TMI Blog2016 (2) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be ignored while valuing the land. Since the assessee himself valued the land at ₹ 83 per sq.ft., this Tribunal is of the considered opinion that estimation on the basis of guideline value is not justified. Accordingly, the orders of the lower authorities are set aside and the entire addition made by the Assessing Officer is deleted. - Decided in favor of assessee. - WTA Nos. 7, 8 & 9/Mds/2015 - - - Dated:- 19-2-2016 - Shri N. R. S. Ganesan, Judicial Member And Shri A. Mohan Alankamony, Accountant Member For the Appellant : Sh. R. Vijayaraghavan, Advocate For the Respondent : Sh. Pathlavath Peerya, CIT ORDER Per N. R. S. Ganesan, Judicial Member These appeals of the assessee are directed against the respective orders of the Commissioner of Wealth Tax (Appeals)-1, Coimbatore, dated 29.05.2015, pertaining to assessment years 2008-09 to 2010-11. 2. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that the only issue arises for consideration is with regard to value of the landed property at Okkiam Thorapakkam Village, Saidapet Taluk, Chennai, on the date of valuation. According to the Ld. counsel, the assessee owns 9 acres of no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o one Shri S. Paul Raj. As per this letter, the land in question was classified as mixed residential area and falls in I.T. Corridor. The assessee has not produced any clear demarcation of proposed road through the subject land in question. The Assessing Officer, after verifying the guideline value on the website of Registration Department, found that the value of the land on the valuation date was ₹ 1200 per sq.ft. Accordingly, the land was treated as urban land. Referring to the contention of the assessee that there was proposed 30.5 mtr road in the second Master Plan, the Ld. D.R. submitted that this proposed road was not yet finalized and it was also not demarcated in the land. Therefore, according to the Ld. D.R., mere proposal cannot be a reason for not permitting construction over the land. According to the Ld. D.R., the land in question is classified as residential use and falls in I.T. Corridor. Therefore, the construction is very much permissible. The Ld. D.R. placed his reliance on the judgment of Madras High Court in Commissioner of Wealth-Tax v. A.S. Ananth 92003) 261 ITR 763 and submitted that lower rate than the one quoted in the guideline of the Registration D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) jewellery, bullion and furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals : Provided thatwhere any of the said assets is used by the assessee as stockintrade, such asset shall be deemed as excluded from the assets specified in this sub-clause ; (iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes) ; (v) urban land ; (vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account. Explanation For the purposes of this clause,- (a) jewellery includes- (i) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel ; (ii) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any wearing apparel; Jewe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 stockin- trade for a period of ten years from the date of its acquisition by him. Explanation.- For the purposes of clause (b) of Explanation 1, population means the population according to the last preceding census of which the relevant figures have been published before the date of valuation. Proviso to Explanation 1(b) to Section 2(ea) of the Wealth-tax Act clearly says that the land on which construction of a building is not permissible under any law for the time being in force in the area in which the land is situated, would not form part of urban land. In the case before us, the assessee claims that there was a proposal for construction of 100 ft. (30.5 mtr) road across the land in question. The assessee, in fact, produced a letter which was addressed to one Shri S. Paul Raj, by the Member Secretary, Chennai Metropolitan Development Authority on 17.04.2012. The assessee has also produced a letter dated 21.12.2015 addressed to the assessee himself showi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the rapid urbanization of Ernakulam, the Tribunal fixed the value of land at ₹ 250 per cent, which was confirmed by the Kerala High Court. The Kerala High Court had no occasion to consider the proposal for formation of any road across the land and pending demarcation, and the impossibility of construction of building on the land was not subject matter before the Kerala High Court. Therefore, this Tribunal is of the considered opinion that this judgment of Kerala High Court may not be any assistance to the Revenue. 6. We have also carefully gone through the judgment of Madras High Court in A.S. Ananth (supra). The issue arises for consideration before the Madras High Court is with regard to valuation of quoted shares as on the valuation date. The assessee held shares in Solidaire India Limited, the quoted value is at ₹ 73 per share. The Assessing Officer rejected the claim of the assessee that it should be valued at the book value of ₹ 15.75 per share on the basis of undertaking said to be given by the assessee to Industrial Credit and Investment Corporation of India Limited. However, the Tribunal took the average book value as per quotation of the stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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