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M/s. Siseri Agro Farms P. Ltd. And 40 Others Versus Assistant Commissioner of Wealth Tax, Central Circle-3 (2) , Hyderabad.

2016 (9) TMI 186 - ITAT HYDERABAD

Nature of land - whether the said lands fall within the definition of ‘Urban land’, so as to bring it to wealth tax? - Held that:- The issue whether the said lands fall within the definition of ‘Urban land’, so as to bring it to wealth tax require re-examination by the Assessing Officer in the light of the fact that Bachupally village is not in the Qutubullapur Municipality and also not one among the 8 Gram Panchayats notified in 16.04.2007 notification. Moreover, the said notification was also .....

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restored to Assessing Officer for fresh consideration. - WTA. No. 27/H/2016 to 67/H/2016 - Dated:- 24-8-2016 - Shri D. Manmohan, Vice President And Shri B. Ramakotaiah, Accountant Member For Assessee : Mr. K.C. Devdas For Revenue : Mr. K.J. Rao and Smt. U. Minichandran ORDER Per Bench This group of 41 appeals belongs to companies of Satyam group and involve similar issue. Assessees have raised common grounds in all appeals. Therefore, the appeals are heard together and decided by this common or .....

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tion of Assistant Commissioner of Wealth Tax, Central Circle-3(2), Hyderabad. Assessee-company owns certain assets, mainly agricultural lands. It has not filed any wealth tax return for the impugned assessment year as it considered that there is no taxable wealth. On the valuation date, i.e., as on 31.03.2008, Assessing Officer was of the opinion that the lands in question are Urban Lands within the meaning of assets falling under the provisions of Section 2(ea) of Wealth Tax Act, 1957. Upon rec .....

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d by an order dt. 28.11.2014. The Assessing Officer in the assessment proceedings relied on notification issued for GHMC on 16.04.2007 in which Qutubullapur Municipality, which was then separate municipality but not notified in the Central Government notification for wealth tax purposes, was clubbed into Hyderabad Municipal Corporation. Assessee objected in detail to submit that the contention of Assessing Officer that lands situated at Bachupalli (v) is within 8 KM of Greater Hyderabad Municipa .....

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t and used for agricultural operations from the scope of Urban Land . It was contended that the lands are agricultural lands in the records of Government and are used for agricultural purposes. 3.1. Assessing Officer however did not agree. His reasoning for rejecting the assessee contentions are as under : Regarding assessee's claim that the company's lands are situated beyond the limits of 8 KM of notified municipal limits of Hyderabad, the assessee's claim is not acceptable for the .....

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Dept. dated 16-04-2007 have issued orders to include the areas covered by the erstwhile 12 surrounding Municipalities Viz., 1. L.B. Nagar, 2. Gaddiannaram, 3. Uppal, 4. Malkajgiri, 5. Kapra, 6. Alwal, 7. Quthbullapur, 8. Kukatpually. 9. Serilingampalli. 10. Rajendranagar, 11. Ramachandrapuram and 12. Patancheruvu within the limits of Hyderabad Municipal Corporation and establish Greater Hyderabad Municipal Corporation. Besides, Govt. of A.P. have also issued order vide G.O.Ms. No. 249 to 260 dt .....

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ithin the stipulated 8 km. distance with regard to the said notified Corporation w.e.f. 16-04-2007 onwards. Whereas, in the instant case the assessee was in possession of 5.00 Acres. Land situated in 5y.No. 206/P of Bachupally (V) valued at ₹ 3,75,00,000 (guide line value ₹ 75,00,000 per acre) needs to be classified as urban land instead of Agl. Lands for the purpose of Wealth tax. In view of the above the assessee's claim is not acceptable hence rejected. 3.2. Accordingly, the w .....

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he circumstances of notification of GHMC to hold that land within 8 km of GHMC limits qualifies as a urban land in terms of section 2(ea)(v) as explained at Explanation l(b)(ii). In the Assessing Officer's reliance on the GO the Ld. A.R sees conflict being set up between a central enactment and a state enactment. It was vehemently argued that nothing in a 'State' enactment can trigger liability under a 'Central' tax. 07.4. An identical matter was decided in the case of M/s. M .....

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MCH by a different name and with extended jurisdiction. To see MCH and GHMC has two separate and mutually exclusive urban bodies is fallacious. Therefore, there is no need for a separate notification in the name of GHMC. • (The State Government acting within its powers renotified the jurisdiction of the Municipal Corporation of Hyderabad and gave it a different name. The Assessing Officer merely applied to Wealth Tax Act to the notified and existing Municipality with reference to the limits .....

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aws and Central law on these facts. 08.0 With regard to the assessee's claim the lands were agricultural in nature, the Assessing Officer records that the assessee was called upon to furnish documentary evidence in support of the claim. More specifically, the assessee was asked if he could produce bills/vouchers in support of purchases/ expenses incurred for such agricultural activities, or copies of sale bills evidencing sale of agricultural produce. The assessee claimed expenditure of S .....

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section 2(ea)(v) of the Wealth Tax Act, 1957 is, therefore, upheld by dismissing Ground No.3(a) and 3(b). 5. It was the contention of the Learned Counsel that - (a) Lands of assessee are agricultural lands. (b) They are situated in Bachupally village which was in the Qutubullapur Mandal and not in Qutubullapur Municipality. (c) The notification issued on 16.04.2007 including about 12 Municipalities i.e., 1. L.B. Nagar, 2. Gaddiannaram, 3. Uppal Kalan 4. Malkajgiri, 5. Kapra, 6. Alwal, 7. Quthbu .....

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illage Bachupalli was not yet covered in the notification dated 16.04.2007 considered by the Assessing Officer. (e) Even the G.O.Ms.No. No.416 dated 05.09.2013 was cancelled by G.O.Ms.No.12 dated 07.01.2004 by the Government of Andhra Pradesh, so at present Bachupally is still a Gram Panchayat and so the said notification referred does not apply at present. (f) The lands in question are not within 8 K.Ms of Municipal Corporation of Hyderabad. Learned Counsel relied on the Hon ble Karnataka High .....

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A) however, has no objection to set aside the matter, as subsequent developments are not within the knowledge of Assessing Officer. 7. We have considered the rival contentions. The issue whether the said lands fall within the definition of Urban land , so as to bring it to wealth tax require re-examination by the Assessing Officer in the light of the fact that Bachupally village is not in the Qutubullapur Municipality and also not one among the 8 Gram Panchayats notified in 16.04.2007 notificati .....

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