TMI Blog2017 (11) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... t value for the purpose of computing the wealth tax, if he is not satisfied qua the claim of the assessee that asset is exempt. Hence, Ground no. 1, is allowed for statistical purpose. Non-allowing deduction of debts - Held that:- This Tribunal in assessee’s own case pertaining to the Assessment Year 2006-07 held as no material on record to support the contentions raised by the ld AR which satisfies the above requirement of establishing the necessary nexus between the debt and the assets in question. Since we have set-aside the matter relating to determination of pieces of land/plot as eligible to wealth tax and the applicability of the exclusion clause, this issue is also set-aside to the file of the AO to examine the same afresh as per law - WTA No. 05/JP/2017 & 06/JP/2017 - - - Dated:- 31-10-2017 - Shri Kul Bharat, JM And Shri Vikram Singh Yadav, AM Assessee by : Shri Vijay Goel (CA) Revenue by : Shri A.S. Nehra (Addl. CIT) ORDER Per Shri Kul Bharat, JM These two Wealth Tax Appeals by the assessee pertaining to the Assessment Years 2007-08 2008-09 against the order of the Commissioner of Wealth Tax Appeals-I. Jaipur, dated 18/07/2017. WTA No. 05/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oval from JDA/permission of JDA, the same will be illegal construction and JDA may demolish it. Since as per the explanation 1(b) to the section 2(ea)(iv) of Wealth Tax Act,1957 provide that urban land does not include land classified as agricultural land in the records of the Government and used for agricultural purposes or land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated. ii. We further submit that the Jaipur Development Authority Act, 1982 was enacted under the Rajasthan State Legislature and received the assent of the president on 12th Day October, 1982 and hence become the statutory law. The Section 17(1) of The Jaipur Development Authority Act, 1982 related to taking permission from JDA before making development in Jaipur region is reproduced herewith:- Notwithstanding anything contained in any law for the time being in force, except with the previous permission of the Authority, no authority or person shall undertake any development within the Jaipur Region of the type as the Authority may from time to time specify, by notification published in the Official Gazette, and whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision of Hon'ble ITAT Mumbai in the case of Mars Hotels Resorts (P) Ltd vs DCWT. The facts of this case are not applicable to the case of assessee. In this case construction of Hotel building was permissible if the condition of development and maintenance of park is complied with. In this regard, it is worthwhile to reproduce the findings of Hon'ble ITAT in para 7.2 and 7.3 as under:- 7.2 Vide notification dated 12.11.1992 under the MRPA 1966, the land in question was reserved to the extent of 50% for park and the remaining 50% of the land to be deleted and included in C-I zone for specific purpose of development of hotel subject to the conditions that the parties should develop and maintain the park and shall keep them for general public during restricted hours. 7.3 Thus, vide the said notification, 50% land was kept as reserved for park to be developed and maintained by the assessee and subject to the said conditions, the remaining 50% of the land was deleted from the reserved category and allowed to be developed for hotel. It is to be noted that the assessee acquired the land in question vide order of the Company Law Board dated 30.1.1995 which me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stical purpose. 5. Ground no. 2 is against non-allowing deduction of debts of ₹ 1,04,59,830/-. 5.2 Ld. Counsel for the assessee submitted that under the identical facts, this issue was restored to the file of the AO to decided afresh by this Tribunal in assessee s own case and prayed that this issue may also be restored. 5.3 Ld. D/R supported the order of the authorities below. 5.4 We have heard the rival contentions. The assessee has made the following submissions which are reproduced as under:- 2.2.3 Submission of Assessee: (i) Without prejudice to submission in above para, if immovable property which were claimed as exempt by assessee is chargeable to Wealth Tax by Ld AO at their market value then from the aggregate of all assets, the value of debt of ₹ 1,04,59,830/-owned on the valuation date in relation to those assets which are included in net wealth of the assessee shall be deducted from the value of assets chargeable to Wealth Tax. Assessee has relied on the judgment CWT VS Gwalior Rayon Silk Mfg. (WVG.) Co. Ltd. [1981] 131 ITR 140 (MP). (ii) The Reliance is placed on the following decision:- (i) ITAT Jodhpur Bench in WTA No 1/J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h after deducting the debts so payable on the valuation date in the light of discussions as contained herein before from the value of assets held by the assessee in both the years under consideration. Therefore, in view of the decision of jurisdictional ITAT on same facts, debts incurred by the assessee for acquisition of these properties should be allowed as deduction. 5.5. Similarly, the issue was before this Tribunal in assessee s own case pertaining to the Assessment Year 2006-07 in WTA No.01/JP/2017 in that the Tribunal has decided this issue as under:- 13. We have heard the rival contentions and perused the material available on record. The requirement of law to determine the net wealth is to reduce the value of all the debts owed by the assessee on the valuation date which have been incurred in relation to the said assets which are exigible to wealth tax. The emphasis is therefore on debt in relation to the said assets . The assessee would therefore be required to substantiate with demonstrable evidence that the debt has been incurred in relation to such assets. In other words, the proximity or connection with the asset is sine qua non for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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