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2019 (5) TMI 442 - HC - Wealth-taxTransit House as assessable under Wealth Tax - whether 'Transit House' fell within the definition of 'Assets', as defined in Section 2 (ea) of the Wealth Tax Act,1957, and was assessable to Wealth Tax or not ? - HELD THAT - Issue decided in favour of the Assessee by a Coordinate Bench of this Court under the Income Tax Act and also under the Wealth Tax Act. Under the Income Tax Act in Commissioner of Income Tax v. Carborandum Universal Ltd . (present Assessee) 1997 (10) TMI 11 - MADRAS HIGH COURT and under the Wealth Tax Act in Carborandum Universal Ltd. v. Deputy Commissioner of Income Tax , 2012 (7) TMI 775 - MADRAS HIGH COURT two different Coordinate Benches of this Court have decided the said issue in favour of the Assessee.
Issues:
1. Whether the Transit House is assessable under Wealth Tax Act. 2. Whether the Tribunal was right in not considering specific arguments regarding the amendment treating the Transit House as a Guest House. 3. Whether the Tribunal was right in confirming the order of the lower authorities when the issues are debatable. Issue 1: Transit House Assessment The Assessee challenged the orders passed by the Income Tax Appellate Tribunal regarding the assessability of the Transit House under the Wealth Tax Act. The Tribunal dismissed the Assessee's Appeals based on previous decisions. The Assessee contended that a Coordinate Bench had ruled in their favor under both the Income Tax Act and the Wealth Tax Act. However, the Revenue's Senior Standing Counsel cited judgments against the Assessee from various High Courts. The High Court remitted the matter back to the Tribunal for reconsideration in light of subsequent legal developments and decisions by different High Courts. Issue 2: Consideration of Specific Arguments The Assessee raised concerns about the Tribunal not considering specific arguments related to the Transit House being treated as a Guest House due to an amendment in the Income Tax Act. The Assessee argued that this interpretation should not automatically apply to the Wealth Tax Act without a specific amendment. The High Court did not provide a direct ruling on this issue but directed the Tribunal to reevaluate the Appeals considering all relevant judgments and legal developments. Issue 3: Confirmation of Lower Authorities' Orders The Assessee questioned the Tribunal's confirmation of the lower authorities' orders, highlighting the debatable nature of the issues. The High Court did not delve into this issue but instructed the Tribunal to review the Appeals afresh, taking into account the judgments referenced by both parties and any other relevant decisions. The High Court refrained from answering the specific questions of law framed earlier and did not award any costs in this matter. This judgment primarily revolves around the assessability of a Transit House under the Wealth Tax Act, with the High Court directing the Tribunal to reconsider the Appeals in light of conflicting judgments and legal developments. The High Court emphasized the importance of considering all relevant decisions from different High Courts before reaching a final decision on the matter.
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