Law:

Section:

(a) Wealth Tax Act (XV of 1963)--- ----S.2(5)(ii)---Assets---Assessees contended that Taxation Officer treated the property owned by the assessee as taxable, whereas the property in question had not been held for the purpose of business of construction and sale or letting out and the same could not be subjected to tax as defined under S.2(5)(ii) of the Wealth Tax Act, 1963---Validity;---If, for some span of time the asset was rented out, it would not 'remain within the charge created by the definition of "asset" under S.2(1)(5)(ii) of the Wealth Tax Act, 1963, and explanation provided therein---Benefit of doubt had to be given to assessee and the case could have been decided in favour of the assessee---Term "held for the purpose of" could not be extended to apply where, for some time, the property had been let out while the original purpose remained self use---Letting out was not the actual use but the purpose which was subject to charge under the provision---Temporary let out of property was not subject to charge under Wealth Tax Act, 1963---Taxation Officer treated the property owned by the assessee as taxable without establishing that the purpose of assessee regarding the property was business of construction and sale or letting out under S.2(5)(II) of the Wealth Tax Act, 1963---Order of First Appellate Authority was vacated and orders passed by the Taxation Officer were cancelled by the Appellate Tribunal and levy of additional tax was also deleted. 2008 PTD 838; 1996 SCMR 1670; PLD 1985 Kar. 407 and 1989 PTD 1044 rel. (b) Wealth Tax Act (XV of 1963)--- ----S.17---Wealth escaping assessment---Non-ticking of sub-clause of the provision on the notice---Effect---Assessee contended that notice issued under S.17 of the Wealth Tax Act, 1963 was vague and illegal as no specific sub-clause had been marked which was mandatory requirement and the order passed by the Taxation Officer was ab initio, unlawful, without jurisdiction and subsequent proceedings built thereon were unlawful---Validity---Taxation Officer issued notice wherein he had not properly ticked sub-clause of the provision under which he was going to tax the assessee---Such vague notice was ab initio…

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