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2018 (11) TMI 107 - HC - Wealth-taxCapital asset - exemption from wealth ta act - whether Subject land is an “asset” within the meaning of Section 2(ea)(v) of the Wealth Tax Act - Held that:- If the appellants are held to have treated the subject land as a “capital asset”, the assessing authority would have treated transfer of the said asset, pursuant to the joint development agreement, as liable to tax as capital gains under Section 45 of the Income Tax Act; and the very fact that they did not, reflects their understanding that the assessee intended to treat this asset only as a stock-in-trade for the purpose of carrying on business. It is possible that the assessing authority was of the view that execution of a joint development agreement did not automatically result in the transfer of the asset. The mere fact that the appellants-assessees were not subjected to tax towards capital gains under Section 45 of the Income Tax Act would not necessitate the inference that the subject “land” was treated as stock-in-trade for the purpose of carrying on business; and is, therefore, exempt from tax under Section 3(2) of the Wealth Tax Act. The Income Tax Appellate Tribunal is the final Court of fact. An appeal to the High Court lies, under Section 27A(2) of the Wealth Tax Act, only if the High Court is satisfied that the case involves a substantial question of law. We are satisfied that the findings of fact recorded by the Tribunal, and its conclusions on law, are not such as to necessitate interference in proceedings under Section 27A of the Wealth Tax Act. We see no reason, therefore, to interfere with the impugned orders passed by the Tribunal. Appeal dismissed.
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