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TMI Blog2018 (2) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals, they are clubbed, heard together, disposed of by this common order for the sake of convenience. Since the facts are identical in all cases, the same are extracted from are WTA 32/Viz/2017 for the A.Y2008-09.. 2. All the grounds of appeal in this case are related to assessing the value of land admeasuring 1560 sq.yds in Survey No.170/1, Madhurawada for a sum of Rs. 85,19,500/- and 1754 sq.yds in Survey No.188/1, Madhurawada for a sum of Rs. 95,86,500/- aggregating to Rs. 1,81,06,000/- for wealth tax purposes. The assessee claimed the value of the above lands of Rs. 1,85,32,000/- as exempt u/s 2(ea) of Wealth Tax Act. The Assessing Officer (AO) during the assessment proceedings observed that the lands at Madhurawada are urban lands., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e details of various crops are grown and land revenue records categorize the said land as agricultural land. The Ld A.R further submitted that the land was agricultural land and the assessee has not taken any permission for conversion of land into non agricultural land and accordingly construction of a building is not permissible. The Ld.AR further submitted that as per the amendment made in the Finance Act, 2013 retrospectively, the land classified as agricultural land in the records of Government and used for agricultural purposes or the land on which construction of a building is not permissible under any law, is not included within the definition of urban land and accordingly it is exempted u/s 2(ea) of Wealth Tax Act. 5. Per contra, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that the lands in question were agricultural lands as per Government records and also submitted that various crops are grown in the agricultural land. The fact the lands in question were agricultural lands was supported by the report of RSI, an ISO Company independent surveyor. The assessee also furnished the tenancy agreement from G.Mallesu for payment of Rs. 4,000 per annum, per acre dated 22.02.2014 which was a notarised affidavit. Though the Ld.AO and the CWT(A) placed heavy reliance on the report given by Tahsildar, Visakhapatnam (Rural) for treating the lands in question as non agricultural lands, the Tahsildar Visakhapatnam has submitted report on 25.03.2015 on the basis of report submitted by the field staff dated 20.03.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o uphold the contention of the lower authorities that the lands are non agricultural lands and accordingly hold that the lands are agricultural lands and entitled for exemption u/s 2(ea) of WT Act. Further, section 2(ea)(b) was amended retrospectively w.e.f. 01.04.1993 as per Finance Act, 2013 as per which the lands on which construction of building is not permissible are excluded from the definition of urban land. For ready reference, we extract relevant section 2(ea)(b) of I.T.Act which reads as under : "6. Mr. Vishal Mohan, Advocate, for the appellant has drawn the attention of this Court to the amendment carried out in Section 2 (ea)(b) retrospectively w.e.f 1.4.1993, as per the Finance Act, 2013. It reads as under: "2 (ea)(b). "urb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record any evidence to show that the lands are converted. Once the lands are not converted as non agricultural lands, construction of building is not permissible. Hon'ble Delhi High Court in the case of Commissioner of Wealth Tax Vs. D.C.M.Ltd. (2007) [290 ITR 615(Delhi)] held that the urban land on which construction of building is not permissible and no permission till date had been granted by the appropriate authority, the lands are excluded from the definition of urban land chargeable to wealth tax. For ready reference, we extract the relevant paragraph of the order of the Delhi High Court in para No.6 which reads as under: "6. The provisions underlined, italicised in print, by us in the above provision were inserted by the Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking it a combination of land and building is not an urban land, then it could not be an asset as defined under S. 2(ea) or the Act. The result thereof would be not to treat the same as net wealth of an assessee for the Purposes of the provisions of WT Act. The first the WT Act. The first appellate authority had proceeded on the assumption that now orders of Supreme Court dt 1st May, 1991, qua redevelopment had been permitted of the mill area to flatted factory complex and group housing complex. Leave was also granted to demolish the existing building. It is not in dispute before us that till date no permission/approval has been granted by the appropriate authority to the asssessee to raise the building in consonance with the plans and as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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