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Issues:
Wealth-tax assessment for the assessment years 1976-77 and 1977-78. Analysis: The appeals pertain to the wealth-tax assessment for the assessment years 1976-77 and 1977-78, concerning the inclusion of 1/3rd of certain disputed amounts in each assessee's case. The disputed amounts were advances made by a firm to other parties, with the inclusion disputed by the assessees. The Income Tax Officer (ITO) had added these amounts as income of the firm for the assessment year 1962-63, but subsequent proceedings and directions by the Appellate Assistant Commissioner (AAC) and the Commissioner of Income Tax (Appeals) (CIT(A)) had led to uncertainty regarding the treatment of these amounts for wealth-tax purposes. The assessees argued that there was no evidence to support the inclusion of these amounts in their net wealth, emphasizing the lack of assets corresponding to the disputed amounts. The assessees also highlighted the absence of cooperation from the other parties involved and the prolonged unresolved nature of the dispute. The Department, on the other hand, stressed the acceptance of the amounts by the recipients and the need to complete the assessments based on available data. The Tribunal noted the prolonged unresolved nature of the dispute, with the original addition made for the assessment year 1962-63 remaining unsettled even in the year 1983 due to non-compliance with directions from the AAC. The Tribunal expressed concerns over the lack of conclusive evidence regarding the existence and continuity of the disputed amounts as assets in the hands of the assessees. The Tribunal acknowledged ongoing enquiries but emphasized the need to expedite the resolution of the matter to prevent undue hardship to the assessees. In light of the complex and protracted nature of the dispute, the Tribunal decided to remit the matter back to the WTO with specific directions to expedite the final assessment and settlement of the wealth-tax matters for the relevant years. The Tribunal instructed the WTO to determine the genuineness of the loans, assess the right of the assessees to collect the amounts, and decide on the existence of the disputed amounts as assets for the relevant assessment years. The Tribunal also directed the WTO to consider the accumulation of interest over the years and to bear the onus of proving the existence of the wealth before taxing it. Furthermore, the Tribunal outlined a mechanism for resolving any disputes arising from the assessment, allowing the assessees to approach the Tribunal directly for resolution if disagreements arose with the assessing officer. The Tribunal set a deadline for the completion of the assessments and emphasized the need for positive evidence to support the inclusion of the disputed amounts in the assessees' net wealth. The Tribunal acknowledged the harshness of the prolonged dispute on the assessees and aimed to provide a definitive resolution while ensuring procedural fairness. Ultimately, the appeals were partly allowed, with the Tribunal emphasizing the need for a factual and conclusive determination of the disputed amounts' status as assets for wealth-tax purposes.
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