AI Drafter 
TaxTMI 
TaxTMI 
2016 (3) TMI 46
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....ich are as under. In all appeals, Revenue has raised the following four grounds: "1. Whether in the facts and circumstances of the case4, the CIT(A) without linking the agricultural income offered to the lands included in the net wealth cannot delete the additions. 2. The valuation adopted by CIT(A) also shall be adjudicate by higher judicial authority. 3. Whether on the facts and circumstances of the case, the CIT(A) erred in not finding that the assessee did not offer rental income from the buildings which are included in the net taxable wealth. In the absence of such facts, the CIT(A) cannot delete the addition without linking the income from house property to the buildings included in the net wealth. 4. Any other ground that may be urged at the time of hearing". Ld. DR fairly admitted that Ground Nos. 2 & 4 does not require any consideration. For the sake of consideration appeal in WTA No 19/Hyd/2015 for AY 2009-10 is discussed elaborately. WTA No. 19/Hyd/2015 (AY. 2009-10): 3. This appeal pertains to AY. 2009-10, in which Ld. CIT(A) passed detailed order on various issues. In the assessment, AO has made additions under three heads: ....
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....essment year commencing on 1st April, 1993 in which urban land is included as an asset. Explanation 1(b) defines urban land means, land situated in any area which is comprised within the jurisdiction of a municipality etc within a distance of not being more than 08 KMs from the local limits of a municipality etc. However, proviso has been amended by the Finance Act, 2013 w.e.f. 01-04-1993 so as to state "but does not include land described as agricultural land in the records of the Government and used for agricultural purposes'. This indicates that even if a land is situated within 08 KMs of a town or municipality as specified, if such land is classified as 'agricultural land' in the records of the Government and used for agricultural purposes, it cannot be treated as an 'asset' for the purpose of WT Act. In fact the ground raised by the Revenue is not maintainable in the sense, that linking of agricultural income to agricultural land is not required and therefore, Ld. CIT(A) is not bound to do that exercise which is not prescribed by the Act. It is the AO who should have examined these matters at the time of assessment and should have verified whether the land is classified as 'ag....
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....he return of income filed. 7) Building at Gajularamaram. This was leased out and a rent of Rs. 76,000/- was admitted in the return of income filed. 8) Building at Maisammagudal: This was leased out and a rent of Rs. 72,000/- was admitted in the return of income filed. 9) ½ share in Building at Chinthal: This was leased out and a rent of Rs. 2,87,424/- was admitted in the return of income filed. 10) Building at Kompally: This was leased out and a rent of Rs. 9,94,368/- was admitted in the return of income filed. 11) The shop at MJ Colony, Shapur is purchased in the previous year 2008-09 relevant for the A. Y. 2009-10. The building could not be let out during the previous year for want of repairs. The appellant humbly submits that as the buildings were leased out or were used by the assessee, they cannot be considered as assets for the purpose of Wealth Tax Act within the meaning of Sec. 2(ea) of the I.T. Act. Therefore, the Assessing Officer is not justified in treating them as part of the wealth of the appellant". 7.2 The assessment order and the submissions of the appellant are considered. It is seen from the re....
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....itions so made. 13. After considering the rival contentions, we are of the opinion that there is no merit in Revenue's ground. So long as the lands are agricultural in nature, the same cannot be treated as 'capital asset' in view of the provisions of Wealth Tax Act. Section 2(ea) of Wealth Tax Act defines 'asset' in relation to assessment year commencing on 1st April, 1993 in which urban land is included as an asset. Explanation 1(b) defines urban land means, land situated in any area which is comprised within the jurisdiction of a municipality etc within a distance of not being more than 08 KMs from the local limits of a municipality etc. However, proviso has been amended by the Finance Act, 2013 w.e.f. 01-04-1993 so as to state "but does not include land described as agricultural land in the records of the Government and used for agricultural purposes'. This indicates that even if a land is situated within 08 KMs of a town or municipality as specified, if such land is classified as 'agricultural land' in the records of the Government and used for agricultural purposes, the same cannot be treated as an ' asset' for the purpose of WT Act. In fact the ground raised by the Revenue....