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2014 (1) TMI 317 - ITAT HYDERABADValuation of property - Enhancement in valuation - Land converted from small scale industrial use to 20% residential use - Whether converted land is liable for wealth tax - Held that:- there is no need to tax 20% of the property as taxable asset. Admittedly, the land owned by Assessee company admeasuring 29015.77 sq.mts. is not free land and it consisted of 18 buildings, which are being utilized by Assessee for its offices/ business purposes for many years. Just because, Assessee obtained permission from Govt. of Karnataka for change of land use and subsequently entered into agreement for development cannot be considered as change in nature of property. Obviously till the old buildings are demolished or any new buildings came up on the land, Assessee was continuing to use the building and the land for the purposes of office/business purposes. Therefore, considering 20% of the proposed conversion of land use cannot be taken as an asset under the definition of 'asset' in the Wealth Tax Act. Since the property is being used for Assessee's business, it is certainly exempt from Wealth Tax - agricultural land being used for Assessee's business operations cannot be brought to tax as only unused urban land can be brought to tax for the Wealth Tax purposes as per the Explanation (1)(b) of section 2(ea) of the WT Act - Decided against Revenue.
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