur bissesswarlal motilal malwasie trust's case (supra), the calcutta had observed as under : "there is no doubt that section 12a specifically states that the provisions of sections 11 and 12 shall not apply in relation to income of any trust if conditions stated therein are not fulfilled and, in the conditions .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1997)63ITD315(Mum.)
..... vaidyanathan [1985] 153 itr 11/23 taxman 169 (fb) wherein it was held that debts relating to a portion of the asset which is exempt from wealth-tax are not deductible in the light of section 2(m) of the wealth-tax act, 1957.9. ..... as per the provision of section 2(m) (ii) of the wealth-tax act no liability which is in relation to an exempted asset is deductible while computing the net wealth of the appellant. ..... 65 lacs was made to acquire an asset which is exempt under section 2(e) of the wealth-tax act. ..... 55,01,123 after giving exemption to some assets under section 5(1a) of the wealth-tax act.5. ..... " in the light of the above rule, it is pleaded that even under the mode of valuation prescribed under schedule iii of the wealth-tax act the value of any immovable property constructed after 31-3-1974 cannot be less than the cost of construction as increased by the cost of any improvement and it is pleaded that the amount of rs. ..... also relied upon the decision of the hon'ble madras high court in the case of cit v. k. s. ..... cwt [1981] 129 itr 314/6 taxman 51 and that of the allahabad high court in the case of cwt v. ..... 44,12,203 is relatable to the income disclosed under section 132(4) and as such, in the light of the ratio of the decision of the apex court in the case of ahmed ibrahim sahigra dhoraji v. .....
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