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2018 (2) TMI 1878 - AT - Wealth-taxUrban land chargeable to wealth tax - Impugned lands are agricultural lands - whether assessee’s case squarely falls within the definition of agricultural land? - whether lands in question are exempted for wealth tax u/s 2(ea)? - HELD THAT:- In this case, neither the Tahsildar nor the AO himself has inspected the land. The land records clearly show that as per the Government records, the lands are agricultural lands. The sale deeds also substantiate that the lands in question were agricultural lands. There is no other evidence brought on record to controvert that the impugned lands were not agricultural lands. Therefore, unable to uphold the contention of the lower authorities that the lands are non agricultural lands and accordingly hold that the lands are agricultural lands and entitled for exemption u/s 2(ea) of WT Act. Section 2(ea)(b) was amended retrospectively w.e.f. 01.04.1993 as per Finance Act, 2013 as per which the lands on which construction of building is not permissible are excluded from the definition of urban land. In the instant case, the AO has not brought on record any evidence to show that the lands are converted. Once the lands are not converted as non agricultural lands, construction of building is not permissible. In the case of Commissioner of Wealth Tax Vs. D.C.M.Ltd. [2005 (2) TMI 97 - DELHI HIGH COURT] held that the urban land on which construction of building is not permissible and no permission till date had been granted by the appropriate authority, the lands are excluded from the definition of urban land chargeable to wealth tax. Commissioner of Wealth Tax Vs.E.Udayakumar [2005 (10) TMI 64 - MADRAS HIGH COURT] held that agricultural lands situated within the limits of city corporation on which no construction is put up is not chargeable to wealth tax. The assessee’s case squarely falls within the definition of agricultural land as well as the amended provisions of Wealth Tax Act, where construction is not permissible. Accordingly we hold that the lands in question are exempted for wealth tax u/s 2(ea), hence not chargeable to wealth tax. We are unable to sustain the orders of the lower authorities and allow the appeal of the assessee.
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