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2021 (2) TMI 624 - AT - Wealth-taxWealth tax assessment - entitlement to exemption u/s. 5(vi) on the value to the extent of land admeasure 500 Sq mts, irrespective of the number of plots - assessee and his wife are the co-owners/co-purchasers of two plots and the former’s share neither exceeds the threshold limit of 500 sq.mts. or more as per the exemption clause u/s 5(vi) of the Act. - HELD THAT:- Assessee and his wife purchased these two plots on 23/02/2011 by way of as many sale deeds; both dated 23/02/2011 through their power of attorney. There is also no material to suggest that both these parties have clubbed their two plots and got the same sanctioned from the town planning or municipality. The precise question that arises for apt adjudication as to whether the said two plots can be assumed to have been clubbed or not so as to be exigible to wealth tax is to be answered in negative i.e. in assessee’s favour and against the department. We make it clear that section 5(vi) of the Act nowhere provides for application thereof by applying such a deeming fiction of clubbing so as to arrive at the threshold limit of 500 sq. mtrs.. We refer to Commissioner of Customs (Imports) Vs. M/s Dilip Kumar and Company [2018 (7) TMI 1826 - SUPREME COURT] in these facts and circumstances to hold that both the lower authorities have erred in law and on facts in assessing this taxpayer’s share each in the above two plots; by applying clubbing, as liable for wealth tax assessment. We make it clear that the hon’ble constitutional bench has settled the law now that a taxing statute has to be strictly interpreted and benefit of doubt in such an exercise goes to the taxpayer. The assessee succeeds in his sole grievance on this count alone. All other remaining issues on merits are rendered infructuous.
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