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2016 (4) TMI 896 - AT - Wealth-taxComputation of net wealth of the assessee-company - whether the lands, which are undisputedly urban land within the meaning of provisions of 2(e)(a) of the Act, which are subject matter of JDA can be included in the net wealth of the assessee-company ? - Held that:- It is settled principle of law that the finding in income-tax proceedings is not relevant for the purpose of wealth-tax proceedings but the crucial facts to be noticed in this case is that the assessee company was not able to demonstrate before us that the lands were held as stock-in-trade by the assessee-company with any material. Therefore, unless contrary is proved, it is presumed that treatment given in the books of account is correct and therefore, we are unable to agree with the assessee-company that the lands are held as stock-in-trade. In the case of Vysya Bank Ltd. vs. DCWT (2007 (2) TMI 161 - KARNATAKA HIGH COURT), held that an asset, which was not registered and title of the property had not been passed on to the company, cannot be included in the taxable wealth of a company. In light of the abovementioned legal position, we hold that the assessee-company continues to be owner of the lands and is liable to wealth-tax. With regard to the claim of the assessee-company that refundable deposits received from M/s.Classic Enterprises in terms of the development agreement should be allowed as a deduction from the value of the assets computed, it is undisputed fact that refundable deposit was received subsequent to acquisition of the asset. The refundable deposit has no nexus with the acquisition of assets in question. Therefore, the claim of the assessee-company cannot be allowed.
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