TMI Blog2005 (11) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... f land in the city of Ernakulam at Marine Drive. The land was purchased by the assessee-bank during the previous year relevant to the assessment year under appeal 1996-97. While filing the return of wealth, the assessee had admitted the value of the urban land at Marine Drive, Ernakulam at Rs. 7,93,65,120. Later on, the assessee filed before the Assessing Officer a letter stating that the said urban land was not used for constructing its office building and such property kept vacant for a period of two years could not be included in the taxable wealth, in terms of section 2(ea). Therefore, the assessee submitted that the net wealth of the assessee should be reduced by the amount of Rs. 7,93,65,120, being the value of the vacant plot of land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee-bank and Smt. T.R. Indira, the learned Departmental Representative appearing for the revenue. 5. The assessee-bank has produced before us a copy of the order passed by the High Court of Kerala in OP No. 18097/1995-D dated 16-7-1997. A perusal of the said order of the Hon'ble High Court supports the arguments of the assessee-bank that construction of the building in the Marine Drive was initially blocked for sometime because of the litigation pending before the High Court. Therefore, the contention of the assessee-bank, as a matter of fact, has to be accepted that the bank was restrained from executing the construction work for reasons beyond its control. It must be held that the construction work could not be proceeded for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction was only to be started, what would be the position of the land, as far as its nature is concerned, for the purpose of wealth-tax? The construction of huge buildings could not be completed during a particular previous year. The construction activity may spill over a period of more than one previous year. Therefore, during such period when the building was under construction but could not be fully completed, it is not possible to hold that the land was vacant. The land has already been utilized for business purposes even though the building proposed to be constructed did not become fully functional. Therefore, the utilization of the land for commencing the construction and utilization of the proposed building after construction has to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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