Quashing re-assessment proceedings under section 17 of the Wealth Tax Act, Delhi bench of the Income Tax Appellate Tribunal (ITAT) held that the same is not sustainable on the ground that the reasons for the assessment was not supplied to assessee.
In the instant case, assessee challenged the order reopening of Wealth Tax assessment under section 17 of the Wealth Tax Act on ground that the reasons of re-opening has not submitted to it despite several requests.
However, CWT(A) dismissed the appeal of assessee and sustained the order. Assessee approached the Tribunal on second appeal for relief.
Relying on the Delhi High Court decision in the case of Haryana Acrylic Manufacturing Co. vs. CIT, the bench held that the order is invalid since the reasons for reopening of the assessment under Wealth Tax have not been supplied to the assessee within the period of limitation.
The bench also relied on the Delhi High Court decision in the case of Haryana Acrylic Manufacturing Co. vs. CIT wherein the Court held that
The submissions of the assessee made before the A.O. and Ld. CWT(A) have not been rebutted by the department through any evidence or material on record. It, therefore, stands proved that the copy of the reasons for reopening of the assessment under Wealth Tax Act has not been supplied to the assessee within time. Therefore, the re-assessment is liable to be quashed.
Read the full text of the Order below.