TaxTMI 
TaxTMI 
2022 (7) TMI 304
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....hese appeals by the assessees are directed against common impugned order dated February 12, 2016 passed by the ITAT Income Tax Appellate Tribunal 'C' Bench in W.T.As. No.37 to 42/Bang/2014, W.T.As. No.43 to 45/Bang/2014 and W.T.As. No.46 to 51/Bang/2014 and they have been admitted to consider following questions of law: "1. On the facts and circumstances of the case and in law whether the learned Tribunal was correct in law in holding perversely that the appellant continued to be the owner of urban land under section 2(ea) of the Wealth Tax Act, 1957 despite the fact that the appellate (after transferring the land to the developer through JDA dated 05-12-2000) retained only the right to receive 15.3% of the total built up area, wh....
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....d.('CIDL' for short), a subsidiary Company of M/s. ITC Ltd. In pursuance of the agreement, they handed over the physical possession of their respective properties along with original title deeds. They have cumulatively received a sum of Rs. 28.88 crores as refundable deposit. CIDL did not develop the property, but on the other hand determined the agreement on August 29, 2007. On the same day a Settlement Agreement was entered into between the appellants, CIDL and M/s. ITC Ltd., and the appellants were compelled to convey the properties in question in favour of ITC Ltd. 4. The Assessing Authority took up appellants' cases for scrutiny assessment and issued Notices under Section 17 of the Wealth Tax Act, 1957 for the Assessment ....
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.... through the Master Development Agreement dated December 5, 2000 between appellants and the CIDL and urged that appellants had handed over possession of their lands to the Developer. He submitted that under Clause 13.1 of the agreement, parties were required to file applications before the appropriate authority under Chapter XXC of the Income Tax Act, 1961 'IT Act' for short, and the Department had issued 'No objection' under Section 269UL(1) of the Act dated March 12, 2001 and the name of the transferee mentioned therein is CIDL. 8. Shri. Ramaswamy placed reliance on the following authorities: * CIT Vs. Dr. T.K. Dayalu ITA 3209/2005 c/w. 3165/2005 decided on 20.06.2011 * CIT Vs. Shri. N Vemanna Reddy ITA No. 591/2008 ....
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..... It is a tax in respect of the net wealth of every individual, HUF and Company. Net Wealth is defined in Section 2(n) as 'the amount by which the aggregate value computed in accordance with the provisions of the Act of all assets wherever located. As per Section 2(ea), 'urban land' falls within the definition of 'assets'. It is not in dispute that the appellants own urbun land and they are assessable for Wealth tax. 13. Appellants' case is, they had entered into a Joint Development Agreement with the CIDL for development of their lands. A careful perusal of the Master Development Agreement 'MDA' for short shows that the appellants as owners of properties mentioned in the Schedules - I, II and III had earlie....
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....favour of M/s. ITC Ltd. All transactions have taken place on the same day namely August 29, 2007. 15. It was argued by Shri. Ramaswamy that appellants had no choice, but to accept the terms put forth by the M/s. ITC and CIDL. He has also placed for our reference, a letter dated May 19, 2001, written by one Mr. Surjit Singh Dhingra to CIDL. It is stated therein that the NOC from the appropriate authority was faxed and the original was couriered on March 14, 2001 and subsequently, CIDL had taken possession of the properties on March 26, 2001. Shri. Ramaswamy has also placed a photocopy of the Consignment note issued by DTDC Courier company. 16. The ITAT in paras 11 and 12 of its order, adverting to Wipro Ltd., Vs. DCIT 282 CTR (KAR) 346 has....
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....e-A(viii) to the agreement shows that the owner has granted two Powers of Attorney of the same date in favour of the developer for the purpose of development and sale. Clause 13(1) & 13(2) of the MDA, refer to the transfer of possession. 20. Shri. Ramaswamy has also placed the following documents for consideration: * a copy of letter dated January 11, 2000, written by CIDL to Shri. S.S. Dhingra; * reply by Shri. S.S. Dhingra dated January 17, 2000; * copy of order dated April 17, 1999 in O.S. No.830/1996 in the Court of Additional Civil Judge, Junior Division, Bengaluru; * copy of Assessment order dated December 22, 2010 of M/s. Triad Resorts and Hotels Pvt. Ltd. for A.Y. 2008-09; * order passed by CIT(Appeals) dated March 20, 2....