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2017 (9) TMI 1607 - HC - Wealth-taxNature of land - whether property of the assessee at Shaikpet is an urban land, is not an asset within the meaning of Section 2(ea) of the Wealth Tax Act, 1957? - Held that:- In an agreement for joint development of a property, the owner merely agrees to part with 50% or whatever of his undivided share in the land, so as to enable the builder to put up construction and handover an agreed percentage of super built area. Agreements for joint construction are not akin to agreement of sale though they may also contain conditions of sale. For the applicability of Section 53A of the Transfer of Property Act, the act of handing over possession should have taken place in furtherance of the agreement of sale. The provisions of Section 53A are very clear. In cases of joint development, neither the builder nor the owner can claim benefit of Section 53A of the Transfer of Property Act. Therefore, Section 4(8)(a) of the Wealth Tax Act would have no application to the facts on hand. Hence the questions of law are answered in favour of the appellant/revenue.
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