TMI Blog2018 (2) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the AO has not brought on 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. In the case of Commissioner of Wealth Tax Vs. D.C.M.Ltd. [ 2005 (2) TMI 97 - DELHI HIGH COURT] 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. Commissioner of Wealth Tax Vs.E.Udayakumar [ 2005 (10) TMI 64 - MADRAS HIGH COURT] held that agricultural lands situated within the limits of city corporation on which no construction is put up is not chargeable to wealth tax. The assessee s case squarely falls within the definition of agricultural land as well as the amended provisions of Wealth Tax Act, where construction is not permissible. Accordingly we hold that the lands in question are exempted for wealth tax u/s 2(ea), hence not chargeable to wealth tax. We are unable to sustain the orders of the lower authorities and allow the appeal of the assessee. - W.T.A. Nos.32-36/Vizag/2017 - - - Dated:- 21-2-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore this Tribunal. 4. Appearing for the assessee, the Ld.AR argued that the lands in question are agricultural lands and crops are grown in the agricultural lands as per the revenue records submitted before the AO in the form of adangal. Though the assessee could not furnish the pass book, the assessee has furnished the adangal copies evidencing that the lands in question are agricultural lands and the 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, the Ld.DR argued that the reliance placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land since the land particulars are recorded in sq.yds., but not on any factual findings. The report of the Ld. Tahsildar cannot be taken as factual report and suffering from many defects such as not making any personal inspection of the land by himself and not conducting any enquiries and the reply is based on field inspection report of the staff. The relevant A.Ys are 2008-09 to 2012- 13 relating to the F.Y. 2007-08 to 2011-12, but inspection was conducted on 20.03.2015 and the Tahsildar has not given any basis for coming to conclusion that no agricultural activities were conducted in the said lands. It appears that neither the Ld.Tahsildar nor the Field staff have conducted any enquiries regarding the factual position. Since the adangal is a revenue record and the assessee has filed affidavits from the tenant supported by Remote sensing instruments report we are unable to accept the AO s contention. In this case, neither the Tahsildar nor the AO himself has inspected the land. The land records clearly show that as per the Government records, the lands are agricultural lands. The sale deeds also substantiate that the lands in question were agricultural lands. There is no other e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow 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 Finance Act, 1993 and made effective from 1st April, 1994. We are dealing with the relevant assessment year for 1993-94. On the bare reading of the above provision, it is clear that urban land would not include a land, on which construction of a building is not permissible under any law for the time being in farce in the area where land is situated, or the land occupied by any building which has been constructed with the approval of the appropriate authority or in any unused lan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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