2020 (3) TMI 580

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....s appeal however, the crux of the issue is that the Ld. CWT (A) has erred in confirming the order of the Ld. WTO who had assessed the net taxable wealth on the immovable property as detailed herein below: Sl no. Particulars of Immovable property Valuation adopted (Rs.) 1 ½ share at Flat at Khairatabad 17,20,000 2 ½ share of land at Jubilee Hills 51,33,000 3 Land at Kapra 69,25,000 4 Land at Katedan 68,83,510 5 Land at L.B. Nagar 1,19,19,850 6 Movable Assets - CAR 2,62,981   Total 3,28,44,241 3. The brief facts of the case are that the assessee is an individual who failed to file his wealth tax return for the AY 2009-10. Subsequently, it was reveale....

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...., it cannot be presumed that the house is habitable. In such situation, it cannot be treated as a residential property in the true sense. Further, the Ld. WTO has adopted the market value on estimate basis without any supporting evidence which is not justifiable. Considering the above facts of the issue, we are of the considered view that the aforesaid residential house cannot be treated as an asset exigible for wealth tax. However, only the undivided share in the land attributable to the residential flat shall be exigible for wealth tax which the Ld. WTO shall estimate after obtaining the value from the Stamp Valuation Authority of the State Government and by considering all the relevant factors and thereafter arrive at the taxable wealth.....

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....n. The Ld. AO opined that since the requisition for the grant of permission was applied by the assessee on 25/7/2009, the Land cannot be considered as stock in trade because the valuation date for the relevant AY is 31/3/2009. Accordingly, the Ld. WTO made an ad-hoc estimate and assessed the value of the land at Rs. 69,25,000/. At the outset, we are not in agreement with the order of the ld. WTO on this issue. Assessee had intimated to the Ld. WTO that the land purchased along with others were for the purpose of the business viz., construction of flats which are to be subsequently sold and therefore it should be treated as stock in trade. Further the assessee had also conducted in such a manner so as to establish that the land was purchased....

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.... the considered view that the assessee should be provided with one more opportunity to justify his claim with cogent evident before the Ld. WTO. Accordingly, we hereby remit back the matter to the file of Ld. WTO for de novo consideration on the issue. (5) Land at L.B. Nagar: At the outset, the ld. AR submitted before us that commercial building was constructed on the land and the same was rented out and the rental income was offered as income for taxation. It was therefore pleaded that the Ld. WTO may be directed to exclude the immovable asset valued at Rs. 1,19,19,850/- while determining the taxable wealth of the assessee. The Ld. DR on the other hand pointed out that the assessee has not produced any cogent evidence to justify h....