1987 (8) TMI 151 - AT - Wealth-tax

Issues Involved:
1. Delay in filing second appeals.
2. Valuation of Nahargarh Road Property.
3. Adjustment of tax liabilities against taxable wealth.
4. Valuation of Rampura Kota Property.
5. Assessment for the year 1980-81.

Detailed Analysis:

1. Delay in Filing Second Appeals:
The Tribunal addressed the issue of delay in filing second appeals for the assessment years 1972-73, 1974-75, 1978-79, and 1979-80. The delays, ranging from six to seven days, were condoned due to the time taken by the Commissioner of Wealth-tax (Appeals) [CWT (A)] in supplying certified copies of the orders. The Tribunal stated, "fifty-one days taken by the CWT in supplying certified copies must be excluded from the period of limitation."

2. Valuation of Nahargarh Road Property:
The Tribunal examined the valuation of the Nahargarh Road Property for the assessment years 1971-72, 1972-73, and 1974-75. The CWT (A) had adopted values of Rs. 50,000, Rs. 60,000, and Rs. 75,000, respectively, against the returned value of Rs. 30,000. The Tribunal upheld the CWT (A)'s valuation, noting the lack of details provided by the assessee and the revenue. The Tribunal stated, "we confirm the CWT (A)'s order on the issue as reasonable calling for no interference."

3. Adjustment of Tax Liabilities Against Taxable Wealth:
The Tribunal addressed the issue of whether tax liabilities should be adjusted against the taxable wealth. The Tribunal referred to its earlier decision dated 4-11-1981, which had rejected the assessee's claim for such adjustments. The Tribunal reiterated that "the cause of action if any in respect of the above findings and decision cannot be revived by us." However, for the assessment years 1973-74, 1978-79, and 1979-80, the Tribunal directed the Wealth-tax Officer (WTO) to re-examine the liabilities and adjust them against the taxable wealth. The Tribunal stated, "each asset should be separately analysed and valued keeping in close focus encumbrances."

4. Valuation of Rampura Kota Property:
For the assessment year 1973-74, the Tribunal modified the valuation of the Rampura Kota Property to Rs. 60,000, considering that it was auctioned for Rs. 80,000 in March 1975. The Tribunal stated, "it would be fair to take the value as on 31-3-1973 at Rs. 60,000. Necessary modification is directed."

5. Assessment for the Year 1980-81:
The Tribunal set aside the assessment for the year 1980-81 back to the WTO for a fresh assessment. The Tribunal noted that the CWT (A) had directed the WTO to verify and allow deductions for liabilities to the extent permissible. The Tribunal stated, "we set aside the assessment for 1980-81 also back to the WTO to be framed de novo on the basis directed for the assessment years 1973-74, 1978-79 and 1979-80."

Conclusion:
The Tribunal dismissed the assessee's appeals for the assessment years 1971-72, 1972-73, and 1974-75. However, the appeals for the assessment years 1973-74, 1978-79, and 1979-80, and the cross-appeals for the assessment year 1980-81, were treated as allowed. The Tribunal directed the WTO to re-examine the valuation and adjustment of liabilities for the relevant assessment years.

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