1980 (2) TMI 153 - AT - Wealth-tax

Summary

Issues:
- Agitation against AAC's order on foreign wealth inclusion in wealth-tax assessments for asst. yrs. 1965-66 to 1971-72.

Detailed Analysis:
1. The appeals by the revenue challenged the AAC's consolidated order on wealth-tax assessments for the mentioned assessment years. The core issue raised was the inclusion of foreign wealth owned by the assessee in the assessments.

2. The AAC, upon additional grounds of appeal, considered the inclusion of foreign wealth in the net wealth. The assessee contested the inclusion, arguing that the foreign wealth did not represent any tangible asset. The AAC sought a remand report from the WTO to clarify this matter.

3. The AAC, referencing a similar case, ruled to exclude the amounts of foreign wealth from the net wealth for the relevant assessment years. The Revenue appealed this decision, contending that the foreign wealth, being the share interest in a dissolved firm, should not be excluded.

4. The departmental representative argued that the foreign wealth should not be excluded, emphasizing that the asset had value and was not repatriated due to restrictions. The assessee's stance was that the AAC's decision was appropriate given the limitations on remittances from Ceylon.

5. The ITAT considered the submissions and found that the valuation of the foreign asset should be based on its market value as per the Wealth Tax Act. The ITAT set aside the AAC and WTO orders, directing a fresh assessment of the foreign asset by the WTO, considering all relevant circumstances, including remittance restrictions.

6. Ultimately, the appeals were treated as allowed for statistical purposes, and the assessments were to be re-evaluated by the WTO in line with the directions provided in the ITAT's order.