Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1991)37ITD147(Coch.)
..... for the assessment years beginning from 1975-76 onwards, the wealth-tax officer had initiated penalty proceedings under section 18(2) and imposed penalties under section 18(7 )(a) of the wealth-tax act. ..... after the receipt of the returns, the wealth-tax officer issued notices under section 17 of the wealth-tax act in respect of the above years and the assessee filed a letter on 15-3-1984 agreeing to treat the returns filed earlier as having been filed in pursuance of the notices under section 17. ..... pursuant to this, section 17(7) notices were issued to the assessee for the assessment years 1975-76 to 1979-80 and the returns filed by the assessee earlier were treated as returns filed under section 17 of the wealth-tax act.in addition, the assessee also filed revised returns for the assessment years 1980-81 to 1982 ..... thus, the documents produced before us clinch the issue that the income-tax officer acting in the capacity of wealth-tax officer had accepted the explanation offered by the assessee that the gold ornaments were in existence with the assessee at least as early as 1975-76. ..... letter also shows that the assessee had requested the commissioner of income-tax to direct the wealth-tax officer to issue notices to him under section 17 of the wealth-tax act, for all the assessment years 1974-75 onwards. ..... this appeal by the assessee relates to the assessment year 1983-84, for which the accounting year ended on 31-12-1983 (31-12-1957) (m.e)for business and 31-3-1983 for other sources.2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1992)40ITD37(Coch.)
..... while dealing with reference under the wealth-tax act had to consider a similar question and it was held that an assessee, who is engaged in the manufacture or production or processing of goods or articles within the explanation to section 45(d) of the wealth-tax act, 1957 could be said to be engaged in the manufacture or processing of goods, though not from a commercial point of view because there was no requirement in the section that the things manufactured should be sent to the market for sale or solely engaged in the manufacture. ..... the assessee has not filed copy of the original tender or copy the original agreement entered into by the assessee with chukha hydel project to substantiate his abovesaid claim. ..... the assessee has not filed before us copies of any separate tenders and agreements in respect of these steel supports, rock bolts, steel reinforcements etc. ..... had they been so, the learned accountant member observed the execution of such steel supports would have been supported by separate tenders and agreements because they were of considerable value. ..... the running account bill is made with reference to agreement no. ..... it could not result in the conclusion that the undertaking was manufacturing articles for which it had come into existence. ..... work enumerated by him in his order was not included in the original contract but according to the learned accountant member the copy of the original tender was never filed nor the copy of the original agreement to substantiate this claim. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1982)1ITD483(Coch.)
..... the wto considered that these two amounts were outstanding for more than 12 months on the respective valuation dates and, therefore, cannot be allowed as a deduction in the computation of the net wealth in view of section 2(m)(iii)(b) of the wealth-tax act, 1957 ("the act"). ..... it is seen from the papers submitted by the assessee before us that the settlement was evidenced by an agreement which has been entered into by the karta of the huf as the legal heir of late kumaraswamy reddiar. ..... the aac agreed with the assessee that these amounts cannot be considered to be income-tax liabilities to which the provisions of section 2(m)(iii) would apply as they were the income-tax liabilities of late kumaraswamy reddiar. ..... assessee here and that the assessee has only taken over such liabilities along with the business left by the father.we do not think that this order of the tribunal can be extended to hold that these sums for the two assessment years do not represent the category of liability considered under section 2(m)(iii), namely, the amount of tax, penalty or interest payable in consequence of any order passed under or in pursuance of any law relating to the ..... the tribunal has held that this was clearly not the tax liability of the assessee-huf but the tax liability of kumaraswamy reddiar which has been taken over by the assessee-huf along with the cloth business. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1983)5ITD343(Coch.)
