Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1994)50ITD66(Ahd.)
..... . with a view to countering attempts at tax avoidance through the creation of a specific trust, a new sub-section (1a) in section 21 of wealth-tax act was inserted to bring to tax the balance of the amount of net wealth after deduction of the value of life interest and interest of the remaindermen in the hands of the trustees ..... . 4 & 5, it will be profitable to reproduce the relevant provisions of the wealth-tax act: 21(1) subject to the provisions of sub-section (1a), in the case of assets chargeable to tax under this act, which are held by a court of wards or an administrator-general or an official trustee or any receiver or manager or any other person, by whatever name called, appointed under any order of a court to manage property on behalf of another, or any trustee appointed ..... fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession, wealth-tax shall be charged at the rates specified in part i of schedule i.it will also be worthwhile to reproduce section 164(1) of the income-tax act, 1961 : 164(1) subject to the provisions of sub-sections (2) and (3), where any income in respect of which the persons mentioned in clauses (iii) and (iv) of sub-section (1) of section 160 are liable as representative assessees or any part thereof is not specifically receivable on behalf or for .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2002)81ITD553(Ahd.)
..... contained in section 4(8) of the wealth-tax act also incorporates within its ambit any transaction as referred to in section 269ua(f). ..... on surplus funds in short term deposit is always of a revenue nature and the same cannot be treated as receipt of a capital nature simply because the accounting entry has been made in the books of account setting off such interest income against the liability to pay interest on funds borrowed for purpose of purchase of plant and machinery even before commencement of the business. ..... there are various other clauses relating to providing sanitations, tree plantations, payment of taxes, restrictions relating to consumption of water per day, power of the gidc to terminate the agreement, power to enter into and inspect, power to extend time etc.however, clauses 9 and 10 of the said licence agreement clearly provide that when the executive engineer of the licensor certifies that the factory building and works have been erected in accordance with ..... that the judicial thought under the provisions of the it act indicates that income accrues only when the right to receive vests in the recipient.once the right to receive is vested, accrual of income under the it act is not postponed merely because its quantification depends upon subsequent events such as making up of accounts etc. ..... courts have repeatedly held that the collection of sales-tax, any amount of cess, etc. ..... to the proper sanitations, limit for consumption of water per day etc.are also incorporated. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1987)21ITD545(Ahd.)
..... by the first appellate authority and the deletion was confirmed by the tribunal vide order dated 19th march, 1979.2.1 the assessee is also regular assessee under the wealth-tax act.since the mother of the assessee was held to be benamidar in the partnership firm the original assessments completed under section 16(1) of the act in the case of the assessee wherein accumulated profits going to the share of the mother were not included were sought to be reopened under ..... have to be excluded while filing the return of income obviously accumulated income giving rise to the wealth shall have to be excluded from the wealth-tax return as a consequence and not with a motive to conceal the particulars of wealth or to evade wealth-tax.6.2 we see from the orders passed in various proceedings that variation in the wealth is necessitated only because of refusal to grant registration under the income-tax act where it was held that mother of the assessee was benamidar of the assessee as far as the ..... if any tax planning measure is adopted by the assessee for the purpose of either siphoning off the profits or for purpose of reducing the tax burden the measure adopted under the income-tax act would have only consequential impact on proceedings under the wealth-tax act. ..... (supra) even if required to be applied, the same would be more appropriately applicable to the facts under the income-tax act because the relevant findings in respect of the device for avoiding the tax etc. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1988)26ITD57(Ahd.)
