COMMISSIONER OF WEALTH TAX vs. SHETH AMBALAL HIMATLAL (INDL)

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WTR/28/1989HC GujaratGJHC24013354198903 July 2002Author: HONOURABLE MR. JUSTICE MOHIT S. SHAH,HONOURABLE MR. JUSTICE K.A.PUJ2 pages

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What did the High Court hold?

The High Court, following its own prior decision dated 24-1-1994 in Wealth-tax Reference No. 31 of 1982, answered the referred question in the affirmative, in favour of the assessee and against the revenue. The reasoning is based on the principle established in the earlier reference concerning the same properties. The court found that the Appellate Tribunal was indeed right in law in confirming the deletion of the addition of Rs. 1,98,226/-. The ratio decidendi is that if a High Court has already ruled on a specific question of law concerning particular assets for earlier assessment years, and the same issue arises for subsequent years with identical facts and properties, the subsequent reference should be decided in line with the prior judgment. The operative direction is that the reference stands disposed of with no order as to costs.

What were the facts?

This case involves a Wealth Tax Reference before the High Court of Gujarat at Ahmedabad, initiated by the revenue. The reference concerns assessment years 1975-76 and 1976-77. The Wealth-tax Officer had included an amount of Rs. 1,98,226/- in the assessee's wealth. The Income-tax Appellate Tribunal, by an order dated 6-10-1984, confirmed the deletion of this addition. This decision followed the Tribunal's earlier ruling for preceding years, which had led to a previous High Court reference (Wealth-tax Reference No. 31 of 1982). The properties involved in the current reference are stated to be the same as those in the earlier reference.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in confirming the deletion of addition of Rs. 1,98,226/- included by the Wealth-tax Officer in the wealth of the assessee for assessment years 1975-76 and 1976-77? (Question of law) Assessee's Contention: The assessee argued that the deletion of the addition was justified. The judgment does not explicitly record the assessee's arguments but implies their stance through the court's decision. Revenue's Contention: The revenue, as the petitioner, contended that the Wealth-tax Officer was correct in including the amount of Rs. 1,98,226/- in the assessee's wealth and that the Tribunal erred in confirming its deletion. The revenue sought to challenge the Tribunal's order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 28 of 1989

For Approval and Signature:

Hon'ble MR.JUSTICE M.S.SHAH and Hon'ble MR.JUSTICE K.A.PUJ

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

Whether it is to be circulated to the Civil Judge? : NO @ COMMISSIONER OF WEALTH TAX Versus SHETH AMBALAL HIMATLAL (INDL) -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 28 of 1989 MRS MONA BHATT for Petitioner No. 1 MR MANISH J SHAH for MR JP SHAH for Respondent No. 1

--------------------------------------------------------------

CORAM : MR.JUSTICE M.S.SHAH and MR.JUSTICE K.A.PUJ

Date of decision: 03/07/2002

ORAL JUDGEMENT (Per : MR.JUSTICE M.S.SHAH)

In this Reference at the instance of the revenue, the following question is referred for our opinion in respect of assessment years 1975-76 and 1976-77:-

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in confirming the deletion of addition of Rs.1,98,226/- included by the Wealth-tax Officer in wealth of the assessee?"

We have heard Mrs. Mona Bhatt, learned counsel for the applicant- revenue and Mr Manish J Shah for the respondent - assessee.

The Reference arises from the order dated 6-10-1984 of the Income-tax Appellate Tribunal, which was passed following the Tribunal's own decision dated 24-1-1980 in the earlier years. It appears that one of those orders gave rise to Wealth-tax Reference No.31 of 1982 wherein the following question was referred for the opinion of this Court:-

"Whether, on the facts and in the circumstances of the case, the amount of Rs.1,98,226/- can be included in the net wealth of the assessee for the assessment year in question?"

We are informed that the items of the properties covered by the present Reference are the same as in the aforesaid Reference.

In view of the above statement and following the decision dated 24-1-1994 of this Court in the aforesaid Wealth-tax Reference No.31 of 1982, we answer the question in the affirmative i.e. in favour of the assessee and against the revenue.

The Reference accordingly stands disposed of with no order as to costs.

(M.S. Shah,J) (K.A. Puj,J) zgs/-

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