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TMI Blog1987 (8) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ively. 3. Before proceeding further, we must deal with the issue of delay of seven days each in filing second appeals in respect of 1972-73 and 1974-75 assessment years and six days each in relation to assessment years 1978-79 and 1979-80. 4. In the written condonation requests it is explained that CWT (A)'s two common orders were received on 8-12-1986 and applications were made for extra certified copies on 22-12-1986 to file separate appeals, which were supplied on 12-2-1987. The assessee in the meantime on 2-2-1987 filed two appeals in respect of assessment years 1971-72 and 1973-74 with the two copies served on 8-12-1987 which were in time and submitted the other related four appeals on 13-2-1987 two of which are late by seven days and the others by six days. On the stated accepted facts the delays are condoned as fifty-one days taken by the CWT in supplying certified copies must be excluded from the period of limitation. 5. Dealing first with the assessment years 1971-72, 1972-73 1974-75 and the related first order of the CWT (A) the identical worded grounds have two separate components. The first contention is that against the returned value of Rs. 30,000 for assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess was shown for which we found no justification, particularly when it was claimed that the assessees share was half and the location was the city of Jaipur. 10. Further not only the value is involved for the first three years but for the later years the value has been gradually raised in as much as for the assessment year 1980-81 it is taken by the CWT (A) at Rs. 1,50,000. The assessees attitude under such circumstances cannot be favourably viewed. 11. On the given facts, we confirm the CWT (A)'s order on the issue as reasonable calling four no interference because in view of the Tribunals observations, while restoring the matter back, the revenue a authorities could also be vigilant and we see no justification as to why the details of the Nahargarh property could not be brought on record by the revenue if the assessee was avoiding giving details. 12. On the second grievance we would have directed the lower authorities to redetermine the value of those properties which were encumbered with liabilities tax and/ or of other nature and also that tax liabilities should be adjusted after these are finally determined resulting from the Tribunals directions but this aspect and iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in CWT v. Padampat Singhania [1973] 90 ITR 418 and 79 ITR 188 but in view of the specific concession as also in the absence of any proof vis-a-vis finding of the 1st appellate authority mentioned as above, the case law is of little help of the assessee". The cause of action if any in respect of the above findings and decision can not be revived by us. Under the circumstances we reject the assessee on the issue by holding that the same does not survive for our consideration. 13. This brings us to the second order of the CWT (A) in respect of assessment years 1973-74, 1978-79 and 1979-80. In the original memoranda of appeals the grounds taken are identically worded with those, for the three assessment years dealt earlier with an additional grievance in respect of assessment year 1973-74 regarding valuation of Rampura Kota property taken by the CWT (A) at RS. 65,000 as against declared value of Rs. 55,000 and assessment of Rs. 80,000. This question should not detain us because the Tribunal vide its dated 4-11-1981 accepted the assessee's valuation of Rs. 55,000 each for assessment years 1971-72 and 1972-73. This property was auctioned by the Income-tax authorities for Rs. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent it is ascertained and has become final. The WTO is, therefore, directed to verify the quantum of such ascertained liability and to allow the same to that extent. I find that in my earlier orders for assessment year 1979-80, the assessee's claim was not allowed as the above Supreme court judgments were not brought to my notice then. " 17. Though for the assessment years 1973-74, 1978-79 and 1979-80, the assessee's counsel submitted that identically worded additional grounds were filed but on perusal of the Memoranda these are considered and taken only as clarificatory in nature and this can be easily demonstrated by reproducing the ground for 1978-79.as a specimen for the three years in the memorandum and the so called additional ground : "That the authorities below have grossly erred while estimating the value of Nahargarh Road property and Rampura Kota property at Rs. 70,000 and Rs 65,000 as against the returned value of Rs. 30,000 and Rs. 55,000 respectively and also not confirming the value of these assets as well as that of other properties and assets to nil in view of the fact that the properties were encumbered because of attachment for the tax liabilities o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a proper approach of the CWT (A) for 1980-81. 20. Though while deciding issues regarding tax obligations of assessees mental exercise should not be stretched to favour a view against the revenue but tax disputes being not litigation between two subjects but between the state and the subject advantage cannot be taken of the ignorance of the tax payers if it can be helped within the permissible limits. In the present case the assessee has been persistently stating that they had more liabilities than the assets and we have already given the returned figures. Therefore, we fail to see any justification for rejecting the assessee bona fides request and claim for taking the taxable wealth after adjusting encumbrances and liabilities. 21. Observations above should not be misunderstood that liabilities of all kinds should be adjusted against total value of assets. Our directions on the other hand are that each asset should be separately analysed and valued keeping in close focus encumbrances. For example, if the assessee acquired certain properties/ assets along with which certain encumbrances were attached like taxes payable which can be directly related to such property or properties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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