COMMISSIONER OF INCOME TAX Vs. NEENA JAIN

JUDGEMENT

(1.) As common questions of law and facts are involved in the present appeals filed by the revenue against the respondent-assessee-Smt.Neena Jain c/o M/s Sweety Fabrics (P) Ltd. (for brevity 'the assessee'), pertaining to the same property of different assessment years, therefore, we propose to dispose of the aforementioned four appeals, vide this single judgment, in order to avoid the repetition of facts. However, for facilitation, the facts have been extracted from W.T.A.No.17 of 2008 titled as 'Commissioner of Income-tax (Cental), Ludhiana Versus Smt.Neena Jain c/o M/s Sweety Fabrics (P) Ltd.

(2.) The matrix of the facts, culminating in the commencement of, relevant for disposal of present appeals and emanating from the record, is that during the course of examination of return, for the relevant assessment year 2003-2004, it revealed that the assessee has started construction of residential house on plot jointly owned by her and her husband, situated at Gurdev Nagar, Ludhiana, in the month of February 2002. The construction was still incomplete as on the valuation date under consideration. Although the assessee was stated to have spent an amount of her share to the tune of Rs.38,26,447/-, half of the total amount of Rs.76,52,894/-, in construction of their joint house, but it was not shown in the return. Therefore, the assessee was asked to explain, as to why addition of the value of the plot and the amount of investment in the construction of the said house relating to her share, be not made to her net wealth.

(3.) In pursuance thereto, the assessee explained that since the residential house is still under construction, it does not fall within the definition of assets in section 2 (ea) of the Wealth Tax Act, 1957 (for short 'the Act'), and so as such, it was not so declared in the return of net wealth.