WEALTH TAX OFFICER Vs. O P KAPOOR
INCOME TAX APPELLATE TRIBUNAL
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O.P. Garg, Judicial Member -
(1.) THIS appeal has been preferred by the revenue against order dated 6-8-1980 of the Commissioner (Appeals).
(2.) 1973-74 is the assessment year concerned. The assessee is an individual. The assessment was completed by the WTO as per order dated 23-10-1974 determining net wealth at Rs. 1,69,633. The said figure included an amount of Rs. 19,597 as belonging to the assessee and lying in the Standard Bank Ltd., London in the sum off 1,088.32. The assessee had filed the return of net wealth for the said assessment year claiming the status of non-resident. Thus, according to the assessee in the light of provisions of Clause (i) of Section 6 of the Wealth-tax Act, 1957 ('the Act') the value of the assets and debts located outside India was not includible in the computation of the assessee's net wealth. The learned WTO, however, completed the assessment on the assessee in the status of resident. In this regard, the WTO, actually relied on the finding arrived at by the ITO in the present assessee's income-tax assessment relating to the assessment year 1973-74. That income-tax assessment was also completed as per order dated 23-10-1974. In the return of net wealth filed by the assessee, he had, in view of his claim as to status as nonresident, made a specific statement. 'The assessee is having bank balance with a London bank, which is exempt under Section 6(z) being a nonresident'. Thus in the return of net wealth, the assessee had not disclosed at all any deposits lying in any London bank. Actually, the assessee had two deposits in two different London banks as on the valuation date, namely, 31-3-1973. One deposit was of Rs. 72,724 lying in National City Bank, London in the sum of ï¿½ 4040.24 and the other deposit was of ï¿½ 1088.32 as aforesaid in the Standard Bank Ltd., London. Shri N.K. Sharma was the ITO as well as the WTO for Distt. III (25) New Delhi. It appears that during the course of wealth-tax assessment under consideration, the WTO (Shri N.K. Sharma) in view of the progress made in the assessee's income-tax case for the assessment year 1973-74 having made up his mind regarding residential status of the assessee individual, enquired from the assessee as to the detail of the debts and assets lying outside India. This is indicated from the following scribbling appearing in photostat copy of the assessee's statement of assessable wealth in the wealth-tax folder:
In the wealth-tax assessment as completed by the WTO on 23-10-1974 there was no recording of any satisfaction as to concealment of particulars of net wealth by the assessee. No appeal was filed against the said wealth-tax assessment on question of status or on any other question.
(3.) AGAINST the aforesaid income-tax assessment, however, the assessee went in appeal to the AAC and assailed the ITO's finding as to his residential status. The AAC turned down the assessee's claim as to status as non-resident during the previous year relating to the assessment year 1973-74, as per consolidated order dated 31-3-1975 passed regarding the assessment years 1972-73 and 1973-74.;
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