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TMI Blog2010 (1) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... ocessing of WT returns for the relevant assessment years, it revealed that the assessee(s) had purchased pieces of the land situated in villages Narsingpur and Khandsa in the period relevant for asst. yrs. 1991-92 to 1994-95. The permission to change of the land use for industrial purpose was granted by the Department of Town and Country Planning, Haryana on 26th July, 1995 and 28th July, 1995. The assessee claimed exemption of wealth-tax in view of Explanation to s. 2(ea) of the Act. The assessing authority negatived the claim of the assessee and assessed its wealth-tax after adding the value of the land vide assessment order dt. 22nd March, 1999 (Annex. Al). The appeal filed by the assessee was firstly dismissed by the CWT(A) (Annex. A2) vide order dt. 29th Feb., 2000 (Annex. A2) and subsequently by the Tribunal, Chandigarh vide order dt. 23rd March, 2004 (Annex. A3). 4. The assessee still did not feel satisfied with the impugned orders and filed the present appeals, which were admitted to consider the following substantial question of law:- "Whether the action of authorities below acting on their own presumption of holding the agricultural land so acquired by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of this clause,- (a)............. (b) 'urban land' means land situate- (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten 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-cl. (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R (P and H) 135 : (2009) 184 Taxman 286 (P and H), in which the facts are entirely different, are at all applicable to the present controversy. 11. In CWT us. D.C.M. Ltd.'s case (supra), the question for consideration was as to whether the assessee was covered under the Explanation inserted w.e.f. ast April, 1994 retrospectively where earlier no exemption was available to the assessee in case of conversion of an urban land into stock-in-trade till the asst. yr. 1993-94, particularly when the land was acquired in the year 1980 and possession was taken on ast April, 1981 and ast April, 1994. Having interpreted the relevant provisions of the Act, it was observed as under : "The provisions underlined by us in the above provision were inserted by the Finance Act, 1993 and made effective from ast April, 1994. We are dealing with the relevant assessment year for 1993-94. On the bare reading of the above provision, it is clear that urban land would not include a land, on which construction of a building is not permissible under any law for the time being in force in the area where land is situated or the land occupied by any building which has been constructed with the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was stopped." 12. On the peculiar facts and circumstances of that case, it was held that no substantial question of law arises for consideration of the Court, as such the appeal was dismissed, leaving the parties to bear their own costs. 13. Sequelly, in CWT vs. R.K. Mehra case (supra), it was held that farm house constructed on the farm land of the assessee could not be regarded as urban land, as no construction on such land was permissible and no question, much less substantial question of law, would arise for determination of this Court. Accordingly, both the appeals were dismissed. 14. Possibly, no one can dispute in regard to the aforesaid observations, but the same are not at all applicable to the facts of the present case. In the instant case, the core question for determination is as to whether the period of exemption would start from the date of the acquisition or from the date of grant of permission to change of land use of the plots for industrial purpose. 15. There is no manner of doubt that the legislative intent underlying while incorporating the provisions of Explanation to s. 2(ea) of the Act is clear and implicit that the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to use the land for industrial undertaking subject to fulfillment of certain terms and conditions. It is the assessee who did not fulfill those terms and conditions to enable it to use the land for industrial purpose. It is the assessee, who did not avail the permission to change of land use to run an industrial unit because it did not fulfill the terms and conditions in this connection. Therefore, under these circumstances, the assessee cannot possibly be heard to say that the industrial purpose for which the land was purchased had vanished or no construction activity was permissible. Hence, the assessee is also not entitled for any such exemption of wealth-tax during the subsequent relevant asst. yrs. 1997-98 and 1998-99 as well. Thus, the contrary argument of learned counsel for the assessee "stricto sensu" deserves to be and is hereby repelled, in the obtaining circumstances of the case. 18. No other point, worth consideration, has either been urged or pressed by the learned counsel for the parties. 19. In the light of the aforesaid reasons, it is held that the two years' exemption period of tax of industrial plots held by the assessee would be reckoned ..... 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