2018 (6) TMI 1288 - AT - Wealth-tax

Determination of net wealth liable to be taxed - Deduction in respect of loan availed by the assessee - Admission of additional evidence in respect of property at Banjara Hills, Hyderabad - Held that - During the appeal hearing, the assessee furnished evidence before the CWT(A), relating to housing loan availed by her from ICICI Home Finance Ltd. The same was not made available to the AO. In fact, the assessee had not responded to the notices issued by the AO during the assessment proceedings. The evidence which was furnished before the CWT(A) first time for allowing the deduction and the Ld.CWT(A) has not called for the remand. Therefore, we are of the considered view that the issue should be remitted back to the file of the AO to consider the deduction in respect of loan availed by the assessee relating to the Banjara Hills property

Summary

Issues:
Assessment of wealth tax for the year 2007-08, deduction of housing loan from taxable net wealth, admission of additional evidence, remand of the case to the Assessing Officer for reconsideration.

Analysis:
1. The appeal was filed by the revenue against the order of the Commissioner of Wealth Tax (Appeals) for the assessment year 2007-08. The assessee, an individual, did not file the wealth tax return for the said year. The Assessing Officer issued notices as the wealth chargeable to tax had escaped assessment. The AO completed the assessment under section 16(5) of the Wealth Tax Act, determining the total taxable wealth of Rs. 1,17,72,560, including property, cash, and vehicles.

2. The assessee appealed before the CWT(A) requesting a deduction of the housing loan of Rs. 87,50,920 from the value of the property. The CWT(A) allowed a deduction of Rs. 84,19,124 from the taxable net wealth of the property, resulting in a revised net wealth of Rs. 31,93,431. The revenue appealed against this order.

3. The revenue raised several grounds of appeal, including the acceptance of additional evidence regarding the loan outstanding without proper verification, deletion of cash in hand, and remand issues. The Tribunal noted that the evidence related to the housing loan was not available to the AO during assessment proceedings and remanded the matter back to the AO for reconsideration.

4. The Tribunal set aside the order of the CWT(A) and directed the AO to consider the deduction of the loan availed by the assessee in relation to the property. As the case was remanded, the Tribunal did not adjudicate on the other grounds of appeal raised by the revenue. Ultimately, the appeal of the revenue was allowed for statistical purposes.

5. The judgment was delivered by the Appellate Tribunal ITAT Visakhapatnam, with the order pronounced on 6th June 2018. The detailed analysis of the issues involved in the assessment of wealth tax, deduction of housing loan, admission of additional evidence, and remand of the case for reconsideration by the Assessing Officer provides a comprehensive overview of the legal proceedings and decisions made in this case.