Tax authorities cannot levy wealth tax on an individual for a property they have been judicially determined not to own, and assessment orders must be rectified to conform with a final judicial declaration of title, overriding technical arguments regarding limitation and finality of proceedings.

COMMON ORDER: (per the Hon’ble Sri Justice P.Sam Koshy)

Heard Ms. D.Shalini, learned counsel, representing Mr. D.Srinivas Prasad, learned counsel for the petitioner; and Ms. Bokaro Sapna Reddy, learned Senior Standing Counsel for Income Tax Department, representing Mr. J.V. Prasad, learned Senior Standing Counsel for Income Tax Department for the respondents.

2. Since the issue involved in this batch of writ petitions and the parties to the dispute are also being the same, they are taken up for analogous hearing and decided by this Common Order.

3. For convenience, the facts in Writ Petition No.27464 of 2008 are discussed hereunder.

4. The instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India seeking following reliefs:-

a) To correct the mistake in the Assessment Order dated 29.03.1994, for the assessment year 1991-92 in the light of the judgment of the Hon’ble Supreme Court passed in Civil Appeal No.2063 of 1999, dated 29.01.2002 and grant consequential relief by directing the respondents to pass fresh assessment orders for assessment year 1991-92 in conformity with the aforesaid judgment of the Hon’ble Supreme Court

b) To set aside the order dated 12.01.1996, in Appeal No.119/WTO/1(5)/CWT(A)/94-95, passed by the Commissioner of Income Tax (Appeals) - I.

c) To set aside the order dated 15.06.1998, in WTA No.114/Hyd/1996, passed by the Income Tax Appellate Tribunal.

d) To set aside the order dated 11.02.2004, in application Hqrs.4/W.T.Revision/01-05/2003-04.

e) To set aside the order dated 05.01.2007, in M.P.Nos.52 to 55/Hyd/2003 in W.T.A. Nos.111 to 114/Hyd/1996, passed by the Income Tax Appellate Tribunal.

5. The brief facts of the case are that the petitioner late Mr. Konda Laxman Bapuji, was in possession of a property known as “Jala Drushyam” situated in Survey Nos.9/15, 9/16, and 9/17 near Lumbini Park, Hyderabad, on one side of Hussain Sagar since 1954 (hereinafter referred to as “subject property”). The subject property was subjected to litigation when one Sri Shahpurji Chenoy filed O.S.No.13 of 1958, before the Additional Chief Judge, City Civil Court, Hyderabad, claiming the ownership. However, the suit was dismissed on 11.11.1975 with a finding that Sri Shahpurji Chenoy did not have title over the property. On 28.02.1976, the Tahasildar of Hyderabad Urban Taluka, issued eviction notice to the petitioner to vacate from the subject property and also passed order of eviction against the petitioner on 28.05.1977.

6. Aggrieved by the said order, the petitioner challenged the said order by way of W.P.No.1414 of 1977 before this Court. The Hon’ble Single Judge Bench of this Court allowed the petition; however, the Division Bench in W.A.No.61 of 1978 ruled that the title dispute required adjudication in a regular Court.

7. The Government then filed the O.S.No.1497 of 1985 which was later transferred to the Special Court as L.G.C. No.61 of 1990. The Special Court declared the petitioner as land grabber on 16.04.1993. Subsequently, W.P.No.5332 of 1993 was filed by the petitioner challenging the aforesaid order dated 16.04.1993, in L.G.C. No.61 of 1990, was also dismissed. Challenging the said judgment, the petitioner filed an appeal b