Case Law Details
Nirajkumar N. Rungta & Anr. Vs Commissioner of Wealth Tax (Bombay High Court)
The assesse moved to the Hon’ble High Court under the provisions of Section 27-A of Wealth Tax Act, wherein the following common questions of law were raised:
(i) Whether, on the facts and in the circumstances of the case the Tribunal erred in law in including the market value of the said gold in the computation of net wealth of the original petitioner ?
(ii) Whether, on the facts and in the circumstances of the case the Tribunal erred in law in rejecting the assessee’s submissions that even if the said gold were to be included in the net wealth, the value thereof to be taken ought to be NIL or ought to be arrived at, bearing in mind the liability for confiscation, fine and penalty and bearing in mind that what had to be valued was the price which the assessee claim to be restored possession of the said gold would fetch, if sold in the open market ?
The brief facts were that, the original assessee filed application for investing gold under the Gold Bond Scheme and met the concerned Wealth-Tax Officer in order to obtain certain clarification about the operation of the scheme.The Wealth-Tax Officer on becoming aware of the intention of the original assessee to invest gold in the Gold Bond Scheme used the information elicited by him and issued for search and seizure under Section 132 of the Income Tax Act, 1961 and thereafter the valuables was seized by the Deputy Collector, Central Excise for violation of the Defence of India (Gold Control) Rules, 1962.
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