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of <h1>Tribunal rules in favor of assessee on property tax assessments for business premises</h1> <h3>WEALTH TAX OFFICER. Versus K. VIJAYA KUMAR.</h3> WEALTH TAX OFFICER. Versus K. VIJAYA KUMAR. - TTJ 014, 303, Issues:1. Treatment of properties standing in the name of Vijayakumar Cotton Press for additional wealth tax.2. Levy of additional wealth tax on agricultural lands.Analysis:Issue 1: Treatment of properties for additional wealth taxThe dispute in this case revolves around determining the treatment of properties owned by Vijayakumar Cotton Press for the purpose of additional wealth tax assessments for the years 1970-71 to 1973-74. The Income Tax Officer (ITO) contended that since the properties were partly let out and the rental income was taxed as property income, they could not be considered as used for the business of the assessee, making them liable for additional wealth tax. However, the first appellate authority allowed the assessee's appeal, emphasizing a change in the utilization of the properties. The Tribunal noted that the legal position differs between income tax and wealth tax assessments. While income from property is assessed separately, wealth tax is levied on buildings or land not used for business purposes. The Tribunal highlighted that the nature of business premises in a commercial sense is crucial for determining liability for additional wealth tax. Based on the facts presented, including the usage of the properties as business premises, the Tribunal upheld the first appellate authority's decision, ruling in favor of the assessee for the years under consideration.Issue 2: Levy of additional wealth tax on agricultural landsThe second common ground of appeal pertains to the levy of additional wealth tax on agricultural lands. The first appellate authority had canceled the levy following a decision by the Punjab Haryana High Court, which deemed the levy constitutional. The appellant argued that the decision was pending before the Supreme Court and raised concerns regarding the varied nature of the land within and outside city limits. Additionally, the appellant contended that part of the land was used for business purposes, warranting a reevaluation of the levy. Considering these aspects, the Tribunal concluded that the dispute should be remitted back to the Wealth Tax Officer (WTO) for a fresh assessment in accordance with the law. As a result, the appeal on this issue was treated as allowed for statistical purposes.In conclusion, the Tribunal partly allowed the appeals concerning the treatment of properties for additional wealth tax and the levy on agricultural lands, directing a fresh assessment on the latter issue.
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