COMMISSIONER OF WEALTH TAX vs. SHETH AMBALAL HIMATLAL

WTR/64/1984HC GujaratGJHC24012211198411 May 1999Author: HONOURABLE MR. JUSTICE R.BALIA,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
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What did the High Court hold?

The High Court held that the question referred to it was identical to a question decided in an earlier Wealth Tax Reference (WTR No. 31/82) concerning the assessee's own case for previous years. In that earlier reference, the Tribunal had asked whether the amount of Rs. 1,98,226 could be included in the net wealth of the assessee. The Court had answered that question in favour of the assessee, affirming the Tribunal's decision. The Court also noted that this earlier decision followed a previous decision of the Court in the assessee's case (WTR No. 24A & 24B of 1980 decided on 29.1.1993). Therefore, following the precedent set by its own earlier decisions, the High Court answered the question referred to it in the affirmative, meaning in favour of the assessee and against the revenue. The operative direction was to answer the question in favour of the assessee.

What were the facts?

The Commissioner of Wealth Tax filed a reference application before the High Court of Gujarat at Ahmedabad concerning the Assessment Year 1977-78. The Wealth Tax Officer (WTO) had included an amount of Rs. 1,98,226 in the taxable wealth of the assessee, Sheth Ambalal Himatlal. The Appellate Assistant Commissioner (AAC) had allowed the deduction of this amount, and the Income-tax Appellate Tribunal (ITAT) confirmed the AAC's order. The High Court was asked to decide whether the ITAT was correct in law in confirming the AAC's order to deduct the addition made by the WTO.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has been right in law in confirming the order of the AAC in deducting the addition of Rs. 1,98,226 included by the WTO in the taxable wealth of the assessee for Assessment Year 1977-78? (Question of law, concerning Section 27(1) of the Wealth-tax Act, 1957). Assessee's contentions: The judgment does not record specific arguments made by the assessee. However, it notes that the very same question for earlier years was decided in favour of the assessee by affirming the Tribunal's decision, which in turn followed an earlier decision of the Court in the assessee's own case. Revenue's contentions: The judgment does not record specific arguments made by the revenue. It only states that the revenue filed the reference application challenging the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 27(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 64 of 1984

For Approval and Signature:

Hon'ble MR.JUSTICE R.BALIA. and MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements?

2.

To be referred to the Reporter or not?

3.

Whether Their Lordships wish to see the fair copy of the judgement?

4.

Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? 1 to 5: No

The order continues below.

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