TMI Blog2015 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ing asset of business Sub Rule 2 (ii) of Rule 14 states “ in the case of an asset on which no depreciation is admissible, its book value.” Respectfully following the above decisions in the present appeals we hold that the land being used as business asset, its value was to be determined as per Rule 14 and not as per Rule 20 of Schedule III. Consequently, the orders of the authorities below on the issue are set aside with the direction to the AO to delete the addition made on account of enhancement in the value of land owned by the Firm where the appellant is a partner. - Decided in favour of assessee. - WTA No. 3 /Del/2013, WTA No. 4/Del/2013 - - - Dated:- 31-7-2013 - SHRI G.D. AGRAWAL AND SHRI I. C. SUDHIR, JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increased value of land to be the taxable interest of the appellant. 5. That the order passed by the Ld. Commissioner of Wealth Tax (Appeals) is without proper opportunity and bad in law. 2. The issue involved in the above ground is as to whether the first appellate authority has erred in confirming the addition made by the AO towards enhancement in the value of the land owned by the firm where the appellant is a partner. 3. The contention of the Ld. AR remained that the authorities below have erred in holding that the valuation of land has to be made in accordance with Rule 20 of Schedule III of the Wealth Tax Act 1957. The authorities below should have valued the interest of the appellant in the firm in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee remained that valuation of the interests of the appellant in the Firm should have been assessed in accordance with the Part E comprising of Rules 15, 16 read with Rule 14 of Schedule III of the Wealth Tax Act 1957. The first appellate authority has upheld the action of the AO. He has noted in Para No. 5.5 of the first appellate order, that in the appeals relating to A.Ys. 1998-99, 1999-2000 and 2000-2001, the relief was allowed on the ground that the land falls outside the purview of definition of urban land being situated outside the limit of 8 kilo meters from the Lucknow Municipal Area. The first appellate authority has observed that the appellant should not have filed the Wealth Tax returns thereafter as the land being the onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee, on the other hand, first of all pointed out that the valuation report relied on by the Assessing Officer was for A.Y 1994-95 as has been mentioned by the Assessing Officer at page 3 of the assessment order itself and, therefore that report was not relevant for determining the value of properties as on 31/3/1993. Proceeding further, the assessee s counsel submitted that the immovable properties being used by the assessee for its business, the value of the same was to be determined as per Rule 14 of Schedule III and not as per Rule 20, as has been canvassed by the Revenue. Further explaining the provision of section 40, the counsel for the assessee submitted that Global valuation of the assets of business in assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property as shown in the account books of the assessee with a definite value. 7. In the light of above decisions the Tribunal has upheld the first appellate order in that case wherein the first appellate authority had held that the Assessing Officer should have taken the value of assets as reflected in the balance-sheet. In this regard the first appellate authority had follow the first appellate order on similar additions in the earlier years wherein the first appellate authority had noted that as per Rule 14 of Schedule III for valuing asset of business Sub Rule 2 (ii) of Rule 14 states in the case of an asset on which no depreciation is admissible, its book value. Respectfully following the above decisions in the present appeals w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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