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2015 (11) TMI 912 - ITAT DELHI

2015 (11) TMI 912 - ITAT DELHI - TMI - Exemption u/s 5(1)(vi) - Whether on the facts and in the circumstances of the case, the CWT(A)has erred in allowing the exemption u/s 5(1)(vi) for the plot under construction as the same does not come under the purview of house, or part of a house - Held that:- CIT(A) categorically stated that the assessee was having a plot no. 6 in Mandakini Residential Scheme, Alaknanda, New Delhi, the said plot was measuring 260.10 sqm and was under construction during t .....

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on u/s 5(1)(vi) of the Wealth Tax Act as per the ratio laid down in the aforesaid referred to case of CIT Vs Neena Jain [2010 (2) TMI 635 - Punjab and Haryana High Court ]. We, therefore, do not see any valid ground to interfere with the findings of the ld. CIT(A). - Decided in favour of assessee. - WTA No. 8/Del/2012, WTA No. 9/Del/2012 - Dated:- 12-10-2015 - Sh. N. K. Saini, AM And Sh. Kuldip Singh, JM For the Petitioner : Sh. G. K. Sukhla, Adv For the Respondent : Sh. K. K. Jaiswal, DR ORDER .....

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udice to each other. 3. The appellant craves to add, amend or modify the ground of appeal at any time. 3. Facts of the case in brief are that the WTO while assessing the Income Tax assessment for the assessment year 2006-07, came to know that the assessee had taxable wealth for the assessment year 2005-06 for which he was supposed to file Wealth Tax Return. The WTO therefore, after recording the reasons to believe that the wealth had escaped assessment issued notice u/s 17(1) of the Wealth Tax A .....

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ing 260.10 Sq. meters, a motor car, cash in hand and plant and machinery, against which he had claimed debts amounting to ₹ 56,21,464/- and ₹ 9,80,117/-. The WTO pointed out that the property no. 392, Mandakini Enclave, New Delhi valued at ₹ 3,22,000/- was used by the assessee for self residence and the plot no. 6, Mandakini Residential Scheme had been valued at ₹ 99,69,239/- and the cost of construction on the said plot up to the date of valuation had been declared at &# .....

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head immovable assets . 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted that the assessee was entitled to claim exemption for one house/property u/s 5(1)(vi) of the Wealth Tax Act if he had more than one house property. It was further stated that the AO wrongly applied the provisions of Section 2(ea) of the Wealth Tax Act in disallowing the exemption to the assessee. It was further stated that as per the provisions of Section 5(vi) of the Wealth Tax Act, the as .....

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t the option claimed by the assessee. The reliance was placed on the judgment of the Hon ble Punjab & Haryana High Court in the case of CIT Vs Neena Jain reported at 330 ITR 157. 5. The ld. CIT(A) after considering the submissions of the assessee directed the WTO to allow the exemption as per Section 5(1)(vi) of the Wealth Tax Act by observing as under: I have carefully considered the facts of the case. Plot No. 6, Mandakini Residential Scheme, Alaknanda, New Delhi was still under constructi .....

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sement to third floor is under self residential use. Effective house property tax has been levied with effect from 28.06.2010. A copy of demand notice for new electric connection dated 28.06.2010 has also been filed which clearly states that application is made for a new connection for the said property. Bill for BSES has been paid on 7.7.2010 for the first time also the purchases for sanitary wares etc. are made in July, 2010. These documents prove that during the relevant period the said prope .....

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he Assessing Officer has also wrongly applied section 2(ea)(i)(1). In the present case, the facts are entirely different and section 2(ea)(i)(1) cannot be invoked. The exemption as per section 5(1)(vi) not allowed by the Assessing Officer is therefore, allowed. Appeal on these grounds is allowed. 8. Now the department is in appeal. The ld. DR strongly supported the order of the WTO and reiterated the observations made in the wealth tax assessment order dated 31.12.2010. It was further stated tha .....

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t case, the ld. CIT(A) categorically stated that the assessee was having a plot no. 6 in Mandakini Residential Scheme, Alaknanda, New Delhi, the said plot was measuring 260.10 sqm and was under construction during the year under consideration and that the construction had been done during the year 2010, therefore, the said house which was under construction was not liable to wealth tax. On a similar issue the Hon ble Punjab & Haryana High Court in the case of CIT Vs Smt. Neena Jain (supra) h .....

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y either be used for residential or commercial purposes or for purposes of maintaining a guest house. Therefore, the word building had to be interpreted to mean a completely built structure having a roof, dwelling place, walls, doors, windows, electric and sanitary fittings etc. If one or more such components were lacking, then it could not possibly be said that the building was a complete structure for the purpose of section 2(ea) of the Act. The assessee was constructing the building after obt .....

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