2009 (7) TMI 29

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.... by the Income Tax Appellate Tribunal Delhi Bench 'H' New Delhi in WTA No. 140 D of 2006 for the assessment year 1995-96. It has been averred that the following question of law would arise for determination of this Court: " Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in holding that the land belonging to the assessee is not covered within the definition of urban land and it cannot be treated to be an asset taxable under the Wealth Tax Act even though the assessee had done construction on the said land, as such, construction was not prohibited on the said land under any law at any point of time, so it was an asset u/s 2(ea) (v) of the Wealth Tax Act, 1957. ?" 3. The Tribunal after noticing the defin....

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....fact in whole of the Sainik Farm area under municipal bye laws construction has been prohibited. 10.1 On going through the order of the Assessing Officer as well as that of the appellate authority, it is found that they have taken the value of the plot on the basis of alleged agreement to sell. As the land belonging to the assessee is not covered within the definition of urban land, it cannot be treated to be and (as an ?) asset taxable under the Wealth Tax Act. The departmental authorities, therefore, were not justified in determining the value of the plot of the assessee, for making assessment under the Wealth Tax Act. We, therefore, set aside the order of learned CWT (A) and accept the ground taken by the assessee in these two appeals."....

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....or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him or any land held by the assessee as stock-in-trade for a period of five years from the date of its acquisition by him" (emphasis added) 5. The aforesaid provision was enforced on 1.4.1993. It clarifies that any land on which construction of building is not permitted under any law for the time being in force in the area in which such a land is situated, was not to be included in the expression 'urban land'. It further provides that the land occupied by any building which has been constructed with the approval of the appropriate authority would also not be included in the expression 'urban land'. The matter has be....