TMI Blog2011 (4) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... se are a set of 24 appeals by four (4) different assessees, i.e., for six consecutive assessment years (AYs), being assessment years 2000-01 to 2005-06, each arising out of the Orders by the Commissioner of Wealth-tax (Appeals)-I, Trivandrum ['CWT (A)'for short] dated 17-9-2009. The same raising common issue/s, were heard together and are being disposed of by this common, consolidated order for the sake of convenience, even as done by the first appellate authority for each of the assessees. 2. The only issue arising for adjudication in the present set of appeals, is the nature of the assessee's/s landed property situate at Pangappara Village, Trivandrum Taluk and, consequently, its exigibility to tax under the Wealth Tax Act, 1957 ('the Act' hereinafter) for each of the years under reference. While the assessee/s claims it to be an agricultural land and, in any case, not an 'urban land' within the meaning of the term under section. 2(ea)(v) of the Act r/w Explanation (b) there-to, the Revenue claims it to be so. For the sake of discussion, we shall refer figuratively to the case of Smt. Ganga Sreeharshan. 3.1 The basis of the Revenue's claim is that the area of the assessee's p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of agricultural land and a farmhouse in Pangappara Village in the name of himself, his wife and two sons, in 1989 [refer: Statement of Facts, as well written submissions before the CWT(A) and before us]. Section 2(ea)(i) includes a farmhouse which is located within a distance of 25 kms. from the local limits of a Municipality. As such, the assessee's property, to the extent it is a farmhouse, as claimed, would fall within the definition of an asset under section 2(ea)(i) of the Act. The import of the provision, as we understand, is that while the statute provides a maximum limit of 8 kms. (from the local limits of a Municipality) for a land to be considered as an 'urban land' and, thus, an (taxable) asset under the Act, where the same is occupied by a building, the same, along with the land appurtenant there-to, used for any purpose, including as a farmhouse, the said limit would stand extended to 25 kms. Besides, it would not be subject to the condition of being notified by the Central Government, as is the case in the case of a bare piece of land. This issue, going to the root of the matter, i.e., the nature of the assessee's property and, further, arising from her own content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t less than a thousand according to the last preceding census of which the relevant figures have been published before the valuation date; or (ii) in any area within such distance, not being more than eight kilometres from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette, but does not include land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated or the land occupied by any building which has been constructed with the approval of the appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him." 4.3 It would be, at the outset, relevant to consider the assessee's claim with regard to agricultural operations. We find no reference to any agricultural operation or activity in the definition of 'urban land' under the Act, so that the same is of no moment. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunate; the finding of fact qua the assessee's land is essential, for the law could be applied only on its basis. This is particularly so in the present case as the said fact forms the fulcrum of the assessee/s's case; the Revenue claiming it to fall within the urban agglomeration of TMC/notified under TRIDA. If the land, as a matter of fact, falls in Ward No. 1 of Sreekariyam Panchayath, being outside the limit of TMC and not covered by the Notification issued by the Central Government under section 2(ea)(v), the same, irrespective of any other consideration, could not be said to be an 'urban land' under the Act. The matter would, therefore, need to travel back to the file of the Assessing Officer for verification and issue of the relevant finding(s). Also, a huge time gap attending the date of the issue of Notification and the Certificate from the Panchayath being relied upon by the assessee, and the fact that the limits and configuration of Wards would be subject to change over time, and also as a matter of abundant caution, being in relation to a factor which could be decisive of the matter, it would be advisable, nay, necessary, to confirm that the land under reference was at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos. 423 424/Coch./2009, dated 19-4-2011] in the context of the assessee's claim of being a municipality and, thus, a local authority, income of which is exempt under section 10(20) of the IT Act. The Tribunal; the Revenue taking a contradictory stand of granting it the status of a 'local authority', while denying it exemption under section 10(20), upheld the invocation of section 263 of the IT Act by the competent authority, holding thus with regard to the issue on merits: '3.4 Finally, we may consider the assessee's case on merits; it claiming to be a 'local authority' in terms of the Explanation to section 10(20), i.e., as amended, in view of being constituted under section 53A of the Town Planning Act, 1108E. The Revenue refutes it by stating the same to be of no relevance in view of the specific definition under section 10(20). In this regard, we find the ld. CIT has only directed the Assessing Officer to make proper inquiries, and redo the assessments accordingly. The same would only imply of them being made in accordance with the law, as enunciated by the higher courts of law, considering all the relevant aspects, including the scope of the amendment (i.e., what was soug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Gazette Notification of the State Government was subsequently withdrawn. Under the circumstances, it is only considered fit and proper in the interest of justice, that this aspect of the matter is likewise remitted back to the file of the Assessing Officer for proper consideration and a decision on merits, toward which we express no opinion. 4.7 Finally, we may advert to the ground as to valuation. The Revenue has adopted the base rate of Rs. 25,000 per cent i.e., as stated in the 'Agreement to Sell' dated 21-3-2005 found during the Survey at the premises of the buyer/s, the promoter/builder; further applying a discount rate of 10 per cent per annum for each of the valuation dates prior to 31-3-2005, valuation on which date, being at the agreed sale consideration, is not disputed. The assessee contends that the same (discount rate), which is the limited point of dispute, is de hors any material on record nor based on any principle of valuation and, further, alien to the rules of Valuation prescribed under the Act. The assessee, we find, has not agitated this issue before the ld. CWT(A), nor is there, consequently, any adjudication by her in the matter. As such, the same does n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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