Home Case Index All Cases Wealth-tax Wealth-tax + AT Wealth-tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 1049 - AT - Wealth-taxRefund of the wealth tax paid by the assessee by virtue of the amendment to section 2(ea) of the WT Act - CIT (A) dismissed the appeals as not maintainable because the assessee itself has offered the net wealth to tax - Assessee submitted that since the amendment to section 2(ea) of the Act has been made with retrospective effect from 1.4.1993, the said land does not fall within the purview of the Wealth Tax Act and therefore, the assessee should be refunded the wealth tax paid by the assessee - HELD THAT - In view of the CBDT Circular dated 11/06/2015, we remand the appeals to the file of the AO with a direction to reconsider the issue in accordance with the amended provisions of the Act. The assessee is also directed to approach the Pr. CIT u/s 25 of the Act and seek refund in accordance with the CBDT Circular and on such receipt of the application, the Pr. CIT shall dispose of the application within a period of one year from the end of the financial year in which the application is received and the AO thereafter shall refund the taxes paid by the assessee, if the Pr. CIT so directs. Assessee s appeals are treated as partly allowed for statistical purposes particularly because the CIT (A) orders are also dated 12.02.2014 i.e. prior to the CBDT Circular dated 11.06.2015.
Issues:
Appeal against order of CIT (A) regarding wealth tax assessment and refund based on retrospective amendment to section 2(ea) of the Wealth Tax Act. Analysis: 1. The assessee filed wealth tax returns admitting net wealth, but later an amendment to section 2(ea) of the Wealth Tax Act exempted agricultural land from wealth tax retrospectively from 1.4.1993. The assessee sought refund of wealth tax paid. 2. The CIT (A) dismissed the appeals stating that since the assessee admitted net wealth to tax, the appeals were not maintainable. The assessee raised grounds for appeal, including the amendment to the Wealth Tax Act and treatment of lands as stock-in-trade. 3. The assessee argued that the lands were purchased and sold as agricultural land, falling outside the purview of the Wealth Tax Act post-amendment. The CBDT Circular No.11/2015 directed refund applications for taxes paid on agricultural land due to the retrospective amendment. 4. The Tribunal referred to Article 265 of the Constitution of India, emphasizing that taxes should not be collected without authority of law. Citing legal precedents, the Tribunal highlighted that tax collection should align with the law and legitimate taxes due should only be collected. 5. Considering the CBDT Circular and legal principles, the Tribunal remanded the appeals to the AO to reconsider based on the amended provisions of the Act. The assessee was directed to seek refund from the Principal Commissioner under section 25 of the Act, with a one-year disposal timeline. 6. The Tribunal partially allowed the appeals for statistical purposes due to the CIT (A) orders predating the CBDT Circular. The order was pronounced on 11th March, 2020.
|