COMMISSIONER OF WEALTH TAX vs. ABDULHAMID G PATEL

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WTR/110/1995HC GujaratGJHC24022792199517 July 2006Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE R.S.GARG3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court decided both questions against the Revenue. The Court noted that the same questions between the same parties in relation to earlier years had already been answered in favour of the assessee and against the Revenue. The Tribunal's decision in the earlier reference (WTR No. 56 of 1999) was disposed of on 1.8.2005, favouring the assessee. This decision was based on this Court's order dated 5.5.2004 in WTR No. 57/90 and WTR No.58/90. Therefore, following its own precedent, the High Court answered the referred questions against the Revenue. The operative direction was that the Reference stands disposed of.

What were the facts?

This matter concerns a Wealth Tax Reference filed by the Commissioner of Wealth Tax against the assessee, Abdulhamid G Patel. The Income-tax Appellate Tribunal (ITAT), at the instance of the Revenue, referred two questions of law to the High Court. The dispute pertains to the assessment years not explicitly stated in the provided text. The ITAT had previously ruled in favour of the assessee in an earlier related reference (WTR No. 56 of 1999) concerning the same parties and assessment years. This earlier decision was based on this Court's order dated 5.5.2004 in WTR No. 57/90 and WTR No.58/90, which also favoured the assessee.

What were the issues?

The High Court was asked to decide the following questions of law: 1. Whether the Appellate Tribunal is right in law and on facts in allowing 1/6th as repairs irrespective of the fact that the assessee has incurred some expenditure on repairs, though the same is not allowable deduction in Wealth-tax Act for valuation purposes? 2. Whether the Appellate Tribunal is right in law and in facts in allowing collection charges at Rs. 10,578 as against the Wealth-tax Officer allowing this expenditure to the extent of Rs. 3,600? The Revenue contended that the Tribunal erred in allowing 1/6th for repairs, arguing it's not an allowable deduction for valuation purposes under the Wealth-tax Act. The Revenue also argued against the Tribunal's allowance of collection charges at Rs. 10,578, as opposed to the Wealth-tax Officer's allowance of Rs. 3,600. The judgment does not record specific contentions for the assessee.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
WTR/110/1995 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD WEALTH TAX REFERENCE No. 110 of 1995 For Approval and Signature: HONOURABLE MR.JUSTICE R.S.GARG HONOURABLE MR.JUSTICE M.R. SHAH ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= COMMISSIONER OF WEALTH TAX - Applicant(s) Versus ABDULHAMID G PATEL - Respondent(s) ========================================================= Appearance : MR MANISH R BHATT for Applicant(s) : 1, NOTICE NOT RECD BACK for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE M.R. SHAH Date : 17/07/2006

ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE R.S.GARG)

WTR/110/1995 2/3 JUDGMENT

1.

Income-tax Appellate Tribunal, at the instance of the Revenue has referred the following questions to this Court for its answer. “[1] Whether, the Appellate Tribunal is right in law and on facts in allowing 1/6th as repairs irrespective of the fact that the assessee has incurred some expenditure on repairs, though the same is not allowable deduction in Wealth-tax Act for valuation purposes? [2] Whether, the Appellate Tribunal is right in law and in facts in allowing collection charges at Rs. 10,578 as against the Wealth-tax Officer allowing this expenditure to the extent of Rs. 3,600 ?

2.

Between the same parties in relation to earlier years, Wealth-tax Reference was made by the Appellate Tribunal which was registered as WTR No. 56 of 1999, the same was disposed of finally on 1.8.2005 against the interest of the Revenue. The learned Judges, in their wi om, relied upon this Court's order dated 5.5.2004 in WTR No. 57/90 and WTR No.58/90 and accordingly answered the question in favour of the assessee and against the Revenue. As the question

WTR/110/1995 3/3 JUDGMENT between the same parties has already been answered by this Court in favour of the assessee and against the Revenue, we also decide the questions against the Revenue. The Reference stands disposed of. [R.S. GARG, J.] [M.R. SHAH, J.] pirzada/-

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