Income Tax Appellate Tribunal - Delhi
Ishwar Sahai, New Delhi vs Assessee on 1 March, 2016
WTA NO. 25/Del/2014
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "C", NEW DELHI
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
W.T.A.No. 25/Del/2014
A.Y. : 2011-12
SH. ISHWAR SAHAI WEALTH TAX OFFICER,
G-118, SAKET VS. WARD-6(3),
NEW DELHI - 110 017 NEW DELHI
(PAN: APCPS3395D)
(APPELLANT) (RESPONDENT)
Assessee by : Sh. Arun Jain, CA
Department by : Sh. Amit Jain, Sr. DR
Date of Hearing : 23-02-
02-2016
Date of Order : 01-
01-03-
03-2016
ORDER
PER H.S. SIDHU : JM The Assessee has filed the present appeal against the impugned order dated 12/08/2014 passed by the Ld. Commissioner of Income Tax (Appeals)-IX, New Delhi on the following grounds:- 1
WTA NO. 25/Del/2014
1. That the Ld. CIT(A) has passed and order which is erroneous, bad at law and against the circumstances of the case.
2. That the property addressed Plot No. B-260, Okhla, Phase-I, New Delhi was a building under construction as on the valuation date and hence not a capital asset.
3. That the exemption may be granted on the above property from taxability since it is not as asset under section 2(ea) of the Wealth Tax Act being property under construction.
4. That the Ld. CIT(A) has erred while passing the order not considering the facts and circumstances produced at the time of assessment proceedings.
5. That the assessee reserves the right to add, amend or alter the grounds of appeals.
2. The facts narrated by the Revenue Authorities are not disputed by both the parties, therefore, not repeated here for the sake convenience.
3. At the time of hearing, Ld. Authorised Representative, Sh. Arun Jain, CA stated that the issue in dispute has already been adjudicated and decided in favour of the Assessee by the Hon'ble Punjab & Haryana High 2 WTA NO. 25/Del/2014 Court in the case of CIT vs. Neena Jain (330 ITR 157 (P&H) and Hon'ble Delhi High Court in the case of CWT vs. Prem Nath Motors Pvt. Ltd. 238 ITR 414 (Del.). He requested that in view of the above decisions of the Hon'ble High Courts, the Appeal of the assessee may be allowed.
4. On the other hand, Ld. DR strongly opposed the request of the assessee's Authorised Representative and stated that assessee had a commercial plot No. B-260, Okhla, Phase-I, Delhi measuring 312 sq.mtrs. and claimed it exempt stating under construction and has not filed any proof for the same before the Revenue Authorities. Therefore, the Appeal of the assessee may be dismissed.
5. We have heard both the parties and perused the relevant records available, especially the orders of the revenue authorities as well as the decisions rendered by the Hon'ble High Courts cited by the Ld. Authorised Representative of the Assessee. As per the assessment order the AO has taken up the case for scrutiny and issued notice u/s. 16(2) of the Wealth Tax Act. In response to the same assessee filed details as asked by the AO. After verifying the details of the assessee, the AO found that assessee has claimed Plot No. 7311, DLF City Phase-IV, Gurgaon exempt from 3 WTA NO. 25/Del/2014 Wealth Tax besides residential farm house Khasra No. 1508, Bhati Miles Village Ashola. The assessee is entitled to exempt of one residential house or a plot below 500 sq.mtrs. The value of plot No. 7311, DLF City Phase-IV Gurgaon measuring 269.1 sq.yard @ Rs. 50,000/- per sq.yard i.e. Rs. 1,34,55,000/- was added to taxable wealth of the assessee by the AO. Assessee had a commercial plot No. B-260, Okhla Phase-I, Delhi measuring 312 sqmtrs. and claimed it exempt stating under construction. But could not file any evidence for substantiating this exemption and the AO added the Circle rate of such area i.e. Rs. 55,000/- per sq.mtr which comes to Rs. 1,71,60,000/- and added to the taxable wealth of the assessee vide order dated 13.3.2013 passed u/s. 16(3) of the Wealth Tax Act, 1957. In the Appeal filed by the assessee, the Ld. First Appellate Authority partly allowed the Appeal of the assessee and upheld the addition in dispute mentioned by the assessee in the grounds of appeal for want of evidence.
5.1 At the time of hearing, Ld. Authorised Representative of the Assessee filed a small Paper Book containing pages 1 to 36 in which he has attached the various documentary evidences for substantiating its claim alongwith the judgments of the Hon'ble High Courts. We have perused 4 WTA NO. 25/Del/2014 all the documentary evidence filed by the assessee in the shape of Paper Book alongwith the judgment of the Hon'ble High Court of Punjab & Haryana in the case of CIT vs. Neena Jain (330 ITR 157 (P&H) and Delhi High Court decision in the case of CWT vs. Prem Nath Motors Pvt. Ltd. 238 ITR 414 (Del.). After perusing the orders of the revenue authorities, we are of the considered view that assessee could not substantiate his claim before the revenue authorities while filing the required documentary evidence which he has filed before us in the shape of Paper Book. Secondly, the Ld. Authorised Representative of the assesse has also certified that all these documents the assessee has filed before the lower authorities. He has given the Certificate dated 19.2.2016. Keeping in view of the Certificate given by Sh. A.K. Jain, CA and in the interest of justice, we are of the considered view that the issue involved in the present Appeal requires thorough investigation at the level of the AO, after examining the documentary evidence filed by the assessee, as stated above by the Ld. Authorised Representative of the assessee. The Assessing Officer is directed to decide the issue in dispute afresh under the law, after considering all the documentary evidences filed by the assessee in the shape of Paper Book alongwith the judgment of the Hon'ble High 5 WTA NO. 25/Del/2014 Court and decided the issue afresh under the law, after giving adequate opportunity of being heard to the assessee.
6. In the result, the appeal of the Assessee stands allowed for statistical purposes.
Order pronounced in the Open Court on 01/03/2016.
Sd/-
Sd/- Sd/-
Sd/-
[PRASHANT MAHARISHI]
MAHARISHI] [H.S. SIDHU]
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date 01/3/2016
"SRBHATNAGAR"
Copy forwarded to: -
1. Appellant -
2. Respondent -
3. CIT
4. CIT (A)
5. DR, ITAT
TRUE COPY
By Order,
Assistant Registrar, ITAT, Delhi Benches
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