TMI Blog2017 (12) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for claim of exclusion from the definition of an ‘urban land’. The second type of land for exclusion from the definition of ‘urban land’ relates to the land on which no construction of a building was permissible under any law for the time being in force. Such lands are also allowed for claim of exclusion from the definition of ‘urban land’. The present issue for adjudication before us relates to the first type of land which deals with the twin conditions of classification of a land as an agricultural land in the Government records and use of the said land for agricultural purposes. Considering all, we are of the opinion that the order of CWT(A) is required to be reversed for both the years. Therefore, considering the principles o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then AO issued the notice u/s.17 on 07-05-2012 after recording the reason. Assessee vide his letter dated 01-06-2012 requested to consider his original return of wealth filed on 20-03-2012 as return of wealth filed against notice u/s.17 of the Act. Further, assessee also filed revised return of wealth on 05-03-2014 declaring net wealth at ₹ 4,37,956/- against the net wealth of ₹ 45,33,609/-. AO completed the assessment u/s. 16(3) r.w.s.17 on 28-03-2014 and assessed the total Wealth of the assessee at ₹ 44,62,845/-. Assessed wealth includes an agricultural land situated at Gut No.l04/2, Nimkhedi Khurd having value at ₹ 40,24,889/-. AO treated the said lands as an asset chargeable to Wealth Tax. 4. Aggrieved with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the AO held that the said land was barren land and the same was never used for agricultural purposes. He fairly submitted that the said land is classified as an Agricultural land in the records of the Government. Ignoring the above facts relating to non-use of land for Agricultural purposes, the CWT(A) deleted the addition relying on the judgment of Hon ble Madras High Court in the case of CIT Vs. E. Udayakumar (supra). According to Ld. DR for the Revenue, the issue adjudicated by the High Court relates to the explaining of the expressions land on which construction of a building of the Explanation to the definition of urban land . This was relevant in the context of definition of Urban land . Bringing our attention to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the CWT(A) on the judgment of Hon ble Madras High Court in the case of CIT Vs. E. Udayakumar (supra), on facts, we find the said decision was rendered in the context of construction of a building on the land . 9. Coming to facts of this case, we find there was no building constructed by the assessee on a piece of land. However, concerned AO denied the exemption holding that there was a hospital constructed on an adjacent land. On these facts, the Hon ble Madras High Court held that the assessee was entitled to claim exemption from wealth tax. In our view, these facts and the ratio of the decision is not applicable to the present case where the issue revolves around the use of land for agricultural purposes within the meaning of def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him [ or any land held by the assessee as stock-in-trade for a period of [ten] years from the date of its acquisition by him.] 10. The Wealth Tax Act, 1957 defines the assets in clauses (e) and (ea) of section 2. The assets include the urban land as per subclauses (i) to (v) of section 2(ea). The Explanation 1 to the said section 2(ea) provides definitions for the Jewellery and the Urban land . The urban land is defined in clause (b) of the Explanation 1 to clause (a) of section 2 of the Wealth Tax Act. Relevant definition of urban land is already extracted above. According to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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