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Issues: Assessment of wealth tax on seized assets, ownership of seized gold and jewelry, valuation dates for assessment years.
Analysis: 1. The appeals by the assessee pertain to the assessment years 1984-85 and 1985-86, concerning the valuation dates of 31-12-1958 and 31-12-1959, respectively. The primary issue revolves around the inclusion of the value of 3582 grams of jewelry and gold seized by the Central Excise authorities in the assessee's wealth tax assessment for the mentioned years. 2. The Wealth-tax Officer included the value of the seized assets in the assessment, as the assessee did not disown ownership and was attempting to retrieve the items. The Appellate Assistant Commissioner found that the property at Kranganoor was sold earlier, thus not owned by the assessee on the valuation dates. The value of the property was deleted, and the value of the 9.5 cents of land was estimated based on comparable rates. Regarding the seized gold and jewelry, the Appellate Assistant Commissioner held that since no final decision on confiscation was made by the relevant valuation dates, the value had to be included in the assessee's wealth. 3. During the appeal, the ground concerning the land value was not pursued, leading to its dismissal. The Appellate Assistant Commissioner's decision on the land valuation was upheld. However, the issue of the seized gold and jewelry remained contentious, with the assessee arguing that the items were under the control of authorities and had no market value. The departmental representative supported the Appellate Assistant Commissioner's stance. 4. The Collector of Customs had confiscated the gold and jewelry, but the assessee was given the option to redeem them by paying a fine. The Customs, Excise, and Gold (Control) Tribunal allowed redemption with conditions. The Tribunal's order and the confiscation did not occur by the valuation date for 1984-85, making the assessee the owner of the assets. However, for 1985-86, where confiscation had taken place, the ownership was not with the assessee. The right of redemption only arose after the valuation date, leading to the exclusion of the value for 1985-86. The Appellate Assistant Commissioner's decision for 1984-85 was upheld, and the order for 1985-86 was set aside on this issue. 5. Consequently, the appeal for the assessment year 1984-85 was dismissed, while the appeal for the assessment year 1985-86 was partially allowed. The judgment clarifies the ownership status of seized assets and the valuation dates' significance in determining wealth tax liability.
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