2018 (3) TMI 813 - AT - Wealth-tax

Assets taxable under the provision of Wealth Tax Act - addition of the properties in the net wealth on the basis of statement recorded u/s.132(4) of the Income Tax Act, 1961 - Held that - The assessee in his statement admitted that investments in the movable and immovable properties listed above are made out of undisclosed income. AR has reiterated the fact that the assessee has financed for purchase of assets in the name of his wife and nephews. It is also an un-rebutted fact that the assessee has disclosed the assets listed above in his block return of income. No reason to disturb the findings of Commissioner of Wealth Tax (Appeals). The order of Commissioner of Wealth Tax (Appeals) in confirming the additions is well reasoned and justified. We concur with the same. Accordingly, the impugned order is upheld and appeals of assessee are dismissed. The assessee has filed certain documents as additional evidences to substantiate that the properties added in the net wealth of assessee are not registered in his name. AR has failed to give any plausible reason as to why these documents have not been placed before the AO or Commissioner of Wealth Tax (Appeals) when they were in possession of assessee at the time of assessment/hearing before First Appellate authority. Additional evidences could not be admitted merely on the asking of appellant. The assessee/appellant has to show reasonable cause for not producing the documents/evidences, (now furnished as additional evidences) before the lower Authorities when the same were available with him. In the absence of any valid reason for not producing these documents before Authorities below, the prayer of assessee for admitting additional evidences is rejected. - Decided against assessee.

Summary

Issues:
Assessment of taxable wealth for assessment years 2002-03 and 2003-04 under the Wealth Tax Act, 1957.

Analysis:
1. The case involved a search and seizure action under section 132 of the Income Tax Act, 1961, revealing taxable wealth that had escaped assessment as of 31.03.2002. The Assessing Officer issued notices under section 17 of the Wealth Tax Act for the assessment years in question. The assessee declared net wealth for the relevant years, but the Assessing Officer made additions to the declared wealth based on various assets.

2. The Commissioner of Wealth Tax (Appeals) directed the deletion of certain additions but upheld the addition related to cash in hand and a flat at Shraddha Vihar, Solapur, citing the Finance Act, 1992. The assessee appealed these findings before the Tribunal, challenging the inclusion of assets as taxable wealth under the Wealth Tax Act.

3. The assessee contended that the properties in question were not owned by him but by family members, providing documentary evidence to support this claim. The Assessing Officer had added these properties to the net wealth on the assumption that they were purchased with undisclosed income declared in the block return. The assessee argued that the properties did not fall under the definition of "asset" under the Act.

4. The Tribunal considered the submissions of both parties, noting that the assessee's statement under section 132(4) of the Income Tax Act admitted to investing in the listed properties out of undisclosed income. The Tribunal found no reason to disturb the Commissioner's findings, upholding the additions to the net wealth. The Tribunal also rejected the additional evidence submitted by the assessee, as no valid reason was provided for not presenting it earlier.

5. The Tribunal concurred with the Commissioner's decision, dismissing the appeals of the assessee. The judgment emphasized the importance of providing valid reasons for not presenting evidence earlier and upheld the additions made by the Assessing Officer regarding the taxable wealth for the assessment years in question.

This detailed analysis covers the issues involved in the legal judgment, providing a comprehensive overview of the case and the Tribunal's decision.