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TMI Blog2017 (9) TMI 1607X X X X Extracts X X X X X X X X Extracts X X X X ..... et within the meaning of Section 2(ea) of the Wealth Tax Act, 1957? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in concluding that the asset held by the assessee is not urban land coming within the definition of assets as defined under Section 2(ea) of the Wealth Tax Act based on the injunction order instituted vide O.S.No.248 of 2003 which was in vogue as per which status quo should be maintained till further orders when the assessee was not a party to that suit? 2. Heard Mr. J.V. Prasad, learned Senior Standing Counsel for the Department and Mr. A.V.A. Siva Karthikeya, learned counsel for the respondent. 3. The respondent-assessee filed a return of wealth on 17.09.2010 for the Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessee from putting a construction at that time, the land at Shaikpet will not come within the definition of expression "asset" under Section 2 (ea) of the Wealth Tax Act, 1957. Therefore, the Revenue has come up with the above appeal raising the above questions of law. 6. The first question of law that arises for consideration is as to whether the property at Shaikpet, Hyderabad, despite being an urban land, can be held to be not an asset within the meaning of Section 2(ea) of the Act. 7. Section 2(ea) of the Act defines the expression "assets" in relation to the assessment year commencing on the 1st day of April, 1993 or any subsequent assessment year, as follows: 2(ea) "assets", in relation to the assessment year commencing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t shall be deemed as excluded from the assets specified in this sub-clause; (iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes); (v) urban land; (vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account. Explanation-1, For the purposes of this clause, -- (a) "Jewellery" includes- (i) ornaments made of gold, silver, platinum or any other (i) precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones and whether or not worked or sewn into any wearing apparel; (ii) precious or semi-preciou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im 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. Explanation, -- For the purposes of clause (b) of Explanation 1, "population" means the population according to the last preceding census of which the relevant figures have been published before the date of valuation. Explanation 2, -- For the removal of doubts, it is hereby declare that "Jewellery" does not include the Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government." 8. It can be seen from the definition extracted above that an urban land squarely comes within the meaning of the expression "assets" under Section 2(ea). Explanation-1 to Section 2(ea) defines "Urban Land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the appellant/Revenue. 11. In a valiant attempt to sustain the ultimate conclusion reached by the Tribunal, Mr. Siva Karthikeya, learned counsel for the assessee contended that the Tribunal was wrong in holding against the assessee on the question as to whether the land would constitute "stock-in-trade" or not? In order words, the learned counsel sought to contend that the land was actually stock-in-trade. 12. But unfortunately, the assessee is not on appeal before us. It is the Revenue, which has come up with the above appeal. 13. Relying upon a decision of a Division Bench of the Gujarat High Court in Commissioner of Income Tax v. P.B. Corporation (2004) 266 ITR 548, the learned counsel for the assessee contended that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... joint development of a property, the owner merely agrees to part with 50% or whatever of his undivided share in the land, so as to enable the builder to put up construction and handover an agreed percentage of super built area. Agreements for joint construction are not akin to agreement of sale though they may also contain conditions of sale. For the applicability of Section 53A of the Transfer of Property Act, the act of handing over possession should have taken place in furtherance of the agreement of sale. The provisions of Section 53A are very clear. In cases of joint development, neither the builder nor the owner can claim benefit of Section 53A of the Transfer of Property Act. Therefore, Section 4(8)(a) of the Wealth Tax Act would ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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