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2014 (7) TMI 1214 - ITAT AHMEDABADNature of land - whether land in question had fallen within the definition of “asset” as per Section 2(ea) of WT Act - Held that:- After formulating the correct legal position that the agricultural land if within municipal limits and if established the nature of the land as agricultural land; then should not be held as “urban land”, we hereby consider it necessary to direct the assessee to establish the nature / the character of the agricultural land. As noted above, the assessee has furnished 7/12 extract of the land. We are of the considered opinion that mere filing of 7/12 extract is not sufficient. The provision prescribes that the land is to be used for agriculture purposes. Due to this reason, the assessee has to establish the agricultural operation whether carried out or not and that agriculture income was shown in the income tax return. Agriculture activity coupled with 7/12 extract can establish the nature of the land. When the proceedings were carried out before the lower authorities the provisions of WT Act were only considered by them and it was opined that the claim of the assessee was not within the ambits of the relevant provisions of WT Act; hence, the merits of the nature of the land were not examined. It was rightly so; because as per old law land of any nature if situated within the municipal limit was to be treated as “urban land”; then there was no need of further enquiry about the value of the land at that point of time. We, therefore, now deem it proper to restore this issue back to the file of AO to examine the merits of the claim on the basis of the evidence. Side by side, we hereby direct these appellants to furnish all the relevant evidences so that a correct view can be expressed by the learned AO. Since, the issue has been restored back; therefore, the grounds may be treated as allowed but for statistical purpose only.
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