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.)
..... section 4(8) of the wealth-tax act also incorporates within its ambit any transaction as referred to in section ..... ca the learned counsel representing the appellant, submitted during the appellate proceedings, that, in view of the decision of the itat in 41 itd 142, the benefit is not taxable since section 28(tv) of the income-tax act, 1961 applies only when the benefit is received or accrues to the appellant, and that no benefit accrued at the time of export, and, the time of accrual is the time, ..... depreciation cannot be allocated to the different industrial undertakings as per the scheme of the income-tax act, 1961 in respect of allowance of depreciation on the concept of "block of assets".13.3 in view of the above grounds of appeal, the appellant prays that the assessing officer be directed to recompute the deduction eligible under section 80-i and section 80-m on the profits and gains of each eligible industrial undertaking without excluding from the profits ..... all itos should treat such amounts as not forming part of the income of the assessee until realized, this direction by way of a circular can not be considered as travelling beyond the powers of the board under section 119 of the it act.7.9 the learned counsel then drew our attention to the judgment of the supreme court in the case of godhra electricity co. ..... assessee has debited the account of the debtor, the difficulty of recovery would not make its accrual non-accrual ..... the make-up has to be removed and the real profile of .....
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 ..... it was submitted before him that penalties levied by the wealth-tax officer under section 271(1)(c) of the act for assessment years 1972-73 and 1973-74 were deleted by the first appellate authority and the same was confirmed by the itat, therefore, there was no question of any concealment. ..... because of the refusal to grant registration in the case of the firm and there was no question of concealment, the wealth-tax officer held as follows as could be seen in the penalty order for assessment year 1974-75 (facts and issues are identical): i am satisfied that without reasonable cause, the assessee has failed to furnish the correct particulars of his wealth and/or furnished the inaccurate particulars of his wealth and has thus committed a default punishable under section 18(1)(c) of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1988)26ITD57(Ahd.)
..... i accordingly 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. ..... the court was primarily concerned with section 2(e)(ii) of the wealth-tax act, 1957 which reads as under : 2. ..... 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 residential properties ..... in the above 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. ..... the following point 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. ..... 8,000 whereas in this year the value has been shown at much more and at the instance of the departmental valuation officer the wealth-tax officer had determined the value at more than rs. ..... 614-b 'panchvati-gulbai tekra area', ahmedabad qualified for exemption under section 5(1)(iv) as also the benefit of valuation under rule 1bb of the wt rules, 1957 1. .....
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. ..... of other persons would not prevent the revenue either to make direct assessment of the person on whose behalf or for whose benefit the income, as referred to in the relevant sections, is receivable or the recovery from such person of the tax payable in respect of such income.reading section 161 along with section 166, it is clear that the liabilitjr of the representative assessee, as has been stated above, is coextensive with that of the to the same duties, responsibilities and liabilities .....
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.)
..... 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. ..... act, 1953 and in that connection observed the idea behind both the clauses of this section is based on the apprehension of the legislature that the requirement under section 44 of the act that a debt must be for full consideration and must be incurred bona fide could be easily defeated by the deceased by making an unconditional gift would be creditor and then borrowing the amount of the value of the gift from the donee with a diminution in the deceased's purchasing powers ..... court applied the external aid of construction, because the plain meaning of the provision of section 52(2) were found to be contrary to sub-section (1), contrary to the mischief sought to be remedied and also contrary to the legislative powers of the parliament. ..... ' similarly in the 2nd case the wide language in section 52(2) was giving rise to tax an item which was not income or even receipt and therefore, outside the legislative powers of the parliament and also violative of fundamental rights enshrined under article .....
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. ..... the restraint that was there on his right to utilise, use and invest the amount in question according to his will was removed only on 22nd september, 1981 when he was discharged of his obligation under the guarantee given by him to the bank and by the bank to the punjab government on his behalf. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1990)32ITD232(Ahd.)
..... and the 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 provisions ..... 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 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 not ..... their lordships had further observed that 'there may be one possible qualification of his power, and that is when the default or the act which is the basis of the imposition of the penalty was within the knowledge of the officer who passed the final order in the prior proceeding and if that officer had failed to exercise his power under section 28 during the course of proceedings before him. ..... act, 1957 (the act) for late filing of the returns for a.ys. .....
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. ..... rejoinder, the learned authorised representative submitted that there is fundamental difference between section 167a of the income tax act and section 21aa of the wealth tax act, as in income tax act aop falls under the meaning of person whereas in the wealth tax act there is no such position, the wealth tax act never taxed aop'as entity, but it is tax due to section 21aa, only on the condition that members' share are indeterminate or unknown .....
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