..... set aside the orders of the cwt(a) in respect of the first two common grounds in the appeals of the revenue and restore those of the ito.reference under section 24(11) of the wealth-tax act, 1957 read with section 255(4) of the income-tax act, 1961 1. ..... court was primarily concerned with section 2(e)(ii) of the wealth-tax act, 1957 which reads as under : ..... the assessee had claimed that in respect of this structure he should be granted exemption under section 5(1)(iv) of the wealth-tax act and the value of this property should be determined under rule 1bb which has been prescribed for the valuation of ..... appeals and cross objections there was a difference of opinion and the following point of difference has been referred to me as a third member under section 24(11) of the wealth-tax act read with section 255(4) of the income-tax act : whether property at plot no. ..... of difference is referred to the hon'ble president of the income-tax appellate tribunal, under section 24(11) of the wt act, 1957 read with section 255(4) of the it act, 1961 : whether property at plot no. ..... on the last day of the last month of the english calendar.parties being common, years involved being the same and facts being common to all the matters we hereby propose to dispose them off by this common order.the common grounds taken by the revenue in all the appeals read as under: 2. ..... is inhabitated by persons belonging to upper middle class and all civic amenities like schools, hospitals, offices, markets, cinemas, etc. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1989)28ITD249(Ahd.)
..... in the same manner and to the same extent as it would be on such fictional beneficiary.we need not add that it has been the consistent view of the supreme court that the decisions given under the income-tax law must apply equally in the interpretation of section 21 of the wealth-tax act, 1957 "since the relevant provisions of both the statutes are almost identical".21. ..... it would appear from the aforesaid that the hon'ble supreme court has held that the provisions of section 161 of the act are in pari materia with the provisions of section 41 of the indian income-tax act, 1922 as well as the provisions of section 21 of the wealth-tax act, 1957. ..... cit [1969] 73 itr 626 and the court in that case further observed that: the same consideration must apply in the interpretation of section 161(2) of the income-tax act, 1961.the supreme court had taken a similar view in an earlier decision in the case of cit v. ..... since computation of 'total income' necessarily requires the consideration of the claims of an assessee for certain exemptions, deductions, etc. ..... it follows, therefore, that in the assessment on trustees they would be entitled to all such exemptions, deductions, etc. ..... chapter vi-a enlists various types of exemptions, deductions, allowances, etc. ..... hajela pointed out that in order to avail of the deduction in respect of interest on certain securities, dividends, etc. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2004)90ITD21(Ahd.)
..... that before the cwt(a) the dispute was raised as to whether the entire land was one and appurtenant to the bungalow "mohan niwas" which was claimed to be exempt under section 5(1)(iv)/5(1)(v) of the wealth-tax act. ..... difference of opinion between the members who heard this appeal, the following questions have been referred to me by the president under section 23(11) of the gift-tax act, 1958 read with section 255(4) of the income-tax act, 1961 for my opinion as third member:- "whether the action of the tax authorities in invoking the provisions of section 4(2) of gift tax act for asst.year 1995-96 under appear for bringing to tax the deemed gift is sustainable in the facts and circumstances of the case? ..... the tribunal, the family arrangement dated december 17, 1971, had to be held to be a valid piece of document and,hence, the tribunal was right in its view that no transfer of property was involved within the meaning of section 2(xxiv) of the gift-tax act and, hence, there was no liability to gift-tax either under section 4(1)(a) or under section 4(2) and consequently no question of inclusion of the income of the minor in the hands of the assessee would also arise." 22. ..... of the above, in my opinion, the discussion in wealth-tax proceedings is of no help in determining the issue about the absolute ownership of the assessee and in holding on that basis that there was a gift within the meaning of section 4(2) of the act. ..... under schedule iii of the wealth-tax act in respect of the said .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2006)100ITD142(Ahd.)
..... birla observed that one need not bother any more for the intention or the purpose.supreme court while dealing with the exemption of property comprised in gift under section 4(1)(a) of the wealth-tax act and proviso to section 5 of the gift-tax act, held that on a reading of the plain words of the proviso to section 4(1)(a) of the wealth-tax act, 1957, the clause "for any assessment year commencing after the 31st day of march, 1964" can only be read as relating to gift-tax assessments and not to wealth-tax assessments. ..... year any loss computed in respect of a speculation business has not been wholly set off under sub-section (1), so much of the loss as is not so set off or the whole loss where the assessee had no income from any other speculation business, shall, subject to the other provisions of this chapter, be carried forward to the following assessment year, and-- (i) it shall be set off against the profits and gains, if any, of any speculation business carried on by him assessable ..... we therefore hold that looked at from any angel the case of the assessee is covered by the plain, clear and unambiguous statutory language of the provisions of explanation to section 73 of the act which requires no external aid, like object etc. ..... the nature of the assessee's business in general, the purpose behind the particular transaction, the effect of the transaction, etc.are all to be considered. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1988)27ITD460(Ahd.)
