TaxTMI 
TaxTMI 
TaxTMI 
2018 (10) TMI 1055
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....ars. On scrutiny of the account, it revealed to the AO that the assessee was having land at Nikol, survey no.34/5. It was claimed as agriculture land not assessable for the purpose of wealth-tax in the Asstt.Year 2007-08. He has land at survey no.194/B, Muthiya (Sanvilla-1) and land at Vastral, Survey No.113. These lands were claimed as non-agriculture land in the Asstt.Year 2007-08. These lands were under-construction, and hence not liable for wealth-tax. Similarly, in the Asstt.Year 2008-09, the assessee had land at Narol at Survey no.84, 85 & 86. He had land at Nikol, survey no.34/3-4-5. These lands were claimed as agriculture land and not assessable for tax. He has land at survey no.194/B, Muthiya (Sanvilla-1). It was claimed as nonagriculture land and under construction, and not assessable to wealthtax. 4. In the Asstt.Year 2009-10, the assessee has land at Nikol, Survey No.34/4, Narol surveyno.84, 85 and 86 and land at Valad. This land stated to be agriculture land and not assessable for the purpose of wealth-tax. He has further land at Nikol and Muthiya in survey no.333/1 and 194/B, Muthiya. These lands were claimed as nonagriculture land, but under construction being busin....
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....h November, 1993.Thus land irrespective of its nature was treated as an urban land chargeable to wealth tax, if above conditions are satisfied. In view of the above, the definition of urban land in the Wealth-tax Act, 1957 has been amended to specifically provide that wealth tax is not leviable on urban land which is, (ii) classified as agricultural land in the records of the Government; and (ii) Used for agricultural purposes The said amendment was with retrospective effect from 01.04.1993. The amendment has been specifically brought to exempt the agricultural land which were falling within the Municipal limits. The amendment made in Finance Act, 2013 of newly inserted subclause (b) of Explanation 1 to clause (ea) of section 2 of the W. T. Act which has specifically provides that wealth tax is not leviable on urban land which is classified as agricultural land in the records of government and used for agricultural purposes or land on which construction of building is not permissible under any law for the time being in force in the area in which such land is situated. (Emphasis applied). The wordings "or land on which construction of building is not permissible under any l....
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....bsp; *** * *** *** *** **** 4.2. Decision : I have carefully gone through the above submission of the appellant alongwith the paper book and the impugned assessment order. During the course of assessment proceedings itself, the appellant had filed copy of development agreement alongwith commencement letter from Municipal Corporation which is compiled at page no 514 to 527 of the Paper book filed before me. The AO in the assessment order at page 8 has stated that In respect of Non Agri land in above table, Assessee has treated the same as not liable to wealth tax by following the de....
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....sioner of Income Tax, Circle- 1(1), [2010], 189 taxman 225 the Hon'ble court of kerala. (ii) Mathew L Chakola v Assistant Commissioner of wealth tax, Circle- 2(1) [2006] 9 SOT 617. (iii) Smt Meera Jacob v Wealth Tax Officer, Ward 1(3), [2007] 14 SOT 486. The above judgments are applicable in case of the appellant. In view of aforesaid facts and legal judgments, once the permission for construction received then it is deemed that the construction activity has already begun and thus such asset qualifies as productive asset and consequently same falls out of the scope of section 2(ea) of the Wealth Tax Act. Hence the observation made by the A.O. that the appellant had not furnished any evidence to show that the construction activity had actually started at the said land during the year is not justified and hence the addition made by the AO of Rs. 85,98,142/- on account of Non agriculture land is hereby deleted. Any profit from such completed projects on impugned land parcels is required to be taxed as "Income from business & profession", therefore, the AO to take remedial action if required as per law. In view of above, the Ground No.II of the appeal is allowed." 5. ....