..... therein by the revenue arising for the assessment years 1971-1972, 1972-73, 1973-74 and 1974-75 are directed against the order of the commissioner (appeals) dated 30-10-1982 sustaining the levy of additional wealth-tax on the value of three items of immovable properties treated by the wto as urban assets for the purpose of the levy under clause (2), para a, part i of the schedule to the wealth-tax act, 1957 ('the act').2. ..... section 3 of the act provides for the levy of wealth-tax at the rates specified in part i ..... for which the land is used by the owner during the previous year should have been capable of producing profits taxable as business profits in order that the land could be classified as business premises for the purpose of exclusion from the levy of additional wealth-tax.8 ..... behalf of the assessee, contended before us that the kaloor property of 5.40 acres planted with the coconut trees is agricultural land owned by the assessee in the urban area and used throughout the previous year for purpose of the business of agriculture and the property, therefore, constitutes 'business premises' and is excluded from the category of 'urban asset' for the purpose of the levy of additional wealth-tax. ..... the term 'business' in section 2(13) being inclusive and not exhaustive is indicative of extension and expansion.the word 'business' is one of large and indefinite import and connotes something which occupies time, attention and labour of a person normally with the object of making profit. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (2002)83ITD631(Coch.)
..... net maintainable rent is to be computed under rule 4 of schedule iii of the wealth-tax act, 1957 which reads as under :- for the purposes of rule 3, "net maintainable rent" in relation to an immovable property referred to in that rule, shall be the amount of gross maintainable rent as reduced by- (i) the amount of taxes levied by any local authority in respect of the property; and rule 4 permits only exclusion of taxes levied by local authorities and a sum equal to 15 per cent of the gross maintainable rent ..... was rejected by the cit(appeals) on the ground that since the reopening was done vide notices dated 3-3-1994, 14-12-1994 and 14-2-1994 respectively for the assessment years 1989-90, 1990-91 and 1991-92, which were all within the period of four years from the end of the assessment years during which the assessing officer can reopen the assessment under section 17(1 a) of the wealth-tax act.5. ..... section 24 of the income-tax act, 1961, enumerates the deductions allowable from income under the head 'income from house property'; whereas under the wealth-tax act it is to be computed under schedule ..... considering the rival submissions, we are of the view that there is no flaw in the order of the cit(appeals) on this point in view of the amendment brought into section 17 by the direct-tax laws (amendment) act, 1987, with effect from 1-4-1989, by which the legislature omitted the words "by reason of the omission or failure on the part of any person" occurring in section 17(1)(a). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (2008)110ITD400(Coch.)
..... --production before the assessing officer of account books or other evidence from which material evidence could with due diligence have been discovered by the assessing officer will not necessarily amount to disclosure within the meaning of the foregoing proviso.this provision is analogous to section 147 of the income-tax act, 1961.it is clear from the language used by the legislature in the provisos that the protection is given to the assessee in case his assessments are completed by ..... in the notice, along with such other particulars as may be required by the notice, and may proceed to assess or reassess such net wealth and also any other net wealth chargeable to tax in respect of which such person is assessable, which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section for the assessment year concerned (hereafter in this section referred to as the relevant assessment year), and the provisions of this act shall, so far ..... on the statute book with effect from 1-4-1989 reads as under: 17(1) if the assessing officer has reason to believe that the net wealth chargeable to tax in respect of which any person is assessable under this act has escaped assessment for any assessment year (whether by reason of under- assessment or assessment at too low a rate or otherwise), he may, subject to the other provisions of this section and section 17a, serve on such person a notice requiring him to furnish within such period, as may .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1991)38ITD489(Coch.)
..... the third issue is whether there is any provision in the wealth-tax act, 1957, which will enable the wealth-tax officer to pass a valid assessment order once the assessee- huf has ceased to exist. ..... the only remedy that might be open to the wealth-tax officer is to initiate proceedings under section 17 read with section 41 of the wealth-tax act in the light of the ratio of the decision of the jurisdictional high court in the case of shantilal c.shah (supra).14. ..... in that case their lordships of the supreme court compared the provisions of section 16 of the east punjab general sales tax act, 1948 with the provisionsof section 144 of the income- tax act, 1922 and noticed that there was no provision in the sales-tax act corresponding to the provisions of the income-tax act for the assessment of adissolved firm even in respect of the turnover earned during its subsistence. ..... if the huf has not been assessed to wealth-tax in respect of any valuation date, prior to 1 -12-1976 and if the officer has reason to believe that wealth had escaped assessment, he can proceed against the huf under section 17 read with section 41(2) of the wealth-tax act, by issuing a notice to the quondam karta or if such person is dead, then on all the surviving adults who were members of the huf immediately before partition. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1984)9ITD348(Coch.)
