COMMISSIONER OF WEALTH TAX, HISAR vs. PANDIT SHANTI SARUP.

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WTA/24/2008HC Punjab & HaryanaPHHC01092051200810 February 2009Author: MR. JUSTICE H.S. BHALLA,MR. JUSTICE M.M. KUMAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court upheld the order of the Income Tax Appellate Tribunal. The Tribunal had rightly noted that the Wealth Tax Officer had made unnecessary additions without considering that the question of interest in land acquisition matters was not finally settled. The Court reiterated the well-settled principle that additions cannot be made on any supposition until the issue of interest in land acquisition matters is finally determined by a court. The High Court relied on its own Division Bench judgment in CIT v. Pandit Shanti Sarup (ITA Nos. 275 to 281 of 2008, decided on 3.7.2008). Consequently, the appeals filed by the revenue were dismissed.

What were the facts?

The appeals were filed by the Commissioner of Wealth Tax, Hisar, against a common order dated February 21, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench. The ITAT's order pertained to Wealth Tax Appeal (WTA) Nos. 20 to 24/CHANDI/2007, concerning assessment years 1988-89 to 1992-93. The Wealth Tax Officer had made additions to the assessee's wealth based on the potential interest in land acquisition matters. The assessee is Pandit Shanti Sarup. The High Court reviewed the ITAT's decision.

What were the issues?

1. Whether the Tribunal was justified in deleting the additions made by the Wealth Tax Officer concerning interest in land acquisition matters, when the question of interest was not finally settled. Assessee's Contention: The judgment does not record any specific arguments made by the assessee. However, the High Court's reasoning implies that the assessee would have argued that additions cannot be made on mere supposition until the interest amount is finally settled. Revenue's Contention: The revenue, through the Commissioner of Wealth Tax, appealed the ITAT's order, implying they argued for the validity of the additions made by the Wealth Tax Officer. The High Court's decision to dismiss the appeals suggests the revenue's arguments were not accepted.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH W.T.A. No. 24 of 2008 DATE OF DECISION: February 10, 2009 Commissioner of Wealth Tax, Hisar …Appellant Versus Pandit Shanti Sarup …Respondent CORAM: HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE H.S. BHALLA Present: Mr. Sanjeev Kaushik, Standing Counsel for Income Tax, for the appellant.

1.

Whether Reporters of local papers may be allowed to see the judgment?

2.

To be referred to the Reporters or not?

3.

Whether the judgment should be reported in the Digest? M.M. KUMAR, J. This order shall disposed of W.T.A. Nos. 24 to 28 of 2008, directed against the common order dated 21.2.2007, passed by the Income Tax Appellate Tribunal, Chandigarh Bench (B) (for brevity, ‘the Tribunal) in WTA Nos. 20 to 24/CHANDI/2007, in respect of assessment years 1988- 89 to 1992-93. The Tribunal has rightly noticed that the Wealth Tax Officer had unnecessarily made additions vide order dated 11.12.2006 without taking into account the fact that the question of interest was not finally settled. It is now well settled that until and unless the question of interest in land acquisition matter is finally settled by the Court additions cannot be W.T.A. 24 of 2008 made on any supposition. In that regard reliance may be placed on a Division Bench judgment of this Court rendered in the case of CIT v. Pandit Shanti Sarup (ITA Nos. 275 to 281 of 2008, decided on 3.7.2008). In view of the above, the appeals fail and are accordingly dismissed. We uphold the order passed by the Tribunal. (M.M. KUMAR) JUDGE (H.S. BHALLA) February 10, 2009 JUDGE Pkapoor 2

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