9911796707
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Issues:
1. Whether the deletion of the addition made by the WTO under section 4(1)(a)(iii) of the Wealth Tax Act by the CWT(A) was correct. 2. Whether the deduction of capital gains tax from the value of shares should be allowed. Detailed Analysis: 1. The first issue in this case involved the deletion of an addition made by the WTO under section 4(1)(a)(iii) of the Wealth Tax Act. The assessee had created trusts for her minor daughters by gifting shares, which the WTO considered as a transfer attracting the provisions of section 4(1)(a)(iii). The CWT(A) deleted this addition, relying on a Bombay High Court judgment. However, the department argued that the CWT(A) erred in not considering the specific provisions of the trust deed and relevant court decisions. The ITAT, Bombay-B, found merit in the department's argument, citing similar cases and holding that the provisions of section 4(1)(a)(iii) were correctly invoked by the WTO. The ITAT reversed the CWT(A)'s order and allowed the departmental appeal. 2. The second issue revolved around the deduction of capital gains tax from the value of shares for the assessment years 1979-80 and 1980-81. The assessee sought this deduction, but the CWT(A) rejected it based on a Bombay High Court decision. The ITAT upheld the CWT(A)'s decision, stating that the High Court's ruling was binding and decisive against the assessee. The ITAT emphasized that the relevant legal provisions did not support the assessee's claim for deduction and that no identical legal question was pending before the High Court. Therefore, the ITAT confirmed the CWT(A)'s order and dismissed the assessee's appeals, concluding that the department's appeal was allowed while the assessee's appeals were dismissed.
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