TMI Blog2020 (10) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... Addition of value of plot and the value of construction under progress - CIT(A) took the view that the value of building under construction is not exigible to Wealth tax - HELD THAT:- A careful reading of the provisions of sec.5(1)(vi) would show that it provides exemption of one house or part of a house or a plot of land. Hence exemption shall be available only for any one of the items mentioned in sec.5(1)(vi) of the Act, i.e., either for one house or for part of house or for a plot of land. If the assessee have already claimed exemption of one house, then, in our view, they cannot claim exemption for plot of land separately in addition to the house. A proviso is not a separate or independent enactment as contended by Ld A.R, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by this common order, for the sake of convenience. 2. The assessee is challenging the decision of Ld CIT(A) in confirming the validity of reopening of assessment and also in partially sustaining the addition made by the AO under Wealth Tax Act. 3. Smt. Gowri Mallikarjuna is the wife of Shri D U Mallikarjuna. Consequent to the search and seizure operations conducted in the hands of Sri D.U. Mallikarjuna on 15.3.2016 u/132 of the Income tax Act, it came to the notice of the revenue that both the above said assessees have not filed return of wealth. Accordingly, the AO (Wealth Tax Officer) reopened the assessment of the year under consideration in the hands of both the assessees by issuing notice u/s 17 of the Act. 4. During the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the AO has mentioned in the assessment order that the reasons have been furnished. Accordingly, it was prayed that the AO may be directed to furnish the reasons recorded by him for making effective representation. The said plea of the assessee was rejected by Ld CIT(A) by observing that the AO has duly followed the procedure prescribed in this regard. 6. We heard the parties on this legal issue. We notice that the AO has mentioned in the assessment order that he has duly recorded the reasons and the same was served upon the assessee. This observation of the AO, in the absence of any other contrary material, has to be considered as true. Before us also, the assessee did not furnish any material to disprove the observations made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld CIT(A) did not accept the contentions of the assessee. He decided this issue against the assessees. The observations made by Ld CIT(A) in this regard in the case of Shri D U Mallikarjua are extracted below:- 6.2 I have considered the submissions made and the materials on record. The first contention of the appellant is that the aforesaid site and building under construction would be exempt by virtue of the proviso to Section 5 (vi) of the Wealth Tax Act. It is contended that the wealth tax is not payable in respect of an asset being a plot of land comprising an area of 500 sq. mets or less. It is argued that only urban land exceeding 500 sq. mtrs., would be liable for wealth tax. I am not inclined to agree with the appellant s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alth tax Act, the wealth tax is payable on the value of those assets specified in sec. 2(ea) of the Wealth tax Act. However, section 5 of the Wealth tax Act provides exemption from payment of wealth tax from amongst the assets so specified u/s 2(ea), i.e., even if the assets fall under the category of specified assets, still no wealth tax is payable on the value of assets specified in sec. 5 of the Wealth tax Act. 13. In these cases, we are concerned with the provisions of sec.5(vi) of the Act. As per the said provision wealth-tax shall not be payable by an assessee in respect of the following assets and such assets shall not be included in the net wealth of the assessee, viz., ( vi ) one house or part of a house or a plot of land bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding an exception and taking out from the main provision, a portion, which, but for the proviso would be part of main provision. A proviso is not a separate or independent enactment as contended by Ld A.R, but it should be read along with the main provision as a whole, i.e., in construing an enactment containing a proviso, it is proper to construe the provisions together without making either of them redundant or otiose. A proviso must, therefore, be considered in relation to the principal matter to which it stands as a proviso. It cannot be considered as an independent provision foreign to principal provision itself. 17. In view of the above, we hold that the assessee cannot avail exemption for a plot of land, even if it is having an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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