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Asst. Commissioner of Wealth-tax, Circle – 6 (1) , Hyderabad Versus Uma Challa, Hyderabad

Addition of plot of land (agriculture) and a house in the net wealth - it was submitted that the investment in the property at Jubilee Hills was utilized for exemption u/s 54 of IT Act which was upheld by ITAT, Hyderabad. Thus, as the said property is a house eligible for exemption u/s 5(vi) of the Wealth Tax Act, 1961. - Held that:- residential house is not includible into the net wealth - the land classified as agricultural land and used for the purpose of agriculture would not fall within the .....

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s are preferred by the Revenue against separate orders of CWT(A) - VI, Hyderabad, for the AYs 2008-09 and 2009-10 wherein the revenue has raised the following grounds of appeal, which are common in both the appeals: 1. The ld. CWT(A) erred both in law and on facts of the case. 2. 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 explain .....

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s 17 of the Act was issued and served on the assessee on 13/04/10. In response, the assessee filed her return of wealth for AY 2008-09 on 21/05/10 declaring the taxable wealth at ₹ 21,50,400. A notice u/s 16(2) and u/s 16(4) issued to assessee on 05/09/11 and 23/11/11 respectively, against which the assessee submitted the information called for. From the computation of wealth filed by assessee, the AO noticed the following assets: 1. House Bearing No. 8-2-293/82/A/548-A-3, 985 sq.yds. / 82 .....

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kapet and Madeenaguda, the ld. AR of the assessee submitted that agricultural lands admeasuring ac. 0.16.5 guntas in survey no. 37/P situated at Kokapet village, Rajendra Nagar Taluq, Ranga Reddy Dt. and Ac. 0.15 Guntas in Survey No. 97 and 98 Madeenaguda Village, Serilingampally Mandal, RR Dist. which are used for carrying on agricultural operations by way of growing vegetables. Hence, these lands are not covered under the definition of assets as per sub-clause (i)(a) to 2nd proviso to clause ( .....

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therefore taxable to wealth tax. He accordingly, obtained the FMV of the property from SRO and determined it at ₹ 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 the two properties on the ground that they were situated within 8 kms of the local limits of the municipality viz., Rajendranagar Municipality and Kukatpally Municipality respectively. Further rebutting the argument of the assess .....

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tion (b) of section 2(ea)(v) of the WT Act. In view of the above, rejecting the claim of the assessee that the said properties were agricultural lands, brought the same to wealth tax, by treating it as asset . 3. Aggrieved, the assessee preferred an appeal before the CWT(A). 4. As regards the property at Jubilee Hills, the CWT(A() following the decision of the ITAT held that it is a residential house property and directed the AO to delete the addition made, as the ITAT held that the said propert .....

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ea 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 municipa .....

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, the CBDT vide its circular No.1l/2015 dated 11.06.2015, has authorised Principal Commissioners / Commissioners of Wealth tax to admit application for revision under sect ion 25 of the Act from assessees seeking refund arising due to the aforesaid amendment , after the expiry of the period specified under the said sanction and to deal with it on merits as per law. 05.4.2 There is nothing on record to state that the proper ties in quest ion were not agricultural lands and were not used for agri .....

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AT 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 t .....

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