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2014 (8) TMI 768 - AT - Wealth-taxDeletion the value of the land for Wealth Tax - Exempt u/s 2(2ea)(ii) - Whether CWT(A) erred in directing the AO to delete the value of the land for Wealth Tax purposes as being exempt ujs. 2(2ea)(ii) of the W. T. Act, without appreciating the findings of the AO in the assessment order - Held that:- it is clear that if on a plot of land construction of a building is not permissible under any law then the said plot of land could not form part of urban land or the asset to be taxed under the Act. In the case under consideration the certificate issued by the Municipal Authorities demonstrate that the plot of land was a reserved as recreation ground and on the date of assessment the local authorities had not granted permission to construct any building on it. Even till the passing the order by the FAA, permission was not granted to construct building on the plot of land owned by the assesseehad. Before us, also no evidence was produced that prove that permission was granted to the assessee had for construction in the year under consideration. Therefore, considering the factual matrix of the matter and the above mentioned two judgments, we are of the opinion that the order of the FAA does not suffer from any legal infirmity. Confirming his orders we decide first two grounds against the AO. Receivable compensation cannot be taken for valuing an asset on a particular date- especially when it is not certain that the assessee would get compensation or not at the first place. Taxes cannot be levied on hypothetical situations. - Decided against the revenue.
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