TaxTMI 
TaxTMI 
2014 (1) TMI 317
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.... cross appeals. 2. Coming to the Assessee's appeals, for the sake of record, facts in Assessee's appeal for AY 2002-03 being WTA No. 3/Hyd/2013 are considered. 3. Briefly stated, Assessee is a company which derives income from manufacture & trade in detonators, industrial explosives, lubricant oils and greases. It filed its return of wealth for the AY 2002- 03 on 31-03-2013 declaring net wealth at Rs. 2,25,64,136/-. The AO completed the assessment u/s 16(3) r.w.s. 17 of the Act by making the following additions: i) Value of land at Bangalore - Rs. 51,20,27,680/- ii) Value of residential flats - Rs. 76,79,250/- 4. Aggrieved by the said additions, Assessee carried the matter in appeal before the CIT(A) challengi....
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....by Assessee for its business purposes, hence, the same was excluded from Wealth Tax u/s 2(ea)(iv). It was also stated that no part of its property was liable for Wealth tax as on that date. The learned CIT(A), even though there was a request from AO for enhancement to include 100% of the property, however, confirmed the valuation of 20% property. Accordingly, Assessee is in appeal before us. 6. Valuation of Flats: The other issue is with reference to bringing to tax the valuation of flats amounting to Rs. 76,79,250/- by the AO. Assessee had various properties in Delhi, Mumbai and other places, which are being used either as residential properties given on lease or as office premises for its commercial purposes. The rent which was received ....
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....old buildings are demolished or any new buildings came up on the land, Assessee was continuing to use the building and the land for the purposes of office/business purposes. Therefore, considering 20% of the proposed conversion of land use cannot be taken as an asset under the definition of 'asset' in the Wealth Tax Act. Since the property is being used for Assessee's business, it is certainly exempt from Wealth Tax. Accordingly, we modify the orders of authorities and direct them to exclude this property from consideration. 8. With reference to flats in possession of Assessee, as accepted by the CIT(A), some of the properties have been given on rent while others are being used for commercial purposes. We are unable to understand how one D....
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.... valuation of sanky land and valuation of property which was let out/used by Assessee for the purpose of its business as in earlier year. However, in this AY, the AO has taken total value of land at Rs. 102.40 crores. It was the contention of Assessee that this land is not assessable at all as it is being used for the business purposes of Assessee and the same is not asset within the meaning of section 2. It was also contended that the valuation adopted was wrong as Assessee sold the property spread over a 5 year period for a sum of Rs. 66.53 crores and, therefore, valuation itself is absurd. The learned CIT(A) did not adjudicate this issue in the main order, but, seems to have passed corrigendum disposing of this ground. Be that as it may,....
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....ring other contentions of Assessee. 11. After considering the rival arguments and facts of the issue, we are of the opinion that the said agricultural land being used for Assessee's business operations cannot be brought to tax as only unused urban land can be brought to tax for the Wealth Tax purposes as per the Explanation (1)(b) of section 2(ea) of the WT Act. Accordingly, we agree with Assessee's contentions and allow this ground. Incidentally, similar land in AY 2002-03 was allowed to be exempt and there is no issue on this as seen from the order of AO. Accordingly, appeal for AY 2003-04 is allowed. 12. In the result, Assessee's appeals for AY 2002-03 and 2003-04 are allowed. ITA Nos. 1 & 2/Hyd/2013 by the Revenue 13. In these appea....