TMI Blog2012 (7) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) has rightly allowed the appeal of the assessee. - W.T.A. No. 18(Asr)/2010 W.T.A. No.19(Asr)/2010 W.T.A. No. 17(Asr)/2010 - - - Dated:- 25-5-2012 - SH. H.S. SIDHU, SH. B.P.JAIN, JJ. Assessees By: Sh. Ashwani Kalia, CA Department By:Sh. Tarsem Lal, DR ORDER PER BENCH: These two cross appeals of the assessee as well of the Revenue arise from two orders of Commissioner of Wealth Tax (Appeals), Bathinda, each dated 29.06.2011 for the assessment year 2007-08. The issues raised in both the cross appeals are identical and, therefore, both the cross appeals are being taken up together by this consolidated order for the sake of convenience. 2. Both the assessees have taken up identical grounds which are reproduced as under: 1. That the Commissioner of Wealth Tax (Appeals) has erred in confirming the order of the AO holding that the agriculture land owned by the assessee is covered in the definition of Urban Land u/s 2(ea) of the Wealth Tax Act, 1957 and accordingly, was correctly assessed to Wealth Tax. 2. That the order is bad in law and on facts. 3. That the appellant craves leave to add or amend the ground of appeal before the appeal is he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the legislature was to include agriculture land within the municipal limit, it cannot be excluded just by the idea of the intendment. In the case of C.S.T. vs. Hari Singh reported at 123 ITR 558 the Hon ble Punjab Haryana High Court has clearly held that agriculture land owned by the assessee is an urban asset however exemption was granted under para- A(2) of schedule 1 and part 1 of wealth tax Act. In the present para-1 there is no such exemption, A similar view was also expressed in the case of C.S.T. vs. Devinder Kaur 146 ITR 234 (p h). It is further submitted that in the recent case the Hon ble ITAT, Amritsar Bench in the case of Tara Singh vs. DCWT (97 ITD 482) has held that agriculture land which is within the municipal area is an asset with the meaning of section 2(ea) of wealth tax Act. In the present case land was open plot and therefore, the assesse is not entitled to such exemption. It is further submitted that urban land has not been specifically excluded from the definition of asset u/s 2(ea) of wealth tax Act and when a word is defined to mean something, the definition is prima facie restrictive and exhaustive as was indicated by supreme court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The brief facts in the Revenue s appeal are as per WTO order page 3 4 as under: Regarding valuation of agriculture land as on 31.03.2007 the assessed was asked as to why the sale rate of the agriculture land sold by the assessed to M/s. Amazon Enterprises Pvt. Ltd. Jam agar on 31.05.2007 @ 2.5 core per acre may not be adopted. The assessed in his reply stated that: a) That value of assets is required to be determined as on valuation of date on 31st March, 2007 and accordingly the sale rate as on 31.05.2007 cannot be applied. b) Even the said sale transaction does not indicate the market value as on 31.3.2007 since sale was to an exceptional Amazon Enterprises Pvt. Ltd. Jamnagar. Who for the reasons best known to them, paid the exorbitant rates which was even beyond the wildest dreams of the assessee. A buyer like Amazon Enterprises Pvt. Ltd. Jamnagar does not determine the market rate. It is the biggest Indian Corporate and it a particular situation suits them then rate/amount is no consideration for them. No other deal at these rates has taken place either before or after till date. c) The circle rate for that area fixed by the State Revenue 3,00,000/- per acre. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, it is being used for agriculture and further in view of contention of assessee that this part of land does not have commercial value, the rate of this land is adopted at circle area rate i.e. Rs.3,00,000/- per acre certified by the Tehsildar, Malout. Therefore, the value of agriculture land measuring 134 Kanal 1 marla is made as under: (a) Market value of land measuring 24.825 Rs.7,75,78,125/- Kanal adopted at as on 31.03.2007 on the basis of this land sold to Amazon Enterprises on 31.05.2007 @ 2.5 crore per acre. b) Value of balance agriculture land Rs.40,95,937/- measuring 109.225 Kanal @ Rs.3,00,000/- per acre (Circle rate) i.e. 4095937/- Total value : Rs.8,16,74,062 (Rs.7,75,78,125 + 40,95,937) 10. The Ld. CWT(A) has observed that the AO had adopted a future value, which is not the correct position under the Wealth Tax Act,1957. The valuation date has been defined under section 2(q) of the Wealth Tax Act. 1957. No one can dream as to what would be the fair price on the just next day which may be very high or low depending upon happening of particular event. The rate adopted from future sale would not be fair market rate as on the last day of the financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be estimated to be the price which, in the opinion of the AO, it would fetch if sold in the open market on the valuation date. The valuation date, as per section 2(q) is 31st day of March immediately preceding assessment year. Therefore, the market value as on 31st March, 2007 in the present case of the impugned agricultural land will be the value, which will be a subject matter to be included as an asset as per definition u/s 2(ea) of the Act, for the purpose of charge of Wealth Tax in respect of net wealth on the valuation date. The market rate in the present case as on 31st March, 2007, first of all has to be on the record. The assessee at page 3 of AO s order in para (d) has submitted the explanation that many sales have taken place in and around that area close to the valuation date and sale rates as per these sales are almost at the rates fixed by the Revenue Authorities also proves the market value as at 31.03.2007. The AO at the same page No.3 of his order observed that these instances of other properties cannot be considered when market value of the same property is available. At the outset, such rejection by the AO of the sale instances as at 31st March, 2007 in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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