9911796707
TMI Blog2012 (7) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... irst we shall take up the case of the assessee Shri Mohammed Ibrahim. Facts, in brief, pertaining to this case are that the assessee had filed return of income admitting net wealth of Rs. 1,35,78,103 on 11.9.2008. The assessee subsequently filed revised statement of wealth totaling to Rs. 2,78,82,103/-. The assessee has claimed the agricultural lands are exempt from Wealth-tax Act. The Assistant Commissioner, Wealth Tax determined the net wealth of the assessee at Rs. 8,12,56,437/- after including wealth from agricultural lands valued by him at Rs. 4,92,67,782/-. During the course of assessment proceedings, the Assessing Officer called the assessee and asked him to explain how the lands situated in urban area are exempt from tax. The ld. A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urban area has to be assessed within the meaning of section 2(ea) of the Act provided the land on which construction of which is not permissible under any law. In the case of the assessee, it is found that the Assessing Officer has verified the areas from the website of the Tamil Nadu State Government TNREGINET which fall under urban land and a seen from the website, in the land held by the assessee, construction of the building is permissible with the approval of appropriate authority. The Assessing Officer, after verifying the details has held the lands owned by the assessee as urban lands and charged to wealth tax. The ld. Commissioner of Wealth-tax confirmed the view taken by the Assessing Officer. Aggrieved by this order of the ld. CWT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Therefore, the wealth tax provisions apply to the case of the assessee. The question before is as to whether the assessee is eligible for exemption under the Wealth-tax Act or not? It is an admitted fact that the assessee's lands come within the purview of urban area. However, the assessee is carrying on only agricultural activities on it and not using it for residential purposes or constructed any building on it. The case of the assessee is that, even though the land falls within the purview of urban area, as the assessee is carrying on agricultural activities, the same is exempt from Wealth-tax. The ld. counsel for the assessee relied on the decision of the Hon'ble Jurisdictional High Court in the case of E. Udaya Kumar [sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iderations, 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 [or any land held by the assessee as a stock-in-trade for a period of [ten] years from the date of its acquisition by him.] 9. In the present case, the land owned by the assessee comes within the purview of urban area and the assessee is carrying on agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X
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