2006 (12) TMI 107

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....holding that the land being sold is to be treated as a business asset and exempt from wealth-tax merely because the builder took possession after the valuation date? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that since the land is in possession of the assessee, it is capable of being used as a business asset and consequently should be treated as exempt, even though it was not actually used for storage of explosives as on the valuation date?" The brief facts leading to the above questions of law are as under: The assessee is a closely-held industrial company engaged in the business of manufacture and sale of fire works. The relevant assessment year is 2001-02 and the valuation date is ....

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....derstanding with a builder for sale of land for a sum of Rs. 14 crores and the assessee received an advance of Rs. 12 lakhs on March 10, 2001. In consequence of the same, the builder has taken over possession of the land on June 4, 2001. On the above facts, the Assessing Officer held that the land was not used for the purpose of storing fire works and therefore, he included the value of the said land in the net wealth of the assessee and estimated the value of land at Rs. 14 crores being the sale value of land and completed the assessment. Aggrieved by the order, the assessee filed an appeal to the . Commissioner of Wealth-tax (Appeals). The Commissioner of Wealth-tax (Appeals) allowed the appeal and directed the Assessing Officer to delete....

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....------                                  Rs. "Advance    10-3-2001      12,00,000                    24-5-2001                    22-5-2001                    24-5-2001    2,00,00,000           &nbs....