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2012 (6) TMI 525 - AT - Wealth-taxDetermining the value of urban land - valuation to be determined based on the market value Ignorance of agreement entered between assesse and DLF as it is self serving Held that:- The valuation to be determined based on the market value cannot be accepted as the agreement ordains that all the transactions of sale of land are fixed at cost + Rs.2,000/- per acre, the module has been held by ITAT and by department to be at the arms length year after year - AO was not justified in treating the said agreement as self-serving document and should not be held as a void for wealth tax purposes, as the department itself has held it to be a valid agreement in income-tax proceedings - business assets embedded in the urban land became liable to tax with effect from 1.4.1993 and it cannot be said that this agreement, even though valid for all other purposes is void for the purposes of the Wealth Tax Act by application of this section and the value of the asset cannot be determined ignoring the agreement of 25.10.1983 - the land in question is held as stock in trade a business asset and the method of valuation as laid down in rule 14 and Schedule III part D is also applicable and on both counts the valuation adopted by AO cannot be upheld - no scope to determine the valuation as adopted by the WTO/CWT(A) in favour of assessee.
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