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Issues involved:
The appeal under s. 27A of the Wealth-tax Act, 1957 regarding the rejection of the claim of complete partition u/s 20 of the WT Act. Summary: Issue 1: Assessment of Wealth-tax and claim of complete partition under s. 20 of the WT Act The petitioner was assessed to wealth-tax by the Asstt. CWT under s. 17 of the Act, who rejected the claim of complete partition of the HUF. The AO held that while there had been a partition, it did not meet the requirements of a complete partition as per s. 20 of the Act. The AO relied on the decision in Kalloomal Tapeswari Prasad (HUF) vs. CIT and concluded that as there was only a partial partition, s. 20A of the Act was not applicable. Issue 2: Appeal before CIT(A) and subsequent Tribunal decision The assessee-appellant appealed before the CIT(A), who determined that there had indeed been a complete partition. The CIT(A) directed the AO to proceed on the basis of a complete partition. The Revenue challenged this decision before the Tribunal, which held that there was only a partial partition based on the facts presented. The Tribunal set aside the CIT(A)'s order and reinstated the AO's decision under s. 20 of the Act. Issue 3: Challenge to Tribunal's decision before High Court The appellant contested the Tribunal's decision, arguing that the Tribunal failed to provide adequate reasons for rejecting the claim of complete partition. The High Court observed that the Tribunal did not sufficiently analyze the facts and reversed the decision without proper justification. As the Tribunal is the highest fact-finding authority, it must fulfill its obligations when reversing a factual order, especially when the appellant is adversely affected. Conclusion: The High Court set aside the Tribunal's order and directed a remittance for proper adjudication in accordance with the law, emphasizing the lack of discussion on the factual matrix and absence of an opinion on the case's merits. The appeal was allowed with no order as to costs.
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