..... therefore, the proviso which came into existence on 1-4-1975 cannot be applied bringing to charge an item of asset as on 31-3-1975.two other contentions were raised by the assessee before the commissioner (appeals) and one was regarding the manner in which the proviso was implemented by the wto and the other was that the annuity in respect of an annuity policy taken from the lic cannot be commuted and, therefore, under section 2(e)(2)(ii) of the act, it cannot be subjected to wealth-tax. ..... under section 5(1)(vi) of the wealth-tax act, 1957 ('the act') exemption is available in respect of the right or interest of the assessee in any policy of insurance before the moneys covered by the policies become due and payable ..... would follow that the determination of the net wealth and for that purpose the determination of the liability will have to be made on the state of affairs factually on the valuation date or the last day of the previous year, but in accordance with the law as on the first day of the ..... it is pointed out that the proviso to clause (vi) of sub-section (1) of section 5 had been introduced with effect from 1-4-1975 and, therefore, it would govern the assessment for the ..... that because the provision regarding annuity purchased by the assessee was introduced with effect from 1-4-1975, it cannot be applied to this assessment year. ..... that this proviso will have to be applied for this assessment year as the proviso was introduced with effect from 1-4-1975 by the finance act, 1974.2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1993)45ITD520(Coch.)
..... further it is contended that the communication dated 14-3-1988 by the valuation cell under section 16a(5) of the wealth-tax act is at any rate binding on the assessing officer. ..... specified in the notice under sub-section (4), or as soon thereafter as may be, after hearing such evidence as the assessee may produce and after considering such evidence as the valuation officer may require on any specified points and after taking into account all relevant material which he has gathered, the valuation officer shall, by order in writing, estimate the value of the asset and send a copy of his order to the wealth-tax officer and to the assessee ..... .on a careful reading of the provisions, it will be evident that the order to be passed by the valuation officer should be a speaking order.if an order which is made appealable is a non-speaking order, the person affected cannot ..... the state of affairs with the assessee is still worse because he has been slapped with a valuation, the details of which are not known to him, mode and method by which such valuation was done was also unknown to him.therefore, when he filed an appeal before the cwt (appeals) within the statutory time allowed, he could not effectively defend his stand and object to the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1982)1ITD115(Coch.)
..... for such transfer as agreed to between the parties had not been truly stated in the instrument of transfer with the object of (a) facilitating the reducation or evasion of liability of the transferor to pay tax under this act in respect of any income arising from the transfer or (b) facilitating the concealment of income or any moneys or other assets which had not been or which ought to be disclosed by the transferee for the purpose of income-tax act, 1961, or the wealth-tax act, 1957, proceedings under section 269d was initiated." 4. ..... ) should have, independently of the presumptions under section 269c, reason to believe that the sale consideration was understated in the document with a view on the part of the transferor to avoid the capital in the document with a view on the part of the transferor to avoid the capital gains tax and on the part of the transferees to avoid tax liability under the income-tax act and the wealth-tax act. ..... clause (a) relates to the reduction or evasion of the liability to pat tax under the act in respect of any income arising from the transfer, while clause (b) deals with the possibility of evasion both under the income-tax act and under the wealth-tax act on the part of the transferee. ..... thomas under an agreement to sell.the date of the document was 15-9-1977. ..... 60,000 as the price of the right of the second of us was agreed to be paid by you under an agreement dated 15the september, 1977 under which a sum of rs. .....
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