TMI Blog2014 (7) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of WT Act were only considered by them and it was opined that the claim of the assessee was not within the ambits of the relevant provisions of WT Act; hence, the merits of the nature of the land were not examined. It was rightly so; because as per old law land of any nature if situated within the municipal limit was to be treated as “urban land”; then there was no need of further enquiry about the value of the land at that point of time. We, therefore, now deem it proper to restore this issue back to the file of AO to examine the merits of the claim on the basis of the evidence. Side by side, we hereby direct these appellants to furnish all the relevant evidences so that a correct view can be expressed by the learned AO. Since, the issue has been restored back; therefore, the grounds may be treated as allowed but for statistical purpose only. - WTA No. 3/Ahd/2011 & WTA No.4/Ahd/2011 - - - Dated:- 25-7-2014 - SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER Revenue by: Shri B.L. Yadav, Sr.D.R., Assessee(s) by: Shri A.L. Thakkar, A.R. O R D E R SHRI MUKUL KUMAR SHRAWAT (JUDICIAL MEMBER) In respect of these two ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in question is categorized as agricultural land in the revenue records. The assesses has not made any change with respect of the use of land. The land has not been converted into non agricultural. Moreover, it is further stated that even if the land is treated as urban land. The same is still not includible as asset within the meaning of section 2(ea) of WT Act. It has been specifically provided in the WT Act that land on which construction of a building is not permissible under any law or the land on which building is constructed with the approval of appropriate authority is outside the definition of urban land. The assessee says that the land referred to above are such that no construction can be made on the said land without changing the character of the land for which approval of the revenue authority is necessary. In view of the factual position, the lands even if situated within the municipal limits or within 8 KMS of municipal limit do not constitute urban land within the meaning of section 2(ea) of the WT Act. As the lands in question are not asset under the definition of section 2(ea), there is no escapement of wealth chargeable to tax as wrongly presumed in the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of our contention: a) CIT v. R. K. Mehra (2009) 184 Taxman (Pun. Har.) 4.1 However, learned CIT(A) was not convinced and held that the agricultural land is not exempt from taxable wealth if it is situated within 8 kms of the Municipal Limits. Learned CIT(A) has also opined that the construction was not prohibited on the lands owned by the assessee. Those lands should not be excluded from the definitions of Assets from wealth tax. The AO s action was confirmed. Now, the assessee is further in appeal. 5. From the side of the appellants, learned AR, Mr. A.L. Thakkar appeared. He has referred Section 2(ea) of W.T. Act and pleaded that an agricultural land even though within 8 kms. of the Municipal Limit does not fall under the category of urban land . He has informed that the definition of urban land has been changed by Finance Act, 2013 which was retrospectively amended w.e.f. 1.4.1993. According to the amended provisions the agricultural land has been excluded from the definition of urban land ; therefore, should not be treated as an asset for the purpose of taxation under WT Act. 6. From the side of the Revenue, learned Sr.D.R., Mr. B.L. Yadav has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2013 the above change had taken place in the provisions of WT Act which were made retrospectively from 1.4.1993. Our attention has also been drawn on an another amendment w.e.f. 01.04.2014 according to which there is an another change in the definition of urban land in clause (b) of Explanation 1 of Section 2(ea), however the position in respect of agriculture land remained the same that, quote but does not include land classified as Agriculture Land in the records of the Government and used for agriculture purposes unquote In view of the amended provisions now the legal position is clear that if the assessee is in a position to establish that the character of the land is an agricultural land although it is within municipal limits then such agricultural land cannot be treated as urban land so as to consider as an asset for the wealth tax purpose. We have noted that when the learned CIT(A) has passed the orders he was not having the benefit of the amended provisions; therefore, he has held that the agricultural land being within municipal area; hence, it was nothing but an urban land for wealth tax purpose. Had the amended provisions were before him then on this legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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