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2019 (8) TMI 3 - AT - Wealth-taxDismissal of appeal for not filing the appeals online - HELD THAT - In the A.Y. 2006-07, the ld. WTC(A) as well as the Tribunal have dealt with each and every properties of the assessee threadbare and during the years under consideration, the additions have been made by the A.O. with respect to the very same properties for which both the ld. WTC(A) and the Tribunal have decided in favour of the assessee. Respectfully following the order of the Tribunal, there is no justification for the additions so made by the WTO. It is also pertinent to mention here that when the ld. WTC(A) found that the appeals have not been filed electronically, he has not given any opportunity to the assessees to file the same, accordingly, there is violation of principles of natural justice more particularly when all the issues were already decided by the Tribunal in assessee s own case and which was clear from the grounds of appeals taken before the ld. WTC(A). Accordingly, we direct the WTO to delete the additions with respect to various properties discussed hereinabove.
Issues Involved:
1. Dismissal of appeals by the Wealth Tax Commissioner (Appeals) [WTC(A)] for not filing appeals online. 2. Non-decision on merits of the grounds raised by the assessee. 3. Additions made on account of various properties under the Wealth Tax Act. Detailed Analysis: 1. Dismissal of Appeals for Not Filing Online: The assessee's appeals were dismissed by the WTC(A) on the grounds that they were filed manually instead of electronically, as required by Rule 45 of the Income Tax Rules, 1962. The WTC(A) stated that it was mandatory to e-file appeals from 01/03/2016 for individuals required to furnish returns electronically. The WTC(A) also mentioned an extension of the time limit to 15/06/2016. Consequently, the appeals were deemed defective and not maintainable. The WTC(A) suggested that e-filed appeals could be adjudicated separately when filed according to the law and existing instructions. However, the assessee did not e-file the appeals after the dismissal on this technical issue. 2. Non-Decision on Merits of Grounds Raised: The assessee argued that the WTC(A) did not decide on the merits of the grounds raised, which were already covered by an earlier ITAT order in the assessee's favor for A.Y. 2006-07. The Tribunal had previously deleted all additions made by the Wealth Tax Officer (WTO) regarding the properties in question. The Tribunal's decision for A.Y. 2006-07 was based on earlier decisions of the CIT(A) and the ITAT for A.Ys. 1998-99 to 2002-03, which were not appealed further by the Revenue. 3. Additions on Account of Various Properties: The properties in question included: - Property at Mangal Marg, Alwar - Property at New Station Road, Near Gaushala, Alwar - Property at Rishikesh - Land bearing Khasra No. 1990 - Land at Beacon Factory The Tribunal had previously ruled in favor of the assessee, holding that these properties should not be included in the net wealth. The CIT(A) had also deleted these additions in earlier years, and the Revenue had not appealed these decisions further. Specifically: - For Mangal Marg, Alwar, and Rishikesh properties, the ITAT and CIT(A) had consistently ruled in favor of the assessee based on earlier decisions and the fact that these properties were not liable to wealth tax. - For the property at New Station Road, Near Gaushala, Alwar, the ITAT and CIT(A) had similarly ruled in favor of the assessee. - For land bearing Khasra No. 1990, the CIT(A) had held that it was exempt under Section 5(i)(vi) of the Wealth Tax Act, 1957, as it was less than 500 sq. meters. - For land at Beacon Factory, the CIT(A) had determined it to be industrial land, thus not an asset under Section 2(ea) of the Wealth Tax Act, 1957. Conclusion: The Tribunal concluded that the WTC(A) had erred in dismissing the appeals on technical grounds without considering the merits, which had already been decided in favor of the assessee in earlier years. The Tribunal directed the WTO to delete the additions related to the properties in question, following the principles of natural justice and respecting the earlier decisions. The appeals of the assessee were allowed, and the order was pronounced in the open court on 04th July 2019.
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