TaxTMI 
TaxTMI 
2019 (8) TMI 1091
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....o the facts and circumstances of the case. 2. The CIT(A) erred in holding that 46.102 cents of land at Palarivattom, Kochi is not chargeable to wealth tax on the ground that the same was used for parking of vehicles belonging to the employees of the assessee company and hence was a business asset. 3. The CIT(A) failed to appreciate that the exclusion of an asset from chargeability to wealth tax in the event of the same being used as business asset applies only to 'Any building or land appurtenant thereto' covered in sec. 2(ea)(i) and not to urban land covered in section 2(ea)(v) of the Wealth Tax Act. 4. The CIT(A) ought to have appreciated that the exceptions provided in respect of 'Urban Land' such as land classified....
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..... However, in the return of Wealth filed, you had declared taxable wealth at Rs. Nil. Please explain." 3.1 In response to the notice, the assessee filed a reply stating that the land was actually used for the parking place of staff and customers and was shown in the Balance Sheet as a productive asset and was used for the purpose of business. However, the assessee could not produce any supporting documents/materials to substantiate their claim. It was also found that out of the total extent of land, assessee had sold 23.143 cents of land in March 2012 for Rs. 74,96,000/-(Rs. 3,23,900/- per cent). Therefore, the Assessing Officer took the market value of the land on the basis of this sale by reducing 10% in reverse order. As such, the valu....
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....onsideration which being a commercial asset cannot be subjected to wealth tax. Thus, the addition on this count was deleted by the CIT(A) for all the assessment years. 5. Against this, the Revenue is in appeal before us. 6. We have heard the rival submissions and perused the record. The Ld. AR has filed an affidavit dated 15/07/2019 stating as follows: "It is respectfully submitted that the land was not vacant urban land and it had been being used as Parking Space for Employees of the Company during the impugned periods. The main business of the Company is in the field of Software Export and about 400 employees are working the company during various shifts of day and night. many employees of the Company are coming from far away places....