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1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 19TH DAY OF FEBRUARY, 2013
BEFORE
THE HON’BLE MR. JUSTICE H.N. NAGAMOHAN DAS
W.P. Nos. 11004 & 11007/2012(T-WT) BETWEEN :
Smt INDRAKSHI DEVI AVARU AGED ABOUT 56 YEARS No.241, 15TH MAIN ROAD, RMV EXTENSION, BANGALORE – 560 080.
.. PETITIONER
(By Sri : S.P.BHAT, ADV.)
AND :
WEALTH TAX OFFICER WARD (11(1) No.14/3-A, 5TH FLOOR, RASHTROTHANA BHAVAN, NRUPATHUNGA ROAD, BANGALORE.
ASST.COMMISSIONER OF WELATH TAX CIRCLE 8(1), 3RD FLOOR, JEEVAN SAMPIGE BUILDING, 1/1, SAMPIGE ROAD, MALLESWARAM, BANGALORE – 560 003. ... RESPONDENTS (By Sri K.V.ARAVIND, ADV.)
2 THESE WRIT PETITIONS FILED UNDER ARTICLES 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO
QUASH THE ASSESSMENT ORDERS DATED 29.03.2006 VIDE ANNEXURES-C, D, E AND F AND ETC.
These petitions coming on for hearing this day, the court made the following;
ORDER ORDER ORDER ORDER
In these writ petitions the petitioners have prayed for a writ in the nature of certiorari to quash the assessment orders dated 29.3.2006, Annexures-C, D, E and F and consequent demand notices dated 29.03.2006, Annexure-G, H, J and K in so far as they relate to levy of interest.
For the assessment orders 1979-80, 1980-81, 1982-83 and 1983-84, the assessing authority passed orders of assessment assessing the petitioner under Wealth Tax Act, 1957 vide orders dated 31.3.1986 and 14.3.1988 and also issued demand notices. Petitioner being aggrieved by the orders by the assessing authority filed an appeal before the Tribunal. The Tribunal by a common order dated 26.11.1998 set-aside the order of assessment
3 passed by the assessing authority and remanded the matter for fresh assessment as per Annexure-A. Further this court in WTA No.11-16/1999 confirmed the order passed by the income tax appellate Tribunal remanding the matter. On remand the impugned order is passed as per Annexure-C, D, E and F dated 29.3.2006 levying wealth tax and also interest under Section 31(2) of the Wealth Tax Act. Consequently the respondents also issued demand notices as per Annexures-G, H, J and K dated 29.03.2006. Petitioner being aggrieved by levy of interest under Section 31(2) of the Wealth Tax Act is before this court.
Heard arguments on both the side and perused the entire writ papers.
Sri Aravind, learned counsel for respondents firstly contends that against the impugned orders of assessment, the petitioners have already filed appeals before the Income Tax Appellate Tribunal at Bangalore and they are pending adjudication. Therefore he contends that bifurcating interest part
4 in the impugned orders of assessment and filing the present writ petitions is not maintainable. I decline to accept this contention of learned counsel for respondents.
The interest levied in the impugned orders of assessment is for default in not paying the wealth tax under the assessment orders dated 31.3.1986 and 14.3.1988. The period for which interest is charged is subsequent to the order of assessment in the year 1986-1988. Therefore the interest levied in the impugned order do not form part of the process of assessment. Further Section 23A nor Section 24 of the Wealth Tax Act do not specify that there is an appeal against the interest part of the assessment. In the circumstances, I am of the considered opinion that the writ petitions in so far as interest part in the impugned orders of assessment is maintainable. This view is also supported by a judgment of the Madhya Pradesh High Court in Princess Usha Trust vs. Commissioner of Income Tax 1976 ITR 227.
Sri Aravind, secondly contends that interest levied under Section 31(2) of the Wealth Tax Act is on different heads covered under the orders of assessment. If that is so, the impugned orders of assessment do not specify under what heads interest is charged and under what heads interest is not charged. In the absence of bifurcation in the impugned orders and in the absence any reasons, I am of the considered opinion that matter requires to be remanded for reconsideration in so far as levy of interest is concerned. Accordingly, the following: ORDER
i)i)i)i) Writ petitions are hereby allowed in part. ii) The impugned orders, Annexures-C, D, E and F in so far as it relates to levy of interest under Section 31(2) of the Wealth Tax Act is hereby set-aside. Consequently, the demand notices at Annexures-G, H, J and K in so far as it relates to interest are also set aside. iii) The matter is remanded to the second respondent for reconsideration in so far levy of interest under
6 Section 31(2) of Wealth Tax Act in accordance with law.
Sd/-
JUDGE.
DKB