2020 (3) TMI 1047 - AT - Wealth-tax

Wealth tax assessment - assessee is a non-resident Indian residing in Jeddah, Saudi Arabia - assessee was owning assets exceeding the taxable limits - HELD THAT - The assessee is having 5 properties, which according to the AO are taxable under the Wealth Tax Act and comes within the purview of section 2(ea) of the WT Act. We are of the view that the revenue authorities without appreciating the facts as well as the explanation offered by the assessee, passed the orders. In respect of properties mentioned at 4 5 of the table (supra), the assessee has filed unregistered stamp paper, it shows that he has gifted the properties to his son as well as to his nephew. However, the revenue authorities without taking into consideration the material evidence and explanation offered by the assessee, made the additions. Under these facts and circumstances of the case and to meet the ends of justice, we set aside the order of CIT(A) and remit the file back to the file of CIT(A) with a direction to adjudicate the issues in accordance with law and pass a detailed order after giving reasonable opportunity of hearing to the assessee. The assessee is directed to appear before the CIT(A) without fail and submit the necessary documentary evidence to substantiate his claim. We order accordingly - Appeal of the assessee is treated as allowed for statistical purposes.

Summary

Issues:
1. Wealth tax assessment on multiple properties owned by a non-resident Indian.
2. Exemption claims under the Wealth Tax Act.
3. Disputed ownership and transfer of properties.
4. Adequacy of opportunity for the assessee during appeal proceedings.

Wealth Tax Assessment on Multiple Properties:
The appeals were against the CWT(A) orders for the AYs 2008-09 to 2013-14. The AO found the assessee, a non-resident Indian, owning assets exceeding taxable limits, including a residential house and five plots. The AO exempted the house but taxed the plots, leading to wealth tax assessment under section 2(ea) of the WT Act. The CIT(A) upheld these assessments without fully considering the assessee's explanations.

Exemption Claims under the Wealth Tax Act:
The assessee claimed exemptions based on property ownership details and legal provisions. For instance, the assessee argued that certain properties were outside GHMC limits or gifted under Muslim Law, thus exempt from wealth tax. However, the CIT(A) rejected these claims, citing lack of evidence or legal basis, and sustained the additions made by the AO.

Disputed Ownership and Transfer of Properties:
Issues arose regarding the ownership shares of properties, oral gifts, and agricultural land claims. The CIT(A) dismissed these contentions, considering them as attempts to evade taxation without sufficient proof or compliance with legal requirements. The assessee's appeals highlighted discrepancies in the CIT(A)'s decisions, emphasizing legal interpretations and factual inaccuracies.

Adequacy of Opportunity for the Assessee:
The assessee raised concerns about the CIT(A) not providing adequate time to present evidence and substantiate claims during the appeal process. The ITAT acknowledged these procedural shortcomings and remitted the cases back to the CIT(A) for a detailed reconsideration, emphasizing the need for a fair hearing and evidence submission.

Conclusion:
The ITAT set aside the CIT(A) orders, directing a reevaluation of the issues in accordance with the law and granting the assessee a reasonable opportunity to present their case. The decisions in all appeals were allowed for statistical purposes, with a focus on ensuring procedural fairness and legal compliance in wealth tax assessments involving multiple properties owned by a non-resident Indian.

This summary provides a detailed analysis of the judgment, covering the issues involved and the key legal arguments and decisions made by the authorities.