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2015 (12) TMI 1361 - AT - Wealth-taxDenial of exemption claim - whether the exemption provided in section 5(vi) of the Act in respect of plot of land not exceeding 500 sq,mtrs is also applicable to companies or not - Exemption for plot of land not exceeding 500 sq.mtrs has to be limited only to individuals and HUF and the proviso to section 5(vi) had only acted as a restrictive covenant and full effect needs to be given for the same. We also hold that the proviso needs to be read along with the main section and it cannot act as an alien to the main sub-section. Proviso in section 5(vi) is a qualifying provision to grant exemption for plot of land not exceeding 500 sq.mtrs and limiting it only to individuals and HUF and hence the argument of the Learned AR that exemption is also applicable for companies is not appreciated. - land was purchased by the assessee on 12.3.2003 and the said land is meant for construction of hotel. It is well settled that Hotel is an industry and hence the assessee is eligible to claim exemption for two years from the date of acquisition in respect of urban land held for industrial purposes. Accordingly, we hold that the assessee is eligible for exemption for urban land from wealth tax for Asst Years 2003-04 & 2004-05. It is well settled that the assets held as on the valuation date (i.e 31st march of each year) is the relevant date for bringing an asset under the ambit of wealth tax. Similarly the exemption provision also needs to be looked into as per the prevailing law on the valuation date. Since the land was purchased on 12.3.2003 , it will continue to claim exemption upto 12.3.2005 but not thereafter and accordingly comes under the ambit of taxable wealth as on 31.3.2005 being the valuation date. Hence the assessee is not eligible for exemption from wealth tax under this category for Asst Year 2005-06. - Decided against Assessee.
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