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2022 (9) TMI 1052 - AT - Wealth-taxWealth tax assessment - addition being the value of the buildings (staff quarters) and an amount being the market value of the WDV at the beginning of the year of the vacant land - HELD THAT - As submission of assessee that the assessee is covered by the exception stated in Explanation1 of the clause (i) of section 2(ea) of the Wealth Tax Act, 1957, there is no vacant land belonging to the assessee and the entire land is being used for industrial purposes. It is also his submission that if the additional evidences now filed are admitted, the same will substantiate that the assessee is not liable for any wealth tax. Since the additional evidences filed before us were neither produced before the Assessing Officer or the CWT (A) and since these additional evidences go to the root of the matter for deciding the appeal, therefore, considering the totality of the facts of the case and in the interest of justice, we admit the additional evidences and restore the issue to the file of the Assessing Officer with a direction to consider these additional evidences and decide the issue as per fact and law - Grounds raised by the assessee allowed for statistical purposes.
Issues:
1. Addition of staff quarters as taxable wealth under Sec 2(ea) of the Wealth Tax Act 1957. 2. Addition of factory land as taxable wealth under Sec 2(ea) of the Wealth Tax Act 1957. 3. Admission of additional evidences and restoration of the issue to the Assessing Officer. Issue 1: Addition of Staff Quarters as Taxable Wealth The Assessing Officer added the value of staff quarters to the net wealth of the assessee under Sec 2(ea) of the Wealth Tax Act 1957, disregarding the appellant's contention that the staff quarters were exempt from taxable wealth under the Act. The appellant argued that the quarters were specifically exempted under Sec 2(ea) and that the rental charges collected did not constitute income. However, the Assessing Officer rejected these arguments, leading to the addition of Rs 7,20,73,072. In appeal, the CWT (A) upheld this addition, resulting in the appellant challenging this decision before the Tribunal. Issue 2: Addition of Factory Land as Taxable Wealth Similarly, the Assessing Officer added the factory land's value to the net wealth under Sec 2(ea) of the Act, despite the appellant's claim that all land was used for business purposes and hence not subject to wealth tax. The lack of details regarding land usage and construction led to the addition of Rs 1,56,31,975. The CWT (A) sustained this addition, prompting the appellant to appeal to the Tribunal. Issue 3: Admission of Additional Evidences and Restoration to Assessing Officer During the appeal, the appellant submitted crucial additional evidences related to land usage, employee quarters, and environmental policies, arguing that these documents were essential for a fair decision. The appellant contended that these evidences were not presented earlier due to time constraints and changes in personnel. Despite the Revenue's opposition, the Tribunal admitted the additional evidences, emphasizing their significance in determining the appellant's liability for wealth tax. Consequently, the issue was remanded to the Assessing Officer for reevaluation based on the new evidence, ensuring the appellant's right to a fair hearing. In conclusion, the Tribunal allowed the appeal for statistical purposes, acknowledging the importance of considering all relevant evidence in determining the tax liability under the Wealth Tax Act 1957. The decision highlighted the need for a thorough assessment based on complete information and granted the appellant the opportunity for a fair review by the Assessing Officer.
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