COMMISSIONER OF WEALTH TAX vs. MOODI SETTELEMENT

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WTR/151/1996HC GujaratGJHC24022081199629 January 1998Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court answered the question referred to it in the affirmative, in favour of the assessee and against the Revenue. The reasoning is that the facts and the question involved are almost identical to those in Wealth Tax Reference No. 43/93, which was also decided by the High Court on the same day. The Court found the Appellate Tribunal to be right in directing the Assessing Officer to charge wealth tax at the normal rate instead of the maximum marginal rate of 3% applied by the WTO. The ratio decidendi is that the principle applied in Wealth Tax Reference No. 43/93 governs this case. The reference stands disposed of accordingly, with no order as to costs. No issues were expressly left undecided.

What were the facts?

This case involves a reference made by the Income Tax Appellate Tribunal (ITAT), Ahmedabad, to the High Court of Gujarat for its opinion under Section 27(1) of the Wealth Tax Act, 1957. The reference concerns the assessment year(s) not explicitly stated but implied to be similar to Wealth Tax Reference No. 43/93. The order under challenge is the ITAT's direction to the Assessing Officer to charge wealth tax at the normal rate, as opposed to the maximum marginal rate of 3% applied by the Wealth Tax Officer (WTO). The amount in dispute is not specified. The procedural history is that the ITAT referred a question of law to the High Court.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to charge wealth tax at the normal rate as against the maximum marginal rate of 3% charged by the WTO? (Question of law and fact, concerning the Wealth Tax Act, 1957). Assessee's contentions: Not recorded in the judgment. Revenue's contentions: Not recorded in the judgment. The judgment states that the facts and question involved are similar to Wealth Tax Reference No. 43/93, and the decision will be based on the reasoning provided in that case.

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 151 of 1996

For Approval and Signature:

Hon'ble MR.JUSTICE R.K.ABICHANDANI 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?

-------------------------------------------------------------- COMMISSIONER OF WEALTH TAX Versus MOODI SETTELEMENT

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Appearance: MR P.G. DESAI with MR MANISH R BHATT for Petitioner Respondent served

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CORAM : MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE A.R.DAVE Date of decision: 29/01/98

ORAL JUDGEMENT (Per R.K.Abichandani,J.)

The Income Tax Appellate Tribunal, Ahmedabad has referred for the opinion of this Court the following question under Section 27(1) of the Wealth Tax Act, 1957. "Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to charge rate at normal rate as against the maximum marginal rate of 3% charged by the WTO?"

A similar question has been answered by us today in Wealth Tax Reference No. 43/93. Since the facts are similar and the question involved almost identical, we do not find it necessary to reproduce the facts of this case. For the reasons given by us in our judgement and order delivered in Wealth Tax Reference No. 43/93 today, we answer the question referred to us in the affirmative in favour of the assessee and against the Revenue. The reference stands disposed of accordingly with no order as to costs.

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*/Mohandas

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