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Issues Involved:
1. Exclusion of the value of property at B.N. Road, Lucknow from the wealth of the assessee. 2. Exclusion of the value of structure on the plot of land at C-145, Nirala Nagar, Lucknow, and other assets of Hotel Tourist from the net wealth of the assessee. 3. Admission of fresh evidence by the Ld. CWT(A) in violation of Rule 46A of the I.T. Rules, 1962. Detailed Analysis: Issue 1: Exclusion of the Value of Property at B.N. Road, Lucknow Facts: - The assessee filed a wealth tax return on 30-8-1988 declaring net wealth at Rs. 6,93,607. - The Wealth-tax Officer queried why the house property at 126/44, B.N. Road, Lucknow was not disclosed. - The assessee claimed to have made a verbal Hiba (gift) of the property to his wife in lieu of the dower debt. - The Wealth-tax Officer rejected this claim due to lack of evidence and the property's continued benefit to the assessee. Assessment Officer's Decision: - The property was not legally transferred as no registered document was provided. - The property was included in the assessee's net wealth, valued at Rs. 13,00,400. Appellate Decision: - The Ld. CWT(A) accepted the assessee's claim, citing that the wife was in possession of the property per an agreement dated 6-6-1975. - The property was deemed to belong to the wife under section 2(m) of the W.T. Act read with section 27(iiia) of the Income-tax Act. Tribunal's Analysis: - The Tribunal considered the historical context, including the Nikahnama and various documents. - It noted that the wife was exercising ownership rights and paying taxes, indicating beneficial ownership. - The Tribunal referenced the Supreme Court's decisions in R.B. Jodha Mal Kuthiala v. CIT and CIT v. Podar Cement (P.) Ltd, emphasizing beneficial ownership over legal ownership. - The Tribunal upheld the Ld. CWT(A)'s decision, excluding the property's value from the assessee's net wealth. Issue 2: Exclusion of the Value of Structure on the Plot of Land at C-145, Nirala Nagar, Lucknow, and Other Assets of Hotel Tourist Facts: - The department challenged the exclusion of the value of the structure and other assets from the assessee's net wealth. - The Ld. CWT(A) had directed the Assessing Officer to exclude these values based on a previous order dated 25-2-1994 in the case of M/s. Hotel Tourist. Assessment Officer's Decision: - The exclusion was not accepted by the department, and an appeal was preferred before the ITAT. Appellate Decision: - The Ld. CWT(A) directed the exclusion of these values from the net wealth of the assessee. Tribunal's Analysis: - The Tribunal did not provide a detailed analysis for this issue in the provided text. - The decision of the Ld. CWT(A) was upheld, and the department's grounds were rejected. Issue 3: Admission of Fresh Evidence by the Ld. CWT(A) in Violation of Rule 46A of the I.T. Rules, 1962 Facts: - The department argued that the Ld. CWT(A) admitted fresh evidence (agreement dated 6-6-1975) at the appellate stage, violating Rule 46A. Appellate Decision: - The Ld. CWT(A) did not find any new or fresh evidence admitted that was not already considered. Tribunal's Analysis: - The Tribunal noted that the Ld. CWT(A) had considered the matter in detail for the assessment year 1986-87, which was followed in subsequent years. - The Tribunal found no substantial evidence that new documents were admitted without confronting the WTO. - The objection was not effectively substantiated by the Ld. Sr. DR during arguments. - The Tribunal rejected the department's objection regarding the violation of Rule 46A. Conclusion: The Tribunal upheld the Ld. CWT(A)'s orders, excluding the value of the property at B.N. Road, Lucknow, and the structure on the plot of land at C-145, Nirala Nagar, Lucknow, from the net wealth of the assessee. The Tribunal found no merit in the department's objection regarding the admission of fresh evidence, thereby rejecting the department's grounds of appeal.
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