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TMI Blog2018 (4) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that the asset is stock-in-trade. During the assessment proceedings, the assessee submitted that the assessee had entered into an agreement for development of the land with M/s Vulcon Project Developers Pvt. Ltd, hence argued that the land in question is stockin- trade and business asset, hence it is exempt u/s 2(ea) of Wealth Tax Act. Alternatively, the assessee submitted that the impugned property was in dispute and a civil litigation was raised vide O.S.No.248 of 2003 in City Civil Court, Hyderabad and there was an injunction order on impugned land as per which status quo should be maintained till further orders are passed or till the final decree in original suit on 13.10.2015. The land was under court injunction hence no activity should be taken place on the said land. Therefore, argued that construction of a building is not permissible by virtue of court order thus the property comes within the definition of exempted assets u/s 2(ea) of the Wealth Tax Act. However, the Ld.AO not being convinced with the explanation offered by the assessee held that the assessee neither did any business nor declared any income from the business of the impugned property, hence the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the orders of the authorities below. The factual matrix of the case which leads to levy of wealth tax is that assessee has purchased a land on 30.7.2007 and on the next day a MOU was entered into with the developer for developing the said land. The A.O. was of the opinion that the land held by the assessee is coming under the definition of urban land as defined u/s 2(ea) of the Act. The A.O. further was of the opinion that the assessee has purchased the land as an investor which was proved by his conduct that he had disclosed the said asset to the department as investment. It is the contention of the assessee that the land held by him is stock in trade which is kept outside the purview of the definition of asset u/s 2(ea) of the Act. The assessee further contended that he had purchased the land for the purpose of commercial exploitation which was evidenced by the fact that he had entered into a JDA on the next day of the purchase of land, therefore, it cannot be considered as asset for the purpose of wealth tax. It was further contended that just because he has disclosed the said land in the statement of affairs filed before the department under immovable properties would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y before the Hon'ble City Civil Court in O.S.No.248 of 2003, where, an injunction order was issued to maintain status quo, Hon'ble ITAT following the jurisdictional High Court order held that the property cannot be excluded from the definition of asset within the meaning of section 2(ea) of the Wealth Tax Act and accordingly confirmed the orders of the CWT(A). For ready reference, we extract relevant paragraphs of the order of the Tribunal in para No.13 to 14 which reads as under : 13. We have considered the arguments of the both the parties and perused the material placed on record. The above issue has been considered by the Hon'ble Jurisdictional High Court in the case of assessee in WTA 1 of 2017 dated 07.09.2017 and the issue is decided against the assessee and in favour of the revenue. For the sake of convenience and clarity, we extract relevant paragraph of the order Hon'ble Jurisdictional High Court cited supra. "6. The first question of Jaw 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t worked or sewn into any wearing apparel;- (ii) precious or semi-precious stores whether or not set in any furniture, utensils or other article or worked or sewn into any searing apparel; (b) "urban and" means land situate - (i) In any area which is comprised within the jurisdiction of a municipality (whether known as municipality, municipal corporation, notified area committee, town area committee , town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or (ii) in any area within the distance, measured aerially - (i) not being more than two kilometers, from the, local limits of any municipality or cantonment hoard referred to in sub-clause (I) and which has a populationof more than ten thousand but not exceeding one lakh ; or (ii) not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in sub-clause (I) and which has a Population of more than one Iakh but not exceeding ten lakb; or (iii) not being , more than eight kilometers, from the local referred to in sub-clause (C) and which has a Population of more than ten lakh, but does not include lan ..... 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