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2017 (12) TMI 480 - AT - Wealth-taxTreatment of asset as stock in trade - Held that:- The assessee has purchased urban vacant land located at Banjara Hills and entered in to development agreement with Vulcon Project Developers Pvt. Ltd for development of the land but no development took place till the date of valuation date. The assessee declared the asset in the balance sheet as a fixed asset and no supporting evidence was placed by the assessee with regard to the claim of the assessee as stock in trade. The property was not converted as a business asset in the relevant period. On identical facts in the case of Devineni Avinash for the A.Y.2009-10, the coordinate Bench [2016 (7) TMI 422 - ITAT VISAKHAPATNAM ] held that the asset is an investment but not stock in trade. Litigation on the property before the Hon’ble Civil Court with an injunction order to maintain status quo till further orders - Held that:- The land in question cannot be excluded from the definition of asset from the definition of section 2(ea) of Wealth Tax Act and CWT(A) has rightly directed the AO to hold that the same required to be brought to Wealth Tax purpose. Accordingly, we uphold the order of the CWT(A) and dismiss the appeal of the assessee on this ground.
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