TMI Blog2007 (2) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... sment years 1993-94 and 1994-95. The assessee being aggrieved by the order so passed by the Tribunal is before us in these appeals. 2. In these appeals, the assessee has raised the following substantial questions law. They read as under "(a) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the inclusion of the value of the land in the net wealth of the appellant ? (b) Whether on the facts and in the circumstances of the case, the property in question was an asset within the meaning of that term under section 2(ea)(i)( 5) ? (c) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the provisions of section 4(8) of the Act were clarificatory and retrospective so as to apply to the assessment years prior to 1997-98, that is for the assessment year 1993-94? (d) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in applying the provisions of section 4(8) of the Act in relation to what was admittedly vacant land and not building and land appurtenant thereto? (e) Whether, on the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94. 6. The valuation dates for the purpose of the assessment years 1993-94 and 1994-95 are March 31, 1993, and March 31, 1994, respectively. 7. The assessing authority in its order observed, that, since the suit was decreed, it would relate back to the date of filing of the suit and therefore, the assessee has become the owner of the property and therefore, the said immovable property is an asset of the assessee and requires to be included while computing the net wealth of the assessee. In its order, the assessing authority has taken into consideration the existence of the old building on the property in question and also the land appurtenant to the building and also the vacant land surrounding the building. 8. Being aggrieved by the conclusion reached by the assessing authority, the assessee had filed appeals before the first appellate authority, who by his order dated May 13, 1998, and March 26, 1998, has allowed the appeals and has reversed the findings and the conclusion reached by the assessing authority. That is how the Revenue had carried the matter in appeals before the Tribunal in W. T. A. Nos. 13 of 1998 for the assessment year 1994-95 and in W. T. A. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nant thereto (hereinafter referred to as house), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include— (1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than five lakh rupees (2) any house for residential or commercial purposes which forms part of stock-in-trade; (3) any house which the assessee may occupy for the purposes of any business or profession carried on by him; (4) any residential property that has been let-out for a minimum period of three hundred days in the previous year; (5) any property in the nature of commercial establishments or complexes;……… Explanation 1 .— For the purposes of this clause,— (b) 'urban land' means land situate— (i) in any area which is comprised within the jurisdiction of a municipality (whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... introduced by the Finance (No. 2) Act of 1996 with effect from April 1, 1997, and, therefore, the Tribunal could not have relied on the amended provisions for upsetting the order passed by the first appellate authority for the assessment years 1993-94 and 1994-95. Learned counsel would further submit that in the amended provisions the Legislature has consciously used the expression "any building" and according to learned counsel, "any building" would not include the vacant land. For all these reasons, learned counsel would submit that the Tribunal was not justified in coming to the conclusion, that as on the valuation date, the assessee was the owner of the property in question and the same requires to be included in the net wealth of the assessee. 15. The apex court in the case of Bishwanath Chatterjee [1976] 103 ITR 536 (page 539); "The expression 'belong' has been defined as follows in the Oxford English Dictionary :—'To be the property or rightful possession of.' So it is the property of a person, or that which is in his possession as of right, which is liable to wealth-tax. In other words, the liability to wealth-tax arises out of ownership of the asset, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial question of law that would arise for our consideration and decision is, whether the assessing authority and the Tribunal were justified in coming to the conclusion that as on the valuation dates for the assessment years 1993-94 and 1994-95, whether the assessee was the owner of the asset, namely, the vacant land situate at No. 40, M. G. Road, Bangalore? 19. The Tribunal to upset the order passed by the first appellate authority, has primarily relied on the substituted provision of sub-section (8) of section 4 of the Act. The substituted provision has come into force with effect from April 1, 1997. When the Legislature itself says that the substituted provision would come into effect from a particular date, in our view, it will not have retrospective effect. Therefore, the Tribunal was not justified in invoking the substituted provision of sub-section (8) of section 4 of the Act to come to a conclusion that the property would include even the vacant land. Apart from this, the amended provisions would speak of only "any building". That only means, it speaks of building and the land appurtenant to the building and it cannot be applied to the vacant land. 20. In the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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