2005 (2) TMI 835 - HC - Wealth-tax

Valuation the property - annual letting value worked out - ITAT disposed of the appeal on the basis of its earlier order dated 4th May 1998 and directed the Assessing Officer to adopt the value of the property on the basis of its municipal valuation - HELD THAT - Insofar as the present batch of cases is concerned the view taken by the ITAT in its orders dated 4th May 1998 and 18th May 1998 has remained unchallenged in respect of several assessment years. These orders were not only in respect of the present assessee but in respect of the other two owners of the concerned property. For some reason an appeal was filed in respect of the present assessee for the assessment year 1985-86 but no such appeal was filed in respect of the other two assessees for that year. For the earlier assessment year that is 1984-85 and for subsequent years that is 1986-87 to 1989-90 no appeal was filed by the Revenue in respect of any of the assessees. Similarly there appears to be no information with regard to any appeal having been filed by the Revenue for a couple of other assessment years in respect of all the three assessees. In cases where an appeal has been filed by the Revenue it is on an absolutely ad hoc basis and without any intelligible pattern whatsoever. The fact however remains that the two basic orders passed by the ITAT on 4th May 1998 and 18th May 1998 have been accepted by the Revenue. Subsequent orders which merely follow these two orders have been challenged without any just cause having been shown for the departure by the Revenue. Since the Revenue has accepted the two basic orders we are not inclined to permit it to randomly challenge a subsequent order in respect of an assessee or in respect of a random assessment year. There cannot be pick and choose in this regard without sufficient reason. Thus we decline to entertain this appeal as well as all the other connected appeals. Dismissed

Summary

Issues: Valuation of property for wealth tax assessment, Challenge to ITAT orders by Revenue

The High Court considered the valuation of a property for wealth tax assessment, where three companies had purchased a property and the Wealth-tax Officer valued it differently. The Commissioner of Wealth-tax (Appeals) suggested valuing the property based on its annual letting value. The Revenue challenged this before the Income Tax Appellate Tribunal (ITAT), which directed the Assessing Officer to adopt the municipal valuation. The Revenue then filed an appeal under section 27A of the Wealth-tax Act against the ITAT's order. The Court noted a pattern where the Revenue accepted certain basic orders of the ITAT but challenged subsequent orders without valid reasons, leading to an anomalous situation.

The Court referred to various legal precedents emphasizing the principle of consistency in tax assessments. It highlighted that if the Revenue had accepted a particular view by not filing an appeal, that view should be maintained unless there is a just cause for deviation. The Court found that the Revenue's challenges to subsequent orders without valid reasons were unwarranted, especially when the basic orders had been accepted. The Court concluded that the Revenue cannot selectively challenge orders without proper justification, and hence declined to entertain the appeal and all connected appeals.

In conclusion, the High Court dismissed the appeal and all connected appeals, emphasizing the importance of consistency in tax assessments and the need for valid reasons to challenge established views.