..... this question which has been raised through various grounds of appeal necessarily requires us to consider the meaning and scope of the expression "belonging to the assessee" as occurring in the definition of 'net wealth' under section 2(m) of the wealth-tax act, 1957 ('the act').8. ..... since we are clearly of the opinion that the amount in question did not belong to the assessee on the relevant valuation date and, therefore, was not includible in the computation of his net wealth as defined under section 2(m) of the act, we do not propose to decide the controversy whether the said amount, in the facts and circumstances of the present case, carried an equal liability for repayment thereof and if so whether the said liability was contingent or not.13. ..... patel explained that under it act the charge of tax was on the "accrual of income" whereas the charge of tax under wealth-tax was on the asset "belonging" to the assessee on the relevant valuation date. mr. ..... patel that the charge of tax under the two acts was totally different and simply because an amount was subjected to the charge of income-tax, the said amount is not necessarily liable to the levy of wealth-tax on that very ground. ..... in our discussion we have clearly found that the amount in question did not belong to the assessee as his asset on the relevant valuation date.that being so, we see no reason to allow the levy of wealth-tax on this amount simply on the ground that it was subjected to tax under the provisions of the it act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1990)32ITD232(Ahd.)
..... information contained therein may be taken into account for the purposes of the proceedings relating to assessment or reassessment of the net wealth of the declarant under the provisions of the wealth-tax act (5) the immunity provided under sub-section (1) shall not be available to the declarant unless the wealth-tax chargeable in respect of the net wealth for the assessment year or years for which the declaration has been made is paid by the declarant in accordance with the ..... assets which has been understated, in any return of net wealth for any assessment year, then, notwithstanding anything contained in the act, the net wealth, or, as the case may be, the value so declared shall ..... ordinance which governs the issue runs as under: (1) subject to the provisions of this section, where any person makes, on or after the date of commencement of this ordinance but before the 1st day of january, 1976, a declaration in respect of- (a) the net wealth chargeable to wealth-tax for any assessment year for which he has failed to furnish a return under section 14 of the wealth-tax act; or (b) the value of the assets which has not been disclosed, or the value of the ..... act, 1957 (the act) for late filing of the returns .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2004)89TTJ(Ahd.)338
..... the appellant submits that the learned cwt(a) has erred in not holding that even if the appellant was to be found assessable in the status of aop he should be assessed to tax at the ordinary rate applicable to aop with all available statutory deductions and not at the specified rate as set out in section 21aa of the wealth tax act, 1957.for the sake of convenience, these appeals are disposed of by this common order as below.the assessee filed the returns ..... common grounds raised by assessee in all these appeals are reproduced below : (1) the learned commissioner (appeals) has erred in dismissing the appeal preferred by the appellant by holding that the wealth tax officer was justified in taxing the wealth of the appellant by resorting to section 21aa of the wealth tax act, 1957. ..... it is pertinent to mention here that the explanation 1 is enacted to section 21(4) of the wealth tax act, 1957 with effect from, 1-4-1980 to undo the effect of aforesaid judgment of honble supreme court but similar explanation has not been inserted in section 21aa. ..... dated 11-1-1982, the learned departmental representative submitted that "the provisions of new section 167a of the income tax act will not be attracted" means the tax on association etc. ..... the end of different financial years were 269 on 31-3-1981; 262 at 31-3-1982; 262 on 31-3-1983; and 258 on 31-3-1984; that assets of the association were only of movable nature such as investments in government securities, co-operative societies, furniture, etc. .....
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