2023 (1) TMI 1039

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....us, there is no delay in filing the above appeal and we take the appeal of the assessee for adjudication. 2.1. The brief facts of the case is that the assessee is an individual and owner of motor car, gold bars, land at Kapurai, land at Sakarda and property at BIDC, Gorwa. However the assessee has not filed his Return of wealth. Hence a notice u/s. 17(1) of the Act was issued on 01.09.2013. In response, the assessee filed his Return of wealth on 05.02.2015 declaring total taxable wealth of Rs. 6,50,663/- consisting of motor car worth at Rs. 4,78,695/- and gold bar valuing at Rs. 1,71,968/-. The Assessing Officer issued a show cause notice on the three lands mentioned above and reflecting in the balance sheet and why not considered the same as assets within the meaning of Section 2(ea) of the Wealth Tax Act. 2.2. The assessee submitted that the land at Sakarda worth Rs. 27,39,000/- which is an agricultural land, hence not an asset within the meaning of explanation (1)(b)(ii) to Section 2(ea) of the Wealth Tax Act. The assessing officer held that the land was situated within the distance of 2-3 k.m. from the municipal limits of Vadodara and the assessee failed to establish the ....

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...." for the purpose of wealth tax. However the assessee's claim of loan, for purchase of Sakarda land. Therefore the A.O. was directed to consider the assessee's debts of Rs. 26,47,751/- which are directly related to the payment of Rs. 27,39,000/-. The A.O. was directed to verify the same and value the land for wealth tax purposes. 3.2. Regarding the land at BIDC, Gorwa, the same is excluded from the definition of "assets" under sub-clause (5) of Section 2(ea) (i) of the Wealth Tax Act. Thus the Ld. CIT(A) partly allowed the appeal of the assessee. 4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. On the facts and in the circumstances of the case, the Ld. Commissioner of Wealth Tax (A) has erred in confirming addition of Rs. 27,39,000/- as value of Land at village Sakarda made by the AO as chargeable to wealth tax, without considering the fact of the case. 2. On the facts and in the circumstances of the case the CWT(A) has erred in confirming the addition of Rs 3,11,175/- as value of Land at Kapurai, Baroda as chargeable to wealth tax without considering the fact of the case. 3. The Appellan....

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....us this land is not an asset for wealth tax purpose. 2) Sakarda Sanyukt Kheti Sahkari Mandli Ltd. (Seller) has filed the suit in the court of Hon. Vadodara's Board of Nominees bearing lavad case no 2175/2007 against Shri. Arvindbhia Jani & others challenging the validity of registered Sale Deed bearing No. 9851 Dtd 25/11/2007. 3) The society has contended that on even date the land in dispute is agriculture land in revenue records. There is ownership of the society. The land in dispute is agricultural land under the possession of the society. There was no possession of the Appellant and there will be no possession of any other member. 4) There is no possession with the Appellant, hence sale/purchase transaction of agricultural land in dispute is not a complete transaction. In the circumstances the amount paid Rs 27,39,000/- remains advance paid for purchase of agricultural land. 5) The Assessee is holding rights as POA. He is not a full-fledged owner of the property. Grounds of Appeal No. 2 regarding agricultural land at Kapurai worth Rs. 3,11,175/- As per facts available on record it is submitted that (I) It repres....

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....his property doesn't comes under the purview of assets under the W.T. Act, 1957. Hence, the appellant cannot be penalized for non-disclosure of the particulars of this property in the Wealth tax Return for A.Y. 2009-10. Thus, penalty levied for concealment of particulars of this asset is hereby deleted. 4.3 Land at Kapurai, Baroda:- During the appellate proceedings, the appellant submitted that the land was an agricultural land as per the Government record and Rs. 3,11,175/- represents advance. The appellant submitted various documents in support of his these claim. After careful consideration of the submission of the appellant, it is observed that the appellant was engaged in dealing of land/property through power of attorney/agreement to sell. After the POA/Agreement to Sell, the appellant searched the buyer for the land/property and got the land/property directly transferred from the land/property owner to the real purchaser and earns the income for this arrangement. Therefore, the appellant did not become absolute owner and this modus operandi/practice has been accepted by the AO, Ld. CIT(A) as well as ITAT in the A.Y. 2008-09 by treating the income out of this act....