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2016 (5) TMI 14 - AT - Wealth-taxInclusion of Agricultural lands for the purpose of wealth tax - A.O. was of the opinion that though, the lands are agricultural lands, they are situated within the 8 kms. from the local limits of the municipality, therefore, liable for wealth tax - contention of the assessee that the lands are classified as agricultural lands and also used for agricultural purpose as per the revenue records of the Government - Held that:- We find force in the arguments of the assessee for the reason that the Finance Act, 2013, with retrospective effect from 1.4.1993, has amended the definition of urban lands and as per the amended definition, urban land means, any lands classified as agricultural land as per the revenue records of the Government and used for the agricultural purpose are not asset within the meaning of section 2(ea) of the Act. In the present case on hand, it is an undisputed fact that the lands are agricultural lands and used for agricultural purposes. The A.O. himself has admitted that these lands are agricultural lands. The only contention of the A.O. is that these lands are situated within 8 kms. from the local limits of municipality. As per the amended definition of urban land, the distance from the municipality is not a criteria to determine whether the lands are assets or not. Once the lands are classified as agricultural lands, in the revenue records of Government and used for agricultural purpose, then the same are outside the purview of the definition of assets as per section 2(ea) of the Act. The CIT(A) after considering the explanations furnished by the assessee, rightly deleted the additions made by the AO. Therefore, we inclined to uphold the order of the CIT(A) and direct the A.O. to exclude the agricultural lands for the purpose of wealth tax. - Decided in favour of assessee Taxability of house property situated at Tirupur - Held that:- On verification of the sale deed, we find that though the property has been sold for a consideration of ₹ 14,01,000/-, the sub registrar, at the time of registration of the property has collected additional stamp duty and penalty. The sale deed copy was available in the local language of Tamil. Though, English translation copy is available in the file, the details are not clear from the sale deed that whether the market value of the property is at ₹ 14,01,000/- or not. The assessee contends that the market value of the property is at ₹ 14,01,000/-. But, the fact remains that at the time of registration of the property, additional stamp duty and penalty was collected cannot be ignored. Under these circumstances, we are of the opinion that the issue needs to be examined by the A.O. in the light of the above discussions. Therefore, we set aside the issue to the file of the A.O. and direct the A.O. to examine, whether the sale deed copy produced by the assessee shows the market value of the property at ₹ 14,01,000/- or not. In case the market value of the property is at ₹ 14,01,000/- then the same should be adopted for the purpose of determination of taxable wealth. - Decided in favour of revenue for statistical purposes.
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