The Welth Tax Offocer, Vijayawada V. Smt Kotamraju Jayalalitha, Vijayawada

WTA 2/VIZ/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3850 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 06-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T SATYANANDHAM
• Keywords: Additional evidence; Reason to believe; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / W . T .A.NO. 0 2 /VIZ/ 201 7 ( / ASSESSMENT YEAR: 20 07 - 08 ) THE WEALTH TAX OFFICER WARD - 2(3), CENTRAL REVENUES BUILDING M.G.ROAD VIJAYAWADA VS. SMT. KOTAMRAJU JAYALALITHA FLAT NO.502, SRI VARDHANI RESIDENCY RAMACHANDRA NAGAR VIJAYAWADA [PAN :ADFPK0897F] ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI T.SATYANANDHAM, DR / RESPONDENT BY : SHRI D.L.NARASIMHA RAO , AR / DATE OF HEARING : 30 . 05. 2018 / DATE OF PRONOUNCEMENT : 06 .0 6 .2018 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF WEALTH TAX ( APPEALS) [C W T(A)], VIJAYAWADA VIDE I . T . A NO. 2 0 5 / CIT (A) / VJA /201 4 - 1 5 DATED 2 8.10 .201 6 F OR THE ASSESSMENT YEAR 20 07 - 08. . 2 W TA NO .02 /VIZ/201 7 KOTAMRAJU JAYALALITHA, VIJAYAWADA 2. THE ASSESSEE IS AN INDIVIDUAL AND HAS NOT FILED THE WEALTH TAX RETURN FOR THE ASSESSMENT YEAR 2007 - 08. THE ASSESSING OFFICER (AO) HAVING REASON TO BELIEVE THAT THE WEALTH CHARGEABLE TO TAX HAS ESCAPED THE ASSESSMENT , ISSUED THE NOTICE U/S 17 OF W.T.ACT ON 25.09.2012 WHICH WAS SERVED ON THE ASSESSEE. SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE, THE AO ISSUED SHOW CAUSE NOTICE ON 06.05.2013 PROPOSING TO COMPLETE THE ASSESSMENT AS PER THE I NFORMATION AVAILABLE ON RECORD AND T HERE WAS NO RESPONSE FROM THE ASSESSEE FOR THE SHOW CAUSE NOTICE ALSO. HENCE, THE AO COMPLETE D THE ASSESSMENT U/S 16(5) OF WEALTH TAX ACT ON TOTAL TAXABLE WEALTH OF RS.1,17,72,560/ AS UNDER : 1) PROPERTY AT BANJARA HILLS RS.1,25,85,649/ - 2) CASH IN HAND IN EXCESS OF RS.50,000 RS. 1,60,000/ - 3) VEHICLES RS. 5,26,911/ - -------------------- TOTAL WEALTH RS.1,32,72,760/ - LESS : BASIC EXEMPTION RS. 15,00,000 / - --------------------- TAXABLE WEALTH RS.1,17,72,560/ - --------------------- 3 W TA NO .02 /VIZ/201 7 KOTAMRAJU JAYALALITHA, VIJAYAWADA 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WENT ON AP PEAL BEFORE THE CWT(A) AND ARGUED THAT SHE HA S AVAILED THE HOUSING LOAN OF RS. 87,50,920/ - FROM ICICI HOME FINANCE FOR ACQUIRING THE HOUSE PROPERTY AN D REQUESTED FOR ALLOWING DEDUCTION OF LOAN FROM THE VALUE OF H OU S E PROPERTY. SHE ALSO FURNISHED THE EVIDENCE FOR AVAILING HOME LOAN FACILITY FROM ICICI HOME FINANCE LTD. ACCORDINGLY, THE LD.CW T(A) ALLOWED THE DEDUCTION OF RS.84,19,124/ - FROM THE TAXABLE NET WEALTH OF THE PROPERTY AND DIRECTED THE AO TO RECOMPUTE THE NET WEALTH AT RS. 41,66,520/ - IN RESPEC T OF BANJARA HILLS PROPERTY APPEARING IN PLOT NO.73, HUDA HEIGHTS, HAKEEMPET VILLAGE, HY DERABAD. ACCORDINGLY, THE LD.CW T(A) COMPUTED THE NET WEALTH OF RS.31,93,431/ - AFTER ALLOWING BASIC EXEMPTION. 