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2015 (6) TMI 147 - ITAT CHENNAIWealth Tax assessment - Incomplete construction of commercial complex building - Held that:- Assessee has furnished bills and vouchers for the materials purchased such as steel, cement, sand, iron, labour expenses, lorry freight etc. for completing construction of the building. The only reason for bringing to wealth tax of the property is that assessee has applied for construction to the municipal corporation on 4.4.2005 and got approval only on 18.4.2005. In our view, this alone cannot be a ground for bringing the property to wealth tax when in fact the assessee has started constructing the building on the sites earlier, though applied for permission later to municipal authorities - once construction activity commenced in the land ceases its character as a vacant land and it cannot be treated as a nonproductive asset and such land cannot be brought to wealth tax. Thus, we hold that the land situated in survey no.154 and 154/3 is not liable to wealth tax. Therefore, the ground raised by the assessee in both the appeals on this issue is allowed. As regards, Commissioner of Income Tax (Appeals) not being not justified in sustaining the action of the Assessing Officer in bringing to wealth tax assessment a sum of ₹ 2,51,610/- and ₹ 8,16,796/- being value of land and building at Tiruchengode Road and at SIDCO Industrial Estate respectively as both are productive assets and not liable for wealth tax. - issue has not been considered by the Commissioner of Income Tax (Appeals). This ground raised by the assessee before the Commissioner of Income Tax (Appeals) was not disposed off. In the circumstances, we set aside this issue to the file of the Commissioner of Income Tax (Appeals) for disposing off this ground after providing sufficient opportunity to the assessee. Counsel for the assessee has not argued any other issues other than this though grounds were raised. - In favour of assessee.
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