TMI Blog2019 (9) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... e under any law for the time being in force the area in which land is situated. If it is ascertained that construction of a building is permissible, then ostensibly it will be held as taxable asset for the purpose of imposing wealth tax. However, if construction of a building is not permissible, then it shall be outside the scope of taxable asset. In view of the aforesaid position of law, we are of the opinion that this matter needs to be sent back to the file of the AO, who shall seek clarification from the Government authorities or the local authority as to whether the construction is permissible by any law in force on the land in which this asset is situated. Assessee will also try to obtain necessary certificates/Records from the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 11,03,68,870/- to the net wealth of the assessee by adopting the circle rate of the land as on 31.03.2014, which is not as per the rules laid down under Schedule III of the Wealth Tax Act, 1957. The action of the Learned Assessing Officer is wrong, illegal, misconceived, unjustified and bad at law therefore it should be quashed. 3. On the facts and in the circumstances of the case and in law, the Learned Assessing Officer has erred in charging interest U/S 17B of the Wealth Tax Act, 1957. The action of the Learned Assessing Officer is wrong, illegal, misconceived, unjustified and bad at law therefore it should be quashed. 2. The facts in brief qua the issue raised are that assessee owns a land sit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding is not permissible under any law for the time being in force. Assessee s detailed submission in this regard has been incorporated from pages 6 to 17 of the appellate order. Ld. CIT(A) has also called for the remand report from the AO, who submitted his remand report vide letter dated 30.11.2017 which too has been incorporated in the impugned order and also the rejoinder given by the assessee. Further, the AO was directed to refer the property to the DVO, who vide his report dated 9.8.2018 has estimated fair market value of the property at ₹ 11,36,75,000/-. Entire content of the valuation report has been scanned and incorporated in the impugned order, again on which, the assessee has given his detailed rejoinder on the DVO s re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no necessity or compulsion for the appellant to sell the entire chunk of land in one piece. As such, this plea of the appellant is also not acceptable. Accordingly, I determine the value of land in question at ₹ 11,36,75,000/-, against that determined by AO at ₹ 27,02,50,000/-. 4. After hearing both the parties at length and on perusal of the relevant finding given in the impugned order as well as material referred to before us, we find that the moot question before us is, whether the land being Khasra No. 335, Village Bandwahi, Gurgaon admeasuring 21.65 acres is a taxable asset for the purpose of wealth tax or not. The assessee s contention has been that this land is Gair Mumkin Pahar, that is, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 been constructed with the approval of the appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him 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. 5. The urban land which is treated as a capital asset for the purpose of imposing wealth tax must be that, firstly, the land should be in the area within the jurisdiction of the municipality etc., having a population of not less than 10,000; or secondly, in any area within s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter needs to be sent back to the file of the AO, who shall seek clarification from the Government authorities or the local authority as to whether the construction is permissible by any law in force on the land in which this asset is situated. Assessee will also try to obtain necessary certificates/Records from the authorities in this regard and cooperate with the AO and if it is found to be a waste land where construction is not permitted, then it should be removed from taxable asset. With this direction appeal of the assessee is allowed for statistical purposes. 6. In the result appeal of the appellant assessee is allowed for statistical purpose. Order Pronounced in the open court on 12th July, 2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
