Ganapathiraju Venkata Sita Rama Raju, Visakhapatnam V. Joint Commissioner of Wealth Tax (OSD), Visakhapatnam

CO 86/VIZ/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0376 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 22-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 10-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER W TA NO. 07 TO 10 / VIZ /201 8 (ASST. YEAR : 20 1 0 - 11 TO 20 13 - 1 4 ) JCWT, CENTRAL CIRCLE - 2, VISAKHAPATNAM. V S . GANAPATHIRAJU VENKATA SITA RAMA RAJU, PLOT NO. 42, SHIVAJI GARDENS, KURMANAPALEM, VISAKHAPATNAM. PAN NO. AHAPP 1548 F (APPELLANT) (RESPONDENT) C.O. NOS. 85 TO 88/VIZ/2018 (ARISING OUT OF W TA NO. 07 TO 10 / VIZ /201 8) (ASST. YEAR : 20 10 - 11 TO 2013 - 14 ) GANAPATHIRAJU VENKATA SITA RAMA RAJU, PLOT NO. 42, SHIVAJI GARDENS, KURMANAPALEM, VISAKHAPATNAM. VS. JCWT, CENTRAL CIRCLE - 2, VISAKHAPATNAM. PAN NO. AHAPP 1548 F (APP LICANT ) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 15 / 1 1 /201 8 . DATE OF PRONOUNCEMENT : 22 / 1 1 /201 8 . O R D E R PER BENCH: TH E S E APPEAL S BY THE REVENUE AND THE CROSS OBJECTIONS BY THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER OF 2 W TA NO. 07 - 10/VIZ/2018 C.O.NOS.85 - 88/VIZ/2018 ( GANAPATHIRAJU VENKATA SITA RAMA RAJU ) COMMISSIONER OF WEALTH TAX (APPEALS) - 3 , VISAKHAPATNAM , DATED 29 /0 3 /201 8 FOR THE ASSESSMENT YEARS 2010 - 11 TO 2013 - 14 . SINCE THE ISSUE AND FACTS ARE COMMON, CLUBBED AND HEARD TOGETHER AND DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE COMMON GROUND RAISED BY THE REVENUE IN ALL THE APPEALS IS AS FOLLOWS: - 1. THE LD. CWT(A) ERRED ON FACTS AND IN LAW IN DECIDING THAT THE LAND IN PIDIMGOYYA PANCHAYAT, RAJAHMUNDRY DOES NOT COME UNDER SECT I ON 2(EA), EXPLANATION (1), CLAUSE (B) OF THE WEALTH TAX ACT, 1957. 3 . IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS OB SERVED THAT IN THE BALANCE SHEET AS ON 31/03/2010 , THE ASSETS OF 2.15 ACRES SITES AT RAJAHMUNDRY HAVE BEEN SHOWN AT THE VALUE OF RS.2.20 LAKHS . HOWEVER, THE SAID ASSETS ARE NOT DISCLOSED IN THE WEALTH TAX RETURN. THE ASSESSEE HAS FAILED TO FURNISH ANY EXPLANATION OR SUPPORTING EVIDENCE IN RESPECT OF THE ASSETS CLAIMED AS EXEMPT FROM WEALTH TAX EVEN THOUGH SPECIFICALLY ASKED VIDE NOTICE UNDER SECTION 16(4)(I) OF THE WEALTH TAX ACT, 1957 (HEREINAFTER REFERRED TO AS THE ACT, FOR SHORT) . IN ABSENCE OF ANY CLARIFICATION , THE SITES AT RAJAHMUNDRY AD MEASURING 2.15 ACRES ARE TREATED AS URBAN LAND , LIABLE TO BE INCLUDED IN THE NET WEALTH OF THE ASSESSEE AS PER THE PROVISIONS OF SECTION 2(EA) OF THE ACT . 3 W TA NO. 07 - 10/VIZ/2018 C.O.NOS.85 - 88/VIZ/2018 ( GANAPATHIRAJU VENKATA SITA RAMA RAJU ) ACCORDINGLY, THE SAID VALUE OF RS. 2.20 LAKHS IS ADDED TO THE NET WEALTH RETURNED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2010 - 11 . 4 . ON APPEAL BEFORE THE LD. CWT(A), IT WAS SUBMITTED THAT THE LAND SITUATED AT RAJAHMUNDRY IS AN AGRICULTURAL LAND AND THEREFORE, SECTION 2(EA) HAS NO APPLICATION. THE LD. CWT(A) AFTER CONSIDERING THE BALANCE SHEET, PATTAADAAR PASS BOOK AND SALE DEED , GAVE A CATEGORICAL FINDING THAT THE LAND IS AN AGRICULTURAL LAND. THE RELEVANT PORTION OF THE ORDER OF LD. CWT(A), IS EXTRACTED AS UNDER: - 6.3 WITH REGARD TO LAND AT RAJAHMUNDRY, THE DESCRIPTION IN THE BALANCE SHEET CLEARLY INDICATES THAT IT IS AN AGRICULTURA L LAND. THE ASSESSING OFFICER DID NOT HAVE ANY MATERIAL TO SAY THAT THIS IS NOT AN AGRICULTURAL LAND. ON A PERUSAL OF THE DOCUMENT EVIDENCING THE PURCHASE OF LAND AND ALSO THE PASS BOOK, I FIND THAT THE LAND IS AN AGRICULTURAL LAND. HENCE, I FIND MERIT IN THE CONTENTION OF THE APPELLANT. HENCE, THE ADDITION OF RS. 90,000/ - MADE BY THE ASSESSING OFFICER FOR THE A.Y. 2009 - 10 AND RS. 2.20,000/ - MADE FOR THE A.YS. 2010 - 11 TO 2013 - 14 IS DIRECTED TO BE DELETED. 5. ON APPEAL BEFORE US, LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDER PASSED BY THE ASSESSING OFFICER, BUT NOT POINT OUT ANY ERRO R COMMITTED BY THE LD. CWT(A). WE HAVE GONE THROUGH THE ASSESSMENT ORDER AND ALSO THE ORDER OF LD. CWT(A) AND FIND THAT LD. CWT(A) BY CONSIDERING THE PATTA A DAAR PASS BOOK, SALE DEED AND BALANCE SHEET , GAVE A CATEGORICAL FINDING THAT THE LAND IS 4 W TA NO. 07 - 10/VIZ/2018 C.O.NOS.85 - 88/VIZ/2018 ( GANAPATHIRAJU VENKATA SITA RAMA RAJU ) AN AGRICULTURAL LAND AND SECTION 2(EA) HAS NO APPLICATION. IN VIEW OF THE SPECIFIC FINDING GIVEN BY THE LD. CW T(A), WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CWT(A). T HUS, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. 6 . INSOFAR AS CROSS OBJECTIONS ARE CONCERNED, IN VIEW OF OUR DECISION ABOVE IN THE REVENUES APPEALS, IT BECOME INFRUCTUOUS AND THE SAME ARE DISMISSED ACCORDINGLY . 7 . IN THE RESULT, ALL THE APPEAL S FILED BY THE REVENUE AS WELL AS CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 2 N D DAY OF NOV ., 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 2 N D NOVEMBER , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE GANAPATHIRAJU VENKATA SITA RAMA RAJU, PLOT NO. 42, SHIVAJI GARDENS, KURMANAPALEM, VISAKHAPATNAM. 2. THE REVENUE JCWT, CENTRAL CIRCLE - 2, VISAKHAPATNAM. 3. THE PR. CIT (CENTRAL), VISAKHAPATNAM. 4. THE C W T(A) - 3, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.