2009 (2) TMI 53 - HC - Wealth-tax

Jurisdiction of AO under wealth tax assessment in the instant case once a Notification is issued under Section 127 of Income Tax Act, 1961 the Officer for the purpose of section 8 of Wealth Tax Act, 1957 would be the same officer who would exercise the jurisdiction under the Income Tax Act - therefore, the Tribunal clearly committed an error of jurisdiction in holding that a separate Notification u/s 8AA was required decision of Madras HC in case of B. Nathmal Vaid, not applicable

Summary

In a 2009 judgment by the Bombay High Court, the court considered two wealth tax references for the assessment years 1976-83. The main issue was the jurisdiction of the Wealth Tax Officer (WTO) over the assessee's cases. The WTO had completed assessments after the cases were transferred from the Income Tax Officer to the IAC, Asstt. Range VII (A) by the CIT under Section 127(1) of the Income Tax Act. The assessee argued that the IAC lacked jurisdiction over wealth tax cases. The Tribunal ruled that a separate notification under Section 8AA of the Wealth Tax Act was necessary for the IAC to have jurisdiction over wealth tax cases, even after a transfer under Section 127(1) of the Income Tax Act. The court disagreed with the Tribunal's interpretation, stating that once a notification was issued under Section 127, the officer would have jurisdiction under both acts. The court referenced a Madras High Court case to support its decision. Consequently, the court answered the questions in favor of the Revenue, holding that the Wealth Tax Officer had jurisdiction. The court set aside the order and remanded the matter back to the Tribunal for further consideration. The judgment clarified the interplay between Section 8, Section 8AA, and Section 127 of the respective acts and affirmed the jurisdiction of the Wealth Tax Officer in this case.