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ITO, Ward-2 (3) , Jalgaon Versus Shri Anil Kasturchand Shah

2017 (12) TMI 262 - ITAT PUNE

Assessment of wealth including agricultural land - Addition made in the context of retrospective amended Explanation-1 to section (ea) of the Wealth Tax Act - Held that:- 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 highlighted portion above excludes two types of land from the definition of ‘urban land’. (1) The lands need to be classified in the Government records as an .....

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. - 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 of natural justice and also the issues of fairness, we remand this issue to the file of the CWT(A .....

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a Rao, AM There are 2 appeals of the Revenue under consideration for the Assessment Years 2008-09 and 2009-10. They are filed against the orders of CWT(A)-2, Nashik commonly dated 30-06-2017. 2. Before us, there is none to represent the case of the assessee despite the service of notice on 22-09-2017 on the assessee. There is no request for adjournment too. Considering the same, we are of the opinion that the appeals of the Revenue should be heard with the help of the Ld. DR for the Revenue and .....

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onsider 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 havin .....

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CWT(A) was justified in deleting the addition of ₹ 40,24,889/- which was made in the context of retrospective amended Explanation-1 to section (ea) of the Wealth Tax Act, 1957. 1.2 Whether on the facts and in circumstances of the case and in law, the Ld.CWT(A) was erred in interpreting the amended Explanation -1 to section 2(ea) of the Act is applicable in this case even though the land is not used for agricultural purpose. 5. At the outset, Ld. DR for the Revenue brought our attention to .....

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putation of wealth excluding the said agricultural land as an eligible deduction. In the assessment 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 .....

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es or land on which construction of a building is not permissible under any law for the time bring in force. . . . . . . . . . is excluded from the definition of Urban land . Such lands are exempt from the Wealth Tax. 6. In the present case, originally assessee disclosed the said land as classified as agricultural land and offered the same to wealth tax for the reason that the said land was not used for agricultural purposes. Subsequently, assessee excluded the same stating that the said land wa .....

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n of a building on the land . Ld. DR submitted that in fairness this issue can revisit to the file of CWT(A) for deciding the issue fresh keeping the above observation of the Ld. DR for the Revenue. 8. We heard the Ld. DR for the Revenue on issue limited issue and perused the material available on record. Regarding reliance 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 co .....

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nd the use of land for agricultural purposes within the meaning of definition under clause (b) of Explanation (1) to section 2(ea) of the Wealth Tax Act. For the sake of completeness, we proceed to extract the said sub-clause (b) of Explanation-1 and the same reads as under : Explanation [1) - For the purposes of this clause - (a) . . . . . . . . . (b) urban land means land situate - (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, mu .....

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y, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette. [but 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 or the land occupied by any building which has be .....

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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 the said definition, certain lands of urban land are not chargeable to Wealth Tax provided specified conditions are met. These conditions are highlighted by us in the definition extracted above. In our view, the highlighted port .....

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