4. AGG RIEVED BY THE ORDER OF THE LD.CW T(A), THE REVENUE IS IN APPEAL BEFORE US. THE AO HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE ID. CWT(A) ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE; 2. THE L D. CIT(A) OUGHT NOT TO HAVE ACCEPTED TH E ADDITIONAL EVIDENCE I.E. LOAN OUTSTANDING OF RS84,19,124/ - AS ON 31/03/2007 AND ALLOWED U/S2(M) WITHOUT REMANDING TO THE AO UNDER RULE 46A OF THE I.T. RULES; 3. THE ID. CIT(A) ERRED IN ALLOWING THE CLAIM OF LOAN OUTSTANDING WITHOUT PROPER VERIFICATION AND EXAMINATION AS TO WHETHER THERE IS NEXUS BETWEEN THE LOAN TAKEN AND THE ASSET HELD BY THE ASSESSEE AND ALSO THE CORRECTNESS OF THE 4 W TA NO .02 /VIZ/201 7 KOTAMRAJU JAYALALITHA, VIJAYAWADA OUTSTANDING BALANCE; 4. THE ID. CIT(A) ERRED IN DELETING CASH IN HAND IN EXCESS OF RS50,000[ - SINCE THE ASSESSEE IS AN INDIVIDUAL AND THE EXCLUSION THAT ANY AMOUNT NOT RECORDED IN THE BOOKS OF ACCOUNT IS AVAILABLE ONLY TO 'OTHER PERSONS' AND NOT TO 'INDIVIDUALS' & 'HU F S'; 5 . S INCE THE L D. CIT(A) HAS NOT REMANDED THE ISSUE UNDER RULE 46A BEFORE ACCEPTING THE ADDIT IO NA L EVIDENCE, IT IS URGED THAT THE ISSUES MAY BE REMITTED BACK TO THE AO FOR RE - EXAMINATION AND DECIDE THE ISSUE; 6. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 5. GROUND NO.5 IS RELATED TO THE ADMISSION OF ADDITIONAL EVIDENCE IN RESPECT OF PROPERTY AT BANJARA HILLS, HYDERABAD. DURING THE APPEAL HEARING, THE ASSESSEE FURNISHED EVIDENCE BEFORE THE C W T(A), RELATING TO HOUSING LOAN AVAILED BY HER FROM ICICI HOME FINANC E LTD. THE SAME WAS NOT MADE AVAILABLE TO TH E AO. IN FACT, THE ASSESSEE HAD NOT RESPONDED TO THE NOTICES ISSUED BY THE AO DURING THE ASSESSMENT PROCEEDINGS. T HE EVIDENCE WHICH WAS FURNISHED BEFORE THE CWT(A) FIRST TIME FOR ALLOWING THE DEDUCTION AND T HE 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 . ACCORDINGLY THE ORDER OF THE LD. CWT(A) IS SET ASIDE AND THE ASSESSMENT IS REMITTED BACK TO THE FILE OF THE AO WITH A DIRECTION TO CONSIDER THE ISSUE AFRESH ON MERITS. 5 W TA NO .02 /VIZ/201 7 KOTAMRAJU JAYALALITHA, VIJAYAWADA 7. SINCE WE HAVE SET ASIDE THE ORDER AND REMITTED THE MATTER BACK TO THE FILE OF THE AO, WE CONSIDER IT IS NOT NECESSARY TO ADJUDICATE THE REMAINING GROUNDS OF APPEAL. 8 . IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE . THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 6 TH JUN E , 201 8 . S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 06 .0 6 .2018 L.RAMA, SPS 6 W TA NO .02 /VIZ/201 7 KOTAMRAJU JAYALALITHA, VIJAYAWADA / COPY OF THE ORDER FORWARDED TO: - 1 . / THE ASSESSEE - SMT. KOTAMRAJU JAYALALITHA, FLAT NO.502, SRI VARDHANI RESIDENCY, RAMACHANDRA NAGAR, VIJAYAWADA 2 . / THE REVENUE THE WEALTH TAX OFFICER , WARD - 2(3), CENTRAL REVENUES BUILDING , M.G.ROAD , VIJAYAWADA 3 . THE PR. COMMISSIONER OF INCOME TAX , VIJAYAWADA 4. THE COMMISSIONER OF WEALTH TAX(APPEALS), VIJAYAWADA 5 . , , / DR, ITAT, VISAKHAPATNAM 6. / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM