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TMI Blog2016 (2) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. CWT(A) erred in applying the order of Hon'ble ITAT for the WT purpose. 3. The ld. CWT(A) erred in treating the land at Kokapet village and Madeenaguda village as agricultural lands when they are clear ly explained by AO as assets under provisions of WT Act . 4. The ld. CWT(A) ought to have not iced that the assessee has not proved that the lands are agricultural lands. 2. Briefly the facts of the case are, during the course of assessment proceedings, the AO noticed that the assessee is holding a plot of land admeasuring 985 sq.yds., in jubilee hills, Hyderabad. Since the value of the plot of land is attracting the wealth tax, it was believed that there was escapement of wealth. Accordingly, a notice u/s 17 of the Act was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) of the WT Act. 2.3 The explanation of the assessee was not accepted by the WTO. As regards, property at Jubilee hills, the WTO observed that the property in question was a vacant plot of land and not a house property. According to him, the exemption provided u/s 5(vi) of the Act for a vacant plot was to the extent of 500 sq. meters or less. He further held that in the case of the assessee, the plot of land was 985 sq. yds., which was more than the specified limit and was therefore taxable to wealth tax. He accordingly, obtained the FMV of the property from SRO and determined it at Rs. 3,64,45,000 and added it to the wealth of the assessee. 2.4 As regards the agricultural lands at Kokapet and Madeenaguda, the WTO levied wealth tax on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the CWT(A) are as under: 05.4.0 I t is to be seen that sub-clause (b) of explanation (1) to Sec 2(ea)(v) was amended by Finance Act 2013 with retrospective effect from 01.04.1993 to define urban land to mean, (i) "in any area which is comprised Within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, or by any other name) or a cantonment board and Which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the valuation date; or (ii) in any area Within such distance, not being more than eight kilometers from the local limits of any municipality or ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITAT in income tax proceeding for AY 2003-04 in ITA No. 747/Hyd/2007 dated 24/10/08 treated the property as house property. The observations of the ITAT are as follows: "Since it is not the case of the Revenue that the land with superstructure is not fit for human habitat ion, in our opinion, it has to be considered as a residential house for all practical purposes. Therefore, assessee is entitled for exempt ion u/s 54 of the Act. In view of the matter, we are unable to uphold the orders of the lower authorities. We accordingly set aside the same, and direct the assessing officer to allow the eligible amount of exempt ion u/s 54 of the Act in respect of the long term capital gains received by the assessee. " We are therefore of the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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