TaxTMI 
TaxTMI 
2019 (1) TMI 1295
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.... below in confirming the addition of Rs. 1,17,30,000/- made by WTO on account of land u/s 2(ea) of the Wealth Tax Act. 2. We have heard Ld. Representatives of both the parties and perused the material on record. 3. During the year under consideration, the assessees had declared wealth consisting of jewellery. Perusal of the details filed by the assessees revealed that assessees had purchased an agricultural land admeasuring 4 Bigha and 16 Biswas situated in Revenue Estate of Village Dera Mandi Tehsil Hauzkhas, Mehrauli, New Delhi valued at Rs. 1,17,30,000/- each which has not been disclosed in the wealth tax return. Show cause notice was issued, as to why the same should not be treated as "urban land". It was submitted that it is not ....
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.... land in the records of the Government and used for agricultural purposes or land on which construction of a building is not permissible under the law for the time being in force in the area in which land is situated. The said amendment has been introduced by the Finance Act, 2013 with retrospective effect from 01.04.1993. Therefore, the agricultural land in question is not to be considered as urban land for the purpose of computation of taxable wealth of assessees. The authorities below have not denied the land is an agricultural land which is also recorded in the copies of the sale deeds. Copy of the search report was filed which shows land was agricultural land. Copies of the sale deeds of the seller as well as in favour of the assessees....
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....onstructing building thereto, the land falls within the definition of the term 'urban land' for the purpose of wealth-tax. This finding, in my opinion, is perverse and calls for interference with the assessment order." He has submitted that the provisions of Karnataka Land Revenue Act are perimateria with provisions in section 81 of Delhi Land Reforms Act in which it was provided that a Bhumidhar or an Asami shall be liable to ejectment on the suit of Gaon Sabha or the land holder, as the case may be, for using the land for any purpose other than a purpose connected with agriculture, horticulture or animal husbandry, which includes pisciculture and poultry farms. He has therefore submitted that addition may be deleted. On the other hand,....
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....hich construction of a building is not permissible under any law for the time being in force. Ld. Counsel for assessee relied upon decision of Karnataka High Court in the case of M.R. Raghuram vs. WTO (supra) in which the similar issues have been decided in favour of the assessees on the proposition that the urban land would exclude land on which construction of a building is not permissible. The provisions of Karnataka Land Revenue Act are similar to provisions contained under the Delhi Land Reforms Act which provides that the agricultural land could be used only for agricultural purposes otherwise the Bhumidhar or an Asami shall be liable for ejectment from agricultural land. In the sale deeds in questions filed on record, it is nowhere m....