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2020 (3) TMI 580 - AT - Wealth-taxNet taxable wealth - Assessment of net taxable wealth on the immovable property - ½ share of flat at Khairatabad - HELD THAT:- It is not in disputed that the house was not under repair. In these circumstances, it cannot be presumed that the house is habitable. In such situation, it cannot be treated as a residential property in the true sense. Further, the Ld. WTO has adopted the market value on estimate basis without any supporting evidence which is not justifiable. Considering the above facts of the issue, we are of the considered view that the aforesaid residential house cannot be treated as an asset exigible for wealth tax. However, only the undivided share in the land attributable to the residential flat shall be exigible for wealth tax which the Ld. WTO shall estimate after obtaining the value from the Stamp Valuation Authority of the State Government and by considering all the relevant factors and thereafter arrive at the taxable wealth. It is ordered accordingly. ¼ share of land at Jubilee Hills - We are of the considered view that the ad-hoc estimate of the market value of the immovable asset is not justifiable. Further, the unfinished building cannot be treated as a building exigible to wealth tax. However, the urban land is exigible to wealth tax as per section 2(ea)(v) of the Act. Accordingly, the Ld. WTO is hereby directed to obtain the market value of the land from the Stamp Valuation Authority of the state Government for the relevant assessment year and after considering all the relevant factors estimate and adopt the same for computing the taxable wealth of the assessee. Land at Kapra - Assessee had intimated to the Ld. WTO that the land purchased along with others were for the purpose of the business viz., construction of flats which are to be subsequently sold and therefore it should be treated as stock in trade. Further the assessee had also conducted in such a manner so as to establish that the land was purchased for the purpose of business by obtaining permission for construction from GHMC. In such situation, merely because the permission for granting construction from GHMC was applied on 25/7/2009 it is not appropriate to treat the “urban land” as “asset” U/s. 2(ea)(i)(v) of the Act because the moment the land is purchased for trading it has to be treated as stock-in-trade and section 2(ea)(i)(2) vividly exempts stock in trade within the purview of “assets” for the purpose of computing taxable wealth. Hence, we do not subscribe to the view of the Ld.WTO. Accordingly, we hereby direct the Ld. WTO to exclude the land at Kapra for the purpose of determining the taxable wealth of the assessee. Land at Katedan - Assessee should be provided with one more opportunity to justify his claim with cogent evident before the Ld. WTO. Accordingly, we hereby remit back the matter to the file of Ld. WTO for de novo consideration on the issue. Land at L.B. Naga - We are of the considered view that the assessee should be provided with one more opportunity to justify his claim with cogent evident before the Ld. WTO on this issue also. Accordingly, we hereby remit back this issue to the file of Ld. WTO for de novo consideration. Motor Car - On perusing the issue, we are of the view that the Ld. WTO has rightly assed the motor car to wealth tax because neither the assessee is in the business of running motor car nor hiring them. Further the motor car is not held by the assessee as stock in trade. Therefore, we do not find any infirmity in the order of the Ld. WTO on this issue.
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